Since October 2003 when Ni, Cu and PGE anomalism in oxidised cover rock interpreted as sulphide derived was announced at Collurabbie, the Joint Venture with BHP Billiton has steadily grown in importance. The Project area which has over 9km of strike (coupled with another 7km strike zone of nickel sulphides to the north in the BHP Billiton ground) has several paralelled prospective ultramafic zones and is regarded as a potential new nickel sulphide province in Australia.
In 2007 Xstrata Nickel Australasia Pty Ltd
became the largest shareholder in Falcon Minerals Ltd holding 16.14% interest in the company. Xstrata stated that its investment in Falcon was long term and based on its attraction to the unique geology at Collurabbie and its potential to develop into a world class mineral province.
Exploration drilling within the Collurabbie Joint Venture (BHP Billiton 70%, Falcon 30%) initially focused on the
prospect in the middle of the project area. This returned a series of high grade intersections of nickel, copper and platinum group elements. Work in 2005 focused on other targets, which returned less spectacular results, however, even these indicate the area is extensively mineralised.
The discovery at Collurabbie and in particular the style of mineralisation and the combination of metals has not been previously encountered in Australia and whilst still in its early days, drill results to date suggest the area could host several poly-metallic nickel-copper-PGE deposits.
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 magmatic sulphide systems. Under a joint venture with AngloAmerican Exploration (AAE), a SQUID electro-magnetic survey was completed in 2008 which identified several strong bedrock conductors possibly assocaited with nickel-copper sulphides.
Drilling to date has intersected the upermost part of a mineralised gabbro body in five drillholes over a strikelength of 2.2 kilometres and remains open in all directions.
Furthermore, significant gold mineralisation was intersected in drill hole SXDD005 including 17m @ 6.75g/t gold from 631m (including 5m @ 19.30g/t gold and 1.3m @ 67.23g/t gold). Detailed geophysics and follow-up drill testing is scheduled for 2009/2010.
In respect to the company's ongoing "Olympic Dam IOCG initiative", new project areas are actively being sought which contain geological similarities to
's major copper-gold-uranium mines at Olympic Dam and Ernest Henry, Falcon continues to undertake geophysical surveys, three dimensional modelling and drill targeting. Drill testing is undertaken in progressive stages on the most prospective targets.