How First Au’s Drill-for-Equity and Rig Ownership Could Transform Its Gold Projects

Strategic Drilling Initiatives at Gimlet

First Au Limited (ASX, FAU) has committed to a 100% drill-for-equity program at its high-grade Gimlet Gold Project near Kalgoorlie, Western Australia. Under an agreement with Newcam Minerals Pty Ltd, the company will fund up to 2,500 metres of reverse circulation drilling through the issuance of shares at a fixed price of A$0.005 per share. This innovative arrangement preserves cash while advancing the project’s development potential.

The drilling aims to upgrade the current Inferred Resource of approximately 120,000 ounces of gold at 3.19 grams per tonne, test for extensions beyond 90 metres depth, and provide critical data to support future mining studies. Located on a granted mining lease with access to multiple processing plants, including the nearby Paddington facility, Gimlet benefits from strong infrastructure and promising metallurgy with gold recoveries around 88%.

Pioneering Diamond Drilling and Rig Ownership at Nimba

In Liberia, First Au has launched its first-ever diamond drilling campaign at the Nimba Gold Project, marking a significant milestone as the first ASX-listed company to drill in this highly prospective West African region. The company has contracted Hit N Drill Limited for a 3,000-metre program using two new track-mounted rigs, with ownership of one rig transferring to First Au at no additional cost upon completion.

This strategic asset acquisition positions First Au for lower-cost exploration and operational flexibility across its African portfolio. The drilling targets structural controls beneath historical gold intersections, newly identified oxide and sulphide zones, and extensions of artisanal workings, aiming to unlock large-scale gold discovery potential within the prolific Birimian greenstone belt.

Progress and Assay Highlights at Nimba

First Au has completed Stage-1 of its earn-in agreement at Nimba, earning a 35% interest following the issue of 100 million shares and cash payments totaling A$250,000. Initial drilling results from the Ziatoyah prospect are encouraging, with the first hole intersecting 29 metres at 0.97 g/t gold and a higher-grade 8-metre zone averaging 2.55 g/t, including intervals up to 8.73 g/t. These results confirm continuity and structural control of mineralisation, with further assays pending from subsequent drill holes.

The company is advancing additional drilling and plans to deploy geophysical surveys later in the year to refine targets, despite seasonal challenges such as heavy rains causing temporary disruptions.

Corporate Developments and Strategic Divestment

On the corporate front, First Au appointed Lei Shi as Executive Director to oversee African operations, while Nicholas Karl Smithson joined the board as a Non-Executive Director, bringing extensive West African mining experience. The company successfully raised $1.56 million through a two-tranche placement to support ongoing exploration and project acquisition costs.

Additionally, First Au entered into a binding Heads of Agreement with AustChina Holdings Limited (ASX, AUH) granting AustChina an exclusive 19-month option to acquire the Eastern Victorian Goldfield Project. The transaction includes upfront cash and share payments, with further consideration upon option exercise, allowing First Au to unlock value from non-core assets and focus resources on its higher-priority projects in Liberia and Western Australia.