Farallon Announces Exploration Drill Results:
High grade zinc and precious metals continue to be discovered
5 m of 36% zinc, 2.9% copper & 13 m of 20 grams of gold/tonne in the North zone
Stratigraphic integrity of G-9 Abajo horizon model further confirmed
Three rigs are currently deployed - two surface drills and one underground drill - with two main objectives: to increase the resources around G-9 and to test for extensions of the G-9 Abajo zone to the north while, at the same time, testing for continuity of the stratigraphic horizon that hosts the Abajo zone to the north and northeast under the El Largo and Naranjo deposits.
The new results which include surface holes to hole 796 and selected "step out" holes drilled from underground, are listed in the attached Table of Assay Results. Hole locations are shown on the attached G-9 Drill Hole Location Map (http://files.newswire.ca/844/G-9HoleLocationMap.pdf). As well, two cross sections are attached, one that highlights the newly discovered extension of the North zone to the southeast of hole 522 (Section A - http://files.newswire.ca/844/SectionA.pdf) and, a general section (Section B - http://files.newswire.ca/844/SectionB.pdf) through the various deposits at Campo Morado, showing the spatial relationship between the Abajo stratigraphic horizon and the stratigraphic horizon that hosts the El Largo and Naranjo deposits. The Abajo horizon is wide open in several directions indicating the excellent exploration potential to the north of the main G-9 deposits.
Highlights are tabulated below:
TABLE OF ASSAY RESULTS - DECEMBER 16, 2009
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Estimated
Drill Hole From To Interval True Au Ag Cu Pb Zn
Number (metres)(metres)(metres) Width g/t g/t % % %
(metres)
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North West North Zone (Hole 690 Extension)
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UG-09-103 24.70 34.70 10.00 5.60 1.99 97 1.59 0.94 26.17
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UG-09-104 37.75 46.70 8.95 6.80 2.16 305 3.20 3.30 24.96
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UG-09-105 38.95 46.90 7.95 4.30 1.51 113 3.79 0.70 36.40
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UG-09-105 incl. 38.95 45.00 6.05 3.27 1.69 125 3.62 0.89 39.10
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UG-09-108 68.00 77.40 9.40 4.90 1.34 101 1.86 0.78 20.07
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UG-09-118 45.86 52.00 6.14 5.60 1.25 129 3.58 0.80 33.06
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UG-09-120 45.20 57.50 12.30 10.20 1.25 73 2.41 0.97 27.73
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UG-09-120 incl. 46.20 52.20 6.00 4.98 1.64 83 2.90 1.13 36.09
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South East North Zone (Hole 522 Extension)
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UG-09-134 188.13 203.65 15.52 10.70 1.98 154 1.46 1.50 12.52
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UG-09-134 incl. 193.00 203.00 10.00 6.44 2.32 169 1.67 1.24 16.02
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DDH 09-795 492.95 495.20 2.25 2.25 21.30 1165 0.69 4.23 7.95
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DDH 09-795 496.30 501.00 4.70 4.70 3.07 278 2.02 1.24 12.17
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Abajo Zone (West of Holes 607 and 608)
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UG-09-056 211.00 236.00 25.00 9.62 2.06 140 1.41 1.19 15.60
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UG-09-061 240.00 255.00 15.00 6.27 2.28 266 2.01 1.05 21.57
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Upper North Zone (Hole 486 Location)
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UG-09-060 60.00 89.15 29.15 13.42 19.67 1700 0.35 4.04 4.57
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UG-09-061 33.00 48.00 15.00 8.44 19.51 1004 0.35 4.69 4.18
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El Largo
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DDH 09-794 158.00 173.00 15.00 NA 0.10 30 3.24 0.08 0.23
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Note: NA = True Width not available.
Several highlights emerge from these results. First, the high grade potential of the G-9 deposit has been re-affirmed with outstanding grades of zinc being discovered in the northwest of the North zone (hole 690 extension) and excellent precious metal grades in the upper area of the North zone (hole 486). Underground hole 120 intersected 5 metres of 36% zinc, which is a new record in terms of zinc grade for G-9; however, the 13 metres of 20 grams of gold and 1,700 grams of silver per tonne intersected in underground hole 060 is also exceptional.
Secondly, the North zone and Abajo zones are both being extended. A new lens has been discovered by underground hole 134 and surface hole 795; this lens extends to the southeast of the North zone and confirms the results of hole 522 in this area. Intersections of massive sulphide mineralization in holes that appear to further extend this lens are currently being assayed. The attached section (Section A) through this new area shows the location of these new results. This lens (hole 522 extension) remains open in two directions.
Extensions have also been made to the Abajo zone. Underground holes 056 and 061 have extended the Abajo zone to the west, while some of the grades intersected are higher than previous Abajo intercepts, which is encouraging.
Thirdly, the stratigraphic separation of the El Largo deposit and Abajo zone has been further confirmed by the drilling. Section B shows the deeper Abajo horizon that is being tested and confirmed by these drill results. Hole 794 was drilled through both horizons, and intersected 15 metres of 3.2% copper in the El Largo horizon to the southwest of known El Largo mineralization before reaching the Abajo horizon. This also indicates the potential for higher copper grades in the El Largo deposit, a development that the Company will be investigating further as part of its ongoing drilling program.
President and CEO
"These excellent results indicate the continuing potential of the G-9 and Campo Morado district. The surprising new intercept of 15 metres of 3.2% copper at El Largo is very encouraging; however, the zinc and precious metal grades announced today for G-9 are exceptional. The extensions to the North and Abajo zones are proof of our ability to add resources in the immediate vicinity of G-9. The high grades also highlight the potential to find high grade lenses of very rich massive sulphides at G-9. These results continue to confirm our structural - stratigraphic model for the Campo Morado district and the ongoing exploration potential of G-9. Exploration is, once again, a part of the Farallon story going forward."
Underground drill holes are generally oblique to the section, or deposit being tested, and have a 12 - 15 metre drill spacing (at target). Surface drill holes are generally perpendicular to section, or the deposit being tested, and have a 25 metre drill spacing (at target). The combination of both surface and underground drill results is expected to continue for the foreseeable future.
The in-house qualified person for the drilling program and selection of samples for metallurgical testwork at Campo Morado is
Farallon's G-9 zinc, copper, silver, gold and lead mine at the Campo Morado Property in
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 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. There are no mineral reserves at Campo Morado and there is no assurance that the mineralization at Campo Morado will ever be classified as mineral reserves. 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.
Table of Assay Results
http://files.newswire.ca/844/AssayResults.pdf
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Estimated
Drill Hole From To Interval True
Number Deposit/Zone (metres) (metres) (metres) Width
(metres)
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UG-09-056 Abajo 211.00 236.00 25.00 9.62
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UG-09-056 Abajo incl. 213.00 230.00 17.00 6.54
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UG-09-060A North Zone 486 39.40 51.00 11.60 5.34
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UG-09-060A North Zone incl. 43.00 51.00 8.00 3.68
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UG-09-060A North Zone 486 60.00 89.15 29.15 13.42
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UG-09-060 North Zone incl. 67.00 81.00 14.00 6.40
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UG-09-060 Abajo 290.00 302.00 12.00 4.21
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UG-09-061A North Zone 486 33.00 57.00 24.00 13.51
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UG-09-061 North Zone incl. 33.00 48.00 15.00 8.44
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UG-09-061 Abajo 226.00 233.00 7.00 2.93
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UG-09-061 Abajo 240.00 255.00 15.00 6.27
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UG-09-061 Abajo incl. 244.00 255.00 11.00 4.60
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UG-09-103 North Zone 690 24.70 34.70 10.00 5.60
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UG-09-103 North Zone incl. 27.70 33.70 6.00 3.36
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UG-09-104 North Zone 690 37.75 46.70 8.95 6.80
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UG-09-105 North Zone 690 38.95 46.90 7.95 4.30
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UG-09-105 North Zone incl. 38.95 45.00 6.05 3.27
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UG-09-105 North Zone 690 53.15 56.90 3.75 2.03
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UG-09-108 North Zone 690 68.00 77.40 9.40 4.90
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UG-09-108 North Zone incl. 73.10 77.00 3.90 2.03
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UG-09-118 North Zone 690 45.86 52.00 6.14 5.60
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UG-09-120 North Zone 690 45.20 57.50 12.30 10.20
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UG-09-120 North Zone incl. 46.20 52.20 6.00 4.98
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UG-09-134 North Zone 522 188.13 203.65 15.52 10.70
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UG-09-134 North Zone incl. 193.00 203.00 10.00 6.44
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UG-09-138 North Zone 522 151.00 153.14 2.14 1.80
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UG-09-139 North Zone 522 163.35 169.60 6.25 3.70
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UG-09-140 North Zone 522 177.05 181.40 4.35 4.35
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UG-09-141 North Zone 522 186.25 192.95 6.70 4.70
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DDH 09-793 El Largo, No Significant Intercept
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DDH 09-794 El Largo 158.00 173.00 15.00 NA
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DDH 09-794 Abajo 292.77 293.15 0.38 0.38
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DDH 09-795 North Zone 522 492.95 501.00 8.05 8.05
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DDH 09-795 North Zone incl. 492.95 495.20 2.25 2.25
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DDH 09-795 North Zone incl. 496.30 501.00 4.70 4.70
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DDH 09-796 El Largo 115.80 119.80 4.00 4.00
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Drill Hole
Number Deposit/Zone Au g/t Ag g/t Cu % Pb % Zn %
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UG-09-056 Abajo 2.06 140 1.41 1.19 15.60
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UG-09-056 Abajo incl. 2.05 132 1.56 1.28 19.57
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UG-09-060A North Zone 486 13.47 498 0.48 2.30 1.71
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UG-09-060A North Zone incl. 16.20 542 0.35 3.11 2.30
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UG-09-060A North Zone 486 19.67 1,700 0.35 4.04 4.57
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UG-09-060 North Zone incl. 25.61 2,490 0.32 4.65 4.18
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UG-09-060 Abajo 2.81 165 0.85 0.70 8.96
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UG-09-061A North Zone 486 17.40 860 0.48 3.61 4.85
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UG-09-061 North Zone incl. 19.51 1,004 0.35 4.69 4.18
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UG-09-061 Abajo 2.67 171 0.60 1.53 12.97
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UG-09-061 Abajo 2.28 266 2.01 1.05 21.57
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UG-09-061 Abajo incl. 2.12 224 1.64 1.08 22.41
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UG-09-103 North Zone 690 1.99 97 1.59 0.94 26.17
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UG-09-103 North Zone incl. 2.30 111 1.61 0.97 32.13
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UG-09-104 North Zone 690 2.16 305 3.20 3.30 24.96
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UG-09-105 North Zone 690 1.51 113 3.79 0.70 36.40
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UG-09-105 North Zone incl. 1.69 125 3.62 0.89 39.10
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UG-09-105 North Zone 690 1.81 134 2.44 2.08 23.20
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UG-09-108 North Zone 690 1.34 101 1.86 0.78 20.07
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UG-09-108 North Zone incl. 2.00 100 2.93 1.01 38.21
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UG-09-118 North Zone 690 1.25 129 3.58 0.80 33.06
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UG-09-120 North Zone 690 1.25 73 2.41 0.97 27.73
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UG-09-120 North Zone incl. 1.64 83 2.90 1.13 36.09
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UG-09-134 North Zone 522 1.98 154 1.46 1.50 12.52
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UG-09-134 North Zone incl. 2.32 169 1.67 1.24 16.02
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UG-09-138 North Zone 522 3.68 167 0.82 0.62 6.45
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UG-09-139 North Zone 522 3.12 142 0.84 0.66 6.28
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UG-09-140 North Zone 522 3.73 228 0.99 1.39 10.43
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UG-09-141 North Zone 522 2.15 111 0.57 0.70 5.31
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DDH 09-793 El Largo, No Significant Intercept
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DDH 09-794 El Largo 0.10 30 3.24 0.08 0.23
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DDH 09-794 Abajo 1.35 217 1.48 4.48 22.06
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DDH 09-795 North Zone 522 7.75 488 1.37 1.90 9.33
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DDH 09-795 North Zone incl. 21.30 1,165 0.69 4.23 7.95
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DDH 09-795 North Zone incl. 3.07 278 2.02 1.24 12.17
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DDH 09-796 El Largo 2.38 175 0.93 1.18 4.67
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Note: NA = True Width not available.
For further information: on Farallon Mining Ltd., please visit the Company's website at www.farallonmining.com or contact Neil MacRae, Investor Relations Manager, at (604) 638-2160 or within North America at 1-877-688-2050
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