| | Mineral Resources Increased,
87% of Southeast Zone in Measured and Indicated Categories
January 31, 2008, Vancouver, BC - Dick Whittington, President and CEO of Farallon Resources Ltd. (TSX:FAN; OTCBB:FRLLF) ("Farallon" or the "Company"), is pleased to provide the results of a recent resource estimate for the G-9 deposit at the Campo Morado polymetallic (zinc, gold, silver, copper, lead) project in Guerrero State, Mexico.
The currently outlined dimensions of the G-9 deposit are approximately 1,000 metres by 650 metres. The maximum thickness of the deposit is 45 metres, and averages 10 to 20 metres. The deposit currently consists of four massive sulphide bodies (Southeast, Southwest, North and Abajo). Stringer mineralization in the footwall of these bodies has been modeled as a series of replacement zones. The current estimate is based on drilling to October 2007, including 134 drill holes which define and delineate the massive sulphide and replacement zones. The analysis utilized 3-dimensional modeling techniques, and estimation parameters based on prior experience at Campo Morado. The resource estimates were done using geostatistical methods.
The table below includes new estimates for the Southeast zone and the replacement zone in the footwall of the Southeast zone, and the first estimate for the Abajo zone that was discovered by drilling in 2007.
SOUTHEAST, ABAJO, SOUTHEAST AREA REPLACEMENT ZONES MINERAL RESOURCES JANUARY 2008Category | Cutoff Zn% | Tonnes | Grade | Zn % | Au g/t | Ag g/t | Cu % | Pb % | SOUTHEAST ZONE | Measured | 2 | 593,000 | 10.7 | 3.42 | 257.5 | 1.50 | 1.49 | | 5 | 491,000 | 12.2 | 3.44 | 257.9 | 1.56 | 1.52 | | 8 | 351,000 | 14.5 | 3.28 | 243.1 | 1.69 | 1.55 | Indicated | 2 | 829,000 | 11.4 | 2.94 | 220.2 | 1.69 | 1.26 | | 5 | 685,000 | 13.1 | 2.60 | 207.5 | 1.90 | 1.20 | | 8 | 518,000 | 15.2 | 2.28 | 189.1 | 2.04 | 1.18 | Measured + Indicated | 2 | 1,422,000 | 11.1 | 3.14 | 235.7 | 1.61 | 1.36 | | 5 | 1,175,000 | 12.7 | 2.95 | 228.5 | 1.76 | 1.33 | | 8 | 869,000 | 14.9 | 2.68 | 210.9 | 1.90 | 1.33 | Inferred | 2 | 205,000 | 9.7 | 1.45 | 97.7 | 1.60 | 0.52 | | 5 | 192,000 | 10.2 | 1.31 | 89.1 | 1.65 | 0.48 | | 8 | 129,000 | 11.8 | 1.35 | 95.4 | 1.72 | 0.55 | ABAJO ZONE | Indicated | 2 | 376,000 | 9.0 | 2.51 | 174.4 | 0.94 | 1.17 | | 5 | 313,000 | 10.1 | 2.40 | 181.2 | 0.96 | 1.28 | | 8 | 197,000 | 12.1 | 2.38 | 186.0 | 1.05 | 1.27 | Inferred | 2 | 337,000 | 9.6 | 2.98 | 226.1 | 1.02 | 1.37 | | 5 | 316,000 | 10.0 | 2.98 | 229.7 | 1.02 | 1.39 | | 8 | 233,000 | 11.1 | 3.07 | 251.4 | 1.10 | 1.33 | REPLACEMENT ZONE – Southeast Area | Inferred | 2 | 61,000 | 5.9 | 0.59 | 72.5 | 1.00 | 0.26 | | 5 | 23,000 | 9.0 | 0.36 | 56.5 | 1.03 | 0.16 | | 8 | 18,000 | 9.7 | 0.36 | 34.9 | 1.13 | 0.10 |
Notes: Mineral resources that are not mineral reserves do not have demonstrated economic viability.
A 5% Zn cutoff was used for a December 2007 preliminary assessment; detailed engineering studies will determine the best cutoff.
At a 2% zinc cutoff, Southeast zone resources have increased to 1,422,000 tonnes of measured and indicated resources plus 205,000 tonnes of inferred resources as compared to 1,460,000 tonnes of inferred resources in November 2006 at comparable grades (see Farallon's November 14, 2006 news release). In addition, there are 376,000 tonnes of indicated plus 337,000 tonnes of inferred resources outlined in the Abajo zone.
Dick Whittington said:
"The results of the new resource estimate demonstrate the robustness of the G-9 deposit. We have upgraded 87% of the mineral resources in the Southeast zone to measured and indicated categories as well as adding to the overall resources for the zone. We have also added to the overall mineral resources of the deposit through the discovery of the Abajo zone, which is open to further expansion."
The table below shows the total resources for the G-9 deposit. The table includes the January 2008 resources for Southeast, Abajo, and Southeast Area Replacement zones (as shown above) and the November 2006 resources for Southwest, North and North Area Replacement zones. (Further details from the November 2006 estimates for the latter zones are tabulated at the end of this release).
G-9 DEPOSIT MINERAL RESOURCES ALL ZONES Category | Cutoff Zn% | Tonnes | Grade | Zn % | Au g/t | Ag g/t | Cu % | Pb % | Total Measured | 2 | 593,000 | 10.7 | 3.42 | 257.5 | 1.50 | 1.49 | | 5 | 491,000 | 12.2 | 3.44 | 257.9 | 1.56 | 1.52 | | 8 | 351,000 | 14.5 | 3.28 | 243.1 | 1.69 | 1.55 | Total Indicated | 2 | 1,205,000 | 10.6 | 2.81 | 205.9 | 1.46 | 1.23 | | 5 | 997,000 | 12.1 | 2.54 | 199.3 | 1.61 | 1.23 | | 8 | 715,000 | 14.3 | 2.31 | 188.2 | 1.77 | 1.20 | Total Measured + Indicated | 2 | 1,798,000 | 10.7 | 3.01 | 222.9 | 1.47 | 1.32 | | 5 | 1,488,000 | 12.2 | 2.83 | 218.6 | 1.59 | 1.32 | | 8 | 1,066,000 | 14.4 | 2.63 | 206.3 | 1.74 | 1.32 | Total Inferred | 2 | 4,680,000 | 6.3 | 2.83 | 179.2 | 1.14 | 0.98 | | 5 | 2,528,000 | 8.8 | 3.15 | 205.6 | 1.36 | 1.21 | | 8 | 1,256,000 | 11.2 | 3.10 | 213.2 | 1.52 | 1.03 |
Mineral resources that are not mineral reserves do not have demonstrated economic viability.
A 5% Zn cutoff was used for a December 2007 preliminary assessment; detailed engineering studies will determine the best cutoff.
Drilling continues at the North zone. Once the results are compiled and modeled, a new estimate for the North zone will be completed.
The resource estimates were completed for Farallon by the geological staff of Hunter Dickinson Inc. The qualified person for the resource estimate is David Gaunt, P.Geo., who is not independent of the Company. The mineral resource classifications for the January 2008 estimates were assessed by independent qualified person Qingping Deng, CPG, of Behre Dolbear & Company (USA), Inc. The qualified persons reviewed and approved the contents of this news release.
Farallon's drilling programs include rigorous quality assurance and quality control procedures under the supervision of Daniel Kilby, P.Eng., a qualified person. ALS Chemex is the analytical laboratory for the project; sample preparation is done in Guadalajara, Mexico and analysis is done in Vancouver, BC. All samples are assayed for gold by fire assay fusion with a gravimetric or Atomic Absorption (AA) finish. Silver, copper, lead, zinc and 27 to 30 additional elements are determined for all samples by acid digestion, followed by an AA or ICP finish. Duplicates are analyzed by Acme Analytical Laboratories in Vancouver.
Farallon is advancing the G-9 deposit through a parallel track program. Exploration drilling is expanding and confirming the high-grade mineralization within the G-9 deposit, and mine planning and design, equipment acquisition and site preparation activities are also taking place with the goal of beginning production in July 2008. The Company has a cash position of US$33 million, held in interest earning current accounts with Scotiabank, to support its ongoing programs.
For further details on Farallon Resources Ltd. and its Campo Morado property, please visit the Company's website at www.farallonresources.com or contact Investor Services at (604) 684-6365 or within North America at
1-800-667-2114.
ON BEHALF OF THE BOARD OF DIRECTORS
/s/ J.R.H. (Dick) Whittington
J.R.H. (Dick) Whittington
President and CEO
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