First Au (ASX:FAU) is seeking to acquire the mineral exploration license for the Nimba Gold Project in Liberia from a subsidiary of Hamak Gold (LSE:HAMA).
The company has executed a binding term sheet to earn-in up to 70% interest in the project with option to fully acquire the tenement package spanning 831.09km2.
The company intends to raise $1 million at a price of $0.0035 per share, with directors to invest about $120,000, following shareholder approval.
Previous exploration tested less than 10% of the anomaly, returning gold intercepts of 20m at 6.98 grams per tonne gold.
First Au will begin a diamond drilling program this year to further understand structural controls on mineralisation to advance resource definition.
First AU Director and geologist Lei Shi says a recent trip to inspect the site has provided clarity surrounding structural complexity, lithological controls, and insights of mineralisation within the belt.
“Observing the interplay of the potential gold bearing folded structures, the presence of a well-defined potassic alteration front preceding to chloritic alteration to through to the amphibolite alteration which has been identified as the favorable horizon for the gold bearing fluids for mineralisation within the granitic gneiss host,” Shi says.
“The company’s immediate priorities include strategic diamond drilling, targeted step-outs, and refined geophysical interpretations to improve resource delineation with better understanding of structural control of mineralisation and confirm the continuity of highgrade zones.”
The Nimba Gold Project is adjacent to Endeavour Mining’s (LSE:EDV) Ity Gold Mine, which turned over 342,860 ounces in gold last year, located in West African Craton.
Recent tariff policy implemented by US President Donald Trump has caused a fluctuation in gold prices, currently sitting just short of US$3,300 ($5,136) as reported by Mining.com.au today (21 May).
First Au is an exploration company focusing on the development of gold and base metal projects spanning Victoria, Western Australia, and South Australia.
Write to Maddison Elliott at Mining.com.au
Images: First Au
