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First Au Limited (ASX: FAU) upgrades resource at Gimlet to 120,000 ounces of gold

Summary

  • The JORC compliant inferred resource at the Gimlet gold project has been upgraded to 120,000 ounces of gold at the cut-off grade of 1.3 g/t Au.
  • First Au Limited is focused on expanding its gold footprint at Gimlet and has planned exploration programs, including aircore drilling to test new structural targets.
  • The mineralisation at Gimlet remains open at depth and holds significant potential for further expansion of resources.

Premium gold exploration and development company First Au Limited (ASX: FAU) has announced the upgradation of the JORC compliant inferred resource at the Gimlet gold project to 120,000 ounces of gold.

The upgraded Mineral Resource Estimate (MRE) include 1,166,000 tonnes ores at a gold grade of 3.2 g/t for 120,000 gold ounces at a cut-off of 1 g/t gold. The new estimate represents a 73% increase in the inferred resource from the previously estimated resource base of 69,000 ounces of gold at 3.3 g/t and cut-off grade of 1.3 g/t Au. Additionally, mineralisation at Gimlet remains open at depth.

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2021 MRE using 1 g/t Au cut-off Source: FAU company announcement 23 June 2021

Premium gold project in the vicinity of established gold operations

The wholly owned Gimlet gold project spans 9.6 square kilometres over the tenements (E26/174 and MA 26/849) and is located 15 kms from Kalgoorlie, Western Australia. The gold project presents an attractive potential for early mining with multiple toll treatment options at third-party processing mills.

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The Gimlet gold project is located in the vicinity of established infrastructure with over five gold mills within trucking distance. The tenement is highly prospective for gold and is dominated by metamorphosed felsic and intermediate volcanic rocks of the Black Flag Group of the Kalgoorlie Terrane, Yilgarn Craton.

Gimlet Gold Project (E24/216 and MA26/849 Source: FAU company announcement 23 June 2021

First Au has already completed numerous aircore and RC drilling programs at the project, which recorded intercepts, including 3m at 462 g/t Au from 52m. The mineralisation is interpreted to be associated with the NNW-SSE near-vertical structure from the magnetic imagery and the geological logging of the drilling campaign.

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The mineralised structure extends into Horizon Resources' (ASX: HRZ) Teal Deposits, which include Teal, Jacques Find, and Peyes Farm, totalling 288,000 oz gold. These resources are located along the 2.7 km strike, suggesting the presence of a substantial mineralising system. The mineralisation is understood to be related to the Abattoir Shear, a regional structure and gold-carrying conduit.

The mineralisation at Gimlet is dominated by sulphide minerals, including arsenopyrite, sphalerite and galena. The fresh mineralisation zone represents a broad halo of dissemination pyrites related to sericite-carbonates-quartz, containing lower-grade mineralisation (~ 10 - 500 ppb Au).

Resource Estimation

Previously, First Au had conducted numerous drill programs at Gimlet, after the discovery of mineralisation on 8 November 2018. The RC and diamond drilling programs are usually spaced to 40m along the known NNW-SSE trend. The drill programs unveiled mineralisation from ~30m to more than 300m vertical depth, and ~450m strike. So far, a total of 63 RC and eight diamond drill holes have been utilised to generate a 3D mineralisation framework and weathering surface.

Read Here: First Au Limited (ASX:FAU) closes in to commence diamond drilling at Snowstorm

The majority of the drill holes have been angled and drilled in an easterly direction. The interpretation of the geological mineralisation was completed on 40m spaced drilling and was based on the cut-off grade of 0.5 grams per tonne gold to delineate mineralisation. The resource has been classified on the basis of geological understanding, drill density, grade continuity and depth. The resource up to 100m from the surface has been defined at a cut-off above 1 g/t and 2 g/t for the mineralisation beyond 100m depth.

The way forward

First Au plans to undertake further optimisation work to assess the economics of the Gimlet gold project. The company will also focus on expanding the gold mineralisation at Gimlet and has planned subsequent exploration programs including aircore drilling to test new structural targets, which were identified during the 2020 litho-structural analysis.

Also Read: First Au Limited (ASX:FAU) kicks off trading on OTCQB Market

These areas were previously underexplored. The prospective zones include areas along strike of the Honeyeater and Kestrel Prospect, within Horizon Minerals’ Binduli Gold Project, where a successful drilling campaign has been completed recently.

First Au traded at AU$0.013 a share on 23 June 2021 at 1:31 PM AEST, with a market capitalisation of AU$8.6 million.


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