Take a Gander
- $9.56M Market Capitalization
Falcon Gold Corp. (FG.V) announced today that it has mobilized ground crews at the Company’s Gander North Project, located in, you guessed it, Gander, Newfoundland. To be more specific, Falcon Gold’s Gander North property is situated 25 kilometers (km) east of New Found Gold’s Queensway Project. Furthermore, the Company’s claims are contiguous to Gander Gold.
“The Gander Project is a contender, being perfectly situated on-trend in the heart of the action. The recent soil sampling released by Sassy is further validation our land positions are in highly prospective terrains; our interpretations show a high probability of continuation of a structural system runs through our ground,” said Karim Rayani, Chief Executive Officer of Falcon Gold.
For context, Gander Gold was previously held by Sassy Resources Gander Project, which Sassy Resources Corporation (SASY.C) had optioned from Shawn Ryan. To provide a brief biography, Ryan and his wife, Cathy Wood, used to make their living as professional mushroom pickers. The pair would scavenge Canada’s Northwest for rare mushrooms that they would then sell for a handsome sum.
Since his humble beginnings, Ryan has established himself as one of the world’s greatest gold prospectors. Supported by a mountain of wealth, he founded GroundTruth Exploration, a mineral exploration company. Before I get off track, what does this mean for Falcon Gold? As previously mentioned, the Company’s Gander North Project is contiguous to Gander Gold.
Through its subsidiary Gander Gold Corp., Sassy initially optioned five claim blocks from Shawn back on May 4, 2021. More recently, on January 27, 2022, Sassy announced highly prospective targets following a soil geochemistry analysis. Results from 3,170 soil samples revealed multiple northeast and east-northeast trending gold-in-soil anomalies across multiple zones of Gander North.
Highlights included 58 samples assaying between 50 ppb gold (Au) and 756.1 ppb, of which 23 samples contained values greater than or equal to 107.3 ppb Au. In Shawn’s words, “these first-pass soil results across broad areas of previously untested Gander North are exceptional for Newfoundland.” Furthermore, of the 5,000 soil samples that Gander North collected in 2021, many revealed values as high as 1,432 ppb Au.
Falcon Gold’s Gander North Project
Falcon Gold’s Gander North Project spans 10,150 hectares that are contiguous to Gander Gold. With this in mind, Sassy’s northeast-trending structural lineaments located immediately east are interpreted to continue onto Falcon Gold’s property. Thus far, interpretation of regional magnetics indicates north-northeast-trending, ophiolite-bearing thrust faults.
These thrust faults are crosscut by a series of brittle northeast-trending fault fractures. In other words, regional magnetics suggest that Falcon Gold’s regional setting is comparable to the gold mineralization models along the highly prospective eastern Exploits Subzone. It should be noted that Gander Gold’s soil samples containing 1,432 ppb Au were located in northeast-trending zones.
Spin-Out Transaction
On June 1, 2022, Falcon Gold announced its intent to spin out its Latin American subsidiary, Latamark Resources. The terms of the agreement have now been amended and finalized, however, the agreement is still subject to TSX Venture Exchange, regulatory, and court approvals. Additionally, Falcon Gold will need to obtain shareholder approval.
It is anticipated that Falcon Gold shareholders will be entitled to receive one common share of Latamark for every 5.8 common shares of Falcon Gold at the effective date of the arrangement. It should be noted that there will be no change in shareholders’ holdings in Falcon Gold as a result of this arrangement.
Falcon Gold’s share price opened at $0.08 today, compared to a previous close of $0.08. The Company’s shares were up 6.25% and were trading at $0.085 as of 12:53 PM EST.
