FireFly Metals high-grade drilling points to further Green Bay growth

FireFly Metals Ltd (ASX:FFM, TSX:FFM, OTC:FFMFF) earlier this week reported further high-grade drilling from its Green Bay Copper-Gold Project in Newfoundland, with managing director Steve Parsons saying the latest results showed the mineralised system continuing both laterally and at depth.

Parsons said the company remained focused on a combination of growth drilling and infill work, with several of the latest high-grade intersections sitting outside the August resource.

He highlighted results including around 16 metres at nearly 10% copper and seven metres at around 10% copper, describing the intersections as “very, very high grade”.

Parsons said the results were expected to contribute to another increase in the resource, with an update targeted for the first quarter of next year, around March.

“The key thing is every time we step out, we grow the resource,” Parsons said.

One potential catalyst for the project is the lateral position of the latest high-grade mineralisation. Parsons said that because the growth was lateral rather than simply representing deeper extensions, the material could potentially be incorporated into the earlier years of a future mine plan.

He said that could result in more high-grade material being processed during the first five, seven or 10 years of the operation and could consequently support greater copper and gold output.

Drilling activity remains a key near-term catalyst. Parsons said six drill rigs were turning underground, with work split between resource growth and infill drilling ahead of reserve conversion for the feasibility study.

He said FireFly Metals had around $350 million in cash following its recent fundraising, providing the company with a strong funding position while drilling continues.

Regional exploration could provide an additional source of news flow. Parsons said three rigs were operating regionally and pointed to Mount Joy, where drilling had returned 25 metres at 2.5% close to surface on what he described as a new greenfields target.

He said investors could expect further results from lateral high-grade drilling, infill work and regional exploration, while the feasibility study was expected in the first quarter of next year.

Together with the planned resource update, these workstreams represent the main upcoming catalysts as FireFly Metals continues to advance Green Bay.

Interview highlights

FireFly Metals is continuing both growth and infill drilling at the Green Bay Copper-Gold Project.
Parsons said the project’s very high-grade zone is continuing both at depth and laterally.
Recent high-grade intersections sit outside the existing August resource and are expected to contribute to resource growth.
A resource update is expected in the first quarter of next year, around March.
Parsons highlighted results of around 16 metres at nearly 10% copper and seven metres at around 10% copper.
Lateral growth could allow high-grade material to enter the earlier years of the mine plan rather than relying only on deeper extensions.
Parsons said this could support higher copper and gold output during the earlier years of the operation.
FireFly Metals has six underground drill rigs operating across growth and infill programs.
Infill drilling is supporting reserve conversion work for the feasibility study.
The company has around $350 million in cash following its recent capital raising.
Three drill rigs are also operating on regional exploration targets.
Mount Joy is among the regional targets, with Parsons highlighting a 25-metre intersection at 2.5% close to surface.
Further regional discovery results and the feasibility study are key upcoming milestones.

Proactive: FireFly Metals Ltd (ASX:FFM, TSX:FFM, OTC:FFMFF) is an emerging copper-gold company focused on growing the high-grade Green Bay Copper-Gold Project in Newfoundland, Canada. Joining me to talk about today’s drilling results is Managing Director Steve Parsons. Steve, welcome back.

Steve Parsons: Thanks, Lauren. Nice to be here.

Proactive: First up, Steve, can you take us through the key highlights from today’s announcement?

Steve Parsons: Yeah. So we’ve carried on drilling, as we always do, and we’re stepping out with growth drilling at our mine, so growing the resource. And we’re also infilling as well, with the latest results showing that the high-grade, the really high-grade zone, is continuing not only at depth but also laterally as well.

Proactive: Several of these intersections sit outside the August resource and closer to surface. Why is this significant for the company?

Steve Parsons: Yeah. Well, I mean, the key thing is every time we step out, we grow the resource. So you’ll be expecting to see a resource update coming out in the first quarter of next year, so around March next year.

And the drill results, such as the 16 metres at nearly 10% copper and seven metres at 10% copper, and the likes today that you saw, are very, very high grade.

These are all outside of the resource, so we expect these to all grow the resource, and you’ll see the high-grade resource growing from there.

Proactive: And how can that flow through to the feasibility study?

Steve Parsons: Great question. Well, because these are lateral growth, so not depth extensions, we’ll be expecting to see this really high-grade material coming into the earlier years of the mine life.

And when I say years of the mine life, because we’ve already got a 30-year mine life, I’d be expecting to see the first five, seven or 10 years of really high-grade material going through there, which means that hopefully what you’ll see is a flow-on with more copper and gold coming out as well.

Proactive: And lastly, what are the key milestones investors should look out for over the coming months? You did mention March next year, but anything before that that they should keep their eye out for?

Steve Parsons: Well, plenty going on at FireFly, as always. We’ve raised that money recently, so $350 million cash in the bank, sitting there at the moment, with six drill rigs turning underground.

So watch this space. You’ll expect to see more of that lateral high-grade growth, so growing that 25 million tonnes at 4.3%, and remembering when we bought the project it was only 2 million tonnes at 4.3%.

So watch that growing. Expect results out from those shortly. Also, infill results getting ready for reserve conversion for the feasibility study.

Three drill rigs are turning regionally at the moment, and we put out our regional target at Mount Joy with 25 metres at 2.5%, pretty much at surface on a brand-new greenfields target.

Watch this space. Hopefully we’ll have a few more regional, district-scale discovery results coming in shortly. And, of course, the feasibility study in Q1 next year.

Proactive: Steve, thanks for the update.

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