First Au (ASX: FAU) 1H23 report highlights gold exploration ‘success’ at Haunted Stream

Highlights

• First Au has reported encouraging gold assays from Haunted Stream drill campaign.
• The first half saw mining lease grant at Gimlet Gold Project and AU$1.5 million capital raising.
• FAU has been undertaking the divestment of its non-core assets.

First Au Limited (ASX: FAU) has reported a busy first half, with progress on the project exploration and operational fronts during the period ended 30 June 2023.

The period saw maiden drill program at the Haunted Stream target of the company’s Victorian gold project and divestment of non-core assets. The period also saw a capital raise of AU$1.5 million before costs via a two-tranche placement to fuel the drill program at its Victorian goldfields project.

Significant diamond drill results reported at Haunted Stream

During the first half, the company conducted  diamond drilling at Haunted Stream. The objective was to assess economic potential beneath historic workings and discover and examine prospective structural target locations.

Under the drill campaign, 11 holes were completed for nearly 1,050m. Results from nine holes have indicated an extensive mineralised zone to >110m vertical depth, validating a discovery beneath historical workings.

The final two holes delineated a new and second high-sulphidation gold system from 38m depth and hit an adjacent gold system from 6.8m depth.  

Here are results from the drilling holes -

Data source: Company update

At the Haunted Stream project, FAU has further multiple drill targets.

Mining Lease secured for Gimlet Gold Project

In May 2023, the company was notified by the WA Department of Mines that it had been granted Gimlet Mining Lease. With this development, the company can either take the project forward independently or find a partner or buyer for the project.

The project lies in the Kalgoorlie region of WA and contains an inferred resource of 120,000 oz’s Au at 3.19 g/t Au.

Divestment of non-core assets

The company is focused on divesting its non-core assets and shifting the focus of resources to core projects.

Mable Creek – In June 2023, the company completed the sale of the Mabel Creek Project to Talisman Mining Ltd (ASX:TLM) for a cash consideration of AU$0.2 million and AU$0.1 million worth of TLM shares.

Talga project - Subsequent to the reported period, the company agreed to sell its 30% interest in the Talga project, which lies in the Pilbara region of WA, to ASX-listed Octava Minerals (ASX:OCT) for a consideration of AU$0.2 million in cash, 1.2 million OCT shares and a net smelter royalty of 0.75%.

First Au is focused on advancing its Victorian gold project as well as reviewing new opportunities for unlocking value.