Falcon Gold Corp (CVE:FG) has bolstered its portfolio by acquiring the Springpole West property, which lies in the Red Lake area of Ontario and is next to First Mining Gold Corp's (TSE:FF) Springpole gold deposit.
The asset spans 4,440 hectares and comprises 197 claims, the most northeastern of which lie less than 4 kilometres (km) from the First Mining deposit.
The project covers 13.5km of strike and previous work has indicated significant gold and silver values at surface and at depth.
"Falcon continues to add significant shareholder value by acquiring projects with demonstrated potential in proximity to larger players such Agnico Eagle Mines at Central Canada and now with Springpole West and First Mining," Karim Rayani, Falcon's CEO said in a statement.
"With First Mining improving the local infrastructure in partnership with local First Nations communities and the Ontario Government, the company identified the rising potential of the area that prompted us to aggressively acquire this large package of gold and silver mining claims.
"Our next steps will focus on collection and digitizing of all available historical work in order to plan and initiate Falcon's work programs as soon as practical," the CEO added.
Falcon noted that First Mining's Springpole deposit was regarded as one of the largest undeveloped gold projects in Canada, and its new asset contains the same geological terrain.
First Mining completed a preliminary economic assessment late last year, showing a higher confidence indicated resource of 139.1 million tonnes (Mt) grading 1.04 grams per ton (g/t) gold and 5.4 g/t silver, containing 4.67 million ounces of gold and 24.19 million ounces of silver.
At Springpole West, Sherritt Gordon Mines hit 19.40 g/t of gold over 30 centimeters in a diamond drill hole in 1979.
In addition, massive sulphide pods along the fault zone have reportedly been exploited by past operators with surface grab samples returning up to 8.38% zinc, 16 g/t silver and 0.05 g/t gold.
Falcon Gold is focused on exploring opportunities in the Americas. The flagship asset is the Central Canada Gold mine, which sits 20km south-east of Agnico Eagle's Hammond Reef Gold deposit.
Shares in Falcon Gold in Toronto slipped nearly 9% to C$0.16 each.
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