First Au Locks in Sandstone Gold Project With Drilling Database to Fast-Track Resource
Key Takeaways
- First Au has executed a binding agreement to acquire the Sandstone Gold Project from Complete Prospecting Pty Ltd for total consideration of up to A$900,000, comprising A$350,000 cash, A$400,000 in FAU shares, and A$150,000 deferred and milestone-linked.
- The deferred A$150,000 payment is only triggered if FAU announces a JORC-compliant Inferred or higher Mineral Resource of at least 10,000oz Au at a cut-off grade of ≥0.5g/t Au within five years — if the milestone lapses, so does the obligation.
- The project comes with an existing historical RC drilling database across the Harmonic and Creasy prospects, giving FAU a head start toward resource definition rather than a blank-sheet first-pass program.
- FAU has committed to a minimum A$250,000 exploration spend within 24 months of completion, with any shortfall payable to the vendor in cash.
- Sandstone adds approximately 3.5km of continuous Mayard Greenstone Belt exposure to FAU's existing WA gold portfolio, which already includes the Barlee, Riverina East, and Gimlet projects.
First Au secures binding agreement for Sandstone Gold Project
First Au (ASX: FAU) has entered a binding agreement to acquire the Sandstone Gold Project in Western Australia’s established Sandstone gold district from Complete Prospecting Pty Ltd. The project comprises five tenements, including four Prospecting Licences and one Exploration Licence, covering prospective geology across the Mayard and Crook Well Greenstone Belts.
Critically, this is not a greenfields play. The project comes with a substantial historical RC (Reverse Circulation) drilling database across the Harmonic and Creasy prospects, giving FAU an advanced starting point toward defining a maiden JORC-compliant Mineral Resource rather than commencing from first-pass exploration.
The project covers approximately 3.5km of continuous exposure to the Mayard Greenstone Belt, where the Harmonic and Creasy prospects sit, plus additional exposure to the Crook Well Greenstone Belt. The Sandstone acquisition expands FAU’s existing Western Australian gold portfolio, which already includes the Barlee, Riverina East, and Gimlet projects.
When big ASX news breaks, our subscribers know first
Acquisition structure and deal terms
The transaction is structured to maintain capital discipline, with a portion of the total consideration linked directly to exploration success. The key terms are as follows:
- Cash consideration (exclusivity fee): A$350,000
- Consideration Shares: A$400,000 in FAU shares, priced at the 15-trading-day VWAP prior to completion (subject to shareholder approval under ASX Listing Rule 7.1)
- Deferred consideration: A$150,000, payable only upon FAU announcing a JORC-compliant Inferred or higher Mineral Resource of ≥10,000oz Au at a cut-off grade of ≥0.5g/t Au on one or more tenements
- Milestone period: Five years from completion; the deferred consideration obligation lapses automatically if the milestone is not achieved
FAU has also committed to a minimum exploration expenditure of A$250,000 on the tenements within 24 months of completion. If that threshold is not met, the shortfall becomes payable to the vendor in cash.
| Key Term | Detail |
|---|---|
| Vendor | Complete Prospecting Pty Ltd |
| Tenements | P57/1539, P57/1540, P57/1541, P57/1542 and E57/1480 |
| Cash Consideration | A$350,000 (paid as an exclusivity fee) |
| Share Consideration | A$400,000 in FAU shares |
| Share Pricing | 15-trading-day VWAP prior to completion |
| Deferred Consideration | A$150,000 (milestone-linked) |
| Deferred Milestone | JORC-compliant Inferred or higher Mineral Resource of ≥10,000oz Au at ≥0.5g/t Au on one or more tenements |
| Milestone Period | Five years from completion; lapses if milestone not achieved |
| Exploration Commitment | Minimum A$250,000 within 24 months of completion |
| Completion Conditions | Shareholder approval (LR 7.1), regulatory approvals, ministerial consents |
What is a JORC Mineral Resource, and why does it matter for FAU investors?
A JORC-compliant Mineral Resource is a formal estimate of the quantity and grade of mineralisation in the ground, classified by confidence level as Inferred, Indicated, or Measured under the Australasian JORC Code. For a junior gold explorer, publishing a maiden resource is a meaningful de-risking milestone because it converts geological potential into a quantified, industry-recognised estimate that underpins project value.
The difference between starting from scratch (a greenfields position) and starting with an existing drilling database is significant. First-pass drilling programs take time and money before any resource work can begin. When a historical database already exists, the near-term task becomes validating and reviewing that data rather than generating it from zero, which can potentially reduce both the time and cost required to reach resource definition.
For FAU, the historical RC drilling data at Harmonic and Creasy means the company can direct near-term spending toward data validation and targeted follow-up work, rather than committing capital to first-pass programs. That potentially accelerates the pathway to a maiden JORC-compliant Mineral Resource definition.
The next major ASX story will hit our subscribers first
Strategic fit and what comes next
Daniel Raihani, Executive Chairman
“What particularly attracted us to Sandstone is the combination of prospective geology and the substantial historical drilling database. Rather than starting from first-pass exploration, we have an opportunity to build on this existing body of work and focus our expenditure on validating the data and advancing the project toward a maiden JORC-compliant Mineral Resource.
“The acquisition has also been structured to align a portion of the consideration with exploration success, providing FirstAu shareholders with significant exposure to the project’s potential while maintaining capital discipline.”
The Sandstone acquisition is consistent with FAU’s stated strategy of building a portfolio of Western Australian gold assets where existing geological information and prior exploration work provide a potentially accelerated pathway to resource definition. The project brings together an established historical drilling database, exposure to prospective Archean greenstone geology, and a deal structure that ties part of the consideration to exploration outcomes.
Sandstone also complements and extends FAU’s existing project portfolio across several established WA gold districts, sitting alongside Barlee, Riverina East, and Gimlet.
The company’s intended next steps following execution of the agreement are:
- Completion of the acquisition, subject to shareholder and regulatory approvals
- Systematic validation and review of the historical RC drilling data at Harmonic and Creasy
- Determination of the most efficient program to advance the Harmonic and Creasy prospects
- Target maiden JORC-compliant Mineral Resource definition
Don’t Miss the Next ASX Gold Discovery
Get FREE breaking ASX gold news delivered to your inbox within minutes of release, complete with in-depth analysis. Join 30,000+ subscribers already ahead of the market and never miss a move in the ASX gold sector. Click the “Free Alerts” button at Discovery Alert to start receiving alerts the moment market-moving news breaks.