Farallon announces new gold zones at G-9
Three Zones Identified so far with Inferred Resource of 225,000 tonnes at 8.6 grams of gold and 406 grams of silver
VANCOUVER, April 21 /PRNewswire-FirstCall/ - Dick Whittington, President and CEO of Farallon Mining Ltd. ("Farallon" or the "Company") (TSX:FAN) is pleased to announce the presence of high grade gold zones outside the current mineral resource (at a 5% zinc cut-off ) at the G-9 Mine at the Company's Campo Morado property in Guerrero State, Mexico.
High grade precious metal intercepts at G-9 have been reported in various news releases over the years, most recently in the Company's December 16, 2009 news release in which an intersection of 13 metres of 20 grams of gold was announced. Since that time, the Company has been actively investigating the geological continuity and stratigraphic location of these intercepts, particularly since underground drilling became a component of the ongoing exploration program at G-9. It is now apparent that there is a definite geological and stratigraphical correlation to the high grade gold and silver intercepts. The current results are based on drilling up to December 31, 2009, carried out in conjunction with the Company's recently released mineral resource and reserve estimate (news release dated March 29, 2010).
Three gold zones have been identified so far: one in the Southeast zone (Mining Area 8) and two in the North zone of G-9 (Mining Areas 4 and 9). The locations of the three gold zones are highlighted in the attached G-9 isopach map (http://files.newswire.ca/844/FAN_Apr2010.pdf) in a similar format as maps used previously to highlight the various zinc zones of G-9. A preliminary estimate of the inferred high grade gold and silver resources at various gold cut-off grades is given below:
TABLE OF GOLD RESOURCES
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Cutoff grade Tonnage Gold Silver Zinc Copper Lead
gpt gold (mt) (gpt) (gpt) (%) (%) (%)
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3 564,654 5.71 275.93 3.06 0.74 1.45
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5 225,038 8.63 406.65 3.32 0.72 1.82
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7 119,837 11.05 498.76 3.52 0.70 2.00
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Dick Whittington said: "This is an exciting new development for the Company as it shows that the G-9 mine and the Campo Morado District have the potential for high grade precious metal resources as well as the current high grade zinc resources upon which the G-9 mine was built. These resources are incremental to our recently announced mineral resources, and though small in tonnes, are high in precious metals content. Our challenge now is to find more of these high value resources and to define a metallurgical program to maximize their recovery."
Two sets of drill results are attached. Of the many higher grade intercepts previously reported, only those which represent the three precious metal bearing zones and lenses that have been identified to date, and that are close to existing mine workings with base metal values that would have excluded them from the mine plan, are reported here.
- Table 1 incorporates historical surface drill holes that have high
grade gold intercepts in them, and which correspond to the gold
zones highlighted in the attached map. The surface drill holes,
adjacent to Mining Area 8, are shown on the attached 3-D sectional
view of Gold Zone #1 in the Southeast zone of G-9 to illustrate
its relative stratigraphic location compared to the active mining
area. (http://files.newswire.ca/844/FAN_3D_Apr2010.pdf)
- Table 2 incorporates the recent results of the underground
drilling program in Mining Area 9 now called Gold Zone #3.
The Company has initiated a three pronged program to further identify, quantify and evaluate the economic potential of the new gold zones. First, an underground drilling program is underway to further delineate these areas. Second, mining plans will be reviewed to evaluate the implications of mining these zones in addition to the current mining plan. Third, a comprehensive metallurgical program will be initiated to assess the metallurgical characteristics of these zones and the optimum method to maximize the recovery of the gold and silver through the current G-9 mill.
The Mineral Resource estimates were compiled by David Gaunt, P.Geo, Vice President of Resources and Databases, Hunter Dickinson Services Inc., a qualified person who is not independent of the Company.
Daniel Kilby, P.Eng., General Manager, Exploration, Farallon Mining Ltd, is the qualified person who supervises the surface and underground geology programs on behalf of the Company. Acme Analytical is the analytical laboratory for the project; sample preparation is done in Guadalajara, Mexico and analysis is done in Vancouver, BC. All samples are assayed for gold by fire assay fusion with an Inductively Coupled Plasma - Atomic Emission Spectroscopy (ICP-AES) or gravimetric finish. Silver, copper, lead, zinc and 20 additional elements are determined for all samples by Aqua Regia digestion, followed by an ICP-AES finish. Silver values greater than 300 g/t were re-analyzed by Fire Assay Fusion gravimetric finish. Duplicates are analyzed by the Farallon G9 Mine Laboratory on site.
Farallon operates the G-9 zinc mine on its Campo Morado Property in Guerrero State, Mexico. G-9 is a 1,500 tonnes per day, underground, zinc mine with important by-product credits of copper, gold, silver, and lead. The Company is targeting to produce at an annualized production rate of 120 million pounds of zinc and 15 million pounds of copper per year.
ON BEHALF OF THE BOARD OF DIRECTORS
J.R.H. (Dick) Whittington
President & CEO
No regulatory authority has approved or disapproved the information contained in this news release
Forward Looking Information
This news release includes certain statements that may be deemed "forward-looking statements." All statements in this release, other than statements of historical facts, that address future production, reserve or resource potential, continuity of mineralization, exploration drilling, operational activities, production rates, costs to completion and events or developments that the Company expects, or is targeting, are forward-looking statements. Although the Company believes that the expectations expressed in such forward looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward looking statements and may require achievement of a number of operational, technical, economic, financial and legal objectives. The likelihood of continued future mining at Campo Morado is subject to a large number of risks, including obtaining lower than expected grades and quantities of mineralization and resources, lower than expected mill recovery rates and mining rates, changes in and the effect of government policies with respect to mineral exploration and exploitation, the possibility of local disputes including blockades of the company's property, the possibility of adverse developments in the financial markets generally, fluctuations in the prices of zinc, gold, silver, copper and lead, obtaining additional mining and construction permits, preparation of all necessary engineering for ongoing underground and processing facilities as well as receipt of additional financing to fund mine construction, development and operation, if needed. Such funding may not be available to the Company on acceptable terms or on any terms at all. For more information on the Company and the risk factors inherent in its business, investors should review the Company's Annual Information Form at www.sedar.com.
Information Concerning Estimates of Inferred Resources
This news release uses the term "inferred resources". Farallon advises investors that although this term is recognized and required by Canadian regulations (under National Instrument 43-101 Standards of Disclosure for Mineral Projects), the U.S. Securities and Exchange Commission does not recognize it. "Inferred resources" have a great amount of uncertainty as to their existence, and economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or pre-feasibility studies, or economic studies except for Preliminary Assessment as defined under 43-101. Investors are cautioned not to assume that part or all of an inferred resource exists, or is economically or legally mineable.
Table 1 - Selected Surface Drill Holes with High Grade Gold Intercepts
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Drill True
Hole Au From To Interval Width Au Ag Cu Pb Zn
Number Zone (metres)(metres)(metres)(metres) g/t g/t % % %
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5498 1 468.9 473.3 4.40 3.81 15.99 682 0.33 3.42 5.73
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7632 1 425.90 429.90 4.00 3.60 4.13 187 0.43 1.15 2.17
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7634 1 473.35 477.00 3.65 3.19 8.38 417 0.35 1.06 0.30
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7634 1 477.00 488.00 11.00 9.62 12.24 731 0.33 3.06 5.39
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7634 Incl. 481.00 485.00 4.00 3.50 14.69 861 0.34 3.68 5.01
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7652 1 419.85 422.95 3.10 3.10 6.94 568 3.88 1.92 14.00
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7669 1 400.90 404.62 3.72 3.56 4.05 283 0.46 1.70 4.43
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5486 2 549.30 576.50 27.20 26.50 16.02 609 0.90 1.01 5.22
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5486 Incl. 551.30 559.30 8.00 7.80 45.89 1555 0.29 1.34 2.46
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5486 Incl. 555.30 558.30 3.00 2.90 66.80 2233 0.25 1.50 2.03
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5510 2 573.90 585.90 12.00 11.74 11.10 639 0.82 1.95 7.64
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5510 Incl. 582.00 585.00 3.00 2.93 34.95 1930 0.70 2.86 5.78
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5510 Incl. 583.00 585.00 2.00 1.95 45.70 2653 0.62 2.90 6.25
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8739 3 436.00 438.00 2.00 2.00 13.38 501 0.52 5.00 4.83
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5474 3 460.12 464.90 4.78 4.78 13.60 834 0.41 3.66 4.30
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7671 3 570.00 578.00 8.00 8.00 10.21 373 0.58 2.38 1.73
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8743 3 411.70 414.90 3.20 3.19 8.92 411 0.37 2.46 10.96
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8743 3 437.00 438.00 1.00 1.00 6.41 439 0.65 5.00 11.30
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Table 2 - Selected Underground Drill Holes with High Grade Gold
Intercepts
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True
Thick-
Au From To Interval ness Au Ag Cu Pb Zn
Zone (metres)(metres)(metres)(metres) g/t g/t % % %
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*UG09-060 3 60 89.15 29.15 13.42 19.67 1700 0.35 4.04 4.57
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*UG09-061 3 33 48 15.00 8.44 19.51 1004 0.35 4.69 4.18
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UG09-151 3 35 37 2 2.00 9.17 762 0.76 5.49 4.00
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UG09-152 3 26.5 29 2.5 2.50 7.19 684 0.56 3.00 4.23
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UG09-153 3 26 33 7 7.00 12.29 511 0.70 5.41 3.56
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27 30 3 2.28 22.39 760 0.78 9.81 4.78
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UG09-154 3 23 26 3 2.80 6.62 283 0.47 1.37 2.90
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UG09-154 3 35 40 5 3.80 6.24 420 0.43 2.21 5.24
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UG09-156 3 37 40 3 0.25 5.41 330 2.05 1.30 3.03
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UG09-157 3 36 43 7 6.80 6.82 182 0.85 1.66 4.15
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UG09-158 3 57.7 60.7 3 2.90 5.98 385 0.54 1.73 1.37
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UG09-159 3 46 49 3 2.99 5.29 344 0.71 3.70 5.96
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UG09-160 3 23 28 5 4.90 8.19 451 0.34 2.20 0.52
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UG09-160 3 33 39 6 5.80 10.77 607 0.42 5.65 9.76
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Incl. 35 39 4 3.90 14.58 758 0.44 5.37 8.65
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UG09-161 3 26 46 20 14.63 9.77 372 0.36 2.11 5.06
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Incl. 27 32 5 3.66 20.44 532 0.28 2.76 4.04
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UG09-162 3 18.4 23.4 5 4.51 4.49 285 1.42 2.24 9.90
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UG09-162 3 33.4 37.5 4.1 3.70 10.88 383 2.08 1.94 4.98
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UG09-163 3 29.3 41.3 12 11.70 5.02 224 0.81 2.63 5.83
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UG09-166 3 54 58 4 4.00 3.01 176 2.00 2.25 7.32
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UG09-167 No Significant Intercept
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UG09-168 3 20.3 25.3 5 2.30 3.79 212 1.13 2.27 5.73
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38.4 44.4 6 2.80 15.37 858 0.48 4.01 7.07
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UG09-169 3 24.5 26.5 2 1.40 16.88 629 0.33 1.37 2.32
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31.2 49.2 18 12.70 16.18 952 0.36 3.05 4.48
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UG09-170 3 25.5 39 13.5 11.98 15.95 512 0.42 2.02 3.51
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Incl. 30 38 8 7.10 23.05 744 0.35 2.00 2.96
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UG09-171 3 29.4 43 13.6 2.60 6.45 232 0.78 2.14 3.74
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* Note results for these holes were released in December 2009
SOURCE Farallon Mining Ltd.
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