Falco Resources – Letter to Shareholders
Since joining Falco Resources about a month ago as President and CEO, I have been hard at work getting to know my team, reaching out to the investment community and executing on our strategic plan. I am pleased to share with you a new investor presentation outlining Falco‘s value proposition and some of the work programs currently underway. To access this presentation please click here: Falco Presentation
Allow me to single out a few highlights for you:
- The release of a maiden mineral resource estimate on the Horne 5 deposit was significant in two respects. First, we believe that the 2.2 million ounce inferred gold resource (25.3 Mt grading 2.6 g/t Au, 0.23% Cu and 0.7% Zn) proves our thesis that the entire Rouyn-Noranda mining district deserves a second look as a gold camp. Second, we have a clear roadmap to continue growing the Horne 5 resource, which could culminate in an updated mineral resource estimate in Q2 2015. The Horne mine was one of the largest VMS deposits to have ever been mined and it was the most prolific in terms of gold production, which underpins our confidence.
- Having proven our gold thesis, Falco is now settings its sights on the rest of our 728 km2 land package, which accounts for approximately 70% of the Rouyn-Noranda mining district. To that end, we are in the midst of a $2.2 million regional exploration program that includes a number of targeted initiatives designed to follow up on encouraging historical data.
- In tandem with gold exploration, we believe that there are also opportunities for copper and zinc discoveries in the camp. The Rimo property (Rivière Mouilleuse) is one of a number of strong targets, as it features the same distinct geochemical characteristics as the Horne Complex and we believe it has the features of a significant VMS environment. Drilling on Rimo commenced about week ago.
- In conjunction with field work, we continue to leverage 80 years of historical Noranda data. With the assistance of InnovExplo, many months of painstaking digitizing, compilation and analysis have yielded impressive results, including the recent identification of 11 new gold zones and numerous other gold intersections in the Horne Complex area, which we will release in the upcoming weeks.
Before concluding, I would like to acknowledge the hard work and dedication of the Falco team. We achieved impressive results during our first 18 months with this land package. Dr. Mike Byron, our Vice President of Exploration, and Mr. Stephan Poitras, who heads our team in the Abitibi, have been methodical and thoughtful with our exploration activities and I am confident that we will end 2014 with a much better appreciation of the opportunities within our extensive land package. We are fortunate to have an abundance of targets to pursue and we will continue to employ a strategy of leveraging our proprietary 80-year database as a guide for our mapping, prospecting and exploration activities.
I welcome any feedback that you may have and we look forward to keeping you apprised of our progress.
President & CEO
Falco Resources Ltd.
Cautionary note concerning inferred resources: Please note that while the term inferred resource is recognized and required by Canadian regulations, the U.S. Securities and Exchange Commission does not recognize it. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or other economic studies. U.S. investors are cautioned not to assume that all or any part of an inferred mineral resource exists, or is economically or legally mineable.