First Au’s (ASX:FAU) March quarter sets the stage for upcoming diamond drilling at Haunted Stream - Kalkine Media

Highlights

• First Au is using modern exploration techniques for its gold and base metals exploration activities
• The company has completed a two-tranche placement for a capital raising amounting to AU$1.5 million
• Funds from this placement would be used for drilling at the "highly prospective" Haunted Stream asset (Victorian Goldfields Project)

First Au Limited (ASX: FAU) -- an ASX-listed gold and base metals focused company -- has released its quarterly activities report for the period ended 31 March 2023. The report includes exploration update on FAU's Victorian Gold Project (diamond drilling planned at Haunted Stream), placement raising of AU$1.5 million, and its agreement with ASX-listed Talisman Mining for acquisition of the Mabel Creek Project. 

These and other important points included in FAU's latest quarterly report are below.

Victorian Gold Project

LIDAR image of Haunted Stream tenement with historical working locations, showing strike extent and area of focus for initial drilling

Source: Company update

FAU secured a drill rig during the reported quarter with plans to begin diamond drilling activity at the Haunted Stream Project. Notably, Haunted Stream has more than 150 historical workings, with gold production lasting from the 1806s to early 1900s, FAU mentions. The workings extend more than 8.5 km in strike length. Drilling is likely to begin in the near future.

While historical mining activity concentrated on alluvial gold prior to moving to hardrock reef mining, FAU’s drilling now seeks to test the economic potential beneath past workings, besides exploring and testing prospective structural target locations. The proposed targets include Ernestine and Hibernia historic workings, with the former having historically produced 927oz’s @ 39 g/t gold, and the latter having produced 816oz’s @ 17 g/t gold.

Gimlet Gold Project

Here, First Au has already arrived at an agreement with Marlinyu Ghoorlie Native Title holders. Now, court rulings with respect to the Gimlet Gold Project have "better clarified" things and FAU states that it is likely that a resolution regarding competing Native Title claims is close.

Placement

In February this year, First Au received binding commitments for a two-tranche placement of shares (ordinary) at AU$0.003 per share. The total raising amounts to AU$1.5 million (before costs), and unrelated sophisticated, professional, and other exempt investors participated in the event.

There is also one free attaching option (exercise price of AU$0.013 and 18-month expiry) for every two placement shares. The company would use the funds for its planned drilling activity at the Victorian Goldfields Project.

Agreement with Talisman Mining (ASX:TLM)

FAU has signed an agreement with Talisman Mining to sell the latter its Mabel Creek Project. The consideration is AU$200,000 in cash, along with AU$100,000 of Talisman's fully paid ordinary shares.

It is highlighted that First Au Limited would predominantly focus on its highly prospective Haunted Stream asset at its Victorian Goldfields Project.