FireFly’s Green Bay project leads Canada in spending efficiency for copper

A new economic study and resource update for FireFly Metals’ (ASX, TSX: FFM) Green Bay project in north-central Newfoundland positions it as one of Canada’s top undeveloped copper projects by value and capital efficiency.

The preliminary economic assessment (PEA) gives Green Bay a A$2.2 billion (C$2.1 billion) net present value – discounted at 7% in a base case – as well as an internal rate of return (IRR) of 42% and at initial costs of A$513 million, FireFly reported Tuesday. See a 3-D image of drilling at Green Bay with analysis.

Green Bay could produce 1.8 million tonnes per year over a 32-year life.

Top ranking economics

By capital efficiency, Green Bay leads projects in the country with an after-tax NPV more than four times higher than initial capital costs. That’s ahead of Canadian Copper’s (CSE: CCI) Murray Brook-Caribou project in New Brunswick, whose NPV is almost triple its costs.

Canada-wide, Green Bay ranks third by NPV for undeveloped copper-gold projects, behind Seabridge Gold’s (TSX: SEA; NYSE: SA) KSM in British Columbia in first with C$9.9 billion and Western Copper and Gold’s (TSX, NYSE-AM: WRN) Casino project in Yukon at second.

The study strengthens Green Bay’s potential to become a cornerstone of Newfoundland and Labrador’s mining sector, where no primary copper mines are operating and only one gold mine is in commercial production.

‘World scale’ project

“Once in production, Green Bay has the potential to be one of the biggest copper mines in the world outside those owned by the multi-nationals and diversified mining giants,” FireFly Managing Director Steve Parsons said in a release. “This means FireFly offers investors virtually pure copper exposure via an asset with genuine world-scale in a tier-one location.”

FireFly shares were flat at C$1.87 apiece on Tuesday morning in Toronto, valuing the company at C$1.4 billion. The stock has traded in a 12-month range of C$1.04 to C$2.30.

The PEA assumes a copper price of $5 per lb., a gold price of $3,500 per oz. and a silver price of $44 per ounce.

Green Bay is near the town of Baie Verte, 600 km northwest of St. John’s.

34% more copper

The PEA includes a resource update for Green Bay, which raises contained copper in the measured and indicated categories by 34% to 1.1 million tonnes over the previous estimate from last November. Tonnage rose by 19% to 60.2 million tonnes grading 1.9% copper and 0.5 gram gold per tonne and 4.2 grams silver. Contained gold grew by 66% to 908,000 oz. and contained silver by about 63% to 8.1 million ounces.

Inferred resources declined almost 20% because 69,539 metres worth of underground drill data converted significant amounts of material into the higher categories.

FireFly plans to release a feasibility study for Green Bay in next year’s first quarter, with a final investment decision in the second half of 2027. First concentrate could potentially be produced in mid-2029.

The company also plans to raise A$180 million through equity sales to advance the feasibility study, fund resource growth and other early project works. A$150 million is to be allocated for ASX institutional placement of new shares and the rest on a Canadian bought deal private placement.