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COLLURABBIE PROJECT – WESTERN AUSTRALIA

(Nickel, Copper and Platinum Group Elements)

(Falcon 100%) - Seeking a JV Partner

The Collurabbie Project is 200 km north of Laverton in the Duketon Greenstone Belt of Western Australia.

In 2004 former joint venture partner Western Mining Corporation (WMC) intersected high-grade massive nickel-copper-sulphide mineralization at the Olympia Prospect including 5.77m at 3.0% Ni, 1.9% Cu, 5.3g/t PGE and identified a 40km highly prospective ultramafic belt. Follow-up drilling at Olympia and other regional prospects throughout 2005 & 2006 returned lesser intersections of sulphides and this, coupled with a change of management (from WMC to BHPB) led to the suspension of mineral exploration.

In 2009 Falcon negotiated a new agreement with BHPB whereby the Collurabbie Project was assigned 100% to Falcon in return for an option over the off-take rights to any ore or concentrate produced from the project.

Falcon recommenced diamond drilling in June 2010 and has now completed three drilling campaigns (25 holes 7,472m) to test the continuity and better define the geometry of massive and matrix sulphide mineralization at Olympia and to test electromagnetic conductors and embayment positions within ultramafics at Spartacus.

The better results from the Olympia and Spartacus Prospect are shown below:

Hole ID
 E N Width (m)
Ni%
 Cu%Pt + Pd (g/t)
From
CLD12242195270261020.082.932.602.24200.18
CLD12542214170259028.001.231.623.8264.00
CLD12742191470265004.001.000.550.9782.00
CLD13642199970258991.903.642.776.95176.00
 and 1.103.673.127.78184.90
CLD13742212070257992.002.851.772.52136.00
CLD139422019702600012.861.330.952.69131.64
CLD15942194670260005.773.001.965.29279.43
CLD19542198070260000.561.440.442.37231.55
CLD19642199070259602.742.031.062.00218.16
CLD19742195070259601.421.130.731.34268.27
CLD19842192070260401.172.732.166.51277.30
CLD19942196070260405.321.050.891.74226.27
CLD20142201070259003.741.471.594.43163.75
 and 0.441.290.792.98170.01
CLD20242203070259600.303.012.570.001130.95
 and 3.821.741.052.37153.88
CLD20342188070261004.380.820.300.76376.10
CLD20842211070258502.00.961.253.49143.0
CLD20842211070258506.80.340.240.51163.9
CLD21142207070258003.82.211.823.53189.8
CLD21142207070258005.10.510.370.54233.0
CLD21342185070262000.50.940.661.89320.0
CLD21342185070262000.60.550.150.24383.1
CLD21541999070301508.40.360.140.25215.6
CLD217419760703060012.30.430.130.23233.4
CLD21841977070309505.20.430.200.33190.8
CLD219419550703135020.30.380.100.13188.8

 

At Olympia, massive and matrix Ni-Cu-PGE sulphide mineralization up to 9m thick has been detected over a 300m strike length. The Olympia deposit is small and is currently regarded as sub-economic; however further study and drilling success may significantly improve its economics. There remains considerable potential for additional discoveries in the district.

At Spartacus, disseminated mineralization is widespread throughout the ultramafic host. Broad zones up to 20m thick are reported and consistently return grades around 0.4% Ni. This mineralisation appears continuous over several strike kilometers but at these grades is currently regarded as sub-economic. Higher-grade disseminated nickel mineralization is known to occur at Troy in the same host rock (CLD040: 20m at 0.68% Ni, 0.28% Cu, and 0.62g/t PGE) and represents an attractive follow-up target.

A strategic review is underway to consolidate all exploration results and build on the evolving geological model. The focus of activity is likely to shift away from Olympia and focus on what is regarded as the Olympia trend which has only received limited attention in the past.

A priority for Falcon will be to investigate where the Olympia trend intersects northeast trending faults as these structures are considered important in the Olympia mineralizing event. There remains considerable potential in the district to discover further massive Ni-Cu-PGE sulphides.