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FireFly’s Green Bay copper project posts 42% IRR in new PEA
The preliminary economic assessment values the project at A$2.2 billion net present value at a 7% discount rate and estimates initial costs of A$513 million.
FireFly Metals says its Green Bay copper project in north-central Newfoundland is emerging as one of Canada’s most capital efficient undeveloped copper plays after releasing an updated preliminary economic assessment.
The PEA assigns Green Bay an A$2.2 billion net present value, discounted at 7% in the base case, and an internal rate of return of 42%, with initial costs set at A$513 million. FireFly also says an after-tax NPV that is more than four times initial capital costs places the project ahead of other Canadian undeveloped copper efforts by capital efficiency.
FireFly positioned Green Bay as potentially a cornerstone of Newfoundland and Labrador’s mining sector, noting the province has no primary copper mines operating and only one gold mine in commercial production. FireFly Managing Director Steve Parsons said the project, once in production, could become a world-scale copper mine outside those run by multinational and diversified miners.
The company’s resource update raised contained copper in the measured and indicated categories by 34% to 1.1 million tonnes, while tonnage increased 19% to 60.2 million tonnes grading 1.9% copper and 0.5 gram gold per tonne, with 4.2 grams silver. Contained gold rose 66% to 908,000 ounces and contained silver increased about 63% to 8.1 million ounces, while inferred resources declined nearly 20% after underground drill data moved material into higher categories.
Latest closeGold $4,432.00 ▲1.6%|Silver $64.83 ▼0.1%|Copper $6.606 ▲0.2%