FireFly Metals Ltd. — Interim / Quarterly Report 2019

Oct 28, 2019

ASX ANNOUNCEMENT

29 OCTOBER 2019

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AUTECO MINERALS LTD

30 SEPTEMBER 2019 QUARTERLY REPORT

Highlights

Limestone Well Project

• Completed maiden reverse circulation drill program.

• Broad widths of vanadium-titanium mineralization intercepted with drill results up to 1.16% V2O5 & 25.7% TiO2.

• Mineralisation open and significant target defined.

Auteco Minerals Ltd ( “Auteco” or “the Company” ) ( ASX: AUT ) is pleased to report its activities and cash flow report for the three months ended 30 September 2019.

Exploration

During the quarter, the Company completed its maiden reverse circulation (“ RC ”) drilling campaign at the Limestone Well target, located 90 kilometres southeast of Meekatharra, Western Australia.

The project covers the northern continuation of titanomagnetite bearing gabbroic rocks, along strike from Neometals Ltd Barrambie vanadium-titanium deposit (2012 JORC Inferred and Indicated Resource of 280.1 MT at 0.44% V2O5 and 9.18% TiO2)[1] .

CORPORATE DIRECTORY

Sam Brooks Executive Director

Michael Naylor Non-Executive Director

Ian Gordon

Non-Executive Director

Nicholas Katris Company Secretary

CONTACT DETAILS

T: +61 8 9220 9030 E: info@autecominerals.com.au W : www.autecominerals.com.au

A total of six RC drill holes were completed with 1,163 meters of drilling across a strike length of 8km. Results from the drilling have been very successful with significant widths and grades of magnetite bearing vanadium-titanium mineralisation intercepted from the three holes completed from the western stratigraphic horizon. These three holes encountered vanadium mineralisation from the start to the end of hole indicating the width of the mineralised zone exceeds the area tested by the drilling. The results are consistent with the Barrambie[1] deposit mineralisation with the three holes that intercepted the prospective stratigraphy returning the following results:

• 20m @ 0.48% V2O5 & 6.5% TiO2 from 12m and a second zone of 72m @ 0.46% V2O5 & 8.6% TiO2 from 52m (including: 16m @ 0.70% V2O5 ) in hole LWRC003.

• 12m @ 0.72% V2O5 & 8.5% TiO2 from 12m a second zone of 24m @ 0.50% V2O5 & 6.2% TiO2 from 48m and a third zone to end of hole of 56m @ 0.46% V2O5 & 6.1% TiO2 from 164 m in hole LWRC005.

• 20m @ 0.50% V2O5 & 6.5% TiO2 from 64m and a second zone of 116m @ 0.36% V2O5 & 11.0% TiO2 from 104m to end of hole in LWRC006.

Principal and Registered Office

Level 3, Suite 3, 24 Outram Street, West Perth WA 6005

• Includes high-grade TiO2 of 52m @17.3 % TiO2 from 168m to end of hole .

ACN: 110 336 733

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Figure 1: Drill hole location map and geological map showing strike extent vanadium-titanium mineralisation zone coincident with magnetic stratigraphy hosted with the Barrambie layered intrusion.

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Figure 2 : Interpreted Cross-section showing the recent drill hole LWRC005 with significant vanadium-titanium mineralisation intercepted over broad widths including to the end of hole. The hole assayed 56m @ 0.46 % V2O5 and 6.1% TiO2 from 164m to EOH.

Following the maiden drilling program the Company is undertaking technical evaluations as it moves towards defining the potential size and scale.

Joint Venture

Auteco has elected to continue funding its Joint Venture for the Limestone Well Project with Mithril Resources (ASX: MTH) and can earn up to an 80% interest in Mithril’s Limestone Well tenements (Exploration Licences 20/846 and 57/1069) by completing exploration expenditure of $2.5 million over 5 years[2] .

Corporate

Auteco continues to review further mineral exploration properties for inclusion in the Company portfolio.

As at 30 September 2019, Auteco has a cash balance of $0.61m (June 2019 $0.73m). For a breakdown of expenditures, refer to accompanying 5B.

Ends

For further information, please contact: Sam Brooks Executive Director Auteco Minerals Ltd E: sbrooks@autecominerals.com.au

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About Auteco Minerals Ltd

Auteco Minerals Ltd (ASX: AUT) is an emerging mineral exploration company currently exploring the Limestone Well vanadium-titanium Project in Western Australia. The Company is continually evaluating additional projects in Australia and elsewhere for potential joint venture or acquisition.

Competent Person Statements

Any information in this report that relates to Limestone Well Project is extracted from the ASX announcement, entitled “Maiden Drilling Confirms High Grade Vanadium and Titanium” dated 14 October 2019 which is available to view on www.autecominerals.com.au and www.asx.com.au. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and that all material assumptions and technical parameters underpinning the Mineral Resources in the relevant market announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement.

Notes

1 Neometals Ltd - Barrambie Project - Mineral Resource Update Refer ASX announcement 17 April 2018 https://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01971759

2 Auteco has the right to earn a total of 80% in the project comprising of a 60% Project Interest (Earn-in Interest Phase 1) by sole funding total expenditure of $1,500,000 within 3 years and if Mithril Resources Ltd (ASX: MTH) elects not to contribute after the Earn-in Interest Phase 1, then Auteco can earn a further 20% Project Interest (Earn-in Interest Phase 2) by sole funding a further $1,000,000 within 5 years. (refer ASX announcement on 20 August 2018 ASX: AUT – previously Monax Mining Ltd).

Tenement Holdings

Auteco Minerals Ltd

TENEMENT	NO.	STATUS	INTEREST	DETAILS	TENURE HOLDER
North Melton	EL 5209	Granted	25% of all minerals	JV with Marmota Energy	Marmota Energy
Croydon#2	EPM 26203	Granted	100%	Disposal Pending	Monax Mining Ltd
Bald Hill	E59/2304	Granted	100%	-	Auteco Minerals Ltd
Limestone Well	E20/846	Granted	0%	Earning up to 80%	Mithril Resources Ltd
Limestone Well	E57/1069	Granted	0%	Earning up to 80%	Mithril Resources Ltd

Monax Alliance Pty Ltd

TENEMENT	NO.	STATUS	INTEREST	DETAILS	TENURE HOLDER
Kulitjara	ELA 2013/168	Application	100%	-	Monax Alliance P/L
Anmuryinna	ELA 2013/169	Application	100%	-	Monax Alliance P/L
Poole Hill	ELA 2013/170	Application	100%	-	Monax Alliance P/L

Mining Tenements disposed: Melton EL 6125. Mining Tenements acquired: Nil.

Beneficial percentage interests held in farm in or farm-out agreements: Nil.

Beneficial percentage interests in farm-in or farm-out agreements acquired or disposed: Nil.

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Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

+Rule 5.5

Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10, 01/05/13, 01/09/16

Name of entity

Name of entity	Name of entity
Auteco Minerals Ltd
ABN 96 110 336 733	Quarter ended (“current quarter”)
96 110 336 733	30 September 2019

Consolidated statement of cash flows	Current quarter $A’000	Year to date (3 months) $A’000
1. Cash flows from operating activities 1.1 Receipts from customers 1.2 Payments for (a) exploration & evaluation (b) development (c) production (d) staff costs (e) administration and corporate costs 1.3 Dividends received (see note 3) 1.4 Interest received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Research and development refunds 1.8 Other (provide details if material) 1.9 Net cash from / (used in) operating activities	- (23) - - (36) (62) - 2 - - - -	- (23) - - (36) (62) - 2 - - - -
	(119)	(119)
2. Cash flows from investing activities 2.1 Payments to acquire: (a) property, plant and equipment (b) tenements (see item 10) (c) investments (d) other non-current assets	- - - -	- - - -

• See chapter 19 for defined terms 1 September 2016

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Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

Consolidated statement of cash flows	Current quarter $A’000	Year to date (3 months) $A’000
2.2 Proceeds from the disposal of: (a) property, plant and equipment (b) tenements (see item 10) (c) investments (d) other non-current assets 2.3 Cash flows from loans to other entities 2.4 Dividends received (see note 3) 2.5 Other (provide details if material) 2.6 Net cash from / (used in) investing activities	- - - - - - -	- - - - - - -
	-	-
3. Cash flows from financing activities 3.1 Proceeds from issues of shares and options 3.2 Proceeds from issue of convertible notes 3.3 Proceeds from exercise of share options 3.4 Transaction costs related to issues of shares, convertible notes or options 3.5 Proceeds from borrowings 3.6 Repayment of borrowings 3.7 Transaction costs related to loans and borrowings 3.8 Dividends paid 3.9 Other (provide details if material) 3.10 Net cash from / (used in) financing activities	- - - - - - - - - -	- - - - - - - - - -
	-	-

4. Net increase / (decrease) in cash and cash equivalents for the period 4.1 Cash and cash equivalents at beginning of period 4.2 Net cash from / (used in) operating activities (item 1.9 above) 4.3 Net cash from / (used in) investing activities (item 2.6 above) 4.4 Net cash from / (used in) financing activities (item 3.10 above) 4.5 Effect of movement in exchange rates on cash held 4.6 Cash and cash equivalents at end of period	728 (119) - - -	728 (119) - - -
	609	609

• See chapter 19 for defined terms 1 September 2016

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Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

5. Reconciliation of cash and cash equivalents at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts	Current quarter $A’000	Current quarter $A’000	Previous quarter $A’000
5.1 Bank balances 5.2 Call deposits 5.3 Bank overdrafts 5.4 Other (provide details) 5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above)	609 - - -		728 - - -
	609		728
6. Payments to directors of the entity and their associates Current quarter $A'000 6.1 Aggregate amount of payments to these parties included in item 1.2 33 6.2 Aggregate amount of cash flow from loans to these parties included in item 2.3 - 6.3 Include below any explanation necessary to understand the transactions included in items 6.1 and 6.2
		Current quarter $A'000
		33
		-
Director fees, superannuation and consulting fees.

7. Payments to related entities of the entity and their associates 7.1 Aggregate amount of payments to these parties included in item 1.2 7.2 Aggregate amount of cash flow from loans to these parties included in item 2.3	Current quarter $A'000
	-
	-

• 7.3 Include below any explanation necessary to understand the transactions included in items 7.1 and 7.2

	8. Financing facilities available Add notes as necessary for an understanding of the position Total facility amount at quarter end $A’000 Amount drawn at quarter end $A’000 8.1 Loan facilities - - 8.2 Credit standby arrangements - - 8.3 Other (please specify) - - 8.4 Include below a description of each facility above, including the lender, interest rate and whether it is secured or unsecured. If any additional facilities have been entered into or are proposed to be entered into after quarter end, include details of those facilities as well.	Total facility amount at quarter end $A’000	Amount drawn at quarter end $A’000
		-	-
		-	-
		-	-

• See chapter 19 for defined terms 1 September 2016

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Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

9. Estimated cash outflows for next quarter	$A’000
9.1 Exploration and evaluation 9.2 Development 9.3 Production 9.4 Staff costs 9.5 Administration and corporate costs 9.6 Other 9.7 Total estimated cash outflows	90 - - 36 54 -
	180

10. Changes in tenements (items 2.1(b) and 2.2(b) above)	Tenement reference and location	Nature of interest	Interest at beginning of quarter	Interest at end of quarter
10.1 Interests in mining tenements and petroleum tenements lapsed, relinquished or reduced	EL 6125, South Australia	Joint Venture with Marmota Energy	25%	0%
10.2 Interests in mining tenements and petroleum tenements acquired or increased	-	-	-	-

Compliance statement

• 1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.

• 2 This statement gives a true and fair view of the matters disclosed.

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Sign here: _____ Date: 29 October 2019
Company secretary
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Print name: Nicholas Katris

Notes

1. The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity that wishes to disclose additional information is encouraged to do so, in a note or notes included in or attached to this report.

2. If this quarterly report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. If this quarterly report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report.

3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.

4. See chapter 19 for defined terms 1 September 2016

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