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G-9 : Underground Exploration

The exploration potential on the Campo Morado property is still untapped. Now that the Company is mining underground in the G-9 area, this allows us many more opportunities to explore in and around the G-9 deposit. The Abajo zone at G-9 is part of a stratigraphic horizon 200 metres under the other deposits at Campo Morado that currently hold over 13 million tonnes of indicated resource. The exploration potential of this stratigraphic horizon, has significant upside in terms of adding to the G-9 resource. This stratigraphic horizon will be revisited in the near future, we anticipate commencing underground exploration, along with surface exploration, in the fourth quarter of this year. The Campo Morado area has the makings of a world-class district for base metal mining. The Company will continue to explore the area to add to the resource base at G-9 and to look for the next potential G-9 mine.


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The area of immediate focus for Farallon is to delineate further resources within the G-9 deposit that will allow us to carry on with and build on our existing mine plan that calls for the mining of approximately 550,000 tpy with grades of +/- 10% Zinc. With promising areas immediately available for underground exploration, the Company's intention is to prove up more resources at G-9 to extend the mine-life. Now that we are right in the centre of the G-9 zone and currently mining at several different faces the opportunity for underground exploration becomes more efficient and less costly. In short, the time horizon for additional discoveries has now been reduced considerably.


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G-9: Exploration Overview Underground Exploration Resources Drilling Results

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