First Au’s Victorian Gold Project Under Focus Amid Revival of The Victorian Gold Rush

Summary

• First Au to acquire 80% in Victorian Gold project, hosts gold mining centre with no significant exploration on the mineralisation at depth
• Gold explorers rushing to Victorian goldfields, Major investors backing minerals project in the terrain
• Geology and mineralisation style interpreted to be similar to Bendingo goldfields

First Au Limited (ASX:FAU), the experienced and growing gold miner, approaches the acquisition of 80% stake in the Victorian Goldfields Pty Ltd which holds the highly prospective Victorian gold project in the East Victorian Goldfields.

The explorer is keen on acquiring 85% stake (post dilution 80%) in the Snowstorm project (EL 5505) and the prospecting license (PL 007319) and consolidating to form a larger Victorian Gold project.

Read Here: First Au Limited’s New Ace in the Arsenal, The Victorian Goldfields Project

Revival of the Victorian Gold Rush

The Victorian gold rush gained worldwide fame with gold being discovered within the Clunes Goldfield in 1851 and then spreading to the Ballarat, Castlemaine and Bendigo areas. Almost 61 million ounces of gold is reported to be mined in Victoria between 1851 and 1896. The extensive alluvial and reef mining operations were later suspended mostly due to the combination of multiple factors, including technical, environmental concerns pertaining to air quality and water issues.

Data Source (Company Report, Kalkine Research)

Thanks to multiple discoveries in the Victorian goldfields, mining companies from juniors to the majors are striving to gain prospective exploration ground in the Victorian goldfields. The region was further highlighted by the commencement of one of the highest-grade gold mining operations, Kirkland Lake ‘s Fosterville Gold Mine. The gold mine produced over 619,000 ounces of gold at a cash cost of $119 per ounce and an AISC of $219 an Ounce of gold in 2019.

Must Read: First Au expanding Victorian Gold project via Acquisition of additional prospects

Large area with historical high-grade mining heritage in the Victorian Goldfields

The flagship Victorian Gold project encompasses five exploration license applications over an area of 2,250 square kilometres in the East Gippsland on the southern extent of the Lachlan Fold Belt of Victoria. The large project area prospective includes newly interpreted orogenic gold and porphyry copper targets making First Au a significant explorer in the eastern Victoria.

Haunted Stream Au and Dogwood Cu-Au Porphyry, East Gippsland Source: First Au Limited

The Victorian gold project hosts historical mine workings along an 8 kilometre strike at the Haunted Stream prospect with production head grades exceeding 1 ounce per tonne of Gold. Despite the high-grade mineralisation records, the drilling activity in the region has been restricted with almost no drilling to check the extent of the mineralisation at depths.

Read Here: First Au announces new equity structure for VicGold acquisition upon consultation with ASX

Utilising the vast on-ground works conducted by the VicGold geological team, a Mineralised systems study was conducted which upgraded the conceptual model to identify targets within the area. The study highlights a strong similarity in the geology and mineralisation style at Haunted Stream with Central Victorian Goldfields in and around Bendigo. Several exploration targets have already been identified in and around the historic mining centre and are almost ready to be tested during the drilling programs.

What does similarity with Bendigo goldfield means for Victoria Gold Project?

The Bendigo goldfield hosts over 37 distinct gold-bearing quartz reefs over an area of 64 square kilometres with over 5,000 recorded mining operations of varying scales including extensive underground operations with up to 1,000 metres in depth. In fact, the Bendigo goldfield has the highest concentration of deep shaft in the world. The strong similarity to the Bendigo mineralisation with no substantial exploration on mineralisation at depth bodes well for Victorian Goldfields.

Must Read: First Au to commence drilling at Gimlet in August, Testing extension of gold mineralisation at depth

First Au traded at $0.018 a share at 2:22 PM AEST on 21 August 2020 with a market capitalisation of $7.23 million.

All financial information pertains to Australian dollar unless stated otherwise.