First Au Limited (ASX: FAU)

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The results of recent drilling have highlighted the potential of the Gimlet Gold Project (“Gimlet”),
located just 15km from Kalgoorlie, to host appreciable gold mineralisation.
Gimlet is one of three projects held by the recently re-listed First Au Limited (ASX: FAU, “First
Au” or “the Company”, previously Public Holdings (Australia) Ltd), with the others being highly
prospective precious and base metals tenements in the Pilbara region of Western Australia,
with all being vended in by well known and respected prospectors Denis and Damon O’Meara.
Drilling at Gimlet, which is adjacent to and along strike from Intermin Resources’ (ASX: IRC,
“Intermin”) 289 koz Teal Gold Camp, commenced immediately after the re-listing in June 2018,
and has shown that the mineralisation recently mined in an open cut by Intermin continues
into the Company’s property. The work by First Au has delineated ~500 m strike of both a
supergene blanket and underlying steeply dipping shear hosted gold mineralisation, with these
open along strike to the north and to the south into Intermin’s tenement. The drilling has also
intersected some bonanza grades, including 4 m @ 393 g/t Au in fresh vein mineralisation.
Further drilling is planned at Gimlet in early 2019, with ongoing results then to be used in an
initial Mineral Resource Estimate (“MRE”).
Results of historic work at the Pilbara projects, Emu Creek and Talga, has highlighted the potential
for significant base metals and or gold discoveries - although appreciable work, including
drilling, has been completed on these tenements in some ways they can be considered underexplored.
Past work has concentrated on orogenic gold and VMS mineralisation, with very
positive results highlighting significant highly prospective areas that require further work. The
Talga Project is also prospective for conglomerate gold and pegmatite hosted lithium however
no exploration has been undertaken for these styles of mineralisation.
With some A$4.033 million in the bank as of September 30, 2018, the Company is well cashed
up, and in a good position to undertake comprehensive and effective exploration programmes
on all projects, with the next field activities, including drilling, commencing in early 2019.
KEY POINTS
Quality projects; Results to date from the three key projects, Gimlet, Emu Creek and Talga
have been very encouraging, highlighting their prospectivity to host potentially economically
viable gold and base metals mineralisation; the geology of Talga also highlights the lithium and
conglomerate gold potential.
Short term gold production opportunity: Subject to delineating a viable MRE and permitting,
Gimlet potentially provides a low capex, short term production opportunity through third party
ore treatment - this has the capacity to provide appreciable cash flow to fund activities as
exhibited by Intermin’s recent production from the adjacent Teal Gold Mine.
Standalone opportunity: There may also be the opportunity, through discovery, acquisition or
amalgamation to build a critical mass that will support development of a standalone operation
at Gimlet - a current example of this is the current merger implementation agreement between
Intermin and McPherson’s Resources (ASX: MCP).
Well regarded jurisdiction: All of the company’s projects are located in Western Australia, a
mining powerhouse with well developed and tested legislation and ranked 5th globally in the
2017 Fraser Institute Survey of Mining Companies; in addition there is ready access to skilled
labour and services.
Experienced and committed personnel: Company personnel are well respected and have
extensive experience in the junior resources space, In addition directors directly and indirectly
hold ~20% of the shares in First Au, a key strength that aligns the interests of company
personnel with that of the other shareholders.
Leveraged to exploration success: With an enterprise value (“EV”) of just A$0.7 million, First
Au is well leveraged to exploration success.
Steady News Flow: We expect to see a steady news flow with ongoing exploration activities,
including further drilling commencing in early 2019.