FALCON MINERALS LIMITED - ASX: FCN

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Description

Falcon Minerals Ltd is an active publicly listed mineral exploration company listed on the Australian Stock Exchange (ASX code FCN). Administered out of Subiaco in Western Australia by a team of well qualified directors, Falcon Minerals is a versatile explorer working on a portfolio of outstanding gold, copper, nickel and platinum group elements projects. Under Falcon’s exploration initiative, projects are subjected to ongoing assessments and evaluation processes that include field work, sampling and geophysics for target definition and drilling.

SAXBY JOINT VENTURE - Queensland

Falcon 49%, AngloGold Ashanti Australia 51%

The Saxby project is located 150 km northeast of Cloncurry in Northwest Queensland. The Project was acquired under Falcon’s Olympic Dam Initiative and is considered to have good potential for both iron oxide-copper-gold (IOCG) and Voiseys Bay-style nickel-copper massive sulphide systems. In August 2009 Anglo American Exploration (Australia) Pty Ltd (AAE) assigned its interest in the Saxby Joint Venture to AngloGold Ashanti Australia Limited (AGAA). AGAA will assume all of AAE’s obligations under the Saxby Joint Venture Agreement by holding a 51% interest (FCN 49%) with the right to earn an additional 19% when total expenditure of AUD$7 million has been incurred on the project area prior to December 20th, 2013.

Under the joint venture with AngloAmerican Exploration (AAE), a low-temperature SQUID electro-magnetic (EM) survey which was completed in 2008 identified several strong bedrock conductors possibly associated with massive sulphides that warranted further drill testing. Seven (7) diamond drill holes (SXDD001-007) were subsequently completed during the year for a total of 5,274 m. Significant gold mineralisation was intersected in drillhole SXDD005 collared at 7866200N, 488200E as follows:

• 17m @ 6.75g/t gold from 631m to 648m (NOTE: Includes 5m @ 19.30g/t gold from 635m to 640m and 1.3m @ 67.23g/t gold from 636.7 to 638m with copper up to 1198ppm)
• 7m @ 1.98g/t gold from 614m to 621m

The gold mineralisation in SXDD005 is associated with pervasive IOCG-style “red rock” potassium feldspar-magnetite-haematite-quartz wallrock alteration in strongly brecciated metasediments and pegmatite sills. In a regional context the gold mineralisation in SXDD005 lies within an interpreted NE-trending structural corridor and appears associated with a moderate bedrock EM conductor and an elevated gravity signature. A further 7 km of strike length along the anomalous trend remains to be drill tested.

AGAA is currently preparing follow-up exploration programmes to test for extensions to the mineralisation intersected in SXDD005. Given the inherent risk associated with drilling beneath deep cover sequences, the JV considers it prudent to conduct further detailed SQUID EM and gravity surveys to better define drilling targets and to delineate the orientation and extent of the mineralised bedrock trend. All available data has been compiled into a seamless 3D database to better integrate and visualise the 3D geophysical data and to accurately target our follow-up drilling.

On the nickel front, previous drilling by Mt Isa Mines targeted a significant gravity anomaly and coincident magnetic high. Three drillholes intersected coarse-grained net-textured olivine gabbro and gabbronorite with varying amounts of sulphide, ranging from background disseminated pyrrhotite and pyrite to narrow intervals of semi-massive magmatic sulphide (pyrrhotite with minor pentlandite and chalcopyrite). Best results included 10.4m @ 0.25% Ni and 0.28% Cu from 508m in drillhole TT001D. Subsequent drilling by Falcon in 2004 (DDH SD02) and AngloAmerican in 2008 intersected over 300m of sulphide-bearing olivine gabbro from 443m (beginning of basement) with sub-economic Ni-Cu sulphides (up to 0.38% Ni) supported by low level copper and platinum anomalism.

Drilling to date has now intersected the uppermost part of a mineralised gabbroic body in five drillholes over a strike length of 2.2 kilometres and remains open in all directions. Several mafic-ultramafic bodies are interpreted to occur to the north and south of SXDD006 and remain to be tested. Other diamond holes drilled to test outlying EM conductors away from the principal gabbronorite body intersected highly sulphidic calc-silicate skarn, graphitic meta-sediments and quartz-pyrite-pyrrhotite veins in strongly altered felsic volcanic rocks. Elevated zinc (up to 0.95%) and lead values indicate that the Saxby Project remains highly prospective for the discovery of Cannington-style Zn-Pb-Ag mineralisation.

COLLURABBIE JOINT VENTURE - Western Australia

Falcon 30%, BHP Billiton 70%

The Collurabbie Project is located 160 km east of Mt Keith and 200 kilometres north of Laverton in the North Eastern Goldfields of Western Australia. Previous exploration at Collurabbie discovered disseminated nickel-copper-platinum group element (Ni-Cu-PGE) sulphide mineralisation, followed by the discovery of the first massive nickel sulphides at the Olympia prospect. The discovery at Olympia is considered significant in that it bears similarities to the high-grade Raglan Ni-Cu-PGE deposits in Canada, and as such represents a style of mineralisation not encountered previously in Australia, and potentially a new Ni-Cu-PGE province.

During the year, the Joint Venture operating partner, BHP-Billiton (BHPB) has been unable to allocate additional on-ground resources to the development of the Collurabbie project due to it’s operational commitments elsewhere. Consequently, Falcon have entered into negotiations with BHPB to re-structure the terms of the Joint Venture Agreement that will see the recommencement of exploration over the Collurabbie Project in late 2009/2010.

DUKETON - Western Australia

Falcon 20%, Regis 80%

The North Duketon Project (E38/1939, P38/3358-3363. 33/3375, 38/3566-3568) comprises a large area of about 100 square kilometres within the Duketon greenstone belt, located directly south of the Collurabbie project area. The Duketon project area (E38/2005, M38/1091) lies immediately north of the regionally significant Moolart Well gold resource (2.22M Oz). Exploration during the year focussed on infill aircore drilling, geological mapping and examination and re-interpretation of past exploration work.

Drilling continued to test the Western Ultramafic Zone (WUZ) in areas with anomalous Ni-Cu-PGE geochemistry and to more accurately define the location of the prospective basal contact. In total, 153 aircore holes were drilled for 11,346m on 100m fences across the WUZ. Several Ni-Cu-PGE prospects have now been delineated by this work. Drilling to date has intersected promising Ni-Cu-PGE mineralisation within the weathering zone (top 100m) and deeper RC drilling is planned for later in 2009/2010 to test for primary massive nickel sulphide mineralisation associated with fresh rocks along the mafic-ultramafic contact.

MULGARRIE - Western Australia

Falcon 30%, Hemisphere 70%

The Mulgarrie Project comprises tenement E27/314, covering prospective komatiite stratigraphy, 15 - 20km north and along strike from the Silver Swan nickel deposit. Widespread nickel anomalism was returned by previous aircore drilling at the Drumstick, Wishbone East and Wishbone West Prospects, together with several shallow EM conductors. Further deeper drilling is warranted to test for primary nickel sulphides beneath the weathering zone.

During the year Hemisphere completed one follow-up diamond drill hole (HMDD002) to a final depth of 303 metres at the Drumstick Prospect. The drill hole was designed to test a strong off-hole conductor in HMDD001 for primary massive nickel sulphides. The geophysical modeling of the down hole and surface EM data indicates a steeply dipping body of about 300m in down dip extent and greater than 200m strike length located about 200m below the surface. Drill hole HMDD002 was drilled to test the central portion of the geophysical anomaly discussed above and intersected three sulphidic zones with anomalous nickel in association with pyrrhotite and minor chalcopyrite. Re-interpretation of the geological data suggests that the prospective basal mafic-ultramafic contact dips to the north-east and was intersected closer to the surface than expected. Further drill testing is required.

PALTHRUBIE AND LAKE ACRAMAN- South Australia

Falcon 100%

The Palthrubie and Lake Acraman Projects are located in the prospective Gold Province of the Gawler Craton in South Australia. The primary target within the project has been high-grade “Tunkillia-style” gold mineralisation hosted within Hiltaba Suite granites which intrude the area. Previous calcrete sampling has defined discrete gold anomalies at several prospects at Palthrubie including; Deep Well, Sisters East and Sisters West. Much of the project is covered by aeolian sands of the Moornaba Formation and soil sampling is thought to be largely ineffectual.

Limited aircore drilling at the Deep Well and Sisters West Prospects has returned shallow gold intersections up to 1g/t Au with a best result to date of 6m @ 1.002 g/t gold from 12m in drillhole JDAC035. Mineralisation is hosted by quartz veins within Hiltaba granite with associated strong sericite-pyrite alteration. Several gold-in-calcrete anomalies remain untested.

Recent work has also indicated the possibility of Uranium to be hosted in the palaeochannel which runs for 30km, east to west, through the middle of the project. The palaeochannel is flanked to the north and south by radiometric ‘hot’ granites (source rocks) and displays a number of subtle radiometric anomalies in association with salt lake development.

Mine For

nickel, copper, gold, platinum group elements, uranium

Location of operation(s)

Queensland, Western Australia, South Australia

Address

Suite 19, 100 Hay Street
SUBIACO, WA, AUSTRALIA

Phone

(61 8) 9382 1596

Email

Website

http://www.falconminerals.com.au

Last Updated

8/4/2011