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FAU Commits to 100% Drill-for-Equity Program at Gimlet at $0.005/Share to Advance High-Grade Gold Project
FAU Commits to 100% Drill-for-Equity Program at Gimlet at $0.005/Share to Advance High-Grade Gold
About this update from First Au Ltd.
First Au Limited (ASX: FAU) ('FAU' or the 'Company') is pleased to announce it has entered into a drillfor-equity agreement with Newcam Minerals Pty Ltd ('Newcam') for the upcoming resource drilling program at the Gimlet Gold Project , located near Kalgoorlie, Western Australia . Under the terms, FAU will pay 100% of the drilling costs via the issue of fully paid ordinary FAU shares at a fixed price of $0.0052 per share. This arrangement allows FAU to preserve cash while rapidly advancing Gimlet with a value-accretive drilling campaign targeting near-term development. The estimated costs of the drilling campaign is circa A$660,000.00 and the Company will issue up to approximately 132,000,0003 new fully paid ordinary shares in FAU. New FAU shares can be issued from the Companys available capacity under ASX Listing Rule 7.1 following the refresh of the Company's capacity at its Annual General Meeting to be held on 30 July 2025 . Commenting on the agreement, Daniel Raihani , Chairman of FAU, said: 'This agreement allows FAU to advance Gimlet with zero upfront capital, using a clear and fixed equity structure that preserves shareholder value. At a time when gold is trading above A$5,000 /oz, fully funding a high-impact 2,500m program at just $0.005 per share is a compelling step forward. 'Gimlet is located on a granted mining lease with excellent proximity to multiple toll treatment options and sits along strike from significant deposits owned by Horizon Minerals . This program will target both infill and extension zones, laying the groundwork for feasibility studies and, ultimately, development'. BOUT NEWCAM MINERALS PTY LTD Newcam is a private company with a strong presence in Western Australia . It operates iron ore assets in the Mid West, including drilling, mining, haulage, and export from Mt Gould through the Geraldton Port. Newcam also recently entered a gold joint-venture with Aurumin Ltd (ASX:AUN) on its Johnstone Range Project and has bulk storage capacity and logistics agreements at Geraldton Por GIMLET GOLD PROJECT BACKGROUND The Gimlet Gold Project is located 15km NW of Kalgoorlie and has Mineral Inferred Resource estimate of 1,166,000 tonnes @ 3.2g/t Au for 120,000 ounces at a 1 g/t cut-off1. Gimlet is directly along strike from Horizon Minerals (ASX:HRZ) Teal deposit which contains Indicated and Inferred resources of 128,100oz @ 2.20 g/t Au and their Jacque-Peyes deposit which contains Indicated and Inferred resources of 129,800oz @ 2.32 g/t Au4 . First Au has drilled multiple programs since mineralisation was first discovered in November 2018 . The RC and diamond drilling is generally spaced to 40 metres along the already identified NNW-SSE mineralising trend and covered mineralisation from 30m to below 300 m vertical depth, and 450m in strike length. A total of 63 RC drill holes, and 8 diamond drill holes were used to create a 3D mineralisation framework and weathering surface. The geology in the tenement is prospective for gold, dominated by metamorphosed felsic and intermediate volcanic rocks of the Black Flag Group of the Kalgoorlie Terrane , Yilgarn Craton. This Archean geology is overlain by Cainozoic sediments, including some areas covered with salt lakes, which have previously inhibited the effectiveness of some of the historic exploration. Mineralisation is interpreted to be related to an NNW-SSE near vertical structure observed in the magnetic imagery and the geological logging of the drilling. Mineralisation at Gimlet occurs as: 1) a supergene blanket within the saprolite clays; 2) a supergene-enriched shear zone, at the fresh rock / oxide interface in the transition zone and 3) sheared felsic to intermediate volcanic and volcanic-derived sedimentary fresh rock, containing lenses, disseminated and stringer sulphides, with quartz vein material. Pyrite appears to be the dominant sulphide phase, while arsenopyrite, sphalerite and galena have also been identified in the logging. In several cases, the mineralised structures are bifurcated and can appear as several lodes. The fresh mineralised zone often shows a broader halo of disseminated pyrite (with associated sericitecarbonates-quartz), containing lower grade mineralisation ( 10 - 500 ppb Au). Contact: Daniel Raihani Chairman [email protected] Tel: +61 410 777 777 About First Au Limited : FAU is an advanced gold and base metals exploration company listed on the Australian Securities Exchange (ASX:FAU) and is pursuing exploration programs at its Victorian Goldfields Project in East Gippsland and its 100% owned Gimlet Gold project near Kalgoorlie and is in the process of acquiring the highly potential Nimba Gold Project located in Liberia . (C) 2025 Electronic News Publishing, source ENP Newswire