- 01Maiden RC at Olsen Well: 50 holes, 6,000m.
- 02Core zone 2.5km; >50ppb gold; part of 5.8km >10ppb soil.
- 03WA EIS rebates 50% to $180k; first drill test.
Falcon Metals (ASX: FAL) has kicked off a maiden reverse circulation campaign at the Olsen Well large-scale target within its Errabiddy gold project in Western Australia.
Drilling of 50 holes for 6,000 metres in a central zone of 2.5 kilometres grading more than 50 parts per billion gold that is part of the broader 5.8km-long target defined by >10ppb gold-in-soils and including values of greater than 1 gram per tonne gold.
The campaign is supported by the WA government’s exploration incentive scheme, with Falcon to receive a 50% rebate on drilling costs up to $180,000.
Managing director Tim Markwell said drilling represented the first drill test of the large gold target defined through systematic surface exploration.
Errabiddy Exploration
The Errabiddy project comprises wholly owned exploration licence E09/2984 and the adjoining E09/2457, where Falcon can earn a 70% interest (excluding graphite rights) from West Coast Silver (ASX: WCE).
Falcon identified the Errabiddy shear zone as a highly prospective structure for hosting large-scale craton-margin gold deposits, with historical stream sediment anomalism identifying the Olsen Well gold target.
The company then secured an option over the project when it recognised the significant exploration upside of the underexplored district, and has since completed multiple phases of surface geochemical sampling and more recently confirmed anomalous gold in bedrock, increasing confidence in a potentially significant mineralised system.
Two close-spaced traverses across the south-western portion of Olsen Well defined a coherent 30m-wide zone of bedrock anomalism, with four rock chip samples returning >1g/t gold including a peak result of 6.42g/t.
Mr Markwell said the traverses tested only a small portion of a broader 1.5km-long >25ppb gold-in-soil anomaly containing internal zones grading >50ppb and >100ppb gold, and that Falcon expects the results to provide confidence in targeting for the maiden campaign.
August Share Placement
The Olsen Well campaign is being partly funded by a $30m share placement in August supported by new and existing high-quality institutional and sophisticated investors.
It involved the issue of 50 million shares priced at $0.60 each, representing a 5.1% discount to the 15-day volume weighted average price of $0.63.
Proceeds were primarily earmarked for Falcon’s exploration activities across the wholly owned Blue Moon gold project in Victoria’s world-class Bendigo goldfields.
The company has previously confirmed multiple lines of reef extending onto its Blue Moon tenure, with wide-spaced step-out holes targeting down plunge extensions from historical mining operations.
Mr Markwell said the strong level of demand for the placement reflected growing recognition of the opportunities emerging across Falcon’s exploration portfolio.
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