First Au’s Gimlet Near Exploration Progress with Targets Being Identified during IP survey

Summary

• Gimlet Gold Project recently commenced an IP survey to identify further drilling targets
• IP survey aims to identify potential Sulphide Targets associated with Gold Mineralization
• EIS co-funded deepest drilling program of the region scheduled for this year
• First Au evaluating early mining options for Gimlet through toll treatments

First Au Limited (ASX:FAU), a Western Australia focussed Gold and base metals explorer, is pursuing aggressive exploration programs at the wholly-owned Gimlet Gold project in the vicinity of Kalgoorlie goldfields and Talga Gold and Copper project in the Pilbara region of Western Australia. First Au also holds 80% stake in Tambina JV Au-Cu project.

Gimlet Gold Project in the Kalgoorlie Goldfields

The flagship Gimlet gold project is located along strike extending from Horizon Gold’s (ASX:HRN) Teal Gold Mine in the north-western Kalgoorlie. The Teal Gold mine holds a mineral resource of 228,000 ounces of gold.

Source: First Au

Induced Polarisation Survey to Identify Sulphur Targets

The Gimlet Gold project is currently subjected to a three-dimensional high-resolution induced polarisation (IP) survey in both the Gimlet resource region and the Horan’s dam prospect. The induced polarisation survey intends to detect and map the widespread sulphide zones. The objective of the drilling program is to achieve the following-

1. The anomalies from the IP survey would indicate the down-dip of the mineralisation, which could be utilised for scheduling the deep government co-funded drilling program
2. Identification of anomalies along the strike or parallel to the strike, revealing further prospective drilling targets

Induced Polarisation survey uses the electromagnetic properties under transient electric current flow beneath the surface, with the chargeability distribution revealing the prospective sulphide targets even beyond 200 metres. The IP survey is anticipated to be completed by the end of June 2020, following which the explorer may commence its scheduled drilling program.

The Area under the IP survey at Gimlet Source: First Au

Government Support to the Gimlet Gold Project

The Exploration Incentive Scheme (EIS) by the Geological Survey of Western Australia (GSWA), was awarded to First Au for a deep diamond drilling hole at Gimlet. As part of the EIS, a grant of up to 50% is awarded for innovative drilling program and in First Au’s case, the grant corresponds to $100,000 value.

The EIS co-funded drilling hole will evaluate the potential for the Teal-Gimlet mineralisation corridor to be established as a major gold camp in the Eastern Goldfields. Under the drilling plan, it is anticipated to drill the deepest hole in the area to evaluate the downdip extent of the Gimlet and the alterations in the mining district. The diamond drilling is anticipated to target vertical depth of 450 to 500 metres and would test if the mineralisation extends to the depth or not.

A deeper drilling program is essential and has so far not been tested in the neighbourhood of the mining centre and holds the potential to reveal the possible large gold mineralisation at the Teal-Gimlet mineralised corridor. In order to avail the grant, the drilling program needs to be completed within the current year.

Long section looking west of Gimlet mineralisation Source: First Au

Following extensive drilling program in 2018 and 2019, the mineral resources were estimated at 642,000 tonnes of ores with 3.3 grams a tonne of Gold amounting to a total of 69,000 ounces of Gold at a cut-off grade of 1.3 g/t.

First Au Focussed to Accelerate Development at the Gimlet

First Au is evaluating early mining options of oxide and upper transitional ores for toll treatment at the existing processing plants in the area, most probably at either Norton Goldfield’s Paddington or Golden Mile Milling-Silver Lake’s Lakewood. In the past, during 2016-2018, oxide ores containing 22,000 ounces of Gold from Gimlet was processed by Horizon at Paddington and Lakewood.

A total of 75,000 tonnes of ores with a gold grade of 3.2 grams of Gold, were mined at a cash cost of $1,100 an ounce. A strong margin amid the high gold prices could substantially assist First Au in future. To generate additional oxide and transitional ores, a small infill drilling program is expected to substantially add the inferred JORC resources which are suitable for toll treating.

First Au traded at $0.011 a share on 30 May 2020 at 12:08 PM AEST, with a market capitalisation of $3.29 million.