Gimlet Drilling Begins: What Risks Does FAU Face with Equity-Funded Exploration?
First Au Limited has secured permits and funding to launch a 2,500-metre drilling campaign at its Gimlet Gold Project near Kalgoorlie, aiming to upgrade its 120,000-ounce inferred gold resource and advance feasibility studies.
- Permits approved for 2,500m reverse circulation drilling at Gimlet
- Drilling funded via drill-for-equity deal with Newcam Minerals
- Current inferred resource stands at 120,000 ounces at 3.19 g/t gold
- Program targets northern extensions and resource confidence upgrade
- Drilling to support potential open pit and underground mining studies
Permitting and Funding Milestone
First Au Limited (ASX – FAU) has reached a significant development milestone with regulatory approvals now in place to commence a fully funded reverse circulation (RC) drilling program at its Gimlet Gold Project, located just northwest of Kalgoorlie in Western Australia. The green light for earthworks and drill pad preparation signals the start of a campaign designed to deepen understanding of the project's gold resource and lay groundwork for potential mining operations.
Strategic Drilling Objectives
The upcoming 2,500-metre drilling program aims to upgrade the confidence level of the existing inferred resource, which currently stands at approximately 120,000 ounces of gold grading 3.19 grams per tonne. Beyond confirming and potentially expanding this resource, the drilling will test for northern extensions and a plunge zone exceeding 90 metres, areas that could materially increase the project's gold inventory. These efforts are critical to underpinning feasibility studies for both open pit and underground mining scenarios.
Innovative Drill-for-Equity Arrangement
Funding for the drilling comes through a drill-for-equity agreement with Perth-based Newcam Minerals Pty Ltd. Under this arrangement, First Au will issue fully paid ordinary shares at a fixed price of A$0.005 per share to cover 100% of the drilling costs. This structure allows the company to advance exploration without immediate cash outlay, though it introduces some dilution risk depending on the final drilling expenses.
Project Location and Infrastructure Advantage
Situated just 15 kilometres from Kalgoorlie, a prolific gold mining hub, the Gimlet Project benefits from proximity to established infrastructure and multiple operational gold processing plants. This strategic location enhances the project's attractiveness by potentially enabling toll treatment options, which could reduce capital expenditure and accelerate development timelines.
Looking Ahead
With drill pad clearing underway and equipment mobilisation scheduled for late September 2025, First Au is poised to deliver timely updates as the program progresses. The results of this drilling campaign will be pivotal in shaping the next phase of the Gimlet Project, potentially unlocking value for shareholders as gold prices continue to trend upwards.
Bottom Line?
As drilling kicks off, all eyes will be on Gimlet’s assay results to gauge the true scale of its gold potential.
Questions in the middle?
- Will the drilling confirm significant extensions to the current inferred resource?
- How will the equity issuance impact First Au’s share structure and investor sentiment?
- What timeline can investors expect for feasibility study outcomes following drilling?
