Falcon Metals (ASX:FAL) continued step-out diamond drilling at the Blue Moon gold project in Victoria, and drilling to date intersected three stacked high-grade zones at the project, with a gentle northerly plunge, according to a Friday Australian bourse filing.

A third diamond drill rig is scheduled to start drilling at the project in the first week of May.

It was also granted the EL008806 and EL008811 permits, with EL008811 providing an additional 1.5 kilometers of strike length over the interpreted extensions of the Bendigo Goldfield, while EL008806 covers the southern extension of the Break O Day fault on the western margin of the Bendigo Goldfield.

Its shares fell 1% in recent trading on Friday.