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First Au Limited (ASX:FAU) flying high on grant of tenements at the Mabel Creek Copper Gold Project

Summary

  • On 26 July 2021, Mr. Ryan Skeen was appointed as First Au’s new CEO.
  • FAU announced the granting of two tenements within the prolific Mabel Creek area of northern Gawler Craton.
  • The Mabel Creek Copper Gold Project is located on the northern extent of the Olympic Dam Cu-Au province.
  • FAU shares closed at AU$0.012 a share, ~18.18% higher than the previous close.

In an upbeat market update, First Au Limited (ASX:FAU) announced the granting of two of the three-tenements at the prolific Mabel Creek area of northern Gawler Craton, South Australia. The granted tenements together stretch over 838km2.

Furthermore, the Company also announced the appointment of Mr. Ryan Skeen as the new Chief Executive Officer. Mr. Ryan Skeen took over the charge at First Au immediately as of 26 July 2021.

Also Read: Diamond drilling at Snowstorm fetches promising initial assays for First Au Limited

Responding to encouraging updates, the market participants welcomed the slew of positive updates as FAU shares traded ~18.18% higher than the previous close at AU$0.013 a share, with a market capitalisation of AU$6.76 million.

New CEO to lead FAU from the front

Mr. Ryan Skeen, the new CEO, is a seasoned finance professional with extensive experience across wealth management and corporate advisory. He has also been involved in financial services start-ups and brings on board his critical exposure to corporate development.

Must Read: First Au Limited’s maiden drill program at Snowstorm churns out stellar gold results

Further strengthening the existing board at FAU, he brings complementary skills to lead, support, and contribute to developing the Company's strategy. Additionally, Mr. Richard Revelins will now serve as FAU’s Non-Executive Director.

Management Comments

Mr. Bryan Frost, the Executive Chairman of First AU said:

“I am delighted that Ryan is joining First Au as CEO as we continue to progress our operations, particularly at our Victorian Goldfields project. Ryan will make an invaluable addition to the First Au team to support the long-term growth and strategic objectives of FAU. I look forward to the contributions he will bring to the Company.”

Mabel Creek Copper Gold Project: Another ace in the making

The Mabel Creek Copper-Gold Project is located on the northern extent of the Olympic Dam Cu-Au province, stretching over an area of 1050 km2. The granted tenements, namely, EL6619 and EL6620, covers 838km2. The Olympic Dam Cu-Au province is home to the tier-1 IOCG deposits, including BHP Group Limited’s (ASX:BHP) Olympic Dam deposit, Oz Mineral’s (ASX:OZL) Prominent Hill and Carrapateena Deposits.

Gawler craton geology map Source: First Au Company announcement 27 July 2021

The Mabel Creek project is wholly owned by First Au and was identified as a result of project generation activities in 2020. The project tenure is surrounded by tenements owned by the mining giants BHP, Rio Tinto, FMG and Oz Minerals. The region is one of the most sought-after jurisdictions and is currently being actively explored. Recently, OZ Minerals Limited (ASX:OZL) and Rio Tinto (ASX:RIO) have applied for or have been granted tenures in the neighborhood of FAU’s ground.

Must Read: First Au Limited (ASX:FAU) ticks all the right boxes at Snowstorm

The Mabel Creek area has also been identified as the winner and runner-up of the South Australian government’s “2020 Gawler Challenge”. It was identified as the key prospective areas underexplored for IOCG and Central Gawler style gold mineralisation. FAU's tenements coincide with the area identified as one of the five key gold targets by the winner of the challenge.

The previous exploration activities in the area are limited. The previous exploration activities in the area is limited. The historical exploration work by Vale Exploration identified limited gravity and magnetics the project. These activities were followed by target generation and Reverse Circulation drilling outlined “potential distal IOCG alteration” at the Harlequin Prospect. The RC drillhole could not reach the targeted depth and may be considered as an immediate target.

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

Next Steps

First Au plans to wait for all the tenures to be granted and then progress on a high-level litho-structural analysis and to target from the existing datasets. Next, the Company intends to conduct geophysics (e.g. gravity) and surface geochemistry and then proceed to the drill testing.

Moho gradient map with IOCG / Gawler style deposits Source: First Au Company announcement 27 July 2021

Ian Neilson, FAU’s Chief Geologist, holds significant exposure with IOCG systems at Gawler Craton and across the globe.

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

Upon the completion of the Gawler Challenge, the SA government has announced an AU$5 million Geological Survey of South Australia (GSSA) fund to delineate and advance winning concepts into prospects. The government aid will assist the explorers in unlocking new discoveries. First Au plans to apply for funding from the GSSA once all tenements are granted.

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