Vancouver — Farallon Resources (FAN-T, FRLLF-O) has lined up a $30-million financing to advance its Campo Morado polymetallic project in Guerrero state, Mexico.
The brokered private placement will have the company looking to sell $30 million worth of common shares through a syndicate of agents and will include an overallotment option for up to an additional $7.5 million of stock.
Farallon will allocate the funds for continued evaluation and project engineering at Campo Morado, specifically the construction of an underground exploration decline at the G-9 deposit.
Campo Morado consists of a series of precious metals-rich massive sulphide deposits. A late 2005 resource estimate on the Reforma, Naranjo, El Rey and El Largo deposits reviewed an indicated resource of 11.2 million tonnes grading 4.66% zinc, 0.67% copper, 1.44% lead, 2.67 grams gold per tonne and 166 grams silver, plus an additional 1.5 million inferred tonnes at 3.65% zinc, 0.88% copper, 0.79% lead, 1.98 grams gold and 119 grams silver. A US$90 gross metal value (GMV) per tonne cutoff was used in the estimates.
Discovery of high-grade volcanogenic massive sulphide mineralization at the G-9 deposit in mid-2005 has prompted the company to evaluate fast-tracking initial development of the zone, with the other deposits to follow. Farallon recently reviewed a preliminary G-9 resource estimate of 3.6 million tonnes averaging 8.3% zinc, 1.4% copper, 1.1% lead, 3.2 grams gold and 204 grams silver per tonne using the same US$90 GMV per tonne cutoff. Metallurgical testing of samples also indicates amenability to conventional flotation.
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