Yalgoo Gold Project

The 100% owned Yalgoo Gold Project is located in a Tier-1 mining district, between Ramelius Resources’ (ASX: RMS) 6Moz Mt Magnet gold mine and Silver Lake Resources’ (ASX: SLR) Deflector copper-gold mine (2.2Mt @ 0.6% Cu + 0.8Moz @ 11.4g/t Au), 110km west of Mt Magnet in the Murchison region of Western Australia (Figure 1).

The Yalgoo Gold Project includes the advanced Melville gold deposit, which hosts a JORC 2004 Mineral Resource of 2.75Mt grading 1.57g/t Au for 140,000 ounces of contained gold (0.8g/t cut-off)1 (Melville Deposit*). Mineralisation within the Melville Deposit is hosted within a completely unmined steeply-dipping “stacked-lode” system, with both laterite at surface and broad, shallow supergene-enriched zones supporting its amenability to potential open pit mining.

During technical review of the project, Firefly has defined a 1km-wide north-south 28km-long shear zone corridor in which the majority of the existing gold occurrences at the Yalgoo Gold Project are situated. The extent of the corridor is most evident where the gold occurrences are overlaid on the 1st vertical derivative (1VD) magnetics geophysical images, highlighting the underlying stratigraphy due to the excellent contrast in magnetic BIF horizons to less magnetic mafic packages (Figure 2).

The advanced gold resources, extensive ground coverage and presence of existing nearby infrastructure offers Firefly significant flexibility and a range of commercial opportunities with gold prices at near record levels.

In addition to the Melville Project tenements, the acquisition also included the un-mined Enchanted Gold Prospect, located 100km south of Melville (see Figure 1).

Enchanted comprises a 33km2 tenement over the same highly-prospective Yalgoo-Singleton greenstone belt geology that hosts the nearby 400koz Rothsay Gold Project. Rothsay (under development) was acquired by Silver Lake Resources (ASX: SLR) in December 2019 from Egan Street Resources for $100 million and sits just 2.5km from the shallow Enchanted Gold Project. Firefly considers the Enchanted Gold Project to be a potential early-stage analogue to the Rothsay deposit due to similarities in lithological setting, mineralisation style and geometry and requires further drill testing.

Firefly successfully acquired a strategic tenement package containing additional untested historical high-grade gold mines in the Yalgoo goldfield on 11 August 2020 (Holland Acquisition) (Figure 3). In addition to the strategically located tenements, the Holland Acquisition includes a significant amount of mining and processing equipment and infrastructure, including a fully-operational 25-30tph gold process plant “washplant”, a Caterpillar 950F front-end loader and a Mercedes Benz dump-truck, production water-bore, water storage and pumping equipment, several generators, a covered workshop and sea-containers and a full “off-grid” 3-person accommodation facility.

* The Company cautions that the Melville Deposit is not reported in accordance with the JORC Code 2012. A Competent Person has not yet done sufficient work to classify the estimates of Mineral Resources in accordance with the JORC Code 2012.