Falcon Metals Expands Blue Moon Gold Project Strike to Over 750m with Discovery of Fifth Gold Reef in Victoria

Blue Moon Gold Project Extends Over 750 Metres with Multiple Stacked Gold Zones Identified

Falcon Metals’ Blue Moon Gold Project in Victoria has significantly expanded, with mineralisation now confirmed along more than 750 metres of strike. This marks a substantial increase from earlier drilling phases. The project features multiple stacked gold-bearing structures revealed through systematic drilling, each contributing to a complex and highly prospective mineralised system.

The extended strike length confirms the continuity of mineralisation along the northern extension of the Bendigo Goldfield. Managing Director Tim Markwell noted that step-out drilling consistently intersects targeted structures as predicted, reinforcing confidence in the geological model and reef continuity. The discovery of multiple zones at varying stratigraphic levels indicates the system remains open for further expansion, with promising potential for additional finds as drilling advances northward along structural trends.

Jasmine Zone Yields High-Grade Visible Gold Including 79.6 g/t Intercepts

The Jasmine Zone has become a key target within Blue Moon, delivering numerous high-grade visible gold intercepts that highlight the quality of mineralisation at depth. Notably, hole BMDD007W5 returned 2.7 metres grading 22.2 g/t gold from 649.5 metres depth, including a rich 0.6-metre subinterval grading 79.6 g/t gold. Other significant intercepts include 0.3 metres at 69.4 g/t gold in BMDD007W6 and 0.7 metres at 14.7 g/t gold in BMDD011, confirming the zone’s high-grade nature.

Visible gold in multiple drill holes within the northernmost Jasmine Zone section is a vital early-stage exploration indicator. Falcon’s geological interpretation emphasizes that visible gold confirms the predictability of structures, which can often be traced over extensive distances. Consistent high-grade intercepts across several holes support the geological model guiding ongoing step-out drilling.

Magnolia Zone Identified as Fifth Stacked Gold Reef Structure

The newly identified mineralised quartz reef, the Magnolia Zone, lies above the Jasmine Zone and represents the fifth stacked gold-bearing structure within the Blue Moon system. Intersected on the two northernmost drill sections, the Magnolia Zone’s strongest intercept to date is 0.4 metres at 7.5 g/t gold from 372.5 metres depth in hole BMDD008. This discovery highlights the increasing complexity and richness of the mineralised system as drilling progresses northward.

Magnolia’s recognition as a distinct structure adds depth to the Blue Moon exploration model, confirming that stacked reef architecture extends across the project area. Geological characteristics such as texture, mineral composition, and gold anomalism distinguish these structures. Its presence on northern sections suggests further continuity, with ongoing step-out drilling planned to test this zone.

Morning Glory and Lotus Zones Confirm Mineralisation Continuity Across Blue Moon

The Morning Glory Zone, the shallowest gold-bearing zone at Blue Moon, continues to demonstrate mineralisation continuity over approximately 300 metres of strike and remains open to the north. Recent drilling in holes BMDD006, BMDD007, and BMDD010 supports the interpretation of a persistent near-surface structure with consistent mineralisation, affirming its potential as a shallow mining target.

The deeper Lotus Zone remains under evaluation as an extension target. Visible gold was previously reported at 0.5 metres grading 1.2 g/t gold from 793.3 metres depth in hole BMDD007W1. Several wedge holes intersecting this zone are pending assay results, expected to provide further insights. The persistence of mineralisation and visible gold at depth confirms the Blue Moon system’s deep exploration potential.

Structural Framework Drilling Clarifies Northern Bendigo Goldfield Geology

Structural-stratigraphic drilling, including hole BMDD009 to 1,587.3 metres depth, has elucidated the geological framework of the Northern Bendigo Goldfield. Drilled at a low angle through the New Chum anticline, it confirmed the positions of four major anticlines: Paddy's Gully, Garden Gully, New Chum, and Napoleon. This enhances Falcon’s understanding of the subsurface architecture and spatial relationships of key ore-hosting structures.

This structural insight lays a foundation for targeting prospective structural-stratigraphic positions on parallel folds. Understanding the three-dimensional geometry of these anticlines enables precise drill placement to test multiple reef lines across several kilometres. Confirmed anticline positions support the model that the Bendigo Goldfield extends into Falcon’s tenement area.

Blue Moon Positioned as Northern Extension of 22 Million Ounce Bendigo Goldfield

The Blue Moon Gold Project represents the northern down-plunge extension of the 22 million ounce Bendigo Goldfield, a historically significant Australian gold mining region. Falcon’s exploration model, developed through 3D reconstruction of historical workings, report analysis, and field mapping, has confirmed the northern continuation of the Garden Gully reef line, historically producing approximately 5.2 million ounces at 15 g/t gold, within Exploration Licence EL007839.

This framework indicates substantial exploration upside, with the company believing major regional faults and mineralised reefs that hosted world-class production in Bendigo persist into its tenement. Multiple zones with visible gold and consistent mineralisation over 750 metres of strike provide strong empirical support for this thesis.

Three-Rig Continuous Drilling Accelerates Step-Out Exploration

Falcon currently operates three diamond drill rigs around the clock at Blue Moon: two rigs conducting step-out drilling northward along the Garden Gully line and a third performing wedge hole drilling targeting lower stratigraphic levels on the New Chum line. This intensive program aims to systematically test extensions of known mineralised structures and explore deeper zones, marking a significant acceleration from earlier phases.

Additional drill sites have been identified to explore the northern Bendigo Goldfield extension at scale. Approval processes are underway to enable drilling multiple parallel reef lines over several kilometres, including the New Chum line (historically estimated at 3.8 million ounces), Hustlers line (0.9 million ounces), and Carshalton line (0.9 million ounces). Drilling on these lines will represent a major upcoming milestone.

Strong Cash Position of A$15.4 Million Supports Intensive Exploration

As of 30 June 2026, Falcon Metals held A$15.4 million in cash, providing a solid financial base to sustain its high-impact exploration at Blue Moon. This funding supports the ongoing three-rig drilling program without near-term capital constraints, allowing flexibility to expand drilling and pursue new targets identified during systematic campaigns.

This robust cash position is critical given the capital-intensive nature of continuous diamond drilling operations. It enables Falcon to maintain momentum and capitalize on emerging exploration opportunities without interruption or urgent capital raises, focusing fully on geological objectives and defining Blue Moon’s broader potential.

Assay Result Delays Expected to Normalize by July 2026

The company reported ongoing assay result delays during the current period, attributing these to external laboratory capacity issues rather than drilling performance. Routine turnaround times are expected to normalize by the end of July 2026. These delays have caused a backlog, particularly for assays from Lotus Zone wedge holes, which are pending.

Once assay turnaround improves, Falcon anticipates receiving multiple batches of results that may further delineate mineralised structures. The awaited Lotus Zone assays are especially significant, as previous visible gold findings at depth could confirm the system’s deep prospectivity.

Visible High-Grade Gold Confirms Structural Predictability and Exploration Potential in Bendigo District

Visible gold in drill cores from multiple Blue Moon zones is a key exploration indicator within the Bendigo District. Falcon’s geological interpretation highlights that coarse gold mineralisation in the Bendigo Goldfield allows early-stage exploration to focus on identifying key ore-hosting structures characterized by unique textures, mineralogy, and gold anomalies. These structures may not always yield high-grade assays but are geologically predictable and traceable over long distances.

Visible gold presence in the Jasmine, Magnolia, and other zones reinforces confidence that these are the principal ore-controlling structures within Blue Moon. This supports the exploration model that these reefs extend along strike and at depth, justifying continued step-out drilling. The coarse gold nature means visible gold, even in lower-grade intervals, strongly indicates proximity to higher-grade mineralisation targeted by the drilling program.