First Au Ltd V.FAU.H

Primary Symbol: FRSAF

Metals & Mining Industrial Metals & Minerals

First AU Limited is an Australia-based advanced gold and base metals exploration company. The principal activity of the Company is exploration for gold and other metals in its interests in mining tenements located in Western Australia and Victoria. It is engaged in pursuing exploration programs at its Victorian Goldfields Project in East Gippsland and its 100% owned Gimlet Gold project near Kalgoorlie. The Victorian Gold Project is located in the Gippsland region, which is in the historic mining area of Swifts Creek and is focused on the Haunted Stream and Snowstorm Projects. The flagship Haunted Stream Project is located in East Gippsland Victoria (340 kilometers (km) South East of Melbourne). The Company’s Gimlet Gold Project is located approximately 15 km northwest of Kalgoorlie, Western Australia EL26/174 and application M26/849 -9.6 square kilometers. The Snowstorm Prospect is located within the historic Swifts Creek Goldfields in the East Gippsland region.

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First Au Ltd

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Comment by JohnEStromJron Feb 01, 2012 8:28pm

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Post# 19477149

Fire River is ready to roar ? Maybe

Hi guerreiro,

As I’ve posted previously, there are a number of things that are troublesome. I’m not sure that a change in management at this late state would do much good. Perhaps. What I have posted can easily be verified. I agree with you, there is a lot of misinformation. My concerns remain valid

We have a PEA [Preliminary Econonomic Assessment] that somehow missed the fact the 3000 level [they call it the 3077 level] has already been mined. That was our richest ore and supposedly contained 25,000 ounces of gold worth around $42 million gross at the present time.
That ore was shown as already mined in early October, 2011 but shareholders were not advised it was gone until December 21st, some 2 1/2 months later. That’s a pretty big mistake. Many shareholders relied on the company claims as to the richness of the ore while doing their due diligence. How can anyone do due diligence if they can’t trust the documents and data provided by the company to promote the sale of shares.

Another troubling aspect is that Fire River Gold does not have a single ounce of gold in the “measured” or “proven” category. All of Fire River’s gold is in the “indicated” and “inferred” categories.

Also troubling is the fact Richard Goodwin will no longer announce concentrate or dore shipments. Were we a company with a lengthy and proven track record this would not be a problem but Fire River is a very new company and they’ve made a lot of mistakes. For example, the company was shipping dore that contained too much arsenic/bismuth and could not be refined by our refiner. That is kind of basic

I’m also troubled by the loan facility with Sprott. Fire River borrowed $7.5 million from Sprott but gave huge concessions - $75,000 in up front cash and another $750,000 in discounted shares of Fire River Gold. The loan is for just one year [nine months to go] bears interest at 12% and the first installment is due in about 90 days. Sprott’s per share cost is under
.07 per share and the entire assets of the company are the collateral for the loan. If we can’t pay then Sprott owns the entire company. The loan was, after discounting, about 15% loan to value. That’s a very costly and aggressive loan.

So those are some of my concerns and why, if I was looking at this company to invest, I would wait until I saw that loan paid off. I also want to see that CIL circuit up and running and it had better be soon.