Diamond drilling intersected two massive sulphide zones and 23m of disseminated sulphide towards the bottom of the hole. Better intersections from the first hole were 1.9m grading 3.64% nickel, 2.77% copper, 0.14% cobalt and 6.95 grams per tonne total PGEs; and, 1.1m at 3.67% nickel, 3.12% copper, 0.17% cobalt and 7.78gpt total PGEs.

Falcon said that while the two zones of massive sulphide were narrow they were significant because of the high grades, indicating the presence of structurally remobilised massive sulphides along with the ultramafic hosted sulphides.

Downhole EM has reportedly indicated that multiple plate conductors at Olympia stretch over a 1km distance.

A second rig has been sent to the site, with a revised exploration budget in the offing.

WMC holds 70% of the project and Falcon 30%.

Falcon also shutdown rumours that it was considering a capital raising placement.

Shares in Falcon gained 40c in early trade before settling back to $1.20 (up 30c) in late morning trade.