First Au Drills Historic 7.7g/t First Hit Mine With Assays Due This Quarter
Key Takeaways
- First Au has started its maiden RC drill program at First Hit, a roughly 2-week campaign targeting depth extension with assays due within the quarter.
- First Hit produced ~30koz at ~7.7g/t Au in only 15 months in 2002, but that is historic production and the mine has no current resource.
- An independent Perth-based consultancy has been commissioned to deliver a maiden Mineral Resource Estimate incorporating the new drilling, with no timing disclosed.
- The project holds granted Mining Licences 8km from Ora Banda's Riverina underground and 40km from its Davyhurst processing facility, though no agreement with OBM is stated.
- The announcement contains no Exploration Results, so near-term assays are the first real test of the depth-extension thesis across a 340km² tenement package.
Maiden drilling underway at historic First Hit Gold Mine
First Au (ASX:FAU) has commenced its maiden reverse circulation (RC) drill program at the historic First Hit Gold Mine, part of the Riverina East Gold Project in Western Australia’s Eastern Goldfields.
The program targets depth extension of the mine, which produced ~30koz at ~7.7g/t Au over only 15 months of production. It is expected to take ~2 weeks, with assay results to be available within the quarter.
First Au has also commissioned an independent Perth-based consultancy to complete a maiden Mineral Resource Estimate for First Hit, incorporating results from the current program.
For investors, this is the first step toward a defined resource at a known high-grade asset.
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A high-grade past producer with proximity to infrastructure
Production history
Barra Resources operated the First Hit Gold Mine in 2002, producing ~30koz at ~7.7g/t Au during a period of suppressed gold prices.
That figure is historic production, not a current resource. It tells you what the mine has delivered in the past, not what remains in the ground.
Location advantages
The project sits on granted Mining Licences, close to existing mining operations and infrastructure:
- Granted Mining Licences
- 8km from Ora Banda Mining’s (ASX: OBM) Riverina underground operation
- 40km from OBM’s Davyhurst processing facility
- 50km west of the sealed Goldfields Highway and the township of Menzies
Nearby operations and infrastructure could support future development options. The announcement does not state any agreement or plan with OBM.
Project snapshot
The Riverina East Gold Project is centred around First Hit, situated along the prospective Ida and Zuleika Shear Zones.
| Item | Detail |
| Total tenements | 340km² |
| Mining Licences | 2 |
| Prospecting Licences | 5 |
| Granted Exploration Licences | 8 |
| Exploration Licence application | 1 |
| Option agreement | 1, covering part of E30/517 |
| Contiguous core group hosting First Hit | 6.4km² |
The project also contains the extensive Bifrost Mineralisation site, which is considered highly prospective for gold, along with a number of high potential mineralisation sites previously identified.
What is a Mineral Resource Estimate and why it matters
A Mineral Resource Estimate is a formal, independently prepared calculation of the tonnes and grade of mineralisation in the ground.
First Hit currently has historic production but no maiden Mineral Resource Estimate. Drilling results feed into the estimate, which can underpin valuation and future development decisions.
The announcement states it contains no Exploration Results, so it offers no indication of what the drilling will find or how large a resource might be.
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Strategy and next steps for First Au
Executive Chairman Daniel Raihani linked the drilling to the company’s wider intentions.
Daniel Raihani, Executive Chairman
“The commencement of drilling activities at First Hit signifies the Company’s intention to rapidly define and develop resources within our current tenure. The Company has recently undergone a transformative period featuring multiple acquisitions which provide the Company with strong opportunities to build a substantial inventory in known gold districts…”
The announcement gives no specifics on those acquisitions.
Upcoming milestones include:
- Completion of the ~2-week RC program
- Assay results, expected within the quarter
- Maiden Mineral Resource Estimate by the independent consultancy, with no timing disclosed
For you as an investor, the near-term focus is news flow from assays, followed by a resource estimate at an asset held on granted Mining Licences.
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