The Burton Property is located in the Swayze Greenstone Belt, Northeastern Ontario, approximately 150 kilometres (km) south of Timmins and 180 km north of Sudbury. The road-accessible property is well-positioned in a very actively explored geological belt and is approximately 38 kms northwest of IAMGOLD Corp's Cote Lake Deposit which has an indicated resource of 35 million tonnes averaging 0.82 g/t for contained gold of 0.93 million ounces and an inferred resource of 204 million tonnes averaging 0.91 g/t for 5.94 million ounces of contained gold. The Property is also located approximately 10 km northwest of the past producing Jerome Gold Mine which produced 56,878 ounces gold from 1941 to 1943 (303,966 tonnes @ 6.72 g/t)2.
Historical diamond drill intercepts at the Burton Property include 9.34 grams per ton ("g/t") over an intersection length of 7.75 metres ("m") at the Shaft Zone and 12.47 g/t over an intersection length of 3.13 metres at the East Zone. Diamond drilling completed by Falcon Gold during 2011 included 3.74 g/t Au over an intersection length of 9.96 m (including 10.98 g/t Au over 2.17 m) and 3.25 g/t Au over an intersection length of 10.35 m (including 5.65 g/t Au over 2.85 m) at the Shaft Zone (Press Releases of July 27/2011 and September 12/2011.)
In March, 2012, Falcon Gold announced the finalization of a Mining Option Agreement with Trelawney Mining and Exploration Inc. (subsequently acquired by IAMGOLD Corp.) on the Burton Property.
Under the terms of the Agreement, IAMGOLD can earn up to a 75% interest in the Burton
Property through the successful execution of the following two stages:
- IAMGOLD may earn a 51% interest in the Burton Property by paying $150,000 in cash to Falcon Gold and completing $600,000 in exploration expenditures on or before February 16, 2013 (completed), and
- IAMGOLD may earn an additional 24% interest by incurring an additional $600,000 in exploration expenditures on the property on or before February 16, 2014 (uncompleted).