Falcon Metals (ASX:FAL) said test work carried out on its Farrelly mineral sands deposit in Victoria via quantitative evaluation of minerals by SCANning electron microscopy showed that heavy minerals shown to be clean with negligible iron staining or clay content, according to a Monday Australian bourse filing.

The Farrelly high-grade zone will be able to produce a concentrate from conventional processing methods without any notable issues, per the filing.

Additional work is recommended for additional quantitative analysis to better understand the rare earth element content of the monazite stream.

The company said assays received for its regional mineral sands air core drilling program showed that no significant mineralization was intercepted.

The company's shares fell 7% in recent Monday trade.