Shares of Falco Resources (CVE:FPC) surged more than 15 percent Thursday after unveiling a number of historical high grade intercepts within its Horne Complex in Quebec, outlining a total of 15 new gold targets and one base metal target near its prized Horne 5 deposit.
Of the highlights, the company reported 9.2 metres of 31.54 grams per tonne (g/t) gold as well as 3.0 metres of 42.69 g/t gold and 3.0 metres of 27.43 g/t gold in three separate holes.
Falco's strategy has been to compile historic data from previous operators and digitize the results, with the most recent drill intercepts generated from the digitization of over 460,000 metres of historic drilling conducted by prior operator Noranda when the famous Horne mine was in operation.
The junior explorer has over 80 years of proprietary archives on the Horne Complex area, with additional intercepts believed to be likely, Falco said.
"We continue to be very encouraged by the gold potential of the Horne Project," said president and chief executive officer, Trent Mell, in a release.
"For most of the Horne Mine's 50-year operating history, gold averaged less than US$45/oz, or less than US$300/oz in inflation-adjusted terms, so it is not surprising that Noranda did not follow up on high-grade gold intercepts.
"Falco plans to conduct an extensive six-month drill program in the coming months to validate historical findings -- particularly in the vicinity of the Horne 5 deposit."
Falco is one of the largest claim holders in the province of Quebec, with extensive land holdings in the Abitibi Greenstone Belt. It owns 72,800 hectares of land in the Rouyn-Noranda mining camp, which represents 70 percent of the entire camp and includes 14 former gold and base metal mine sites.
The claims include the former Horne Mine, which was operated by Noranda from 1927 to 1976 and produced 11.6 million ounces of gold and 2.5 billion pounds of copper. Falco is hoping to replicate this with its Horne 5 deposit, the largest undeveloped deposit in the region.
The 16 new targets announced today were not included in Falco's initial inferred mineral resource estimate for Horne 5, making them attractive targets for the potential expansion of resources.
Previous digitization work by Falco resulted in the identification of 11 gold zones, which were announced earlier in the summer, with the sheer volume of targets speaking to the potential of the Horne Complex, said the company.
An updated NI 43-101 compliant resource estimate is expected next year, following an extensive drilling program, it added.
In September, the company appointed Sean Roosen, the former chief executive of Osisko Mining and current CEO of Osisko Gold Royalties, as its new chairman, and last month raised a total of C$10 million via a private placement for exploration at its properties in Quebec.
Shares of Falco were last up 15.8 percent at 33 Canadian cents on Thursday as of 10:15am ET.