First AU (ASX:FAU) to acquire 80pc of Victorian Goldfields

• First AU (FAU) has entered a binding term sheet to acquire 80 per cent of the issued share capital in Victorian Goldfields
• Victorian Goldfields holds applications that make up the Victorian Goldfields Project and this acquisition will provide First AU with a stake in the highly prospective Victorian goldfields region
• First AU will also gain access to the Haunted Stream tenement that has historically returned gold grading up to 444 grammes per tonne
• Furthermore, once this acquisition is complete, Dr Gavin England is expected to take the position of Technical Director
• He has been helping the company with exploration management
• First AU is up a healthy 18.2 per cent on the market and shares are trading for 1.3 cents each

First AU (FAU) has entered a binding term sheet to acquire 80 per cent of the issued share capital in Victorian Goldfields.

Victorian Goldfields holds applications that make up the Victorian Goldfields Project and this acquisition will provide First AU with a stake in the highly prospective Victorian goldfields region.

This project is made up of five exploration licence applications in East Gippsland, Victoria, and previous exploration at the project has focused on low-sulphide orogenic gold deposits.

The prospectivity of the project was first identified by Victorian Goldfields in 2018 after academic studies cited new geological evidence in the understanding of the history and gold fertility in the region.

One of the five exploration licences, Haunted Stream, shows potential for signifiant high-gold continuity, taken from data from historic workings and rock chip sampling.

Historical works show that up to 444g/t gold has been extracted at one point.

Mine records dating back as far as the 1880’s show ore being extracted at above one ounce per tonne.

With an area of more than 2250 square kilometres, First AU’s acquisition of Haunted Stream would make it a significant exploration player in Eastern Victoria.

While Haunted Stream contains significant historic workings, limited to no drilling has been completed to effectively test the depth extent.

Additionally, it also contains untested, prospective mafic intrusive dykes, which is believe to presents new high-grade orogenic targets.

The other four tenement applications contain historic hard rock and alluvial gold workings.

Further work is needed to develop new drill targets.

Furthermore, it is believed that once this acquisition is complete, Dr Gavin England, who has been providing First AU with exploration management, will take the position of Technical Director.

Structural geologist Ian Neilson, from Victorian Goldfields, has also been appointed as a consultant.

First AU is up a healthy 18.2 per cent on the market and shares are trading for 1.3 cents each at 2:20 pm AEST.