Firefly Resources : 30/09/2020 - Annual Report to Shareholders

F I R E F L Y R E S O U R C E S L I M I T E D

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A N N U A L R E P O R T

FOR THE YEAR ENDED 30 JUNE 2020

C ORP O RAT E D I RE CT ORY

Directors			Auditors
Michael Edwards	-	Non-Executive Chairman	Stantons International
Simon Lawson	-	Managing Director and	Level 2,
		Chief Executive Officer	1 Walker Avenue
Geoffrey Jones	-	Non-Executive Director	West Perth, Western Australia 6005
Ashley Pattison	-	Non-Executive Director

Joint Company Secretaries	Bankers
Steven Wood	National Australia Bank Limited
Natalie Teo	Perth West BBC
	Level 14, 100 St Georges Terrace
	Perth, Western Australia 6000

Registered Office and Principal Place of Business	Solicitors
15 McCabe Street,	HWL Ebsworth
North Fremantle, Western Australia 6159	Level 20, 240 St Georges Terrace
	Perth, Western Australia 6000
Telephone: [phone]

Share Registry	Stock Exchange
Automic Pty Ltd	Australian Securities Exchange Limited
Level 2, 267 St Georges Terrace	Level 40, Central Park
Perth, Western Australia 6000	152-158 St Georges Terrace
	Perth, Western Australia 6000
Telephone: [phone]
	ASX Code:	FFR

FIREFLY RESOURCES LIMITED

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Annual Report for the year ended 30 June 2020

Contents	Page
Corporate Directory	Inside cover
Review of Activities	4
Directors' Report	15
Remuneration Report	22
Consolidated Financial Statements	27
Directors' Declaration	55
Independent Auditor's Report	56
Auditor's Independence Letter	60
Shareholder Information	61
Summary of Tenements	63

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R E V I E W OF A CT I V I T I ES

OVERVIEW

Firefly Resources Limited (Firefly or the Company) (previously Marindi Metals Limited) and its subsidiaries (the Group) has an overriding focus on identifying geological opportunity and exploring for gold in Western Australia.

During FY2020, the Group's core focus was on exploration programs at the 100%-owned Forrestania Gold-Lithium Project in Western Australia, where Firefly completed a maiden gold-focused Reverse Circulation (RC) drilling program across three high-priority gold prospects. This initial program comprised 2,244m of RC drilling and successfully tested the Gemcutter, Crossroads and Kit Kat gold prospects. Initial results from the discovery program included 21m @ 3.20g/t gold from 34m, including 3m @ 4.58g/t and 1m @ 33.10g/t.

Follow-up drilling was undertaken at the Gemcutter gold prospect, located on the 100% owned Gem Mining Lease, comprising seven drill holes for a total of 720m of RC drilling. The completion of the follow-up program indicated that the mineralised system for Gemcutter is open in all directors, with highly variable gold grades.

In parallel with these exploration programs, Firefly continued a review of potential strategic project acquisitions, consistent with the Company's focus on expanding its gold portfolio in Western Australia.

As a result of this review, in late June 2020 Firefly executed a binding agreement to acquire a 100% interest in the advanced Yalgoo Gold Project, located 110km west of Mt Magnet in the Murchison region of Western Australia, through the acquisition of 100% of the issued capital of Aurum Minerals Pty Ltd.

The transformational acquisition includes existing gold Resources plus a large, highly prospective tenement holding in a Tier-1 mining district encompassing the historical Yalgoo gold field.

The acquisition will allow Firefly to pursue a two-pronged growth strategy based on:

1. The potential to rapidly establish maiden JORC 2012 compliant Mineral Resources in a world-class mining district, with exceptional "near-mine" exploration upside and development potential within 150km of five operating gold mills; and
2. A regional-scale,multi-faceted exploration and growth strategy across an historical gold-field within a large, highly-prospective, contiguous and under-explored tenement holding.

In light of the advanced nature and strong prospectivity of the Yalgoo Gold Project, this asset will become the core focus of Firefly's ongoing exploration programs.

YALGOO GOLD PROJECT - 100% OWNED

In June 2020, Firefly executed a binding agreement to acquire a 100% interest in the advanced Yalgoo Gold Project, located 110km west of Mt Magnet in the Murchison region of Western Australia, through the acquisition of 100% of the issued capital of Aurum

Minerals Pty Ltd (Aurum).Figure 1. Firefly Resources Limited Projects

The transformational acquisition includes existing gold

Resources plus a large, highly prospective tenement holding in a Tier-1 mining district encompassing the historical Yalgoo gold field (see Figure 2).

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).

1 The Company cautions that the Mineral Resources are 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. Firefly Resources notes that nothing has come to its attention that causes it to question the accuracy or reliability of the former owner's estimate as first announced by Prosperity Resources (ASX:PSP) - ASX release dated 12th May 2004 "Prosperity Doubles Resources to 140,000 ounces at Yalgoo, WA" on the Melville Deposit and also with regards to the Satellite

Deposits, however the Company has not independently validated the former owner's estimates and therefore cannot be regarded as reporting, adopting or endorsing those estimates. Refer ASX Announcement dated 24 June 2020 for further information.

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