Falcon Metals Obtains Drilling Permits for Olsen Well Gold Target at Errabiddy Project, WA

Regulatory Approvals Granted for Maiden Drilling at Errabiddy

Falcon Metals announced it has obtained all required regulatory permits to proceed with its first drill program at Olsen Well, marking a significant milestone for the Errabiddy Gold Project. Approvals followed a successful work area clearance survey conducted in early July 2026, including heritage consultations with the Wajarri Yamaji Aboriginal Corporation and Burringurrah Custodians. Three Sisters Heritage Services facilitated the heritage survey after an initial delay caused by unseasonal June rainfall.

The project includes two exploration licences: E09/2457, where Falcon can earn a 70% interest (excluding graphite rights) from ASX-listed West Coast Silver Limited, and adjoining E09/2984, fully owned by Falcon. Clearing these regulatory requirements enables the company to advance operational drilling preparations. Falcon is in advanced tender stages for site preparation and drilling services.

Bedrock Mineralisation Verified by Rock Chip Sampling

Surface rock chip sampling at Olsen Well has confirmed bedrock mineralisation, reinforcing exploration potential prior to drilling. Sampling along tightly spaced traverses targeted high gold peaks and select outcrops within the broader soil anomaly. Two traverses across the southwestern target area defined a coherent 30-metre-wide bedrock anomalous zone, with four samples exceeding 1 gram per tonne gold.

The highest assay returned 6.42 grams per tonne gold, indicating significant bedrock gold grades. These samples represent a portion of a 1.5-kilometre soil anomaly featuring multiple internal elevated gold zones. Falcon has not disclosed all assay results. Geological interpretation links elevated gold to folded, strongly sheared gneisses, primarily hosted in sheared quartz-feldspar-biotite-mica gneiss containing quartz veinlets and leucosome bands.

Soil Anomaly Extended to 5.8 Kilometres at Olsen Well

Multiple surface geochemical sampling phases have refined the target and expanded the strike length. Falcon defined a 5.8-kilometre soil anomaly exceeding 10 parts per billion gold, including a 3.5-kilometre corridor with soil values above 25 parts per billion. Internal zones exceed 50 and 100 parts per billion gold, highlighting multiple high-priority areas.

Geological interpretation of gold-in-soil data combined with aeromagnetic surveys indicates the anomaly centers on a structurally complex zone featuring folding, faulting, and a contact between quartz-feldspar-biotite-muscovite paragneiss and migmatite units of the Morrissey Metamorphic Suite. Structural mapping reveals a poly-deformed environment with multiple folding and shearing events, S-C fabrics, and boudinage textures. The higher-grade corridor trends broadly east-northeast within a folded stratigraphic sequence crosscut by late dolerite to gabbro dykes.

Craton-Margin Gold Model Supported by Regional Analogues

Falcon identifies Olsen Well as a compelling craton-margin gold prospect, with geological features comparable to other major regional deposits. Mineralisation is associated with highly deformed gneiss units, resembling the nearby Glenburgh Gold Project operated by ASX-listed Benz Mining Limited, located about 35 kilometres northwest. Glenburgh has an exploration target of 10.1 to 12.0 million ounces of gold, announced in June 2026.

Falcon noted that Glenburgh’s success reinforces confidence in Olsen Well’s prospectivity, as both projects lie along the northern Yilgarn Craton margin sharing similar structural and lithological traits. Structural mapping at Olsen Well showing multiple deformation phases and mylonitic features aligns with geological controls responsible for significant mineralisation in analogous craton-margin settings. The Errabiddy Shear Zone is identified as a prime structure for hosting large-scale gold deposits, underpinning Falcon’s exploration strategy.

Project Strike Length Expanded Beyond 60 Kilometres Along Errabiddy Shear Zone

The project’s strike length was significantly extended following the June 2026 grant of tenement E09/2984, wholly owned by Falcon. This grant followed ratification of a heritage agreement with the Wajarri Yamaji, with a separate heritage agreement completed for E09/2457. The addition of E09/2984 increases the project’s strike extent along the prospective Errabiddy Shear Zone to over 60 kilometres, enhancing exploration potential beyond Olsen Well.

This expanded tenement package enables Falcon to systematically explore a larger portion of the regional structure hosting the primary gold target. The company initially identified the Errabiddy Shear Zone as a highly prospective corridor using historical stream sediment anomalies to locate Olsen Well. The new acreage allows exploration for similar mineralisation along the broader shear zone, offering multiple targets beyond Olsen Well.

Western Australian Government Supports Olsen Well with Exploration Incentive Scheme Funding

Falcon received $180,000 in competitive co-funding from the Western Australian Government’s Exploration Incentive Scheme (EIS), validating Olsen Well’s prospectivity. The merit-based EIS program evaluates applications on geological potential, technical merit, innovation, and discovery potential. Falcon’s award indicates its targeting approach and geological model met stringent government criteria.

This funding reduces the financial burden of testing the high-priority Olsen Well target and serves as independent endorsement of its exploration potential. Falcon has not specified if additional exploration beyond planned drilling will be funded or how the funds will be allocated. The competitive nature of the EIS suggests Falcon’s technical approach was favorably ranked among applicants.

Reverse Circulation Drilling Scheduled for September Quarter 2026

Falcon is advancing tenders for site preparation and reverse circulation drilling at Olsen Well. The company plans an approximately 3,500-metre drilling program targeted to commence in September 2026, subject to drill rig availability, with completion expected in about four weeks.

This maiden drilling will provide critical subsurface data to test Falcon’s exploration model developed from surface sampling and structural mapping. Reverse circulation drilling is a standard method for testing gold targets in Australian greenstone and metamorphic terranes. Falcon has not disclosed planned drill hole depths, line spacing, or prioritized targets within the anomaly.

Falcon’s Dual Gold Project Focus Across Western Australia and Victoria

Alongside the Errabiddy Gold Project, Falcon is advancing the Blue Moon gold project in Victoria, testing the northern extension of the Bendigo Goldfield. This dual-project approach allows Falcon to build exploration momentum across two significant gold projects in distinct Australian jurisdictions. The managing director highlighted Falcon’s unique position of simultaneously progressing two large-scale gold projects, supported by adequate resources and management capacity.

The Blue Moon project offers exploration in a world-class gold-producing region with a rich history of large-scale discovery and production. Advancing projects in both Western Australia and Victoria diversifies Falcon’s geological exposure and reduces dependency on a single asset. Specific exploration plans, budgets, or timelines for Blue Moon were not disclosed in this announcement.

Exploration Strategy and Investor Risk Considerations

Falcon’s Errabiddy exploration strategy targets a craton-margin gold system in an under-explored district, leveraging regional analogues and surface geochemical anomalies to identify drill targets. The company’s approach is based on historical stream sediment data, refined through surface sampling and structural mapping. Geological comparison with the Glenburgh Gold Project supports the prospectivity case, though mineralisation at one site does not guarantee similar results nearby.

Exploration risk remains inherent in early-stage targets, and drilling outcomes are uncertain. Despite identifying a 5.8-kilometre soil anomaly and confirming bedrock mineralisation with a peak grade of 6.42 grams per tonne gold, drilling may not intersect economic mineralisation or could yield results altering geological interpretations. Heritage and regulatory timelines can be unpredictable, potentially delaying drilling. Falcon’s ability to earn 70% interest in E09/2457 depends on terms with West Coast Silver Limited, with performance conditions possibly affecting timelines.