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First Au Limited (ASX:FAU) records gold grades of 86 g/t, drilling to commence in mid-February

Summary

  • The rock chip samples from the Haunted Stream / Snowstorm area returned gold grades up to 86 g/t gold.
  • First Au has planned the maiden drilling program for mid-February at the Snowstorm Project.
  • The application for drilling permits at Haunted Stream prospect is underway.
  • New mapping indicates substantial potential at depth which is yet to be tested around the Hibernia-Ernestine trend.

Iconic gold explorer, First Au Limited (ASX:FAU) updated the stakeholders on the ongoing field activities and the rock chip sampling program at the Vic Gold Project in East Gippsland of Victoria. The exploration activities focus on the Haunted Stream and Snowstorm prospects at the Vic Gold Project and have already delineated the drill targets for the upcoming drilling campaign which is scheduled to commence in mid-February.

The rock chip samples across the FAU’s tenure continues to return high grade gold assay results including at the Snowstorm project area where the samples recorded a gold grade of 86 g/t.

FAU’s Victorian Goldfields Project Source: First Au website

First Au owns an 80% interest in the Victorian Goldfields Project which stretches over a large ground base of 2,250 square kilometres offering FAU a significant first mover opportunity in the goldfield. The continuous good results at the Vic gold project, and now the rock chip sample results underpin the potential of the mineral rich district.

Haunted Stream Prospect

A reconnaissance mapping program and a rock chip sampling program is ongoing at the project since November 2020. It has led to the identification of distinct architectural controls around the Haunted Stream lease (tenement EL006816).

Historical rock chip sampling program at Ernestine – Hibernia Source: First Au ASX Update 3 February 2021

The field program has confirmed gold mineralisation zones surrounding the Ernestine / Hibernia workings and is controlled by an array of  NE-SW and N-S trending ductile shear zones which are interpreted to be associated with Bindian orogeny.

On the contrary, the Snowstorm shearzones are brittle structural formations. The Victorian Government Mining Records suggest that the mining production averaged at 741 tonnes of ore with 38.9 g/t gold.

The Bindian Orogeny is understood to be responsible for the NW and NE striking shear zones suggesting the deeper crust level of Haunted Stream in comparison to Snowstorm. This critical information would be useful to understand different mineralisation styles and suitable exploration plans.

The structural mapping and the rock chip sample results suggest sub-economic and high-Arsenic grades up to 1.2% and up to 15 metres in width encapsulates high grade gold mineralisation in the southerly plunging shoots.

Further,  a strong correlation of As (Arsenic) and Au (Gold) has been registered across the Victorian deposits. The high arsenic results indicate that the alteration system is related to the gold mineralisation and has been recognised as a proximal mineralisation indicator.

The recent rock chip sampling program identified a low-grade envelope on the terminal extent of the Ernestine UG Drive. High-grade rock chips up to 444g/t of gold have been reported at the Ernestine Mullock pile, indicating high-grade gold mineralisation. The high-grade samples from these shoots are likely to be mined out near the surface of the mine.

Drill program targets: The drilling program is aimed to test the extent of the new mineralisation model. The Ernestine and Hibernia historical workings are located on the eastern extent of the Haunted Stream high-grade gold corridor and are the focus of the initial phase of the drilling campaign.

First Au's lithological and Structural mapping has identified that the gold mineralisation is controlled by an array of ~N-S to NE-SW trending shear zones.

Mantle mining drilling and the Ernestine Shear zone Source: First Au ASX Update 3 February 2021

A review of the historical drilling program such as the one by Mantle Mining (3 RC and 4 Diamond Holes) around the Ernestine – New Stirling suggests that the drill holes intersected only the sub-economic mineralisation envelope.

At First Au, the geologists are highly optimistic on the developing architectural model for the mineral systems at Haunted Stream. A new hypothesis will assist in assessing and evaluating the historical drilling in the area and will also assist in new drillhole design. The effective hypothesis considers the extent and depth of the historical gold mine workings (>150m vertical depth) at the Ernestine to Hibernia corridor and the larger Haunted Stream high-grade gold corridor. The application for the drilling permits is already underway for the Haunted Stream Ernestine region.

Snowstorm Project

The initial drilling program at Snowstorm has been scheduled for mid-February. First Au has engaged Star West Drilling to conduct the drilling program. The drilling program is an outcome of the mapping of the Snowstorm prospect which undertook the evaluation and assessment of the structural controls on gold mineralisation and assess in the targeting of the drill holes.

The latest rock chip program returned gold grades up to 86.2 g/t of gold and supports the previous result with gold grades of 112 g/t gold. The upcoming drilling campaign will target the lode orientations and will also focus on the NW-SE trending high-grade auriferous vein orientations. The high-grade gold mineralisation at Snowstorm presents a substantial opportunity for testing the high grade mineralisation system at depth during the upcoming drilling programs.

The shares of FAU were put on a trading halt on 04 February 2021, as the company is preparing to release an announcement on a proposed capital raising plan.

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