FireFly Metals Ltd. — Interim / Quarterly Report 2020

Oct 29, 2020

ASX: AUT 29 October 2020

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SEPTEMBER 2020 QUARTERLY ACTIVITIES REPORT

Pickle Crow established as a large, high-quality gold project with 1Moz Resource at 11.3 g/t

Plus, further high-grade drilling results point to ongoing growth in the Resource and mineralisation is open in all directions; Numerous targets to be tested

Highlights

• Independent JORC 2012 Inferred Resource for the Pickle Crow Gold Project in Canada increased 170,000oz to 1Moz @ 11.3 g/t[1] gold

• Multiple new high-grade gold lodes discovered outside the Resource area with results including[1] :

• 0.6m @ 99.4 g/t gold from 167.4m in AUDD0017 (inc. 0.3m @ 181.0 g/t gold fr 167.4m)

• 1.6m @ 25.8 g/t gold from 95m in AUDD0013 (inc. 0.6m @ 65.2g/t gold fr 95.7m)

• 1.6m @ 19.6 g/t gold from 372m in AUDD0019

• 3m @ 7.37 g/t gold from 261m in AUDD0010

• Mineralisation runs from surface and is open in all directions with numerous walk-up targets still to be tested

• Diamond drilling continuing on site with two rigs operating and a third contracted and awaiting arrival. Results from the ongoing drilling are expected to be announced in Q4

• Auteco raised $30m via a fully underwritten share placement, ensuring it is well-funded to continue its aggressive exploration campaign

• Auteco finished the quarter with $32m cash on hand

• The Pickle Crow 12-month rolling average Lost Time Injury Frequency Rate (LTIFR) as of 30 September 2020 remains at zero. There were no reportable incidents or cases of COVID-19 recorded during the quarter

ASX: AUT

Principal and Registered Office: Ground Floor 24 Outram Street West Perth WA 6005 ACN: 110 336 733

Ray Shorrocks - Executive Chairman Sam Brooks - Executive Technical Director Michael Naylor - Non-Executive Director Stephen Parsons - Non-Executive Director Nicholas Katris - Company Secretary

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

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Auteco Executive Chairman Ray Shorrocks said:

“It was a highly successful quarter at Pickle Crow as we implemented our strategy to create value for our shareholders through exploration.

“This strategy is designed to establish Pickle Crow as a large, high-grade deposit in a tier-1 location.

“The outstanding drilling results highlighted both the quality of the mineralised system, its exceptionally high grades and the huge exploration upside.

“This drilling culminated in the establishment of a 1.0 Moz Resource at 11.3 g/t. It also returned a host of highgrade intersections which are outside the Resource parameter and therefore pave the way for further increases in the Resource.

“Recent discoveries of new, high-grade, near-surface gold lodes close to the existing underground infrastructure support Auteco’s investment assumption that historical exploration activity at Pickle Crow was constrained by prevailing geological assumptions that were open to challenge through an open-minded approach to old datasets and a return to first principal geological techniques.

“We will continue to focus on areas where we can grow the resource quickly and at a low cost. As part of this, we expect to have drilled 45,000m by first quarter 2021. This will generate strong newsflow and a Resource update in the first half of 2021.”

Exploration Activities

• In September, the Company announced an updated JORC 2012 compliant Inferred Resource of 1.0 Moz at 11.3 g/t gold[1] at the Pickle Crow Gold Project. The Resource runs from the surface immediately adjacent to existing underground and surface infrastructure, with mineralisation open along strike and at depth.

Independent JORC 2012 Inferred resource estimate at selected lower cut-off grades at the Pickle Crow	Independent JORC 2012 Inferred resource estimate at selected lower cut-off grades at the Pickle Crow	Independent JORC 2012 Inferred resource estimate at selected lower cut-off grades at the Pickle Crow	Independent JORC 2012 Inferred resource estimate at selected lower cut-off grades at the Pickle Crow
Lower Cut-Off	Tonnes(Mt)	Grade Gold g/t	Gold Million oz
2.0 g/t Au	3.2	10.1	1.1
3.5 g/t Au	2.8	11.3	1.0
5.0 g/t Au	2.1	13.7	0.9

3.5g/t gold lower cut off totals rounded to reflect acceptable precision

• Auteco is actively targeting further Resource growth during the first half of the 2021 calendar year, drilling step out holes on known lode positions and targeting new veins within the Core Mine trend.

• Additional potential has been identified for near term Resource expansion through the incorporation of ‘BIF style mineralisation’ currently outside the Resource Estimate. Historical drill results in these areas include[1] :

• 8.54m @ 12.2 g/t gold from 4.3m in 1-29-45

1 As announced in September 2020, Resource Grows to 1 Moz at 11.3g/t Gold at Pickle Crow. Auteco confirms that it is not aware of any new information or data that materially affects the information included in the original announcement and that all material assumptions and technical parameters underpinning the estimates in the announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Persons’ findings are presented have not been materially modified from the original market announcement.

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• 23.03m @ 6.0 g/t gold from 42.5m in 2450-24

• 16.53m @ 5.5 g/t gold from 0m on 1-26-54

• 6.62m @ 8.9 g/t gold from 22.6m in 1-26-50

• Multiple under-explored, walk-up, near-mine targets outside of resources associated with regional scale major shear zones include[3] :

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

• Pickle Crow is one of Canada’s highest-grade historical gold mines, having previously produced 1.5 Moz @ 16 g/t gold[2] ; current exploration on site is the first systematic exploration program undertaken in 50 years.

• Auteco operates in a world-class mining district with large high-grade mines as neighbours – some of the major deposits in the UCHI geological sub-province including Red Lake (Evolution Mining), Musselwhite (Goldcorp), Springpole (First Mining) and Madsen (Pure Gold).

• The first diamond drill rig commenced drilling at Pickle Crow in early June, followed by a second drill rig in late July, and a third has been contracted and awaiting arrival. The expanded 45,000m program underway is following up on multiple high-grade, shallow gold targets within the top 300m that lie outside historically defined resource areas. The Company expects to update the market on the results from current drilling in Q4.

• The Company maintains a winterised 24-man camp complete with kitchen and dining rooms for the drilling contractors and staff. The new camp will allow the continuation of year-round exploration on the site and is part of the companies COVID-19 management plan.

Corporate

Cash

Auteco’s cash position was $32m on 30 September 2020. Refer to Appendix 5B for principal movements in cash for the quarter.

Annual General Meeting

Auteco’s Annual General Meeting will be held on Thursday, 26 November 2020 at 10am (WST). The Company will follow the measures in place as set by the Australian and West Australian governments for the restriction of gatherings and the implementation of social distancing requirements in response to COVID-19.

•

2 Refer to document ‘Updated Mineral Resource Estimate for the Pickle Crow Property, Patricia Mining Division, Northwestern Ontario, Canada’ NI-43-101 dated 15th June 2018. Those Mineral Resources have been prepared using the Canadian NI-43-101 Standards and are not JORC compliant. It is uncertain that following evaluation and/or further exploration work that the foreign resource estimates of mineralisation will be able to be reported as mineral resources or ore reserves in accordance with the JORC Code 2012.

3As announced on March 2020, Drill Targets Identified at Pickle Crow Gold Project. Auteco confirms that it is not aware of any new information or data that materially affects the information included in the original announcement and that all material assumptions and technical parameters underpinning the estimates in the announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Persons’ findings are presented have not been materially modified from the original market announcement.

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Health & Safety

• COVID-19 prevention practices remained in place at Pickle Crow, which has recorded nil cases to date.

• The Pickle Crow gold Project 12-month rolling average Lost Time Injury Frequency Rate (LTIFR) as of 30 September 2020 remains at zero (0.0). There were no reportable incidents recorded during the quarter.

For and on behalf of the Board.

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

Corporate Directory

Executive Chairman

Mr Ray Shorrocks

Executive Technical Director

Mr Sam Brooks

Non-Executive Directors

Mr Steve Parsons and Mr Michael Naylor

Company Secretary

Mr Nicholas Katris

Media:

Paul Armstrong Read Corporate +61 8 9388 1474

About Auteco Minerals (ASX: AUT)

Auteco Minerals Ltd is an emerging mineral exploration company focused on advancing high- grade gold resources at the Pickle Crow Gold Project which is located in the world-class Uchi sub-province of Ontario, Canada.

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.

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

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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 forwardlooking 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 assurancethat the forward-looking information will prove to be accurate. Forward-looking information involves known and unknown risks, 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.

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APPENDIX 1

Financial analysis of selected items within the Appendix 5B

Appendix reference	5B	ASX description reference	Summary
1.2(d)		Staff costs	Relates to Perth office staff and director costs.
1.2(e)		Administration and corporate	This item refers to costs for and associated with operating
		costs	the Company’s Perth office and includes listing and
			compliance costs (ASIC, ASX and share registry), audit
			fees, insurance, and marketing, office occupancy and
			legal expenses.
2.1(d)		Payments for exploration and	During the quarter, Auteco expenditure related to
		evaluation (capitalised)	ongoing drilling and support costs, geophysics,
			geotechnical, geological staff at the Pickle Crow Gold
			Project.
3.1		Proceeds from issue of equity	In July 2020, Auteco completed a full underwritten share
		securities	placement raising $30.4 million before costs at 13.5 cents
			per share from the issue of 225 million ordinary shares
			(refer ASX 7 July 2020)
6.1		Aggregate amount of	These costs pertain to payments to executive director
		payments to related parties	salaries and superannuation, non-executive director fees
		and their associates	and special exertion fees in connection with the Pickle
			Crow Gold Project.
8.0		Future operating activities	For the upcoming quarter, the Company has forecasted
			expenditure for ongoing drilling programs and
			exploration activities at the Pickle Crow Gold Project, and
			corporate costs.

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APPENDIX 2 – TENEMENTS

Mining tenements held at the end of September 2020 quarter:

Auteco Minerals Ltd

TENEMENT	NO.	STATUS	INTEREST	DETAILS	TENURE HOLDER
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

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Revel Resources (JV Project) Ltd:

Pickle Crow Location: Ontario, Canada

Auteco has entered into a binding term sheet agreement to acquire up to 80% of the Pickle Crow Gold Project from First Mining Ltd. (FF: TSX and FFMGF: OTCQX). For further details refer to ASX announcements on the 28/01/2020 and 17/02/2020.

Tenements ID’s		PA 735		PA 671 (PA 2074)		127041		292411		562676
		PA 736		PA 668 (PA 2075)		147879		292416		562677
PA 90 (PA 2161)		PA 737		PA 666 (PA 2076)		153007		292417		562678
PA 91 (PA 2157)		PA 738		PA 667 (PA 2077)		153012		321683		562679
PA 92 (PA 2158)		PA 739		PA 669 (PA 2078)		153013		322361		562680
PA 93 (PA 2159)		PA 740		PA 2133		154984		323594		562681
PA 94 (PA 2162)		PA 741		PA 2139		154985		344012		562682
PA 95 (PA 2163)		PA 742		PA 2140		161424		344029		562683
PA 96 (PA 2160)		PA 743		PA 2141		170363		344030		562684
PA 2586		PA 744		PA 2185		170936		344031		562685
PA 637		PA 745		PA 69		171607		345328		562690
PA 638		PA 746		PA 70		182438		562622		562765
PA 639		PA 747		PA 185 (PA 2061)		183092		562636		562766
PA 640		PA 748		PA 186 (PA 2062 & PA 2062A)		183093		562648		562767
PA 644		PA 749				196967		562649		562768
				PA 187 (PA2063)
PA 646		PA 750				196984		562650		562769
				PA 189 (PA 2065)
PA 675		PA 751				208244		562651		562770
				PA 202 (PA 2069)
PA 676		PA 755				208316		562652		562771
				PA 188 (PA 2064)
PA 677		PA 756				208385		562653		562772
				PA 201 (PA 2066)
PA 684		PA 757				208406		562654		562774
				PA 199 (PA 2067)
PA 685		PA 758				215596		562655		562776
				PA 200 (PA 2068)
PA 686		PA 759				217812		562656		562777
				PA 63
PA 696		PA 760				218333		562657		562778
				PA 64
PA 697		PA 761				218335		562658		562779
				PA 65
PA 698		PA 762				218470		562659		562781
				PA 66
PA 699		PA 763				218471		562660		102631
				PA 67
PA 700		PA 773				219051		562661		102632
				PA 68
PA 701		PA 774				219052		562662		102636
				102655
PA 702		PA 775				219145		562663		102637
				102720
PA 703		PA 776				219147		562664		102656
				103184
PA 704		PA 777				219167		562665		102688
				117286
PA 705		PA 778				249298		562666		102716
				117314
PA 706		PA 779				265604		562667		102717
				117970
PA 707		PA 780				266182		562668		102773
				118115
PA 725		PA 781				266188		562669		102796
				118121
PA 726		PA 2011				273572		562670		102797
				124523
PA 727		PA 670 (PA 2070)				274303		562672		102827
				125150
PA 728		PA 2071 e (PA 2071 & PA 2072)				274325		562673		102882
				125151
PA 729		PA 665 (PA 2073)		125837		285076		562674		102979
PA 730						285734		562675		103203

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112269		137060		170303		189170		218381		265601
112270		137199		170304		189214		218392		265623
117311		137200		170362		189695		218393		265624
117315		137848		170889		189900		218448		266185
117334		143310		170957		189903		218449		266203
117335		151198		171632		189922		218450		266205
117935		152985		171633		189923		218480		266847
117936		152991		171655		196962		218481		266850
117942		152992		171905		196963		219053		267574
117947		152993		173067		196968		219054		272992
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117998		153009		173138		202396		220349		273017
117999		153037		173544		203622		220350		273618
118002		153039		173853		207336		220351		273619
118032		153040		173854		207590		225800		273620
118094		153068		173875		207603		225801		273642
118095		153615		182415		207626		225802		273643
118227		153617		182433		207649		225804		273644
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124519		155022		183017		207720		226401		275031
124522		157233		183069		208340		226403		275087
125042		157234		183090		208401		227038		275551
125043		169618		183091		208405		227086		276008
125075		169638		183115		208936		227087		285057
125076		169639		183118		208938		227106		285058
125145		169646		188411		209208		227793		285059
125147		169672		188414		209914		227821		285060
125176		169674		188415		209915		227822		285069
125177		169675		188422		210048		238344		285088
125772		169709		188443		217803		238522		285089
125797		169710		188444		217811		247646		285090
125856		169711		188445		218362		247647		285091
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127444		170269		188502		218364		265530		285634
135139		170280		188519		218365		265531		285635
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285708		321669		344681		574691		574785		572255
285709		321673		344683		574688		574786		572252
285732		321699		344745		574689		574784		572253
285759		321700		345282		574686		574783		572250
286396		322281		345347		574687		574763		572251
286415		322284		345348		574791		574764		574684
287100		322303		572705		574685		574761		572078
287122		322304		572706		574789		574762		574682
287631		322387		572703		574790		574759		574683
292388		322388		572704		574787		574760		574680
292389		322949		572700		574788		574757		574681
292410		322950		572702		572688		574758		574678
292412		322951		572699		572689		574755		574679
292431		323613		572701		572693		574756		574676
292453		323614		572697		572687		574753		574677
292454		323615		572698		574779		574754		571591
292455		323616		572695		572686		572248		571592
293007		323620		572696		574776		572249		571589
293008		323640		572692		574777		572246		571590
293009		324716		572694		574774		572247		571587
293032		325337		572690		574775		572244		571588
293035		325338		572691		574772		572245		572222
293058		333761		572721		574773		572228		572223
293547		334628		572722		574770		572243		572220
293548		334629		572719		574771		572263		572221
293675		335092		572720		574769		572264		572218
293710		335442		572717		574778		572261		572219
294406		335443		572718		574751		572262		572216
294432		335446		572715		574752		572226		572217
294433		335468		572716		574749		572227		572085
305805		344008		572713		574750		572224		572215
312407		344010		572714		574781		572225		572083
312408		344013		572711		574782		572232		572084
312492		344014		572712		572242		572233		572081
321608		344580		572709		574780		572230		572082
321614		344581		572710		572240		572231		572079
321616		344582		572707		572241		572260		572080
321617		344583		572708		572238		572229		574663
321618		344584		574767		572239		572258		574664
321619		344633		574768		572236		572259		574661
321622		344637		574765		572237		572256		574662
321636		344655		574766		572234		572257		574659
321667		344659		574690		572235		572254		574660

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571482		574658		71450		571541		571572		572164
571475		574653		571451		571539		571573		572165
571480		571474		572395		571537		571570		572162
571481		574652		572396		571538		571571		572163
571478		571472		572393		571535		571568		572160
571479		571473		572394		571536		571569		572161
571476		571470		572391		572077		571566		572157
571477		571471		572392		572380		571567		572159
574656		571468		572389		572075		571564		572156
574657		571469		572390		572076		571565		572158
571585		574651		572387		572073		574624		572154
571586		571467		572388		572074		574625		572155
571583		574649		572385		572071		574622		572152
571584		574650		572386		572072		574623		572153
574674		571440		572383		571581		574620		574608
572086		571441		572384		571582		574621		574609
574672		571438		572381		571578		574618		574606
574673		571439		572382		571580		574619		574607
574670		571436		572411		571553		574616		574604
574671		571437		572412		571579		574617		574605
574675		571434		572409		571551		574614		574602
574669		571435		572410		571552		574615		574603
574667		574748		572407		571562		574612		574600
574668		571433		572408		571563		574613		574601
574665		574746		572405		571560		574610		574598
574666		574747		572406		571561		574611		574599
574647		574744		572403		571558		574640		572170
574648		574745		572404		571559		574641		572171
574645		574743		572401		571556		574638		572168
574646		574742		572402		571557		574639		572169
574643		571447		572399		571554		574636		571507
574644		571449		572400		571555		574637		571508
571465		571445		572397		574596		574634		571505
574642		571446		572398		574597		574635		571506
571463		571444		571549		574594		574632		571503
571464		571448		571550		574595		574633		571504
571461		571442		571547		574593		574630		571501
571462		571443		571548		574592		574631		571502
571460		571455		571545		571533		574628		571499
571466		571456		571546		571534		574629		571500
571458		571453		571543		571576		574626		571497
571459		571454		571544		571577		574627		571498
574654		571452		571540		571574		572166		571495

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==> picture [128 x 41] intentionally omitted <==

571492		571484		571404		574849		572604		572563
571493		571531		571405		574846		572605		572561
572150		571532		571402		574847		572603		572562
572151		571529		571403		574844		572602
572148		571530		571432		574845		572600
572149		572135		571386		574843		572601
572146		572136		571430		574842		572598
572147		572088		571431		572608		572599
572144		572089		571428		572609		572596
572145		572735		571429		571415		572597
572142		572087		571426		571416		572594
572143		572733		571427		571414		572595
572140		572734		571424		571418		572592
572141		572731		571425		571412		572593
572138		572732		571422		571413		572427
572139		572729		571423		571410		572428
571509		572730		571420		571411		572425
572137		572727		571421		574862		572426
572134		572728		571417		574863		572423
572133		572725		571419		574860		572424
571527		572726		571400		574861		572421
571528		572723		571401		574858		572422
571525		572724		571398		574859		572419
571526		571513		571399		574856		572420
571523		571514		571396		574857		572417
571524		571511		571397		572590		572418
571521		571512		571394		572591		572415
571522		572182		571395		572588		572416
571519		571510		571392		572589		572413
571520		572180		571393		572586		572414
571517		572181		571389		572587		572574
571518		572178		571391		572584		572575
571515		572179		571388		572585		572572
571516		572176		571390		572580		572573
571490		572177		571385		572583		572570
571491		572174		571387		572581		572571
571494		572175		574854		572582		572568
571489		572173		574855		572578		572569
571487		572172		574852		572579		572566
571488		571408		574853		572576		572567
571485		571409		574850		572577		572564
571486		571406		574851		572606		572565
571483		571407		574848		572607		572560

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