Skip to main content

AI assistant

Sign in to chat with this filing

The assistant answers questions, extracts KPIs, and summarises risk factors directly from the filing text.

Sign up Log in

FireFly Metals Ltd. Capital/Financing Update 2020

Jun 28, 2020

48548_rns_2020-06-28_ab0eb13d-8baa-4502-a345-ee807c0dbc5c.pdf

Capital/Financing Update

Open in viewer

Opens in your device viewer

ASX: AUT 29[th] June 2020

ASX ANNOUNCEMENT

==> picture [112 x 34] intentionally omitted <==

Maiden JORC Resource of 830,000oz at 11.6 g/t gold at Pickle Crow Gold Project, Canada

Drilling program to grow this Resource already well underway, with mineralisation open in every direction and numerous walk-up targets to test

KEY HIGHLIGHTS:

  • Independent Maiden JORC 2012 Inferred Resource for the Pickle Crow Gold Project Mine is 830,000oz at 11.6 g/t.

  • Resource runs from the surface immediately adjacent to existing underground and surface infrastructure; Mineralisation remains open along strike and at depth.

  • Pickle Crow produced 1.5Moz at 16 g/t[2] up to its closure in 1966, when the gold price was ~US$35/oz; Limited significant exploration has been conducted since.

  • Drill program underway with nine holes completed; a second diamond drill rig is mobilising to site to expedite resource growth and test multiple walk-up targets.

  • Visual inspection of the initial drill intersections validates the geological interpretation with significant mineralisation, veining, and visual gold intercepted (refer to Appendix A-Table 2). Assays are pending.

  • Numerous high-grade targets identified since acquisition; anticipated to be drilled in 2020.

  • Scope for rapid resource growth, with intersections outside Resource estimate including (refer to Appendix A-Table 1):

  • 10.7m @ 50.9g/t gold - Vein 13 (hole 3-4-179)

  • 1.1m @ 150.0g/t gold - Vein 13 (hole PC99-12)

  • 6.9m @ 17.7g/t gold - Vein 2 Footwall (hole 3-2-112)

  • 1.5m @ 444.4 g/t gold – Vein 22 (hole PC-11-251)

  • 2m @ 69.1 g/t gold - Vein 22 (hole PC-12-253)

  • 0.9m @ 878.7 g/t gold – Vein 23 (hole PC-14-283)

Independent JORC 2012 Inferred resource estimate at selected lower cut-off grades at the Pickle Crow Gold Project

Crow Gold Project
Lower Cut-Off Tonnes Grade Gold g/t Gold Million oz
(Mt)
2.0 g/t Au 2.5 10.7 0.86
3.5 g/t Au 2.3 11.6 0.83
5.0 g/t Au 1.8 13.2 0.78
  • 3.5g/t gold lower cut off totals rounded to reflect acceptable precision

ACN: 110 336 733 Principal and Registered Office Level 3, Suite 3 24 Outram Street West Perth WA 6005

CONTACT DETAILS T: +61 8 9220 9030 E: [email protected] W: www.autecominerals.com.au

Page | 1

==> picture [113 x 34] intentionally omitted <==

Auteco Minerals Ltd ( Auteco or the Company ) (ASX: AUT) is pleased to announce a maiden JORC 2012compliant Inferred Resource of 830,000oz at 11.6 g/t gold ( Resource ) for its Pickle Crow Gold Project ( Pickle Crow ) in Ontario, Canada.

The Resource estimate stems from a review of the existing data at Pickle Crow, including previous nonJORC compliant resources, and has been completed by Perth-based Cube Consulting.

Auteco started its maiden drilling program at Pickle Crow late last month. Since then nine holes have been drilled, and assays are pending analysis.

The results of this program will form part of a resource update Auteco aims to complete later this calendar year.

Auteco can earn up to 80 per cent of Pickle Crow from First Mining Gold Corp (refer to ASX release dated 28 January 2020).

The project is located in a world-class gold mining province which also hosts projects such as Red Lake (Evolution Mining: 25Moz), Musselwhite (Newmont Corporation: 5.7Moz) and Springpole (First Mining Gold Corp: 4.7Moz).

Auteco Executive Chairman Ray Shorrocks said the Company had made a strong start in its strategy to establish Pickle Crow as a world-scale project in a Tier-1 location.

“This maiden JORC Resource, which has been independently calculated, confirms Pickle Crow is a significant, high-grade deposit with immense growth potential,” Mr Shorrocks said.

“The Resource validates the geological model of our technical team, which in turn supports their view about the scope for further resource growth.

“We are now undertaking the first systematic exploration program at Pickle Crow for 50 years.

“Our confidence in the project has been strengthened by the visual results from the first few drill holes and as a result, we have added a second drill rig and increased the program from 5,000m to at least 10,000m.”

Mr Shorrocks added,

“This is just the beginning of work at Pickle Crow. Our active exploration has three goals, firstly nearterm resources growth focused on adding geological confidence to already identified areas of mineralisation that can be brought into the resource inventory.

“Secondly, extensions to the current known resources which remain open in both along strike and down dip.

“Finally, new discovery through step out exploration, with numerous high priority targets identified outside the Core Trend.”

FURTHER HIGHLIGHTS:

  • Resources are from surface and are adjacent to existing underground mine development and infrastructure.

  • Mineralisation is open on all lodes along strike and at depth.

Page | 2

==> picture [113 x 34] intentionally omitted <==

  • Drill intercepts within the Maiden Resource Estimate include:[1]

  • 13.1m @ 43.3 g/t gold from 530.35m

  • 7.6m @ 8.2 g/t gold from 492.5m

  • 2.8m @ 11.2 g/t gold from 547.67m

  • 5.0m @ 9.1 g/t gold from 102m

  • 3.9m @ 17.4 g/t gold from 200m

  • 3.2m @ 134.3 g/t gold from 1139.8m

  • A second diamond drill rig has been mobilised, scheduled for arrival in July 2020 to supplement Auteco’s Maiden diamond drilling campaign. Based on visually encouraging observations from recent drilling and visible gold in the core, the initial drill program has been expanded from 5,000m to 10,000m with a 24-man, all-season camp to be delivered next week to support exploration activities.

  • Significant scope identified for resource expansion through new discoveries ‘in the shadow of the headframe’ as well as along strike and at depth with unmined drill results from targets outside of the resource estimate including (refer to Appendix A for details):

Extensional drill holes outside current Inferred Resource (refer Figure 8 and Appendix A, table 1):

Vein 13 Target:

  • 10.7m @ 50.9g/t gold from 5.49m in 3-4-179

  • 1.1m @ 150.0g/t gold from 156.5m in PC99-12

Vein 2 Footwall Vein Target:

  • 1.7m @ 55.5 g/t gold from 91.29m in 744-14

  • 6.9m @ 17.7g/t gold from 1.83m in 3-2-112

  • Vein 3 Target:

  • 1.2m @ 103.4g/t gold from 20.24m in 744-24

Vein 22 and 23 Targets:

  • 1.5m @ 444.4 g/t gold from 22.65m (includes 0.5m @ 1325.7g/t gold from 23.65m) in PC-11-251

  • 2m @ 69.1 g/t gold from 23.7m in PC-12-253

  • 0.9m @ 878.7 g/t gold from 65.89m in PC-14-283

  • 9.9m @ 12.9 g/t gold from 66.2m in PC-14-284

  • Vein 9 Target:

  • 2.6m @ 78.8 g/t gold from 37.08m in 2200-1-22-55

  • 1.2m @ 79.5 g/t gold from 104.8m in 4-38-41

  • • 2.2m @ 37.6 g/t gold from 117.43m in 4-38-42

Multiple underexplored, walk-up, near-mine targets in the 320km[2] of tenure including (refer to ASX announcement 26 March 2020):

  • Springer Shaft Target: 1.7m @ 36.6 g/t gold from 15.1m in CPSH-88-01

  • o F Vein Target: 4.6m @ 9.3 g/t gold from 27.1m in CP-88-92

  • SW Powder house Target: 6.1m @ 7.3 g/t gold from 86.6m in PL04-26

  • East Pat Shear: 6.0m @ 7.7 g/t gold from 232m in PC-10-145

1 Refer to ASX release dated 28 January 2020 & 26 March 2020. The Company confirms that it is not aware of any information or date which materially affect the information included in the announcements.

Page | 3

==> picture [113 x 34] intentionally omitted <==

==> picture [320 x 240] intentionally omitted <==

Figure 1: Vein 22: Close up of Interval Outside of Resource Estimate. PC-11-251: Detail of interval grading 0.5m @ 1325.73g/t gold from 23.65m.

– About the Mineral Resource Estimate (MRE) Pickle Crow Gold Project

The Maiden Mineral Resource Estimate is located within a 3.5km section of the core mineralised shear zone and incorporates multiple high-grade Lodes within a large mineralised corridor. This 3.5km section previously produced 1.5Moz @ 16g/t gold[2] until the mine closed in 1966. The current Resource includes 15 separate modelled lodes (refer to Figure 2). All resources are reported at a 3.5g/t gold lower cut-off which is deemed acceptable based on industry costings associated with the likely mining method (narrow vein underground).

Global Inferred Resources have been grouped into table 1 below. All resources are classified as inferred:

Independent JORC 2012 Inferred resource estimate at selected lower cut-off grades at the Pickle Crow Gold Project

Crow Gold Project
Lower Cut-Off Tonnes Grade Gold g/t Gold Million oz
(Mt)
2.0 g/t Au 2.5 10.7 0.86
3.5 g/t Au 2.3 11.6 0.83
5.0 g/t Au 1.8 13.2 0.78
  • Figures may not add up due to rounding.

• Mineral Resources that are not Mineral Reserves have not demonstrated economic viability. The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues.

  • Mineral Resources are reported at a block cut-off grade of 3.5 g/t Au.

  • No minimum mining SMU parameters applied to the Inferred Mineral Resources.

  • The average bulk density assigned to the quartz vein hosted mineralisation is 2.7 g/cm[3] .

Page | 4

==> picture [113 x 34] intentionally omitted <==

The Pickle Crow Gold Deposit is a high grade, shear-hosted, mesothermal Archean lode gold deposit. The deposit occurs primarily within mafic volcanics and banded iron formation (BIF) units in the Pickle Crow assemblage of the Pickle Lake Greenstone belt; in the Uchi Lake Sub-province of the Superior Craton of the Canadian Shield.

Mineralisation is focused around steeply North-West dipping, regional scale shear zones with the mineralisation hosted near the Main Break structure, proximal to the highly strained, unconformable boundary between the Pickle Crow assemblage and the mafic-intermediate volcanics of the younger Confederation assemblage. A restricted, late-basin, Temiskaming-like sedimentary assemblage has also been identified in the hanging wall of this structure.

Multiple mineralisation styles have been identified on the property, but the Resource Estimation incorporates:

  • Quartz-Gold-Tungsten (+/-Tourmaline) Veins: These were the main focus of historical mining, frequently grading +15g/t with metallurgical recoveries +98%. This vein mineralisation constitutes the current resource component

Additional Mineralisation styles currently outside of resources include:

  • Banded Iron Formation (BIF) Mineralisation: Stringers and sulphide mineralisation replacing iron minerals in the banded iron-formation.

  • Shear-Zone Hosted Mineralisation: Wide zones of shearing and alteration with discontinuous quartz veining and disseminated pyrite. Previously unmined and underexplored.

  • Quartz-Arsenopyrite stockwork veins in BIF: Underexplored mineralisation style.

Given the depth, width and grade of the deposit Auteco considers that the mineralisation has a reasonable prospect of eventually being mined. Particularly when considering that the high-grade resources are close to existing underground infrastructure and in proximity to world class surface infrastructure including highways and commercial hydro power lines. Additionally, there is already a successful history of commercial production at the Pickle Crow Gold Mine which produced 1.5 Million oz @ 16g/t Gold [2] between 1935 and 1966 before eventual closure.

The Resource has been independently estimated by Cube Consulting Perth (see Competent Person statement). The estimate has been produced by 3D modelling of the lode systems and block model grade estimation using a combination of 2D estimation modelling approach and 3D dynamic interpolation, both using Ordinary Kriging (OK). A full summary of the resource methodology and validation is included in the Appendix B JORC table. All project resources have been classified as Inferred based on current drill spacing and the historical drill results which will require further supporting verification drilling and QAQC insertion. It is anticipated that Infill drilling and verification drilling will support an increase in resource classification.

The updated resource differs from the previous 43-101 release for a combination of the following reasons:

  • Removal of unconstrained and low-grade BIF hosted mineralisation from the estimate.

  • Updated geological model and high-grade plunge interpretation for some domains based on a detailed structural review completed by AUT geologists.

  • Better orebody modelling by using vein function modelling on 3D data vs the original sectional interpretation.

  • Revised resource estimation methodology more suitable for narrow vein gold deposits.

Page | 5

==> picture [113 x 34] intentionally omitted <==

==> picture [540 x 353] intentionally omitted <==

Figure 2: Long Section of the Pickle Crow Gold Project Resource Area showing block model and grouped by Shaft Number and underground development at the property.

Page | 6

==> picture [113 x 34] intentionally omitted <==

Auteco Minerals Ongoing Exploration at Pickle Crow

Auetco is actively exploring the Pickle Crow deposit with one diamond drill rig in operation since May 2020 (refer ASX announcement 27 May 2020). A second drill rig is mobilising to site to expedite resource growth and allow exploration step outs. To date, nine drill holes for 2,079m have been completed with all assay results pending. Visually encouraging mineralisation (refer to Appendix A, table 2) has been intersected where anticipated in all holes with visible gold the observed in hole AUDD0004 at 296.7m (refer to Figure 3 below and Appendix A, table 2). As a result, the initial drill program has been expanded from 5,000m to 10,000m.

==> picture [436 x 197] intentionally omitted <==

Figure 3: Observed visible gold (circled) at 296.7m in AUDD0004 (refer to Appendix A for details) – NQ Core.

==> picture [443 x 67] intentionally omitted <==

Figure 4 : Vein 2 Extension in AUDD007: Intercept from recent drilling. 82 cm laminated quartz vein with composite quartz-carbonate tourmaline veins. Tourmaline and fine grained pyrite (3% over 10.21m sheared interval) to selvedge. Vein hosted in 10.21m of sheared Quartz-Feldspar Porphyry (from 133.95m to 144.16m) with strong coincident sericite alteration. Multiple 1-3cm, sub-parallel quartz extension veins (approximately 5% of interval) within shear please see table 2 Appendix A for details.

==> picture [477 x 82] intentionally omitted <==

Figure 5 : Vein 2 Footwall Extension in AUDD002: Intercept from recent drilling. 180 cm laminated quartz vein from 91.7m to 93.5m. Tourmaline and fine grained pyrite (0.5% over 5.1m sheared interval) to selvedge. Vein hosted in 5.1m of sheared Quartz-Feldspar Porphyry (from 90.1m to 95.2m) with moderate to strong coincident sericite alteration. Multiple 1-3cm, sub-parallel quartz extension veins (approximately 10% of interval) within shear. Please see table 2 Appendix A for details.

Page | 7

==> picture [113 x 34] intentionally omitted <==

==> picture [477 x 192] intentionally omitted <==

Figure 6: Vein 13 Extension in AUDD004: Intercept from recent drilling. 16.3m zone from 282.7m to 300.1m of sheared Banded Iron formation (from 282.7 to 294m) and sheared polymictic conglomerate. Multiple 1-10cm Quartz extension veins with strong ankerite-sericite-pyrite alteration to selvedge (veins 10% over interval). Pyrite replacement of magnetite/pyrrhotite in interval with Pyrite ranging from 5-90% of the rock mass over the interval, averaging 20% on a meter by meter basis. Pyrrhotite ranges from 1-5% of the rock mass, averaging 2% over the interval width. Visible gold logged, one 4mm constellation (shown in Figure 3) at 296.7m and two small flecks (1mm) at 296.92m. Please see table 2 Appendix A for details.

==> picture [467 x 109] intentionally omitted <==

Figure 7: Vein 13 Part 1 Extension in AUDD003: Intercept from recent drilling. 9.1m zone from 124.4m to 133.5m of sheared greywackes. Multiple 1-40cm Quartz shear veins with strong ankerite-sericite-pyrite alteration to selvedge (veins 30% over interval). Pyrite ranging from 0.5 to 2% of the rock mass over the interval, averaging 1% on a meter by meter basis. Please see table 2 Appendix A for details.

Page | 8

==> picture [113 x 34] intentionally omitted <==

==> picture [467 x 353] intentionally omitted <==

Figure 8: Plan View of Pickle Crow mineralised trend highlighting existing resource areas and mine shafts, target areas with significant drilling intercepts, outside of current resources that are the focus of current exploration drilling activity

Pickle Crow Gold Project – Regional Potential Beyond the Core Mine Trend - 320km[2] of Tenure

Exploration efforts are currently focussed on the definition of additional resources within the top 500m from surface within the Core Trend. Targeting is focussed on extending mineralisation around the current Inferred Resource and historical mining and infrastructure.

After historic mining ceased in 1966, there has been very limited exploration of the Pickle Crow Gold Project and greater project area. Any work that has been conducted by modern explorers has been fragmented and focused on developing small remnant resources proximal to the old mine infrastructure.

Auteco is the first company to explore the consolidated regional exploration ground which covers a significant area of prospective stratigraphy with a total of 320km[2 ] of landholding.

Page | 9

==> picture [113 x 34] intentionally omitted <==

Auteco has returned to first principles at the project with a focus on discovering and developing new project scale, high-grade, near-surface, JORC compliant gold resources. There are multiple, underexplored, mineralised trends within the property and outside of the maiden resource area. Already identified walk-up drill targets are shown in Figure 9 below and include (refer to ASX announcement 26 March 2020).

Core Mine Shear - Shallow drill intersections include:

  • Springer Shaft Target: 1.7m @ 36.6 g/t gold from 15.1 m in CPSH-88-01

  • F Vein Target: 4.6m @ 9.3 g/t gold from 27.1m in CP-88-92

  • SW Powder house Target: 6.1m @ 7.3 g/t gold from 86.6 m in PL04-26

East Pat Shear - Drill intersections from the East Pat Target include:

  • 35.7 m @ 2.2 g/t gold from 21.5 m in PC-10-108

  • 6.0 m @ 7. 7 g/t gold from 232 m in PC-10-145

Cohen - Mac Arthur Shear - Drill intersections include:

  • MacArthur Target: 14.3 m @ 1.5 g/t gold from 30.5 m in PC-10-067

Kawinogans Target - Drill intersections include:

  • 23.5 m @ 1.4 g/t gold from 196 m in PC-10-092

==> picture [516 x 361] intentionally omitted <==

Figure 9: Location of the high-grade, Pickle Crow and Central Patricia Gold mines and targets related to the Core Mine, Cohen-MacArthur and East Pat shear zones. (Sourced from The Northern Miner, article, May 1984 and first reported by Auteco on the ASX 26 March 2020. The Company confirms that it is not aware of any new information or data that materially affects the announcement).

Page | 10

==> picture [113 x 34] intentionally omitted <==

==> picture [452 x 182] intentionally omitted <==

Figure 10: Vein 19: Intercept from within the Resource Estimate. PC-10-052-W02 : 13.13m @ 43.28g/t gold from 530.35 (refer to ASX announcement 28 January 2020 – Appendix A).

==> picture [452 x 143] intentionally omitted <==

Figure 11: Vein 19: Intercept from within the Resource Estimate. PC-12-052-W01: 7.6m @ 8.23g/t gold from 492.5 (refer to ASX announcement 28 January 2020 – Appendix A).

==> picture [452 x 99] intentionally omitted <==

Figure 12: Vein 22: Interval Outside of Resource Estimate. PC-11-251: 1.5m @ 444.38 g/t gold from 22.65m (including 0.5m @ 1325.73g/t gold from 23.65m).

Page | 11

==> picture [113 x 34] intentionally omitted <==

SUMMARY OF JORC TABLE 1

A summary of JORC Table 1 is provided below for compliance with the Mineral Resource and in-line with the requirements of ASX listing rule 5.8.1.

Geology and Geological Interpretation

The Archean Pickle Crow Orebody consists of 15 separate high-grade, lode gold domains hosted across a variety of different lithologies ranging from Pickle Crow Basalts, through Banded Iron Formation and Porphyry units. There is sufficient confidence in the geological modelling of the orebody geometries for Inferred Resource Estimation, with variable confidence dependent on drilling density, geological confidence and historical QAQC.

The Mineral Resource sits within an area of 3,800m strike (in a NE direction) of the core mine trend and within an 800m section of stratigraphy and has been interpreted to extend at its maximum 1,500m below surface in close proximity to where the underground development stops.

Drilling Techniques, Sampling and assaying

Drilling included in the Resource Estimation at Pickle Crow consists of historical surface and underground drilling. Overall 3,866 holes for 322,712m of dominantly NQ diamond drilling are incorporated into the database with 3,080 holes for 129,000m drilled from underground prior to 1988 and the remainder from surface. 370 NQ diamond drill holes for 130,362m have been completed since 2008.

Core was cut in half with one half retained as a reference and the other sent for assay. Assays from diamond drilling post 1981 are Fire Assay results from various accredited Canadian laboratories. Historical assay methods prior to this are unknown but have been verified by duplicate sampling by historical operators at the project.

Post 2008 samples were dispatched to ALS Chemex for gold by 50g Fire Assay with atomic absorption finish. Samples greater than 5g/t gold were reassayed by 50g Fire Assay with gravimetric finish. All samples greater than 10g/t gold were additionally sent for pulp metallics (950g).

Estimation Methodology

The MRE has been produced by 3D modelling of the lode systems and block model grade estimation using a combination of 2D estimation modelling approach and 3D dynamic interpolation (DK), both using Ordinary Kriging (OK). The estimation methodology is briefly summarised as follows:

  • The primary estimation domains are based on the 3D geological wireframing of quartz veins and BIF hosted mineralisation provided by Auteco. The domain interpretations were based on historical UG mining knowledge of the steeply dipping quartz veining known to host gold mineralisation from drill logging and descriptions of mapping and sampling.

  • The mineralised domains acted as hard boundaries to control the June 2020 MRE.

  • Drill hole sample data was flagged using domain codes generated from 3D mineralisation domains. Sample data was composited over the full downhole interval. There were consequently no residuals. Intervals with no assays were assigned background grades for the compositing routine as these un-assayed intervals in the drill holes were assumed to be waste.

  • Gold grade distributions within the estimation domains were assessed to determine if high grade cuts or distance limiting should be applied on a domain by domain basis. The influence

Page | 12

==> picture [113 x 34] intentionally omitted <==

of extreme grade values was reduced by top-cutting where required. The top cut levels were determined using a combination of top-cut analysis tools (grade histograms, log probability plots and CVs). Top cuts were reviewed and applied on a domain basis.

  • The 2D estimation approach using OK was deemed appropriate for the very narrow, linear and continuous zones hosted by quartz veins. Interval composites were generated for the mineralised lode, which were then weighted by their respective widths to calculate an accumulation variable. The accumulation variable for gold was then used for variogram analysis and 2D interpolation of gold grades. The estimated 2D block values were then exported back into 3D space.

  • Several quartz vein hosted domains show ribbon-like structures and although the overall dip and dip direction of most of the lodes are consistent, there are enough changes in geometry to require locally varying search ellipse and variogram directions. The dynamic anisotropy search feature in Surpac was used in which the search neighbourhood ellipse dip and dip direction are defined separately for each block approximating the orientation of each of the mineralised zones.

  • For mineralised domains estimated using 2D OK method, variogram ranges and search distances were defined in a rotated horizontal plane. For the 3D DK method, variogram modelling was conducted to provide nugget, sill and range for 3 directions. Variogram maps were initially analysed in plan, east-west and north-south section to confirm continuity trends and to refine parameters for experimental variogram calculation.

Block model validation was conducted by the following means:

  • Visual inspection of block model estimation in relation to raw drill data on a section by section basis.

  • Volumetric comparison of the wireframe/solid volume to that of the block model volume for each domain.

  • A global statistical comparison of input and block grades, and local composite grade (by northing and RL) relationship plots (swath plots), to the block model estimated grade for each domain.

  • Validation results generally showed good correlation of the input data to the estimated gold grades, mostly within the better populated estimation domains.

Bulk Density

A bulk density of 2.7g/cm[3] was assigned to mineralised quartz veins based on test work completed by previous operator’s PC Gold Inc.

Classification

The Mineral Resource has been entirely classified as Inferred. The classification is based on the relative confidence in the mineralised domain countered by high nugget values, variable drill spacing, stun-verifiable historical database and partial lack of historical QAQC.

Mining factors or Assumptions

Underground mining is assumed however no rigorous application has been made of minimum mining width, internal or external dilution.

Page | 13

==> picture [113 x 34] intentionally omitted <==

Metallurgical Factors or Assumptions

Initial metallurgical test work was completed by previous operators on the high-grade vein mineralisation at Pickle Crow and can be summarised as:

  • Excellent total gold extractions to a maximum exceeding 99% through a combination of gravity and 48-hour cyanide leach bottle rolls

  • Excellent gravity recoveries of up to 92.4% of total gold recovered by the Knelson Concentrator prior to cyanide leaching.

These results are in line with the historical performance of the Pickle Crow Gold mine which operated between 1935 and 1966 with recoveries averaging slightly over 98% recovered through a combination of gravity and cyanidation.

Reporting Cut-Off grade

A 3.5g/t cut-off grade was used to report the Mineral Resources. This cut-off grade is estimated to be the minimum grade required for economic extraction at current prices.

Given the depth, width and grade of the deposit Auteco Minerals Ltd. considers that the mineralisation incorporated into the resource estimation has a reasonable prospect of eventually being mined. Particularly when considering the high-grade resources are close to existing underground infrastructure and in proximity to existing highways and commercial power lines. In addition, there is already a successful history of commercial production at the Pickle Crow Gold Mine which produced 1.5 Million oz @ 16g/t Gold[2] between 1935 and 1966 before eventual closure.

Nothing contained in this announcement constitutes investment, legal, tax or other advice. You should seek appropriate professional advice before making any investment decision.

For further information regarding Auteco Minerals Ltd please visit the ASX platform (ASX:AUT) or the Company’s website https://www.autecominerals.com.au/

For and on behalf of the Board

==> picture [124 x 52] intentionally omitted <==

Mr Ray Shorrocks Executive Chairman Auteco Minerals Ltd Phone: +61 8 9220 9030

2 Refer Sedar Technical report for historical production -

https://www.sedar.com/GetFile.do?lang=EN&docClass=24&issuerNo=00022404&issuerType=03&projectNo=02810557& docId=4375165

Page | 14

==> picture [113 x 34] intentionally omitted <==

About Auteco Minerals

Auteco Minerals Ltd (ASX: AUT) is an emerging mineral exploration company focused on advancing high-grade gold resources at the Pickle Crow Gold Project in the world-class Uchi sub-province of Ontario, Canada. Pickle Crow is one of Canada’s highest-grade gold mines – historically producing 1.5 million ounces at 16 g/t gold – in a region which hosts the 25 Moz Red Lake and 2.3 Moz Musselwhite gold camps (refer to Cautionary Statement).

Auteco’s Directors and exploration team have a proven track record of gold discoveries and creating wealth for shareholders and stakeholders. The Company also has a joint venture on the Limestone Well Vanadium-Titanium Project in Western Australia.

Competent Person Statement

The information in this announcement that relates to Exploration Results, Mineral Resources, Ore Reserves or targets is based on and fairly represents information compiled by Mr Marcus Harden, who is a Member of the Australasian Institute of Geoscientists. Mr Harden is an employee of the Company and has sufficient experience in the style of mineralisation and type of deposit under consideration and qualifies as a Competent Person as defined in the 2012 edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Harden is an employee and holds securities in Auteco Minerals Limited and consents to the inclusion of all technical statements based on his information in the form and context in which it appears.

The information in this announcement that relates to mineral resources has been reviewed and compiled by Mr Brian Fitzpatrick. Mr Fitzpatrick is a full-time employee of Cube Consulting Pty Ltd, who specialises in mineral resource estimation, evaluation and exploration. Neither Mr Fitzpatrick nor Cube Consulting Pty Ltd holds any interest in Auteco Minerals Ltd, its related parties, or in any of the mineral properties that are the subject of this announcement. Mr Fitzpatrick is a member of the Australian Institute of Geoscientists and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person (or “CP”) as defined in the 2012 Edition of the Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code). Mr Fitzpatrick has reviewed the contents of this ASX announcement and consents to the inclusion in this announcement of all technical statements based on his information in the form and context in which they appear.

Disclaimers

References to previous ASX announcements should be read in conjunction with this release.

Forward Looking Information

This announcement contains forward looking statements concerning the Company. Forward-looking statements are not statements of historical fact and actual events and results may differ materially from those described in the forward-looking statements as a result of a variety of risks, uncertainties and other factors. Forward-looking statements are inherently subject to business, economic, competitive, political and social uncertainties and contingencies. Many factors could cause the Company’s actual results to differ materially from those expressed or implied in any forward-looking information provided by the Company, or on behalf of the Company. Such factors include, among other things, risks relating to additional funding requirements, metal prices, exploration, development and operating risks, competition, production risks, regulatory restrictions, including environmental regulation and liability and potential title disputes. Forward looking statements in this announcement are based on the Company’s beliefs, opinions and estimates of the Company as of the dates the forward-looking statements are made, and no obligation is assumed to update forward looking statements if these beliefs, opinions and estimates should change or to reflect other future developments. Although management believes that the assumptions made by the Company and the expectations represented by such information are reasonable, there can be no assurance that the forwardlooking information will prove to be accurate. Forward-looking information involves known and unknown risks,

Page | 15

==> picture [113 x 34] intentionally omitted <==

uncertainties, and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any anticipated future results, performance or achievements expressed or implied by such forward-looking information. Such factors include, among others, the actual market price of commodities, the actual results of future exploration, changes in project parameters as plans continue to be evaluated, as well as those factors disclosed in the Company's publicly filed announcements. Readers should not place undue reliance on forward-looking information.

The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws. No representation, warranty or undertaking, express or implied, is given or made by the Company that the occurrence of the events expressed or implied in any forward-looking statements in this announcement will actually occur.

Page | 16

==> picture [113 x 34] intentionally omitted <==

APPENDIX A:

Table 1: Significant Intercept Table. Cut-off grade of 1 g/t Gold allowing for 1m internal dilution (NSI – No significant Intercept). All cords in UTM NAD 83 z15.

Table 1: Significant Intercept Table.Cut-off grade of 1 g/t Gold a
Intercept). All cords in UTM NAD 83 z15.		 llowing for 1m internal dilution (NSI – No significa
Hole No.
Easting
Northing
Elevation
Azimuth
Dip		 Drilled
Length
From
To
Width
Au
(m)
(m)
(m)
(m)
(ppm)
PC-11-251
705491.75
5710739.23
343.52
140
-80		 50.67
22.65
24.15
1.5
444.38
incl:
23.65
24.15
0.5
1325.73
PC-12-253
705491
5710738.6
343.6
140
-90		 51
15.3
15.8
0.5
1.15
and
23.7
25.7
2
69.1
PC-14-283
705336.46
5710679.19
344
160
-70		 230
65.89
66.79
0.9
878.69
and
71.45
77
5.55
10.6
and
80.2
81.7
1.5
1.92
and
89.85
91.06
1.21
5.03
PC-14-284
705336.34
5710679.32
344
160
-60		 155
66.2
76.05
9.85
12.94
3-4-179
705000.876
5710762.605
232.7
297.13
67		 25.01
5.49
16.17
10.68
50.08
PC99-12
705003.29
5710860.22
340.57
190
-58		 183
151.85
152.6
0.75
202.99
156.5
157.55
1.05
149.98
744-14
704909.03
5710859.97
340.22
157
-60		 244.92
62.1
69.65
7.55
1.16
72.24
81.76
9.52
2.49
91.29
92.96
1.67
55.53
183.64
184.4
0.76
1.71
202.69
204.9
2.21
1.54
219.46
222.81
3.35
6.83
3-2-112
704907.018
5710796.418
309.72
161
-11		 96.08
1.83
8.69
6.86
17.73
744-24
704876.66
5710778.74
340.39
338
-60		 45.75
20.24
21.46
1.22
103.37
4-38-41
704343.39
5709988.109
-805.36
227
-30		 135.7
104.8
106.02
1.22
79.47
111.17
112.15
0.98
10
4-38-42
704343.431
5709988.278
-805.99
229
-29		 144
105.41
105.53
0.12
1.02
117.43
119.62
2.19
37.61
2200-1-22-55
704267.022
5709785.721
-319.8
275
-77		 46.66
37.08
39.65
2.57
78.76

Page | 17

==> picture [113 x 34] intentionally omitted <==

Table 2: Visual Intercept Table from current drill program. (NSI – No significant Intercept). All cords in UTM NAD 83 z15.

Hole
East
North
Rl
Azi
Dip
EOH
From
To
Width
Zone		 Observation
Assay
AUDD0001
704983
5710808
340
223
-60
114.3
60
64.05
4.05
Vein 13
Part 1		 Strongly sericite altered, sheared intermediate volcanic. Fine grained
pyrite ranging from 0.1 to 5% of rock mass over interval averaging
2%. Quartz-carbonate shear veins ranging from 1cm to 30cm
comprising30% of interval
Assay
Pending
AUDD0002
705018
5710874
340
200
-60
192
90.1
95.2
5.1
Vein 2 FW		 Vein 2 Footwall Extension in AUDD002: Intercept from recent drilling.
180 cm laminated quartz vein from 91.7m to 93.5m. Tourmaline and
fine grained pyrite (0.5% over 5.1m sheared interval) to selvedge.
Vein hosted in 5.1m of sheared Quartz-Feldspar Porphyry (from
90.1m to 95.2m) with moderate to strong coincident sericite
alteration. Multiple 1-3cm, sub-parallel quartz extension veins
(approximately10% of interval)within shear.
Assay
Pending
AUDD0003
705050
5710908
340
199
-58
260.2
45.4
49.4
4
Vein 2
124.4
133.5
9.1
Vein 13
Part 1
137
143.3
6.3
Vein 13		 40cm quartz shear vein in strongly foliated Quartz-Feldspar Porphyry.
Trace pyrite to selvedge.
Assay
Pending
Vein 13 Part 1 Extension in AUDD003: Intercept from recent drilling.
9.1m zone from 124.4m to 133.5m of sheared greywackes. Multiple
1-40cm Quartz shear veins with strong ankerite-sericite-pyrite
alteration to selvedge (veins 30% over interval). Pyrite ranging from
0.5 to 2% of the rock mass over the interval, averaging 1% on a meter
by meter basis.
Assay
Pending
Vein 13 . Multiple 1-30cm quartz shear and extension veins
comprising 20% of interval with moderate ankerite-sericite-pyrite
alteration to selvedge. Pyrite 1% throughout rock mass and averaging
1%,no variable range.
Assay
Pending
AUDD0004
705127
5710888
341
200
-60
378
176.75
187
10.25
Vein 13
Part 1
282.7
300.1
17.4
Vein 13
Part 1		 Vein 13 . Multiple 1-40cm quartz shear and extension veins
comprising 20% of interval with moderate ankerite-sericite-pyrite
alteration to selvedge. Pyrite vairies 0.5-2% of rock mass throughout
inteval width averaging 1% Pyhrrohtite 5% throughout rock mass as
1-3cm stringer zones and averaging 5%, no variable range.
Assay
Pending
Vein 13 Extension in AUDD004: Intercept from recent drilling. 16.3m
zone from 282.7m to 300.1m of sheared Banded Iron formation
(from 282.7 to 294m) and sheared polymictic conglomerate. Multiple
1-10cm Quartz extension veins with strong ankerite-sericite-pyrite
alteration to selvedge (veins 10% over interval). Pyrite replacement
of magnetite/pyrrhotite in interval with Pyrite ranging from 5-90% of
the rock mass over the interval, averaging 20% on a meter by meter
basis. Pyrrhotite ranges from 1-5% of the rock mass, averaging 2%
over the interval width.Visible gold logged, one 4mm constellation
at 296.7m and two small flecks (1mm) at 296.92m.
Assay
Pending

Page | 18

==> picture [113 x 34] intentionally omitted <==

AUDD0005 705186
5710974		 341 205 -59 222 209 213 4 Vein 13 Vein 13 . Multiple 1-10cm quartz shear and extension veins Assay
comprising 20% of interval with moderate ankerite-sericite-pyrite Pending
alteration to selvedge. Pyrite 1% throughout rock mass and averaging
1%,no variable range.
AUDD0006 705119
5710996		 340 200 -60 96.7 91.28 95.32 4.04 Vein 2 4.04m shear zone with 45cm shear vein with sericite-pyrite alteration
Assay
Extension to selvedge and altered wall rock fragments within vein. Pyrite 0.5% Pending
throughout rock mass and averaging0.5%,no variable range.
AUDD0007 705102 5710999.00 340 205 -61 387 133.95 144.16 10.21 Vein 2 Vein 2 Extension in AUDD007: Intercept from recent drilling. 82 cm Assay
.1389 8 laminated quartz vein with composite quartz-carbonate tourmaline Pending
veins. Tourmaline and fine grained pyrite (3% over 10.21m sheared
interval) to selvedge. Vein hosted in 10.21m of sheared Quartz-
Feldspar Porphyry (from 133.95m to 144.16m) with strong coincident
sericite alteration. Multiple 1-3cm, sub-parallel quartz extension
veins (approximately 5% of interval) within shear
195.45 206.52 11.07 Vein 13 Mafic shear zone over interval with multiple 1 -35cm quartz- Assay
Part 1 ankerite-pyrite veins with sericite-pyrite-ankerite alteration to Pending
selvedge. Veining averages 20% of interval. Fine grained,
disseminated, euhedral pyrite ranges from 3-8% of rock mass within
interval with an average of 5% over interval width.
344.1 362.6 18.5 Vein 13 Sheared polymict conglomerate and greywacke zone over interval Assay
with multiple 1 -20cm quartz-ankerite-pyrite veins with sericite- Pending
pyrite-ankerite alteration to selvedge. Veining ranges from 5% to
30% of interval and averages 20% of interval. Fine grained,
disseminated, euhedral pyrite ranges from 3-8% of rock mass within
interval with an average of 5% over interval width.

Visual estimates should never be considered to be a proxy or substitute for laboratory analyses where metal concentrations or grades are the factor of principal economic interest. Visual estimates also potentially provide no information regarding impurities or deleterious physical properties that may be relevant to economic valuations. Auteco intends to complete and announce the assay results in the second half of 2020.

Page | 19

==> picture [112 x 34] intentionally omitted <==

==> picture [523 x 356] intentionally omitted <==

Figure 13: Location Map of Auteco Minerals drill holes, UTM NAD 83 zone 15

Page | 20

==> picture [112 x 34] intentionally omitted <==

APPENDIX B - JORC Code, 2012 Edition

Table 1 – JORC Code 2012 Edition.

Section 1 Sampling Techniques and Data (Criteria in this section apply to all succeeding sections.)

Criteria JORC Code explanation JORC Code explanation Commentary Commentary
Sampling techniques • Nature and quality of sampling (eg cut • Drilling since 2008, quoted with PC- prefix is from PC Gold
channels, random chips, or specific exploration with NQ diameter (47.6mm) drill core was
specialised industry standard measurement recovered from drilling. Noramco drilling, CP- prefix is BQ
tools appropriate to the minerals under diameter (36.5mm). All other quoted intercepts and the bulk
investigation, such as down hole gamma of historical drilling data is of NQ diameter. Auteco Drilling,
sondes, or handheld XRF instruments, etc). (prefix AUDD*) is all NQ diameter (47.6mm).The core was
These examples should not be taken as sawn in half following a sample cutting line determined by
limiting the broad meaning of sampling. geologists during logging and submitted for analysis on
• Include reference to measures taken to nominal 1m (1ft for historical drillholes) intervals or defined
ensure sample representivity and the by geological boundaries determined by the logging
appropriate calibration of any measurement geologist. This is also the protocol for current Auteco drilling
tools or systems used. (prefix AUDD*).
• Aspects of the determination of • Samples from PC Gold holes (PC- prefix) post 2008 were
mineralisation that are Material to the submitted to ALS Chemex in Thunder Bay and North
Public Report. Vancouver for analysis. Samples were prepared for analysis
• In cases where ‘industry standard’ work has using a jaw crusher which was cleaned with a silica abrasive
been done this would be relatively simple between samples resulting in 90% of the sample passing
(eg ‘reverse circulation drilling was used to through an 8 mesh screen. A split of the crushed sample
obtain 1 m samples from which 3 kg was weighing 1000g was then pulverised to 90% passing a 150
pulverised to produce a 30 g charge for fire mesh screen. Sample pulps were analysed for gold by Fire
assay’). In other cases, more explanation Assay using 50g sample charge with atomic absorption
may be required, such as where there is spectroscopy (AAS) finish. If the returned assay result was
coarse gold that has inherent sampling equal to or greater than 5g/t then the sample was reassayed
problems. Unusual commodities or by Fire Assay with a gravimetric finish. Samples from
mineralisation types (eg submarine nodules) historical diamond drilling programs conducted between
may warrant disclosure of detailed 1981 and 2008 were dispatched to a variety of accredited
information. laboratories in Canada for Fire Assay analysis. Historical drill
results prior to 1981are Fire Assay conducted by unknown
laboratories (most likely the mine laboratory during the
operational life of the Pickle Crow Mine) and with unknown
preparation methods and assay charge, however previous
operators have duplicated and verified results. All samples
from current Auteco drilling have been submitted to AGAT
laboratories in Thunder Bay for analysis. Samples will be
prepared for analysis using a jaw crusher, cleaned with a
silica abrasive between samples resulting in 90% of the
sample passing through an 8 mesh screen. A split of the
crushed sample weighing 1000g was then pulverised to 90%
passing a 150 mesh screen. Sample pulps were analysed for
gold by Fire Assay using 50g sample charge with atomic
absorption spectroscopy (AAS) finish. If the returned assay
result was equal to or greater than 5g/t then the sample was
reassayed by Fire Assay with a gravimetric finish. No assay
results have yet been returned.
• All samples >10g/t gold and samples collected from PC gold
drilling (PC- prefix) suspected of nugget gold were
additionally sent for pulp metallics analysis.
• For a more complete discussion of sampling techniques see
document ‘Updated Mineral Resource Estimate for the Pickle
Crow Property, Patricia Mining Division, Northwestern
Ontario, Canada’ NI-43-101 dated 15 June 2018 and available
from System for Electronic Document Analysis and Retrieval
(www.sedar.com) for First Mining Inc.
Drilling techniques • Drill type (eg core, reverse circulation, open- • Drilling quoted with PC- prefix is from PC Gold exploration
hole hammer, rotary air blast, auger, with NQ diameter (47.6mm) drill core was recovered from
Bangka, sonic, etc) and details (eg core drilling. Noramco drilling, CP- prefix is BQ diameter
diameter, triple or standard tube, depth of (36.5mm). All other drilling including current Auteco drilling
diamond tails, face-sampling bit or other (prefix AUDD*) is NQ diameter.
type, whether core is oriented and if so, by
what method,etc).

Page | 21

==> picture [112 x 34] intentionally omitted <==

Criteria JORC Code explanation JORC Code explanation Commentary Commentary
Drill sample recovery • Method of recording and assessing core and • All drilling quoted is NQ diamond core with the exception of
chip sample recoveries and results assessed. Noramco drillholes (CP- prefix). RQD was recorded for all
• Measures taken to maximise sample diamond drilling as per industry standard. A review of the
recovery and ensure representative nature available diamond drill core RQD’s from the Pickle Crow
of the samples. project (PC- prefix) indicated that nearly all of the holes
• Whether a relationship exists between produced excellent recoveries with an average of >90%. For
sample recovery and grade and whether drilling conducted by other operators recoveries are
sample bias may have occurred due to unknown although reports do not highlight significant core
preferential loss/gain of fine/coarse loss. For current Auteco drilling (prefix AUDD*) RQD is
material. recorded for all drilling with all recoveries >95%
• A review of RQD results does not highlight a relationship
between sample recovery and grade or highlight any sample
bias due to loss of material.
Logging • Whether core and chip samples have been • All PC Gold samples (PC- hole prefix) were geologically
geologically and geotechnically logged to a logged. Lithology, veining, alteration, mineralisation and
level of detail to support appropriate weathering are all recorded in the geology table of the drill
Mineral Resource estimation, mining studies hole database. Other historical drillholes have been similarly
and metallurgical studies. logged and records have been digitized from report format.
• Whether logging is qualitative or Current Auteco drilling (prefix AUDD*) has been were
quantitative in nature. Core (or costean, geologically logged. Lithology, veining, alteration,
channel, etc) photography. mineralisation and weathering are all recorded in the geology
• The total length and percentage of the table of the drill hole database. The exceptions, where noted
relevant intersections logged. in Appendix A, table 2 are holes AUDD0008 and AUDD0009
where logging is in progress.
• Geological logging of Diamond Core samples is qualitative
and descriptive in nature.
• All holes quoted have been logged in their entirety. The
exceptions, where noted in Appendix A, table 2 are holes
AUDD0008 and AUDD0009 where logging is in progress.
Sub-sampling techniques and • If core, whether cut or sawn and whether • All drilling quoted from PC Gold exploration (PC- hole prefix)
sample preparation quarter, half or all core taken. is.NQ diameter (47.6mm) drill core recovered from drilling.
• If non-core, whether riffled, tube sampled, All other quoted intercepts are NQ diameter with the
rotary split, etc and whether sampled wet or exception of Noramco drilling (CP- Prefix) which is BQ
dry. (36.5mm) diameter. The core was sawn in half following a
• For all sample types, the nature, quality and sample cutting line determined by geologists during logging
appropriateness of the sample preparation and submitted for analysis on nominal 1m (or 1ft) intervals or
technique. defined by geological boundaries determined by the logging
• Quality control procedures adopted for all geologist.The sampe protocol is used for Auteco drilling
sub-sampling stages to maximise (prefix AUDD*).
representivity of samples. • This sampling technique is industry standard and deemed
• Measures taken to ensure that the sampling appropriate.
is representative of the in-situ material • PC Gold QA/QC protocols include the use of crush duplicates,
collected, including for instance results for ¼ core field duplicates, the insertion of certified reference
field duplicate/second-half sampling. materials (CRM’s) including low, medium and high-grade
• Whether sample sizes are appropriate to the standards and coarse blanks. This was accomplished by
grain size of the material being sampled. inserting the QA/QC samples sequentially in the drill core
sample numbering system. One set of the four QA/QC types
were inserted every 30 samples consisting of 1 crush
duplicate, 1 ¼ split field duplicate, 1 CRM (altering between
low, medium and high standard) and 1 blank. This resulted in
approximately every seventh sample being a QA/QC sample.
QAQC procedures are not disclosed in previous reporting but
results are consistent with visual observations of
mineralisation as recorded in the geological logs and
qualitative proportions of logged veining and sulphide
content. The same QA/QC protocols are in place for Auteco
drilling (prefix AUDD*) but no assays have yet been reported.
Post-Mining Pickle Crow Property operators employed the
usual in-laboratory blanks, standards and duplicate analyses
to ensure precision and accuracy of results. Whist there is no
documentation available for earlier results sample duplicate
verification has been conducted.
• Sample size is deemed industry standard for Orogenic Gold
deposits.
• For a more complete discussion of sampling techniques and
sample preparation see document ‘Updated Mineral
Resource Estimate for the Pickle Crow Property, Patricia
MiningDivision,Northwestern Ontario,Canada’ NI-43-101

Page | 22

==> picture [112 x 34] intentionally omitted <==

Criteria JORC Code explanation JORC Code explanation Commentary Commentary
dated 15 June 2018 and available from System for Electronic
Document Analysis and Retrieval (www.sedar.com) for First
Mining Inc.
Quality of assay data and • The nature, quality and appropriateness of • Samples were submitted to ALS Chemex in Thunder Bay and
laboratory tests the assaying and laboratory procedures used North Vancouver for analysis. Samples were prepared for
and whether the technique is considered analysis using a jaw crusher which was cleaned with a silica
partial or total. abrasive between samples resulting in 90% of the sample
• For geophysical tools, spectrometers, passing through an 8 mesh screen. A split of the crushed
handheld XRF instruments, etc, the sample weighing 1000g was then pulverised to 90% passing a
parameters used in determining the analysis 150 mesh screen. Sample pulps were analysed for gold by
including instrument make and model, Fire Assay using 50g sample charge with atomic absorption
reading times, calibrations factors applied spectroscopy (AAS) finish. If the returned assay result was
and their derivation, etc. equal to or greater than 5g/t then the sample was reassayed
• Nature of quality control procedures by Fire Assay with a gravimetric finish. All samples from
adopted (eg standards, blanks, duplicates, current Auteco drilling have been submitted to AGAT
external laboratory checks) and whether laboratories in Thunder Bay for analysis. Samples will be
acceptable levels of accuracy (i.e. lack of prepared for analysis using a jaw crusher, cleaned with a
bias) and precision have been established. silica abrasive between samples resulting in 90% of the
sample passing through an 8 mesh screen. A split of the
crushed sample weighing 1000g was then pulverised to 90%
passing a 150 mesh screen. Sample pulps were analysed for
gold by Fire Assay using 50g sample charge with atomic
absorption spectroscopy (AAS) finish. If the returned assay
result was equal to or greater than 5g/t then the sample was
reassayed by Fire Assay with a gravimetric finish. No assay
results have yet been returned.Samples from historical
diamond drilling programs conducted between 1981 and
2008 were dispatched to a variety of accredited laboratories
in Canada for Fire Assay analysis.Historical drill results prior
to 1981are Fire Assay conducted by unknown laboratories
(most likely the mine laboratory during the operational life of
the Pickle Crow Mine) and with unknown preparation
methods and assay charge, however previous operators have
duplicated and verified results.
• In addition to the Company QAQC samples (described earlier)
included within the batch the laboratory included its own
CRM’s (Certified Reference Materials), blanks and duplicates.
• Sample assay results were evaluated through control charts,
log sheets, sample logbook and signed assay certificates to
determine the nature of any anomalies or failures and
failures were re-assayed at the laboratory. Check assaying
was also conducted on 1 in every 20 samples. QAQC
protocols are unknown for historical drill programs (without
the PC- hole prefix).
• QA/QC work is industry standard and acceptable levels of
accuracy and precision have been established.
• For a more complete discussion of QA/QC techniques and
levels of accuracy obtained from sampling see document
‘Updated Mineral Resource Estimate for the Pickle Crow
Property, Patricia Mining Division, Northwestern Ontario,
Canada’ NI-43-101 dated 15 June 2018 and available from
System for Electronic Document Analysis and Retrieval
(www.sedar.com) for First Mining Inc.
Verification of sampling and • The verification of significant intersections • Historical significant intersections quoted have been verified
assaying by either independent or alternative by Independent Geological Consultants Micon International
company personnel. Limited. They have also been verified by company personnel.
• The use of twinned holes. For more details see document ‘Updated Mineral Resource
• Documentation of primary data, data entry Estimate for the Pickle Crow Property, Patricia Mining
procedures, data verification, data storage Division, Northwestern Ontario, Canada’ NI-43-101 dated 15
(physical and electronic) protocols. June 2018 and available from System for Electronic
• Discuss any adjustment to assay data. Document Analysis and Retrieval (www.sedar.com) for First
Mining Inc.
• There are no twinned holes in the dataset but a comparison
of the results of different drilling generations showed that
results were comparable. In addition previous operators have
duplicated and verified results by re-sampling historical core.
.For more details see document ‘Updated Mineral Resource
Estimate for the Pickle Crow Property, Patricia Mining
Division,Northwestern Ontario,Canada’ NI-43-101 dated 15

Page | 23

==> picture [112 x 34] intentionally omitted <==

Criteria JORC Code explanation JORC Code explanation Commentary Commentary
June 2018 and available from System for Electronic
Document Analysis and Retrieval (www.sedar.com) for First
Mining Inc.
• Once all logging data was completed, core marked up,
logging and sampling data was entered directly into the
Gems Logger program (an MS Access-based database and
stored on the onsite server. At approximately weekly
intervals the server onsite was synchronised with the main
server in Thunder bay. Only one individual was responsible
for synchronising the field and office databases. For recent
drilling by Auteco (prefix AUDD*) logging is ongoingand data
will be loaded to a central database once completed.
• No adjustments were made to assay data but the procedure
to determine which gold assay to enter into the database
was as follows. If a pulp metallic assay was performed it was
used. If a pulp metallic assay was not performed, then a
gravimetric assay was used. If a gravimetric assay was not
performed, then the AAS assay was used. If re-assays were
preformed then the first analysis was used unless a QA/QC
investigation proved that the first assay was suspect, in
which case the second analysis was then used. For more
details see document ‘Updated Mineral Resource Estimate
for the Pickle Crow Property, Patricia Mining Division,
Northwestern Ontario, Canada’ NI-43-101 dated 15 June
2018 and available from System for Electronic Document
Analysis and Retrieval (www.sedar.com) for First Mining Inc.
For all drilling not conducted by PC Gold (without the PC-
hole prefix) no adjustments were made to the data.
Location of data points • Accuracy and quality of surveys used to • Upon completion of PC Gold drillholes collars (PC Gold prefix)
locate drill holes (collar and down-hole were surveyed by third party contractors Delta Surveying and
surveys), trenches, mine workings and other J.D.Barnes of Thunder Bay to with +/- 1m using an SX Blue.
locations used in Mineral Resource For all other drilling hole collars were converted from local
estimation. grids or digitised from georeferenced maps. Where possible
• Specification of the grid system used. these historical surface drillholes have been re-located,
• Quality and adequacy of topographic surveyed and verified in the field. Drillhole locations are also
control. recorded by the Ontario Ministry of Northern Development
and Mines in freely available GIS datasets. Auteco drilling is
currently located by hand held GPS (to an accuracy of <3m).
RL has been calculated by projecting collar position onto a
DTM generated from the 2008 LIDAR survey to an accuracy
of <1m.
• A variety of down hole survey tools have been used on the
property. All holes were surveyed at 50m intervals while
drilling using an EZY Shot magnetic compass based tool
supplied by the drillers. In conjunction with this, all holes
were surveyed after completion with a non-magnetic down-
hole instrument. A variety of tools were trialed including
Maxibore tool provided by Reflex Instruments, a Devifelx tool
operated by TECH Directional services and an SPT North
Seeking Gyro. Auteco is currently utilizing a north seeking
Gyro tool from Reflex Instruments. For further details of
survey reproducibility and tools used please refer to
document ‘Updated Mineral Resource Estimate for the Pickle
Crow Property, Patricia Mining Division, Northwestern
Ontario, Canada’ NI-43-101 dated 15 June 2018 and available
from System for Electronic Document Analysis and Retrieval
(www.sedar.com) for First Mining Inc. For all drilling not
conducted by PC Gold (lacking the PC- prefix) surveys were
conducted during drilling with hole orientation recorded by
the geologist in the field. Downhole surveys of dip are
recorded by azimuths away from the collar are generally
lacking.
• All location data is in UTM grid (NAD83 Zone 15) except
where noted.
• Topographic Control for PC Gold drilling (PC- prefix) was from
a DTM created with geophysical surveys and verified by drill
collar surveys. For all other collar data elevation was
estimated from contours provided from SRTM. Topographic
control for underground drillhole collars has been digitized

Page | 24

==> picture [112 x 34] intentionally omitted <==

Criteria JORC Code explanation JORC Code explanation Commentary Commentary
from level plans or converted from mine grids. All surface
collars have now been projected to a DTM generated from a
LIDAR survey completed in 2008 and are to an accuracy of
<1m.
Data spacing and distribution • Data spacing for reporting of Exploration • Due to the nature of mineralisation the hole spacing is highly
Results. variable and of a progressive exploration in nature.
• Whether the data spacing, and distribution • Data spacing is considered sufficient to establish geological
is sufficient to establish the degree of and grade continuities for mineral resource estimation at the
geological and grade continuity appropriate Inferred Category
for the Mineral Resource and Ore Reserve • No sample compositing was applied.
estimation procedure(s) and classifications
applied.
• Whether sample compositing has been
applied.
Orientation of data in relation • Whether the orientation of sampling • Drill hole orientations were designed to test perpendicular or
to geological structure achieves unbiased sampling of possible sub-perpendicular to the orientation of the intersected
structures and the extent to which this is mineralisation. Drilling was typically oriented perpendicular
known, considering the deposit type. to the trend of geophysical anomalism and the mapped strike
• If the relationship between the drilling and dip of observed mineralisation on surface and elsewhere
orientation and the orientation of key in the project area.
mineralised structures is considered to have • Due to the density of drilling and the orientation of drilling
introduced a sampling bias, this should be perpendicular to mineralised bodies there is limited bias
assessed and reported if material. introduced by drillhole orientation.
Sample security • The measures taken to ensure sample • For PC Gold drilling (PC- prefix), once the core samples were
security. cut, bagged and sealed with zip ties, ten samples were put
into rice bags which were sealed and secured with numbered
security tags. Once samples arrived at the laboratory the
security tags and corresponding samples were verified
against onsite logs. Prior to shipment samples were stored in
a locked building onsite. Site was always occupied, and no
samples were left at the project during field breaks. The
same protocols have been used for Auteco drilling (prefix
AUDD*). For all other drill holes the measures taken to
ensure sample security are unknown.
Audits or reviews • The results of any audits or reviews of • An audit and review of sampling techniques and data was
sampling techniques and data. conducted as part of NI-43-101 resource estimation by
Independent Consultants Micon International. Please refer to
document ‘Updated Mineral Resource Estimate for the Pickle
Crow Property, Patricia Mining Division, Northwestern
Ontario, Canada’ NI-43-101 dated 15 June 2018 and available
from System for Electronic Document Analysis and Retrieval
(www.sedar.com) for First Mining Inc.
• An additional audit and review of sampling techniques and
data was conducted by Cube Consulting as part of the
Resource Estimation subject to this release and consisted of
an audit of QAQC data from previous operator’sPC Gold Inc.
(2011-2017).

Page | 25

==> picture [112 x 34] intentionally omitted <==

Section 2 Reporting of Exploration Results (Criteria listed in the preceding section also apply to this section.)

Criteria JORC Code explanation JORC Code explanation Commentary Commentary
Mineral tenement and land tenure • Type, reference name/number, location and
•		 The mineral concessions of the Pickle Crow project consist of
status ownership including agreements or material 106 patented mining claims covering 1,712ha and 88
issues with third parties such as joint contiguous, unpatented claims covering approximately
ventures, partnerships, overriding royalties, 14,048ha. Of the 106 patented claims 98 (the Pickle Crow Lease)
native title interests, historical sites, are held in the name of Teck Cominco Limited (Teck) and 8 are
wilderness or national park and held in the name of PC Gold. The unpatented claims are held in
environmental settings. the name of PC gold. PC Gold has a lease on the 98 patented
• The security of the tenure held at the time claims held by Teck which expires in 2067. These leasehold
of reporting along with any known claims are subject to two net smelter return (NSR) royalties
impediments to obtaining a license to totaling 1.25%. The other 8 patented claims (the Crowshore
operate in the area. Patents), plus certain unpatented claims are subject to NSR
royalties ranging from 2% to 3%. A full list of tenements along
with details of relevant NSR’s as they pertain to individual
properties is given in Auteco ASX releases dated: 28/01/2020
and 17/02/2020. An additional 600 claims were staked by
Auteco subsidiary, Revel Resource (JV) Ltd. and are subject to
the terms of the Earn-In-Arrangement.
• Auteco has entered into a binding term sheet agreement to
acquire up to 80% of the Pickle Crow Gold Project from First
Mining. A payment of C$50,000 has been made to First Mining.
Subject to the completion of a formal agreement, the
consideration for acquisition of the assets are as follows: Upon
signing a formal agreement: A further C$50,000 and 25,000,000
Shares in the capital of Auteco at a deemed issue price of
A$0.008 per share. Stage 1 Earn-In (51%): Spending C$5,000,000
over three years comprising: Spending C$750,000 within a 12-
month period ('Expenditure Payment 1'): and Spending
C$4,250,000 within a 24-month period after Expenditure
Payment 1 is satisfied; and Subject to shareholder approval by
Auteco, issuing to First Mining 100,000,000 Shares in Auteco.
(together 'Stage 1 earn in'). Stage 2 Earn-In (a further 19%):
Expending exploration expenditure in the 24-month period
commencing on the date that Auteco satisfies the Stage 1 Earn-
in of C$5,000,000 ('Expenditure Payment 3'); and Within 90 days
of completing expenditure Payment 3, making a cash payment
to Seller in the amount of C$1,000,000 ('Expenditure Payment
4'), (together the 'Stage 2 Earn In'). Also, Buy In: May buy a
further 10% interest by paying C$3,000,000 to First Mining; and
a 2% Net Smelter Return granted after the Stage 2 Earn-In.
Further details are included in ASX release (17/02/2020).
• For a more complete discussion of type, reference
name/number, location and ownership including agreements or
material issues with third parties such as joint ventures,
partnerships, overriding royalties, native title interests,
historical sites, wilderness or national park and environmental
settings relating to the Pickle Crow Project please refer to
document ‘Updated Mineral Resource Estimate for the Pickle
Crow Property, Patricia Mining Division, Northwestern Ontario,
Canada’ NI-43-101 dated 15 June 2018 and available from
System for Electronic Document Analysis and Retrieval
(www.sedar.com)for First MiningInc.
Exploration done by other parties • Acknowledgment and appraisal of • The first government survey of the area was performed by
exploration by other parties. William McInnes of the Geological Survey of Canada (GSC) along
the Crow River from 1903 to 1905. Prospecting in the Pickle
Lake area commenced in 1926. In 1927, Lois Cohen of
Haileybury formed a prospecting group and early that winter
sent Alex and Murdock Mosher in to stake the first claims
(December 1927) on what ultimately became the Central
Patricia Gold Mines property. These claims were optioned by
F.M Connell and Associates in August 1928 and Central Patricia
Gold Mines Limited was incorporated on 19 February, 1929.
Diamond drilling commenced at Central Patricia in February
1929 andproduction in March 1930. The Central Patricia

Page | 26

==> picture [112 x 34] intentionally omitted <==

discovery paved the way from exploration in the region which led to the discovery and initial drilling (1929) of the first Pickle Crow orebody the No.1 Vein by Northern Aerial Mineral Exploration Limited, a company set up in 1928 by J.E. (Jack) Hammell. In 1929 gold was also discovered by Albany River Miners Ltd. (Albany River) at the No.16 vein on the Albany River claims to the east of the then Pickle Crow property. Northern Aerial was acquired by Pickle Crow Gold Mines Limited (PCGM) in 1934 with Jack Hammell continuing as president. Production from the Pickle Crow mine began on 17 April, 1935. Albany river sank the Albany shaft to a depth of 190m between 1933 and 1938 and completed extensive underground development. Winoga Patricia Gold Mines was created in 1936 and drilled 73 surface diamond drill holes on a pie-shaped property located between PCGM’s holdings and the Albany River Mines ground to the east. A mine shaft was subsequently sunk on the property in 1938. That same year, PCGM took over ownership of both Albany River Mines and Winoga Patricia Gold Mines through a new company called Albany River Gold Mines Ltd. It is believed that the Winoga Patricia Gold Mines shaft later became the No.3 Shaft of the Pickle Crow operation. The Cohen- MacArthur zone, located 2km to the north of the developing Pickle Crow mine, was discovered in 1933. A total of 14 surface diamond holes were drilled at Cohen-MacArthur in the winter of 1936. This property was optioned by PCGM in 1938, With the acquisition of the Cohen-MacArthur claims, PCGM became one of the largest land holders in the Pickle Lake area. The GSC completed a regional synthesis of the Pickle Crow Greenstone belt during this period as well. Ground and airborne geophysical surveys have been completed over all or parts of the Pickle Crow property at various times during its early history. A dipneedle survey completed in 1936 on the Pickle Crow property was useful in tracing out the bands of the iron formation. A detailed magnetic survey was carried out over the property by Teck (or its predecessor companies) around 1960. The property then underwent a series of ownerships until it became wholly owned by Teck in 1971. The property then sat dormant until 1973 when Pickle Crow Exploration Ltd. Reviewed the economics of reopening the mine. In 1978, a merger between Pickle Crow Explorations Ltd. And four other companies saw Teck’s ownership reduced to 44.6% and a new exploration company called Highland-Crow Resources Ltd. Highland Crow went on to option the property to Galant Gold Mines Limited in 1979. Gallant performed a VLF_EM geophysical survey and drilled 47 surface diamond drill holes for 7,356m. The only known soil geochemical survey done on the Pickle Crow property was completed for Gallant in 1983. Soil values ranged from 10 to 12,000ppb with the high values attributed to mine tailings and cultural anomalies. In 1983 the property returned to Highland-Crow. Noramco Mining Corp. bought Highland-Crow in 1988. Between 1985 and 1987 Highland-Crow completed linecutting, magnetometer and IP, geophysical surveying, geological mapping, surface trenching, diamond drilling and environmental baseline studies. Noramco drilled surface exploration holes, completed geophysical surveys and commenced dewatering of the No.1 shaft. Noramco drilled 286 surface diamond drill holes for 46,189m and 79 underground holes for 9,341m. Noramco also commissioned Historic (non-compliant) resource estimates. In 1994 Noramco changed its name to Quest Capital. Quest assigned its interest to Pickle Crow Resources Inc. A total of 4 surface diamond drill holes for 2,287m were completed. Quest then sold its interest to Wolfden Resource Inc who entered into an option agreement with Jonpol Explorations Ltd. Who drilled 18 surface diamond holes for 2,173.5m. Wolfden also entered into a surface mining agreement with Cantera Mining Limited in 2000. Canterra commenced building a 225tpd gravity mill on site in 2002 but was placed into receivership in 2004. In 2006 Wolfden transferred Pickle Crow to Premier Gold Mines Ltd. Before the property was sold to PC Gold in 2007. PC Gold then explored the property completing 184 holes for 62,968m by

Page | 27

==> picture [112 x 34] intentionally omitted <==

2011 and 173 holes for 35,840.4m from 2011 to 2014 before
commissioning an NI-43-101 compliant Resource Estimate. For
further details please refer to document ‘Updated Mineral
Resource Estimate for the Pickle Crow Property, Patricia Mining
Division, Northwestern Ontario, Canada’ NI-43-101 dated 15
June 2018 and available from System for Electronic Document
Analysis and Retrieval(www.sedar.com)for First MiningInc.
Geology • Deposit type, geological setting and style of • The Pickle Crow Gold Deposit is considered to be an Archean
mineralisation. low-sulphide gold-quartz vein type deposit, also known as
shear-hosted gold, Archean quartz-carbonate vein gold
deposits, Archean lode gold, Archean mesothermal gold
deposits or simply orogenic gold. The deposit occurs primarily
within mafic volcanics and banded iron formation (BIF) units in
the Pickle Crow assemblage of the Pickle Lake Greenstone belt
in the Uchi Lake Subprovince of the Superior Craton of the
Canadian Shield.
Drill hole Information • A summary of all information material to • Refer to Appendix A in ASX release 28/01/2020 and 26/03/2020
the understanding of the exploration results as well as the current release for drill hole information for all
including a tabulation of the following reported drill holes for this JORC 2012 Table 1 and in accordance
information for all Material drill holes: with ASX listing rule 5.7.2.
o
easting and northing of the drill hole
collar
o
elevation or RL (Reduced Level –
elevation above sea level in meters) of
the drill hole collar
o
dip and azimuth of the hole
o
down hole length and interception
depth
o
hole length.
• If the exclusion of this information is
justified on the basis that the information is
not Material and this exclusion does not
detract from the understanding of the
report, the Competent Person should
clearly explain why this is the case.
Data aggregation methods • In reporting Exploration Results, weighting • All drill hole intersections are reported above a lower cut-off
averaging techniques, maximum and/or grade of 0.5g/t Gold or 1g/t as indicated, with no upper cut off
minimum grade truncations (eg cutting of grade has been applied. A maximum of 1m internal waste was
high grades) and cut-off grades are usually allowed. Tabulated results are presented in ASX announcements
Material and should be stated. 28/01/2020, 26/03/2020 and Appendix A of this release)
• Where aggregate intercepts incorporate
short lengths of high-grade results and • Metal equivalent values are not used
longer lengths of low-grade results, the
procedure used for such aggregation should
be stated and some typical examples of
such aggregations should be shown in
detail.
• The assumptions used for any reporting of
metal equivalent values should be clearly
stated.
Relationship between mineralisation • These relationships are particularly • All intersections reported in the body of this release are down
widths and intercept lengths important in the reporting of Exploration hole
Results. • The majority of the drill holes are drilled as close to orthogonal
• If the geometry of the mineralisation with to the plane of the mineralised lodes as possible. A number of
respect to the drill hole angle is known, its drill holes have intersected the mineralisation at high angles.
nature should be reported. • Only down hole lengths are reported.
• If it is not known and only the down hole
lengths are reported, there should be a
clear statement to this effect (eg ‘down
hole length,true width not known’).
Diagrams • Appropriate maps and sections (with scales) • Maps and sections are included in the body of this release as
and tabulations of intercepts should be deemed appropriate by the competent person.
included for any significant discovery being
reported These should include, but not be
limited to a plan view of drill hole collar
locations and appropriate sectional views.

Page | 28

==> picture [112 x 34] intentionally omitted <==

Balanced reporting • Where comprehensive reporting of all • Any significant higher-grade zones in historical drilling quoted in
Exploration Results is not practicable, this release have been reported in ASX announcements
representative reporting of both low and 28/01/2020, 26/03/2020 and Appendix A of this release)
high grades and/or widths should be • All results above 0.5g/t lower cut-off or 1g/t quoted in this
practiced to avoid misleading reporting of release have been reported in ASX announcements 28/01/2020,
Exploration Results. 26/03/2020 and Appendix A of this release)
Other substantive exploration data • Other exploration data, if meaningful and • Appropriate plans are included in the body of this release.
material, should be reported including (but
not limited to): geological observations;
geophysical survey results; geochemical
survey results; bulk samples – size and
method of treatment; metallurgical test
results; bulk density, groundwater,
geotechnical and rock characteristics;
potential deleterious or contaminating
substances.
Further work • The nature and scale of planned further • Auteco Minerals Limited is currently conducting drill testing of
work (e.g. tests for lateral extensions or additional lodes as well as step out and infill drilling of existing
depth extensions or large-scale step-out lodes to further enhance the resources quoted in this release.
drilling). More information is presented in the body of this report.
• Diagrams clearly highlighting the areas of • Diagrams in the main body of this release show areas of possible
possible extensions, including the main resource extension on existing lodes. The company continues to
geological interpretations and future drilling identify and asses multiple other target areas within the
areas, provided this information is not property boundary for additional resources.
commerciallysensitive.

Section 3 Estimation and Reporting of Mineral Resources

Criteria JORC Code explanation Commentary
Database integrity •
Measures taken to ensure that data has not been corrupted
by, for example, transcription or keying errors, between its
initial collection and its use for Mineral Resource estimation
purposes.
•
Data validation procedures used.		 •
The CP has not undertaken an independent data verification
of the data supplied in the databases pertaining to this
project. Data compilation and verification was undertaken by
company employees and independent consultants to the
company, and the Cube accepts that the work was diligently
undertaken and does not represent a material risk to the
project.
•
The drilling data was supplied to Cube in a MS Excel format.
This data has been relied upon as the source data for the June
2020 MRE work. Cube compiled the data for importing into a
standard resource database in MS Access. Validation checks
completed by the Cube included the following work:
o
Maximum
hole
depths
check
between
sample/logging tables and the collar records
o
Checking for sample overlaps
o
Reporting missing assay intervals
o
3D visual validation in Surpac v6.9 of co-ordinates
of collar drill holes to topography and UG workings
drilling locations
o
3D visual validation of downhole survey data to
identify if any inconsistencies of drill hole traces.
•
No material issues were identified by Cube. No significant
errors due to data corruption and transcription have been
found.
Site visits •
Comment on any site visits undertaken by the Competent
Person and the outcome of those visits.
•
If no site visits have been undertaken indicate why this is the
case.		 •
Brian Fitzpatrick (Principal Geologist at Cube Consulting) who
is the Competent Person for the June 2020 MRE has not
undertaken a site visit to date.
•
Due to the worldwide travel restrictions currently in place
because of the COVID-19 pandemic, it was not possible for the
CP to propose undertaking a site visit prior to the completion
of the June 2020 MRE.
Geological
interpretation		 •
Confidence in (or conversely, the uncertainty of) the
geological interpretation of the mineral deposit.
•
Nature of the data used and of any assumptions made.
•
The effect, if any, of alternative interpretations on Mineral
Resource estimation.		 •
The confidence in the geological interpretation is high as a
result of the current knowledge within the limits of the
historical Pickle Crow UG workings (1935-1966) and diamond
drilling from surface and UG drilling extending out from the
workings. Interpreted extensions of mineralised quartz veins

Page | 29

==> picture [112 x 34] intentionally omitted <==

Criteria JORC Code explanation Commentary
•
The use of geology in guiding and controlling Mineral
Resource estimation.
•
The factors affecting continuity both of grade and geology.		 have been established through production history and
available mapping and UG sampling records. This information
has been used to guide and control the mineralisation
interpretation and estimation factors. Mineralisation trends
are open along strike and down plunge, so continuous review
and understanding of lithological and structural controls are
required to further increase the degree of precision and
accuracy of the geological interpretation beyond the limits of
the current information.
•
The data used for the 2020 MRE was comprised of surface and
UG diamond drill holes and underground (UG) chip samples.
Surface trench sampling results were not used in the June
2020 MRE. UG drilling and sampling locations have not been
verified and UG chip sampling intervals were estimated over
the true width of the mineralised quartz vein structures. Most
of this data is in stoped out areas and is not material to the
depleted resource estimate.
•
Previous interpretations have separated vein structures and
domains into thin mineralised envelopes or interpreted
variable thickness waste or dilution haloes around the in-situ
mineralisation. Vein thicknesses were determined from the
3D wireframe interpretations and interpolating these
thicknesses into the block model. Blocks with interpolated
thicknesses less than 1 m were then diluted to 1 m of
thickness and reported above the cut-off grade as diluted
tonnes and grade. The effect of this method resulted in the
reporting of a diluted grade estimate taking into account a
minimum mining width of 1 m.
•
The current geological interpretation is based on observations
from logged diamond drill core, and the visual mapping in
outcrop and underground of vein quartz, BIF hosted, and
shear hosted zones within the host sequence.
o
The most prominent and continuous style of
mineralisation is the auriferous quartz vein hosted
mineralisation in several steeply dipping NE plunging
zones – mined over the life of the Pickle Crow UG as
the #1, 2, 5, 6, 7, 8 and 9 Veins.
o
The second style of mineralisation at Pickle Crow is
the gold-bearing BIF hosted type adjacent to the #1
and #5 vein mineralisation. Auriferous mineralisation
comprises stringers and discontinuous lenses of
quartz within sulphide replacement iron formation.
Mineralisation is generally broader in thickness (3m-
10m) but has been logged and mapped as both
contorted and tight to isoclinal folded following the
trend of the quartz vein hosted mineralisation.
o
The shear zone-hosted type of mineralisation has
been recorded in the Albany Shaft area. The
mineralisation is described as broad, highly complex
zones (both lithologically and structurally) of
shearing with discontinuous quartz veining, and
sulphidic BIF hosted zones.
•
Grade distribution plots were created in Surpac to assist with
assessing grade continuity along strike, down dip, and to
assess if any down plunge component was apparent. Most
major mineralised vein structures appear to plunge to the NE
and currently open at depth. There are no definitive
interpreted major fault structures and dyke intrusives
modelled in 3D available for the June 2020 MRE. but available
surface geology plans show several porphyry sill/dyke
intrusives and minor NW fault structures. Tight to isoclinal
folding within the Pickle Crow deposit area has been well
recorded from fold structures clearly visible in the BIF units.
Intrusives, fault structures and complex folding are likely to
have influence over grade continuity at a local scale.
Dimensions •
The extent and variability of the Mineral Resource expressed
as length (along strike or otherwise), plan width, and depth
below surface to the upper and lower limits of the Mineral		 •
The Mineral Resource area has overall dimensions of 3,800m
strike (in a NE direction), 800m width and has been
interpreted to extend to 1,800m below surface. Multiple lode

Page | 30

==> picture [112 x 34] intentionally omitted <==

Criteria JORC Code explanation Commentary
Resource. systems exist within this area, predominantly within and in
close proximity to the historical Shaft #1 and Shaft #3
workings.
Estimation and
modelling
techniques		 •
The nature and appropriateness of the estimation
technique(s) applied and key assumptions, including
treatment of extreme grade values, domaining,
interpolation parameters and maximum distance of
extrapolation from data points. If a computer assisted
estimation method was chosen include a description of
computer software and parameters used.
•
The availability of check estimates, previous estimates
and/or mine production records and whether the Mineral
Resource estimate takes appropriate account of such data.
•
The assumptions made regarding recovery of by-products.
•
Estimation of deleterious elements or other non-grade
variables of economic significance (e.g. sulphur for acid mine
drainage characterisation).
•
In the case of block model interpolation, the block size in
relation to the average sample spacing and the search
employed.
•
Any assumptions behind modelling of selective mining units.
•
Any assumptions about correlation between variables.
•
Description of how the geological interpretation was used to
control the resource estimates.
•
Discussion of basis for using or not using grade cutting or
capping.
•
The process of validation, the checking process used, the
comparison of model data to drill hole data, and use of
reconciliation data if available.		 •
The estimate has been produced by 3D modelling of the lode
systems and block model grade estimation using a
combination of 2D estimation modelling approach and 3D
dynamic interpolation (DK), both using Ordinary Kriging (OK):
o
The 2D estimation approach using OK was deemed
appropriate for the very narrow, linear and
continuous zones hosted by quartz veins. Interval
composites were generated for the mineralised lode,
which were then weighted by their respective widths
to
calculate
an
accumulation
variable.
The
accumulation variable for gold was then used for
variogram analysis and 2D interpolation of gold
grades. The estimated 2D block values were then
exported back into 3D space.
o
Several quartz vein hosted domains show ribbon-like
structures and although the overall dip and dip
direction of most of the lodes are consistent, there
are enough changes in geometry to require locally
varying search ellipse and variogram directions. The
dynamic anisotropy search feature in Surpac was
used in which the search neighbourhood ellipse dip
and dip direction are defined separately for each
block approximating the orientation of each of the
mineralised zones
o
The influence of extreme grade values was reduced
by top-cutting where required. The top cut levels
were determined using a combination of top-cut
analysis tools (grade histograms, log probability plots
and CVs). Top cuts were reviewed and applied on a
domain basis.
o
The primary estimation domains are based on the
geological wireframing of quartz veins and BIF hosted
mineralisation within the Pickle Crow Shear Zone and
additional quartz vein and shear zone domains.
o
Drill hole sample data was flagged using domain
codes generated from 3D mineralisation domains.
Sample data was composited over the full downhole
interval. There were consequently no residuals.
Intervals with no assays were assigned background
grades for the compositing routine as these un-
assayed intervals in the drill holes were assumed to
be waste.
o
Interpolation
and
Search
Parameters
-
For
mineralised domains estimated using 2D OK method,
variogram ranges and search distances were defined
in a rotated horizontal plane. For the 3D DK method,
variogram modelling was conducted to provide
nugget, sill and range for 3 directions. Variogram
maps were initially analysed in plan, east-west and
north-south section to confirm continuity trends and
to refine parameters for experimental variogram
calculation. Interpolation parameters were set to a
minimum number of 4 composites and a maximum
number of 16 composites for the estimate. Maximum
search ellipse of 200 metres was used.
o
The maximum distance of extrapolation from data
points was half the drill spacing.
o
Computer software used for the modelling and block
construction was Surpac v.6.9. Snowden Supervisor
v.8.12 was used to prepare variogram and search
parameters for specific domains.
•
Check Estimates/ previous estimates/mine production:
o
For the June 2020 MRE, ID2 estimation was used as a
check estimate against the OK estimation, with no
significant variations inglobal estimate results.

Page | 31

==> picture [112 x 34] intentionally omitted <==

Criteria JORC Code explanation Commentary
o
A previous MRE was reported by Micon (2018) with
an effective date of 31 August 2016, for First Mining
Gold, the owner of the Pickle Crow Deposit at that
time. The resource estimate was carried out using
either OK method or inverse distance squared
estimation (ID2) method (for estimation domains
where data was limited), based on interpreted
narrow high-grade zones. Overall, the lithological
controls and mineralisation trends were similar to
the 2020 interpretation. The main differences
included: the application of a minimum width of 1m
applied to the domains for the 2016 model; 2D and
DK estimation method applied for the 2020 model;
Minor differences in grade estimation and search
parameters. Previous work by other consultants in
2011 and 2016 involving data compilation and
verification/validation of the historical UG drilling
and sampling, along with the compilation of
mapping, UG development and stope outlines, and
early surface drilling provided support for the
completion of the 2020 model and estimation work.
o
Pickle Crow Gold Mines (PCGM) acquired the project
in 1934 and commercial production at the mine
began in 1935. The Pickle Crow mine operated until
1966 during which time it produced 1,446,214 troy
ounces of gold and 168,757 troy ounces of silver from
3,070,475 tons of ore milled (at an average grade of
0.47 oz/ton or 16.14 g/t).
•
No by-product recoveries were considered
•
Estimation of deleterious elements was not completed for the
MRE. There has been insufficient multi-element assaying
completed in order to ascertain any effects of potential
deleterious elements. Arsenic is known to be associated with
some gold mineralisation but was not estimated for this
model.
•
The parent block size used is 40mE, 5mN and 40m RL and sub-
blocked to 2.5mEN x 0.625mN x 2.5mRL. The data spacing has
relied on a combination of recent and historic surface
diamond drilling, UG drilling and UG chip samples with no
particular common sample spacing.
•
No assumptions of selective mining units were made.
•
No correlation analysis between gold and other elements has
been assessed for the current model. Only gold and silver
assays were provided for the June 2020 MRE.
•
The mineralised domains acted as a hard boundary to control
the June 2020 MRE. The domain interpretations were based
on historical UG mining knowledge of the steeply dipping
quartz veining known to host gold mineralisation from drill
logging and descriptions of mapping and sampling.
•
Gold grade distributions within the estimation domains were
assessed to determine if high grade cuts or distance limiting
should be applied on a domain by domain basis.
•
Block model validation was conducted by the following
means:
o
Visual inspection of block model estimation in
relation to raw drill data on a section by section basis.
o
Volumetric comparison of the wireframe/solid
volume to that of the block model volume for each
domain.
o
A global statistical comparison of input and block
grades, and local composite grade (by northing and
RL) relationship plots (swath plots), to the block
model estimated grade for each domain.
o
Comparison the cut grade drill hole composites with
the block model grades for each lode domain in 3D.
o
No selective UG mining records assigned to stopes or
by Vein Number identification are currently available
and therefor no reconciliation analysis has been

Page | 32

==> picture [112 x 34] intentionally omitted <==

Criteria JORC Code explanation Commentary
conducted.
Moisture •
Whether the tonnages are estimated on a dry basis or with
natural moisture, and the method of determination of the
moisture content.		 •
The tonnages are estimated on a dry basis. Moisture was not
considered in the density assignment.
Cut-off parameters •
The basis of the adopted cut-off grade(s) or quality
parameters applied.		 •
All resources are reported at a 3.5 g/t gold lower cut-off which
is deemed acceptable based on approximate industry costings
associated with the likely mining method (narrow vein
underground mining methods).
Mining factors or
assumptions		 •
Assumptions made regarding possible mining methods,
minimum mining dimensions and internal (or, if applicable,
external) mining dilution. It is always necessary as part of
the process of determining reasonable prospects for
eventual economic extraction to consider potential mining
methods, but the assumptions made regarding mining
methods and parameters when estimating Mineral
Resources may not always be rigorous. Where this is the
case, this should be reported with an explanation of the
basis of the mining assumptions made.		 •
Underground mining is assumed based on historical mining
activity at Pickle Crow.
•
No assumptions on UG mining methods have been made.
•
No rigorous application has been made of minimum mining
width, internal or external dilution for this MRE.
•
Preliminary SMU analysis is currently being undertaken by
Cube to assess the sensitivity of the minimum mining width of
the narrow, very high-grade quartz vein hosted domains to
dilution.
Metallurgical
factors or
assumptions		 •
The basis for assumptions or predictions regarding
metallurgical amenability. It is always necessary as part of
the process of determining reasonable prospects for
eventual economic extraction to consider potential
metallurgical methods, but the assumptions regarding
metallurgical treatment processes and parameters made
when reporting Mineral Resources may not always be
rigorous. Where this is the case, this should be reported
with an explanation of the basis of the metallurgical
assumptions made.		 •
No metallurgical factors have been considered as part of the
2020 MRE
•
Metallurgical test work was completed by previous operators
on the high-grade vein mineralisation at Pickle Crow and are
summarised as follows:
o
Total gold extractions to a maximum exceeding 99%
through a combination of gravity and 48-hour
cyanide leach bottle rolls
o
Gravity recoveries of up to 92.4% of total gold
recovered by the Knelson Concentrator prior to
cyanide leaching.
•
These results are in line with the historical performance of the
Pickle Crow Gold mine which operated between 1935 and
1966 with recoveries averaging slightly over 98% recovered
through a combination of gravity and cyanidation.
Environmental
factors or
assumptions		 •
Assumptions made regarding possible waste and process
residue disposal options. It is always necessary as part of the
process of determining reasonable prospects for eventual
economic extraction to consider the potential
environmental impacts of the mining and processing
operation. While at this stage the determination of potential
environmental impacts, particularly for a greenfields project,
may not always be well advanced, the status of early
consideration of these potential environmental impacts
should be reported. Where these aspects have not been
considered this should be reported with an explanation of
the environmental assumptions made.		 •
No environmental factors have been considered as part of the
2020 MRE. No assumptions have been made in regard to
possible waste and process residue disposal options or the
potential environmental impacts of the mining and processing
operation. However, the project is the site of historic mining
activity, located +within an existing mineral field
Bulk density •
Whether assumed or determined. If assumed, the basis for
the assumptions. If determined, the method used, whether
wet or dry, the frequency of the measurements, the nature,
size and representativeness of the samples.
•
The bulk density for bulk material must have been measured
by methods that adequately account for void spaces (vugs,
porosity, etc), moisture and differences between rock and
alteration zones within the deposit.
•
Discuss assumptions for bulk density estimates used in the
evaluation process of the different materials.		 •
Bulk density (BD) assignment was determined by laboratory
BD sampling.
•
PC Gold completed BD measurements on 2,602 samples of
mineralised and unmineralised diamond drill core and select
grab samples from old stockpiles onsite from the Pickle Crow
property (Micon, 2018). The majority of the samples were
measured by Accurassay of Thunder Bay, Ontario using the
water displacement method. BD was assigned within the
block model attribute ‘density’ according to rock types: Vein
Quartz = 2.7; BIF Unit = 3.21; Waste Rock =2.83.
•
There were no considerations required for BD based on
weathering profiles or porosity, as the mineralised quartz
veins domains interpreted for this resource estimate lie
entirely within the primary or fresh sulphide zone.
Classification •
The basis for the classification of the Mineral Resources into
varying confidence categories.
•
Whether appropriate account has been taken of all relevant
factors (i.e. relative confidence in tonnage/grade
estimations,reliabilityof input data,confidence in continuity		 •
The Mineral Resource has been entirely classified as Inferred.
The Pickle Crow Deposit has been subject to mining since
1935 and historical workings demonstrate grade and
geological continuity. When assessing the combination of
current drilling,historic drillingand underground chip

Page | 33

==> picture [112 x 34] intentionally omitted <==

Criteria JORC Code explanation Commentary
of geology and metal values, quality, quantity and
distribution of the data).
•
Whether the result appropriately reflects the Competent
Person’s view of the deposit.		 samples used in the June 2020 MRE, no particular common
sample grid exists. While data quality control is lacking for the
majority of historic UG drilling and sampling used, a moderate
amount of well controlled and industry standard recent
drilling and re-sampling provides some validation of the
information to support the estimation and classification of a
Mineral Resource.
•
The June 2020 MRE results appropriately reflects the
Competent Person’s view of the deposit.
Audits or reviews •
The results of any audits or reviews of Mineral Resource
estimates.		 •
Internal peer review has been completed by Cube which
verified the technical inputs, methodology, parameters and
results of the estimate.
Discussion of
relative accuracy/
confidence		 •
Where appropriate a statement of the relative accuracy and
confidence level in the Mineral Resource estimate using an
approach or procedure deemed appropriate by the
Competent Person. For example, the application of
statistical or geostatistical procedures to quantify the
relative accuracy of the resource within stated confidence
limits, or, if such an approach is not deemed appropriate, a
qualitative discussion of the factors that could affect the
relative accuracy and confidence of the estimate.
•
The statement should specify whether it relates to global or
local estimates, and, if local, state the relevant tonnages,
which should be relevant to technical and economic
evaluation. Documentation should include assumptions
made and the procedures used.
•
These statements of relative accuracy and confidence of the
estimate should be compared with production data, where
available.		 •
It is the CP’s opinion that reported Inferred Resources are
appropriate for the level of accuracy and confidence in the
June 2020 MRE for Pickle Crow. This is in part based on the
accuracy and precision of the assay determinations in the UG
historical data which are unknown and only partially
validated. There also exists potential errors in relation to the
chip sample locations and the accuracy of the digitised UG
workings and UG hole collar locations. In spite of these
inaccuracies, the grade and tonnage discrepancies are
minimal as much of these areas have not been stoped out,
and the depleted material margin of error is within
reasonable limits for Inferred Resource category.
•
Modelling for the June 2020 MRE has provided an
understanding of the global grade distribution but not the
local grade distribution The Mineral Resources constitute a
global resource estimate.
•
Relative accuracy and confidence of the Inferred Resource
estimate is supported by a successful history of commercial
production at the Pickle Crow Gold Mine which produced 1.5
Million oz @ 16g/t Gold between 1935 and 1966.

Page | 34

More from FireFly Metals Ltd.

Major Shareholding Notification 2026
May 27
Major Shareholding Notification 2026
May 26
Share Issue/Capital Change 2026
May 10
Share Issue/Capital Change 2026
May 10
Capital/Financing Update 2026
May 4
Interim / Quarterly Report 2026
Apr 29
Capital/Financing Update 2026
Apr 28
M&A Activity 2026
Apr 24
M&A Activity 2026
Apr 23
M&A Activity 2026
Apr 23
View all filings →