The Burton Gold 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 Trelawney'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 gold1 and 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. (which was subsequently acquired by IAMGOLD: IMG news release dated June 21, 2012) on its Burton Gold Property located in the Abitibi Greenstone/Swayze Extension Gold Belt in Northeastern.
Under the terms of the Agreement (originally announced February 23, 2012), IAMGOLD can earn up to a 75% interest in the Burton Gold Property through the successful execution of the following two stages:
1. IAMGOLD may earn a 51% interest in the Burton Gold Property by paying $150,000 in cash to Falcon Gold and completing $600,000 in exploration expenditures on or before February 16, 2013 (Phase 1 of the Option Agreement), and
2. 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 (Phase 2 of the Option Agreement).
Under the terms of the Agreement, Falcon Gold will act as operator for the Phase 1 of the Option Agreement and upon the completion of Phase 1, Falcon Gold and IAMGOLD may form a Joint Venture on the Burton Gold Property. Should IAMGOLD not complete Phase 2, they will retain their 51% interest in the Burton Gold Property and the Joint Venture Agreement will remain in place.
In May 2012, Falcon Gold began a program comprised of line cutting, I.P. and a soil sampling survey over the entire property, which will be followed by diamond drilling of selected targets identified. Upon the completion of the diamond drilling program, Falcon Gold will have fulfilled its Phase 1 responsibilities under the Burton Gold Property option agreement with IAMGOLD.