Falcon Gold Company (TSXV: FG) (FSE: 3FA) (OTC: FGLDF) (“Falcon” or the “Company”) is pleased to announce that it has entered into an option agreement to acquire a 100% interest in the property of West Hammond Contact (the “Property”), which consists of 156 mining claims (140 single-cell claims and 16 boundary claims) covering 3,067,918 hectareslocated within the prospective Atikokan-Hammond Reef gold district in northwestern Ontario.
“This acquisition represents another important milestone in Falcon’s strategy to build a region-wide gold exploration portfolio in northwestern Ontario. With our Central Canada Gold Project and the newly acquired 3,067,918 hectare West Hammond Contact property, Falcon now controls an important strategic land position across multiple structural corridors linked to the broader Atikokan-Hammond Reef gold district. As major mining companies and governments continue to invest in the region, we believe Falcon is well positioned to Good for unlocking value through exploration methodology, strategic land consolidation and new discoveries. said Karim Rayani, CEO and Director.
Covering 3,067,918 hectares, the West Hammond Contact Property significantly expands Falcon’s strategic land position within one of the most emerging gold regions in northwestern Ontario and complements the company’s flagship gold project in central Canada.
Figure 1. Location of Falcon Gold’s West Hammond contact property, relative to the Hammond Reef gold deposit within the Atikokan–Hammond Reef Gold District, northwestern Ontario, Canada.
The property is strategically located within the Atikokan-Hammond Reef gold district, covering a significant portion of the Finlayson greenstone potential belt and associated regional structural corridors. According to Agnico Eagle’s public disclosure, the Hammond Reef gold deposit hosts approximately 3.3 million ounces of potential gold reserves and an additional 2.3 million ounces of measured and indicated gold resources.
Management believes the importance of the Hammond Reef gold deposit highlights the prospects of the wider region. The West Hammond Contact property occupies a geologically favorable position within the same regional gold-bearing environment and covers interpreted extensions of major structural corridors, including parts of the Marmion Shear Zone. While mineralization similar to that found in the Hammond Reef area cannot be guaranteed to exist on the property, management believes that these geological characteristics support the potential for discovery of additional gold-bearing systems within the area.
Historical exploration has identified numerous gold occurrences, geochemical anomalies, and favorable rock contacts throughout the property. The company has also identified several priority target areas for continued exploration, including recommended geophysical targets for future induced polarization (IP) surveys.
As highlighted in Falcon’s corporate and exploration update, the company has refined its strategic focus towards northwestern Ontario and region-wide gold opportunities. The acquisition of the West Hammond Contact property is consistent with this strategy and strengthens Falcon’s position within the region.
Recent investments by major mining companies and government stakeholders across northwestern Ontario continue to highlight the region’s long-term potential. Falcon believes these developments support its strategy of assembling a district-level land position within the Atikokan-Hammond Reef gold district. By strategically consolidating high-potential territories along key regional structural corridors, the Company aims to enhance exploration opportunities while creating long-term shareholder value through disciplined exploration and new discoveries.
Planned exploration
Upon acceptance of the option agreement by the TSX Venture Exchange, Falcon intends to commence exploration, geological mapping, rock and soil sampling and advance priority targets identified through historical exploration and modern geological interpretation.
The Company believes the West Hammond Contact property represents a compelling exploration opportunity within the Atikokan-Hammond Reef Gold District and intends to systematically evaluate the property through an upstream exploration program.
Option Agreement Terms
Under the terms of the option agreement, Falcon may acquire a 100% equity interest in West Hammond Contact by making aggregate cash payments of 135,000 Canadian dollarstotal version 1,000,000 Ordinary sharesand incurred 600,000 Canadian dollars in Exploration expenses on the property during a four-year option period, subject to acceptance by the TSX Venture Exchange.
| timing | Cash payment | Common stock |
| Upon acceptance by the TSX Venture Exchange | 10,000 Canadian dollars | 250,000 |
| First anniversary | 25,000 Canadian dollars | 250,000 |
| Second anniversary | 25,000 Canadian dollars | 250,000 |
| 3rd anniversary | 25,000 Canadian dollars | 250,000 |
| Fourth anniversary | 50,000 CAD – | |
| the total | 135,000 Canadian dollars | 1,000,000 |
In addition to the cash and stock consideration, Falcon bears a minimum Worth 600,000 Canadian dollars In exploration Expenses on the property during the four-year option period.
When Falcon acquires a 100% interest in the property, the seller will retain 2.0% Net Smelter Revenue (“NSR”).
After exercising the option, Falcon must take action Down payment of equity of CAD 5,000 To the seller on every anniversary. These advance royalty payments shall be credited against future royalty payments payable under the 2.0% NSR royalty.
Falcon has the right to purchase at any time 50% of NSR equity (being 1.0% NSR) in the amount of CAD 1,000,000in accordance with the terms of the option agreement.
All cash payments, share issuances, exploration expenditure commitments and royalty provisions are subject to the terms of the option agreement and acceptance of the TSX Venture Exchange, where applicable.
Qualified person
The scientific and technical information contained in this press release has been reviewed and approved by Mike Kilburn, P.Geo., a qualified person as defined in National Instrument 43-101 – Disclosure standards for mineral projects. Mr Kilburn is an independent consulting geologist and is closely associated with the company.
Contact information:
Falcon Gold Company
Karim Rayani
CEO, Director
Phone: 604-716-0551
Email: (email protected)
Warning statement regarding neighboring properties
The Company cautions that mineralization, reserves and resources found on adjacent, nearby or geologically similar properties, including Agnico Eagle’s Hammond Reef gold deposit, are not necessarily indicative of mineralization that may be present on the West Hammond Contact property. References to nearby deposits are provided for regional geological context only.
Reference: Gold Deposit at Hammond Reef
- Agnico Eagle Mines Limited – Hammond Reef Project: Agnico Eagle Mines Ltd – Hammond Reef
About Falcon Gold Company
Falcon Gold Corp is a Canadian mineral exploration company focused on acquiring, exploring and developing precious metals and battery opportunities throughout the Americas, with a portfolio that includes established mining camps and emerging exploration areas. Its main asset, the Central Canada Gold Project, is located about 20 kilometers southeast of Agnico Eagle’s Hammond Reef gold deposit in northwestern Ontario. The project is located within the highly prospective Quetico Fault Zone, a major regional structural corridor that is interpreted as a key control element of gold mining in the region. The Hammond Reef deposits are associated with a northeast-trending structural system that links to this broader regional framework, highlighting the importance of the geological setting. The Central Canada property has a documented exploration and development history spanning more than a century. Early work between 1901 and 1907 involved the development of the shallow shaft and small-scale production of high-quality materials processed through stamp milling. Between 1930 and 1935, Central Canada Mines Ltd. The project was developed through deep underground development, interchange, and installation of a small-scale gold mill. Subsequent exploration programs included diamond drilling campaigns that returned numerous high-grade gold nuggets, supporting the presence of significant mineralization within the system. In addition to its flagship project, Falcon Gold maintains a diversified portfolio of Canadian exploration assets. This includes a 49% interest in the Burton Gold Property in partnership with IAMGOLD near Sudbury, Ontario, exploration-stage gold targets in British Columbia through the Spitfire and Sunny Boy claims, and the Great Burnt Copper-Gold Project in central Newfoundland.
Cautionary Language and Forward-Looking Statements
This press release may contain “forward-looking statements” and “forward-looking information” (collectively “forward-looking statements”) within the meaning of applicable securities laws, including, without limitation, statements regarding the timing and content of future work programs, including planned drilling programs, geological interpretations, receipt of title deeds, and other corporate and technical matters. Forward-looking statements are based on assumptions, expectations, estimates and projections as of the date of this press release and are subject to known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those expressed or implied herein. In some cases, forward-looking statements can be identified by terminology such as “may,” “should,” “intend,” “expect,” “plan,” “anticipates,” “believe,” “estimate,” “plan,” “potential,” “continue,” or the negative of these terms, or other similar terminology. Forward-looking statements in this press release may include, but are not limited to, statements regarding planned drilling activities at the Central Canada Gold Project, which currently has up to 20 drill holes permitted, and the interpretation and potential expansion of mining along structural trends within the project area. There can be no assurance that the Company’s exploration programs will continue as currently planned or that they will achieve their intended objectives. Forward-looking statements are by their nature subject to significant business, economic, competitive and geological uncertainties and contingencies. Actual results may differ materially from those currently anticipated. Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that plans, assumptions or projections will prove to be accurate.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
