First Au’s Exploration Program Paving Way for the VicGold Asset

  • Jul 20, 2020 AEST
  • Team Kalkine
First Au’s Exploration Program Paving Way for the VicGold Asset

Summary

  • Consolidation proposed for Victorian Gold and Snowstorm Projects
  • Victorian Gold Project is a large underexplored project in mineral-rich Victorian Goldfields
  • Highly prospective Haunted Stream with historical gold mining grades >5 oz/t
  • First Au highly experienced in regional geology proposes $2 million exploration plan

First Au Limited (ASX:FAU) on 17 July 2020 published a presentation upon advancement towards the acquisition of an 80% stake in the Victorian Goldfields Pty Ltd (VicGold), the owner of the Victorian Gold project. On the same day, First Au also announced the satisfactory completion of the due diligence program for the VicGold acquisition.

Read: First Au paves path for VicGold acquisition, Due diligence investigations completed

Further, on 9 July 2020, First Au entered into an option agreement with Mines of Stirling Pty Ltd to acquire 85% stake (post dilution 80%) in the granted exploration licence EL 5505 and prospecting licence PL 007319 (Snowstorm Project, almost 15 kilometres north of VicGold’s Haunted Stream.

Click Here, to read more on First Au acquisition of Victoria Goldfields

Large Underexplored Stretch, First Mover Advantage for First Au with Strong Potential for Large Mineralisation

The Victorian Gold project extends over 2,250 square kilometres area on the southern tip of the Lachlan Fold Belt in East Gippsland, Victoria. Victorian Gold project is a premier project in the Victorian Goldfields, offering strong first movers in the East Victorian Goldfields to take advantage of the latest Orocline Model.

The geology and the structure of the mineralisation hold strong similarities to the Central Vic Goldfields which hosts the Stawell, Fosterville and Bendigo Gold deposits, but is underexplored further enhancing the potential of a large-scale discovery.

The Victorian Gold project is interpreted to host similar mineralisation styles as Bendigo and Fosterville with substantial mineral resource potential. The initial exploration program targets an untested stretch exceeding 8.5 kilometres along the regional scale structure hosting high-grade historical workings and prospective targets at the Haunted Stream.

Experienced Team to advance Orogenic Targets

First Au is led by strong management and technical team including Orogenic gold experts.

 

Ian Nelson is a structural geologist with over 18 years of experience with substantial exploration and mining exposure in porphyry copper, orogenic gold and base metal deposits. Recently, he worked extensively on structural geologies similar to Haunted Stream, which resulted in the discovery of Kalamazoo intersection with gold grades of 1928 g/t Au.

Dr Gavin England holds 20 years of extensive experience in gold geology, exploration and development of projects. Dr England has been leading the Gimlet gold project for First Au.

Victorian Goldfields – An Established Gold mining region

Source: Company’s report

Victoria hosts multiple Gold projects with strong prospects, some of which holds mineral resources in excess of 8 million ounces. Gold exploration in East Gippsland has historically concentrated on the Cassilis high sulphidation systems around Omeo.

The 5 tenements applications upon acquisition will cover a large prospective area in the Victorian Goldfields. The VicGold project area is located in crown land with minimal issues relating to landholder engagement. With the region being affected by the recent bushfires, the local community is supportive of economic activities in an effort to rejuvenate the economy. 

The project region is easily accessible with excellent infrastructure. The state government is supportive of mining and exploration projects with the rejuvenated interests from established miners and explorers.

The recent Orocline research suggests strong potential for the eastern Victorian Goldfields and the  region possesses a major discovery potential.

Haunted Stream & Tenements under Victorian Goldfield Project

Source: Company’s report

The Haunted Stream tenement (EL006816) is the primary orogenic deposit located across 8.5 kilometres gold corridor with resource ready targets. Haunted Stream also hosted the historical mining centres which exploited the gold-bearing quartz veins and associated stockworks and reefs from the 1860s till 1900s. The mineralisation system is understood to remain open at depth.

Here are the key highlights of the historical mining and exploration activities -

  • Historical recorded production with mine grades in excess of 155 grams a tonne (5 Oz/t)
  • Rock chip sampling program from 1986 from the historical mine workings resulted in similar thickness and high Gold grades
  • Significantly underexplored region presents an opportunity for the future.
  • Multiple mineralised intrusive magnetic anomalies with similar age as the Morning Star Woods Point Dyke Deposit (775k oz au)

The EL006975 & EL006976 hosts multiple historical alluvial and primary gold workings subjected to no or minimal exploration during the past 130 years.

The EL5422 tenement application is located along the strike of the Haunted Stream mineralised corridor with further research showing similar mineralised mafic intrusions and structure. The EL006977 target hosts potential Cu-Mo-Au porphyry (Dogwood porphyry) with both oxide and sulphide mineralisation discovered from the limited drilling activities in the past.

Snowstorm shares similar Ordovician origin rocks as the Haunted stream prospect and has recorded high grade gold results in the past. The Snowstorm project also hosts several historical workings.

Exploration Program at the Mega Prospects

First Au has already started the desktop work at Snowstorm Au, Dogwood Cu-Au and Haunted Stream Au. VicGold, in the past has substantially advanced on the exploration of the project through effective and economical exploration techniques, especially at the Haunted Stream area.

Numerous prospective targets have already been identified and would facilitate further exploration program. First Au has prepared a $2 million exploration program to advance on the Victorian Gold project in the next 12 to 18 months.

Initially, on ground exploration activities would include a mapping, surface geochemical and geophysical surveys including IP and drone mag to identify and develop new prospects.

Multiple drill ready targets at Snowstorm, Hibernia, Hans and Rob Roy Lodes have already been identified with the ability to convert to potential mineral resources upon drilling. The maiden drilling program is anticipated to begin in the coming 3 to 6 months in the following 3 phases-

  • Phase 1 – test concepts ($400K)
  • Phase 2 – prioritise targets and drill potential Inferred Resource ($1.2m)
  • Phase 3 – test new geophysics or geochem targets ($300K)

On 20 July 2020, First Au was trading at $0.019 a share, with a market capitalisation of $7.84 million.

All financial information pertains to Australian dollar unless stated otherwise.

 


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