Firefox Gold's Lammas Zone Holds Up: 200-Metre Step-Out Returns 16.6 m at 5.8 g/t Gold at Mustajärvi

## The insight

Firefox Gold's newest discovery at Mustajärvi in Lapland, Finland has just passed its first real stress test. A hole drilled 200 metres from the Lammas Zone discovery hole returned 16.6 metres of 5.8 grams per tonne gold, with one metre running above 51 g/t. Chairman and co-founder Patrick Highsmith reads that as confirmation the structure carries similar grade and thickness over distance, rather than being one lucky hole.

## What the drilling returned

The Lammas Zone was announced roughly a month before this 16 October 2026 KE Report company update with Highsmith, who is Firefox Gold's chairman and co-founder (TSX-V: FFOX, OTCQB: FFOXF, FSE: FIY). The headline discovery hole, Hole 32, returned 21 metres at 4.13 g/t, and Highsmith put the intercept at roughly 1,000 gram-metres of gold — grade multiplied by thickness, the usual way drill results are compared.

Two follow-up holes, reported 14 October, finished the first round of testing:

- **Hole 35** — the headline step-out, 200 metres northeast on trend. It returned 16.6 metres at 5.8 g/t, with a one-metre interval above 51 g/t near the top. Highsmith says the lower- and medium-grade material below that "really hangs together" across the full 16.6-metre width. - **Hole 33** — drilled to the south, into a bend in the structure. It hit 5 metres at about 1 g/t. Highsmith frames that as useful rather than disappointing: it confirms a system is present, and it suggests that drilling further northwest, more directly in line with Holes 32 and 35, may find the same grade and thickness again.

All three holes at Lammas have hit gold. Highsmith also noted Hole 34 is missing from the published sequence; with the company turning out a hole roughly every two days and now up to Hole 56 or 58, that hole simply went out of order on its way to the lab.

## The geological argument

Highsmith describes Lammas as part of an "orogenic" gold system — the structural plumbing that carries gold, in this case a shear zone, where rock is ground up and sheared repeatedly over millions of years. The structure was first identified about two years ago through detailed magnetics and electromagnetics, plus till sampling, where the team digs through glacial overburden and tests the base of the till for gold. That combination flagged Lammas before a single hole was drilled there.

Three points underpin the scale argument:

- **Two shear zones, not one.** Highsmith says the company has now established "at least two shear zones, each with multi-kilometre strike length," both carrying high grade and significant thickness. He describes parallel and offset structures roughly a kilometre apart as the beginnings of a camp-scale system. - **Gold looks shallower to the northeast.** Mineralisation in Hole 32 sat at about 114 metres depth; in Hole 35 it starts at 72 metres. Highsmith points to the base-of-till gold anomalies to the northeast as a possible marker of the zone rising toward surface, the pattern that produced a 7-metre trench intercept of 59 g/t just north of the highway at East Zone. - **Room to keep drilling.** These were 200-metre first-pass holes on near-surface mineralisation. Highsmith notes orogenic systems can go deep, and that the structure is open to the northeast, southwest and southeast as it deepens.

East Zone remains the company's best result on grade times thickness, on a hole of 14 metres at 29 g/t. Lammas, Highsmith says, is starting to look similar, with 15-metre intercepts. The team also designated Lammas a "zone" rather than a "target" — company shorthand for having hit economic grade and width.

The land position supports the drilling. South of Lammas sits the Woma reservation, where the company holds the exclusive right to apply for full exploration permits. Highsmith says that opens up more than 2 km of strike across the company's tenements and reservations, with the structure crossing beneath the highway to the north.

## What comes next

The drill is back at Lammas and about eight more holes are planned along the trend in both directions. Beyond that, the news flow is unusually wide for a company this size:

- **Triangle target** — drilled for the first time ever, with results due within about a month. - **Gabbro target** — a new hole after very little work over the past several years; Highsmith hopes it moves from target to zone. - **Northeast Zone** — substantial drilling undercutting Hole 30, which Highsmith recalled at 7 metres of 11 g/t. - **Sarvi property** — about 20 km east, next to the Ikari Gold Project, where roughly 11 more holes have been drilled and results are expected over the next several weeks.

The lab is clearing its backlog, and Highsmith expects rapid-fire weekly to no-later-than-10-day news releases through at least November.

## Execution, valuation and the balance sheet

On operations, Firefox Gold has not paused drilling since last August apart from Finland's seasonal break in July, has passed 16,000 metres of continuous drilling, and is running 2,000–3,000 metres a month. Highsmith says a second rig returns for the winter, and that productivity measured as assays per geologist and drill holes per geologist is up roughly an order of magnitude on prior years. He points to drilling costs in Finland as "extraordinarily attractive."

The share price is the sore point. The stock was flat on the day of the Lammas news while much of the sector fell 4–6%, and it has since retraced to close to its pre-discovery level. Highsmith attributes that to the absence of trading volume — roughly 50 million shares outstanding, many of which the company says it holds itself and which therefore do not trade — and argues that 20–30% swings in market value over a few weeks "clearly cannot" pin down what a junior explorer is worth. His answer to the market is to keep producing results, and to point at the gold price, which he describes as very strong for producers even around 4,100, creating cash flow and deal activity across the sector.

On capital, the company raised $7 million in June and has run two rigs since. Highsmith says more than 80% of what they raise goes into the ground, that they are not raising money right now, and that any future raise would target "accretive prices and accretive terms," with no guarantee of success. The last two financings were each roughly a 50% step up — about $40 the year before and $60 this year — with the most recent done at 60 cents per share. The shares have since moved back above 80 cents.

## Caveats

This is a management interview in a company-update format, so the outlook is the company's own. The video carries an educational-purpose disclaimer noting that guests and hosts may own shares in companies mentioned — and this guest is Firefox Gold's chairman and co-founder. Grades and intercept widths are as stated in the interview, and the video presents no resource estimate or economic study for Lammas.