FireFly Metals Ltd has completed a Preliminary Economic Assessment for the Green Bay Copper-Gold Project in Newfoundland, Canada, delivering an after-tax net present value of approximately A$2.2 billion and an internal rate of return of 41% for its 1.8 million tonnes per annum base case.

The base case study outlines an initial 32-year mine life requiring A$513 million in initial capital, net of refundable Canadian tax credits. The 1.8Mtpa scenario targets average annual production of 50,000 tonnes of copper equivalent metal over a 14-year steady-state period, peaking at 60,000 tonnes annually, with post-tax free cash flow estimated at approximately A$290 million per year. A larger alternative assessing a 4.6 million tonnes per annum operation delivered an after-tax NPV of approximately A$3.0 billion and an internal rate of return of 39% over an initial 22-year mine life, with average annual production of approximately 90,000 tonnes of copper equivalent.

FireFly is in a strong financial position comprising existing cash and liquid investments of A$183 million, anticipated equity raise proceeds of up to A$190 million including a A$180 million placement and a A$10 million share purchase plan, and an indicative debt carrying capacity in excess of US$350 million. The project benefits from more than A$250 million of existing site infrastructure, including over 20 kilometres of accessible underground development.

The economic study is underpinned by a revised independent Mineral Resource Estimate that increases the total resource to 60.2 million tonnes at 2.43% copper equivalent in the measured and indicated categories, alongside 23.5 million tonnes at 2.51% copper equivalent in inferred resources. The updated estimate for the Ming Deposit expands the measured and indicated category to 57.3 million tonnes at 2.44% copper equivalent, reflecting a 21% tonnage increase alongside a 22% increase in copper equivalent grade.

“The findings of the economic study prove that Green Bay is one of the best undeveloped copper projects in the world based on a range of key metrics, ranging from scale and production profile through to financial returns and growth.

“The base case of 50,000t a year generates strong returns and we have a clear pathway to double that. And that is before allowing for the growth we aim to unlock through our ongoing drilling programs in the high-grade areas of the mine and the highly prospective regional exploration program now cranking up.”

— Steve Parsons, Managing Director

Building on these results, FireFly has commenced work to rapidly progress a Feasibility Study, which is expected to be published in Q1 2027 to support a Final Investment Decision and the commencement of construction in the first half of 2027, with first concentrate production anticipated in mid-2029.

Read the full announcement: Economic study demonstrates scale, grade, long life, growth potential and robust financial returns