FireFly Metals Ltd (ASX:FFM) is going all-in on the Green Bay Copper-Gold Project area in Canada, signing a binding agreement to purchase an adjacent project called Tilt Cove, which will increase the company’s landholding by 115 square kilometres ahead of a major regional exploration program.
With a resource of 59 million tonnes at 2% copper equivalent already established at Green Bay, FireFly intends to move quickly to define Tilt Cove’s prospectivity – the project holds a historical mine and potential for volcanogenic massive sulphide (VMS) deposits similar to Green Bay’s Ming mine.
Golden opportunity to secure large parcel
“This is a golden opportunity to secure a large parcel of compelling exploration tenure right next to our Green Bay project,” FireFly Metals managing director Steve Parsons said.
“Tilt Cove’s mining is a compelling geological setting, which offers another potential avenue for substantial resource growth.
“We will move quickly to apply our exploration skills and local knowledge at Tilt Cove as part of our overall strategy to keep growing the resource at Green Bay.”
Tilt Cove mine historically produced 170,000 tonnes of copper and 50,000 tonnes of gold from the late 19th century.
The mine is thought to sit along the same geological horizon as the historical Nugget Pond mine, which produced 166,000 ounces of gold at 10.6 g/t gold from 1997 to 2001.
FireFly will pay C$3.07 million in upfront consideration, consisting of C$2.5 million in Firefly shares and C$570,000 in cash, plus a non-guaranteed milestone payment of C$1 million should FFM produce a mineral resource of at least 500,000 ounces of gold.
The company says this acquisition plays into its long-term strategy of adding shareholder value through discovery, a strategy FFM is well-funded to pursue with A$88 million in the bank at the end of October 2024.