News: FFR Firefly Resources Seeks Trading Halt Pending Release Of Further Assay Results, page-10

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Firefly says these new drilling results increase its confidence in the Melville deposit and pave the way for a maiden JORC resource.“This drilling gives us confidence that the historic geological interpretation and mineral resource estimate at Melville was done in a reasonably systematic and robust manner,” managing director Simon Lawson said.

Importantly, these results sit outside the historic Melville deposit resource, which Firefly is currently upgrading to JORC status – a ‘must-have’ for ASX-listed explorers and mine developers.Firefly says these new drilling results increase its confidence in the Melville deposit and pave the way for a maiden JORC resource.“This drilling gives us confidence that the historic geological interpretation and mineral resource estimate at Melville was done in a reasonably systematic and robust manner,” managing director Simon Lawson said.“Growing the existing shallow un-mined mineralisation at the Melville gold deposit is a priority focus for Firefly and we are continuing to drill there with the aim of defining a JORC 2012 resource/reserve foundation for the Yalgoo gold project.“At the same time, our very first drill program has already defined a new high-grade mineralised position outside the historical resource envelope – reflecting the exciting growth potential and upside at Melville, in particular the potential for very high-grade quartz vein systems throughout the area.”The first 10 drill-holes demonstrate the potential for a mixture of large-scale, high tonnage banded iron formation (BIF) and porphyry-hosted gold mineralisation, as well as high-grade quartz-hosted gold mineralisation at the Melville gold deposit.“I think it’s really important for investors to understand that this project isn’t a one-hit wonder,” Lawson told *.“Getting bonanza grade results of up over 1,400 grams per tonne is pretty extraordinary for our maiden drill program – and it’s a fantastic outcome.“But it’s the thick zones of mineralisation grading 1.5-2.0 grams per tonne that will really underpin the economics of an open pit mining operation. The fact that we have both styles of mineralisation is really exciting.“The next phase of drilling gets underway this week and the plan is essentially threefold: to drill further around the high-grade zone we hit in our initial drilling; to continue systematically fleshing out the Melville resource; and to start to test along the prospective trend to the north of Melville for new discoveries.”