Falco Targets Horne Type High-Grade Copper-Gold Mineralization on Rimo Property

ROUYN-NORANDA, QC--(Marketwired - July 21, 2014) - Falco Pacific Resource Group Inc., soon to be Falco Resources Ltd., ("Falco") (TSX VENTURE: FPC) announced commencement of drilling on its Rivière Mouilleuse ("Rimo") copper-zinc-gold property, located 25 kilometres northwest of the city of Rouyn-Noranda (see Figure 1).

The Rimo property covers the only regionally extensive volcanic sequence in the Rouyn-Noranda camp featuring the same distinct geochemical characteristics as Falco's Horne Complex which hosts the Horne-Quemont high-grade, Cu-Au VMS system and Falco's Horne 5 deposit. Recent work by Falco has identified numerous near-surface conductive features within this sequence of "Horne-type" altered volcanic rocks which will be the focus of a multi-phase exploration program beginning with the testing of three targets in the current drill campaign.

"We believe Rimo has the potential to quickly become one of the most significant VMS properties, outside the Horne Complex, in the entire Rouyn-Noranda Camp," said Dr. Mike Byron, Vice President Exploration. "With a clearly defined "Horne-type" signature and limited historic access this large property has remained relatively underexplored. Our exploration team is to be commended for their innovative approach, which has led to the identification of a remarkable new opportunity within an historic mining camp."

Rimo Highlights

• Largest underexplored VMS setting in the Rouyn-Noranda mining camp and lithogeochemical similarities to the Horne Complex.
• Numerous shallow, recently identified and untested EM conductors.
• 2+ km long exhalative sequence, commonly associated with productive VMS horizons throughout the camp, that has never been drill tested.
• Presence of alteration typically associated with VMS deposits.
• Numerous zinc-rich showings - consistent with lateral placement to VMS mineralization.

Rimo and the Duprat Rhyolite

Rimo is underlain by a northeast-southwest striking package of felsic volcanic rocks distinct from any other sequence within the Noranda Camp as being most similar to the felsic volcanic rocks that host the Horne, Quemont and Horne 5 deposits.

A study of more than 75,000 surface lithogeochemical samples from throughout the Rouyn-Noranda camp establishes an excellent correlation between the Horne Complex and rhyolite sequence in the Rimo area, which was found to host the greatest number of "Horne-type" samples in the study (see Figures 2&3) (see Figure 4).

Historically, geophysical surveys in the Camp have been optimized for steeply dipping targets, similar to Horne 5. However, recent mapping has confirmed shallow dipping stratigraphy in association with a laterally extensive exhalative sequence on the Rimo property which would have been poorly tested by historic work. Surface EM geophysical surveys by Falco in 2013, configured to identify shallow dipping conductors have led to the identification of numerous shallow dipping and strongly conductive bodies in the Rimo area. None of these newly identified VMS targets have been drilled.