Falcon Metals Limited (ASX:FAL) has satisfied Stage 1 earn-in requirements to acquire a 51% interest in Exploration Licence E09/2457 from West Coast Silver (ASX:WCE), forming part of the Errabiddy Gold Project in Western Australia, and has elected to proceed to Stage 2 of the earn-in agreement.

Key Points

  • Falcon has satisfied Stage 1 earn-in requirements by spending in excess of $750,000 within the initial 24-month period to earn a 51% interest in E09/2457
  • The company has elected to proceed to Stage 2, under which it can earn a further 19% interest by spending an additional $1.25 million within 36 months
  • West Coast Silver has confirmed the qualifying expenditure and will commence the process to transfer the 51% interest to Falcon
  • Maiden drilling at Errabiddy has been expanded to a 7,500-metre program expected to be completed by mid-November 2026

Earn-In Agreement Terms and Stage 2 Election

Falcon entered into an earn-in agreement with West Coast Silver Limited (ASX:WCE) in November 2024, under which Falcon can acquire up to a 70% interest, excluding graphite rights, in Exploration Licence E09/2457 by spending $2 million over two stages within five years. Having satisfied Stage 1 by spending in excess of $750,000, Falcon can now earn a further 19% under Stage 2 by spending an additional $1.25 million within 36 months. Once Stage 2 is achieved, West Coast Silver has the option to convert its percentage interest to a 2% NSR Royalty, and Falcon has the right, but not the obligation, to purchase 50% of that NSR Royalty for $2,000,000. If West Coast Silver's interest dilutes to 10% or less, its interest will convert to a 2% NSR Royalty.

Olsen Well Prospect and Drilling Program

Exploration Licence E09/2457 includes the Olsen Well prospect, a large greenfield gold target located within the Errabiddy Shear Zone on the margin of the Yilgarn Craton, approximately 35 kilometres southeast of Benz Mining's (ASX:BNZ) Glenburgh Gold Project. Falcon commenced maiden drilling at Errabiddy in August 2026, with the program subsequently expanded to 7,500 metres following encouraging results from the first 14 holes. Drilling has focused on a central 2.5-kilometre-long zone of greater than 25 ppb gold-in-soil anomalism within the broader 5.8-kilometre-long Olsen Well prospect, which contains individual soil values exceeding 1 gram per tonne gold.

Previously Announced Drilling Highlights at Olsen Well

Previously announced drilling results include OWRC0001 returning 12 metres at 2.8 grams per tonne gold from surface, including 4 metres at 4.7 grams per tonne gold from surface. OWRC0007, drilled 240 metres east of OWRC0001, returned 16 metres at 2.2 grams per tonne gold from 8 metres, including 4 metres at 6.9 grams per tonne gold from 20 metres. All reported intersections are downhole lengths and true widths are not known. Assays remain pending for 36 holes completed across the broader target area, including 1-metre split samples of previously reported 4-metre composites. The drilling campaign is expected to be completed by mid-November 2026.