Firefly Metals Ltd (TSE: FFM) (OTCMKTS: MNXMF) (ASX: FFM) shares surged Wednesday on the back of drill results showcasing the expansion potential of the company’s flagship mining operation in Newfoundland.
Significant copper and gold mineralization was intercepted over 200 metres away from the Green Bay project’s currently defined mineral resource.
Most notably, FireFly pulled 6.8 per cent copper equivalent (CuEq) over 12.4 metres, consisting of 3.6 per cent Cu and 3.5 grams per tonne gold. Also, 5.1 per cent CuEq over 25.8 metres, containing 4.6 per cent Cu and 0.5 g/t Au, in another one of the holes.
These results have prompted FireFly to get more equipment on-site and increase the scope of its ongoing drill campaign.
“We are about to add a seventh rig because we have so many opportunities to pursue,” Managing Director Steve Parsons said in a release from FireFly. “There are very few projects which could justify such an aggressive drilling campaign but we have more than enough avenues of growth to warrant this.”
This graph shows how the latest drill results were intercepted outside of the resource boundary. Credit: FireFly Metals
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Updated estimate coming by year-end
Delineating mineralization outside of the currently recognized mineral resource will enable the mining company to provide an updated mineral resource estimate later this year. As of the end of October, Green Bay was estimated to hold 24.4 million tonnes of measured and indicated CuEq at an average grade of 1.9 per cent.
In November, FireFly expanded the Green Bay project by 115 square kilometres through the acquisition of the neighbouring Tilt Cove project from Signal Gold. It is comprised of the Nugget Pond Mine, the Betts Cove Mine and the Tilt Cove Mine.
The price of copper has declined by about 10 per cent over the past year, but gold has been skyrocketing. Many analysts expect this trend to continue.
The high spot price of the yellow metal has been providing incentive for companies with development stage assets in the province like FireFly and Calibre Mining Corp (TSE: CXB) (OTCMKTS: CXBMF) (FRA: WCLA). Calibre’s Valentine Gold Mine in Central Newfoundland will start producing approximately 200,000 gold ounces per annum for 12 years in Q3.
FireFly is well-funded for its ongoing activities with a cash balance of approximately C$60.8 million, as of the end of March.
In October, Canaccord Genuity Group Inc (TSE: CF) (OTCMKTS: CCORF) (FRA: C6U) analyst Tim McCormack predicted that production would commence at Green Bay in the third quarter of 2028. He says it will produce about 46,000 tonnes of copper and 22,000 ounces of gold annually over 15 years.
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