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FireFly Metals

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September 16, 2024 at 2:00 PM (MDT)|Broadmoor Hotel & Resort

Darren Cooke

CEO

Darren is a geologist with 26 years’ experience having previously held senior positions in global majors including Barrick Gold, Newmont and Northern Star Resources. He has had extensive gold industry experience in Australia and North America spanning regional and near mine exploration, operational geology, long-term planning and corporate development.

Darren has a strong track record of discovery and delivering Resource growth during his time working at world-class deposits such as the Golden Mile Kalgoorlie (KCGM), Callie (Newmont), Kundana, Kanowna Belle (Northern Star / Barrick) and the Pogo deposit in Alaska (Northern Star).

Darren spent 6 years as part of the Business Development team at Northern Star Resources that completed significant M&A transactions that have seen the company transform from a junior into a global gold company.

This is an automatically generated transcript. Denver Gold Group cannot accept responsibility for mistakes, errors, omissions, or any action taken in reliance thereon. Use of this transcript is governed by Denver Gold Group’s Terms of Use.

Hi, Darren. Please join me here on the stage and the podium is all yours. Thank you very much Wilson. And yeah, look, thanks to the Denver Gold Forum to for the invitation and the opportunity to speak here on on such an amazing project. It is a genuine copper and gold project. And as you'll see from this presentation, we're, we're very excited about the potential scale and and future of what we're dealing with here. So look, our company has two key assets to it. One is the Pickle Coal Gold Pickle Crow Gold Project, which you know, is one of the highest grade undeveloped gold stories in in North America. Current resource on that is 2.8 million tons at, at a stunning grade of 7.2 g per ton. And look, I won't spend a lot of time on that particular project in this presentation. We've just put out a presentation from the previous conference at, at Beaver Creek which does go into Pickle Crow in a lot more detail and we, we are very open with the fact that we are looking for strategic investment options into that project. So, you know, great project. But, you know, for us, we can't do both projects at once. And we've definitely laser focused on delivering on the potential of the Green Bay Copper gold project. It's got a large copper gold resource. It's in a great jurisdiction. And the work that we've been doing will really grow that resource. And as you'll get a sense for the scale, as we go through this particular presentation from a corporate point of view, you know, we're really well set up at this point in time, we've seen rapid share price growth. We're currently sitting around the 97 cent mark. Current market capitalization is, is pretty close to $470 million very well funded to do our exploration activities. We've still got $40.6 million Australian in the bank at the end of the June quarter. And as people will recall, this project has no offtake agreement, no streams, no debt. So it really is a blank canvas to, to expand from got an exceptional register, 55% institutional and 13% board and management. So very tightly held. one of the, the, the key things for us, our largest shareholder, Blackrock, great vote of confidence. They, they came on board during the last raise at 9.9 percent and have been buying on market and they're currently up to 14%. So that's, that's really good. You know, and really good mix of Australian and North American institutions beyond that as well. So, as we've mentioned before, we are compliance listing on the TSX as well. So we'll be dual listed and we have definitely have a footprint in both Australia and Canada, the board and management. The, the team, a lot of people would be familiar with these guys. This is a team of mine builders. our chairman Kevin, who's here today, Steve and Mike have been involved in the Bellevue gold story and I'd have to say it is one of the, the, the better start up stories in the Australian gold industry and these guys know how to do it, they can get capital and we've worked very hard. We've all built mines before. We've also got Jesse Lew on board who's also based in, in Toronto and more recently, Renee Roberts, we welcome her to our board as well and she's extremely accomplished in a lot of Australian boards. You know, a great team, great group of people, a self ex Northern star Barrack and, and Newmont. So the team's done it before. What I'd like to share with you is just a video on Newfoundland. It does have a funky soundtrack, but we, we can't hear it today. So I'll, I'll just talk through some of this. But, you know, we made the decision to pivot into pivot into copper., you know, about a year ago now and I think that the markets reacted very well to that. We did this deal at 37.5 cents, our current share price. It hit a dollar in today yesterday, which is in the space of 11 months is amazing. And, you know, we really do think that there's a huge upside opportunity in there, particularly when we compare our valuations to some of the the the peers that we deal with. you know, yeah, so anyway, just moving on from the video, you know, one of the reasons that we did really wanna look at at pivoting into copper is we saw a very niche opportunity on the A sx. you know, when you look at the assets that are there, I think we're having a few technical difficulties here. But, you know, one of the reasons that we really did want to look at pivoting into copper is there is a real lack of opportunities in the you know, medium scale copper producer. So when you look at the graph of the producers, there's very few people in the range of 50,000 tons of copper above and that's our ambition. So when you actually look at this, you know, from about here onwards, there's very few assets available to investors on the A SX that really, you know, have that sort of scale. They're all owned by majors and mid Caps. So we see a really strong opportunity to be that niche in the junior end of the spectrum for copper and gold investment on the A SX. So when you look at some of the peer comparisons that we have, you know, you can see quite clearly that there's a lot of room to grow in our valuation. Nearly every meeting we walk into in North America we get compared to for an and you can see what sort of market cap they've got. they're obviously at the DFS phase, but, you know, with our resource growth that we've got planned, there's certainly a pathway to significantly grow the amount of copper that we've got in the ground. And you know, the key thing about what we've got here at Green Bay as this is genuinely a copper asset and a gold asset. And it, you know, it, it's copper and gold, it's not a zinc mine pretending to be a copper mine. It is genuinely copper and gold. So we have some great exposure. there now, when we acquired this asset, there was four key areas that we saw that ticked the boxes for us. And you know, we, we paid $65 million for this asset. And it was a very opportunistic purchase, especially compared to some of the other valuations in the M and a space for, for copper. And the first thing that we saw was the base load. It already comes with 40 million tons at 2.1% copper equivalent. So it, it's already come with a large base. There's enough there already to build a mine on. So, you know, that that's a great starting platform. The other thing is is that the previous operators had you know, had sunk a lot of money into the the infrastructure that's there. The replacement cost of that infrastructure is $250 million. So, you know, from the underground to the mill to the water treatment plant, it is genuinely a head start for us and you know, it's money we don't have to spend to get it off the ground. And then obviously, it's the two phases of growth. The first one, the in mine growth. It was pretty clear during our due diligence that this ore body was open and every bit of work that we've done since has confirmed that indeed it was open and it still remains open. And when we look at the verify parts of it, we'll, we'll show you in three dimensions. You know why we're so excited about it. And then the cherry on the cake is the the regional exploration potential because we have consolidated the key parts of the Bay Vert Mineral District and the potential for discovery there is massive. We're impatient people. We, we like to work in overdrive. And the, the key platform that we bought this asset on the basis was that we were gonna put in exploration development to get the rigs in a position to drill the ore body out. So we've already done 1300 m of development for the exploration platforms. We've got another 1500 m planned. We've got four rigs on site. We've already done 40,000 m of underground diamond drilling. There's another 60,000 m to go. We've got two resource updates planned for the next six months. One will be in October, so that should be a reasonable size upgrade. And we've started drilling on surface as well on the regional exploration campaign. We're investing a lot in geophysics because this part of the world hasn't seen a lot of historical investment in modern geophysical techniques and we know that that can be a game changer. And also in the background, we're working on the engineering studies. So we've got NTE on board, we've got you know, Asen looking at the processing options, night, Pol and Stantec, looking at the tails and the environmental options. So we're advancing things very rapidly in the background. So, Newfoundland itself just in terms of the jurisdiction. I would say you cannot get a better jurisdiction in, in North America. Great support from every level from the government, from the premier right down to the mines, minister to the community, the guys on the ground guys and the girls on the ground. So, you know, we have been very welcome there,, and embraced by the community who all want to see this work. You know, when you look at what we've got,, in the island really easy to access., it's only,, you know, less than two hours drive from Deer Lake, which is a major regional airport,, sealed road all the way and look, this is the,, the land package that we put together and we're, we're really comfortable that we've got a plethora of exploration targets which will give us a huge opportunity to grow in the future. We have the small mill there on site. We're not turning that on at the moment., it's only 500,000 tons per annum., and one of the reasons we think that the previous operators struggled was just the scale. You got this bulk ore body and they're trying to mine it with a teaspoon and put it through a tiny mill. And, you know, to give you an example and analogy of that, we've got a current resource of 40 million tons of copper and, you know, 500,000 ton per annum mill. So even without adding one extra ton of copper, it'll cost, it'll take 80 years to process it through the current infrastructure. And we ain't gonna be around in 80 years. So we want to really maximize the ability to, to fast track the production. The really key takeaway from the previous work is that the, the concentrate that gets produced is super high quality. There's very few deleterious elements in it and 96% recovery. So we're currently fighting off off taker at the moment to, to really who are battling to try and get this con and a few of my colleagues will be at the LME week in London dealing with that. So, you know, it's a pretty, pretty exciting time for us. And, but, you know, we want to build a new mill on site, you know, cos we see this as a much larger scale opportunity. The previous operators were also sending the concentrate to a port that was 100 and 40 kilometers away by road and that that's expensive, time consuming and painful. So just recently, we've already done a deal with a local mining company called Maritime and and we're working very closely with a local aggregate company to get access to a port that's only six kilometers away from the mine. You know, that really enhances the economics, get 50,000 ton Panamax ships in there year round access, you know, so that's a a great bonus to have that infrastructure so close by and already in place, we also have the added benefit of having really good quality hydropower available and, you know, cheap, you know, seven cents a kilowatt hour, which is amazing. The infrastructure itself. I mentioned that, you know, this is money we don't have to spend. You can see, we've got co sheds, we've got water treatment plants, we've got offices, we've got all the basis to, to really kick this thing off as quickly as possible. And, but the the real key thing that we're looking at here is the ore body, right? So all of these red dots on the the diagram here are copper intersections above half a percent. Copper key takeaway from this slide is there's two really distinct styles of mineralization. The upper zone is a massive sulfide zone and that's very rich and in copper and gold. And when you actually where these long sections don't do it justice is when you spin it around, you see multiple channels available for us to to mine. And that's been the focus of the historical mining. These channels are up to 100 m wide. You know, the strike extend is well over a kilometer and the tree thickness is anywhere between five and and 25 m. And then sitting beneath that, you have this bulk stockwork copper zone which is nearly pure copper with anywhere between point 2.5 a gram gold in it. you know, really broad zone. So when you actually look at it, you know, a across it, you know, this thing can be up to 300 m wide and 100 and 50 m vertical. So it is definitely a big bulk zone. And, you know, people get worried by that dip the way we'd be mining. This is using transverse long haul scoping. So you can actually come in to the side and really, you know, it, it artificially steepens up the dip. So mining, this isn't a, a major problem for us. Just in terms of one of the reasons that we were really excited about the potential discovery in terms of knowing that the ore body maybe open the one surface exploration hole that they drilled in 2017 had 100 and 2 m at 1.7% copper in it. And there's absolutely no drill holes beyond that in the ore body. So we know that it is genuinely open. When you look at what the old timers had mined in the previous operators, they'd really focused on that high grade V MS portion. The there's a shaft already in place down to 630 m. The decline access can get all the way down to 950 m below surface. And we're only they've only just started to access the bulk area of the ore body when they finished up. So, you know, most of the resource at the moment is in that bulk zone. But we do know that those high grade zones continue and I'll show you that moving forward. These are some of the grades that you can get in that high grade copper zone and you can see they're quite spectacular., that green is the exploration development that we've already done until the start of July. So we can get it in a position to drill properly. But you know, like these grades are spectacular. It's almost like having a derus in in the upper part of that V MS zone. But you know, the additional material that we have is that that bulk material beneath it, that that's amenable to large scale mining in terms of the type of grades and widths you see in that you can see on this image here, you've got, you know, quite substantial thicknesses up to 55 m thick in one particular zone that's running nearly 2% copper and very much amenable to to the bulk mining. So the the development that we have gives us a really strong head start, you can see the the ground conditions are really good that image in the bottom left hand side, you know, that was from 800 m below surface. It's a 15 m wide span that's been open for over two years. And you know, ground conditions were amazing there and you can see from the development cuts as well that the ground conditions are good. And look, this is the ultimate goal in terms of our exploration development to follow this ore body down, plunge, build it up, make sure that we right size the infrastructure and really, really turn this into a a world class copper gold ore body. If we had to use just one diagram to show the the, the game plan. It's quite simple. Our current resource finishes here. And this is what 100,000 m drill program looks like. This drilling here that we've already completed in our exploration releases. This is the the 102 m at 1.7 in the historical drilling and this is the development plan. So we've got four rigs on site, one here, one here, one there and another one there. And basically what we're doing at the moment is drilling out in front of that exploration hole from there. And this will inform the resource update that we've got coming out most likely in, in mid October at this point in time. So we're expecting to add about 500 m of strike to the ore body. We haven't got the essays back for those holes yet. You know, so we're expecting them back any time soon. So we'll put that news flow out As soon as we can. we're also ducking over to hit the high grade V MS load. So we're gonna have two V MS loads in this latest update, but there's one that we can't get. So the development incorporates this sort of hole that we've, we've drilled from underground hole 30 you can get a really good visualization of what that massive sulfide copper looks like and some of the grades, but that'll come in a resource update earlier in the year in 2025. These are just some of the hits that will outside of the resource that will inform the current resource, all of these have already been put out and you can see that there is absolutely fantastic grade and, you know, really excited about this resource update coming out in, in mid October. So, you know, you get the idea, we put out an update yesterday on, on some of our geophysical results and this is where it's super exciting. We drilled a hole out in front of the exploration hole, this hole 42 you can see there. We haven't got the SAS back for that yet, but we ran the down hole em probe down it. And what's really exciting is that we know that both the high grade V MS and that bulk zone continue well beyond the scope of our drilling. So you know, there's 460 m between the end of the resource and that exploration hole. And now what the Geophysical probing is doing is telling us that there's strong conductors out another 500 m. So this ore body has not ended. And you know, there's a huge amount of potential to continue to grow the resource. That's the in mine. And I won't get much time to talk about the regional exploration. But needless to say we did a deal in March to pick up the gold hunter ground and there is a plethora of, of surface exploration targets. And there's no reason why we can't make more discoveries. You know, that, that that ground. you know, has three historic mines that were mined in the sixties and seventies had very little work done on it. And, you know, we're running modern geophysics over the top and it's already generating exceptional targets. So, you know, we're very excited about the potential icing on the cake to discover another oil body nearby in the district. So timelines and key catalysts for us obviously got this resource update coming out in in most likely around October, mid October, another one coming out in March, April. And then one towards the end of the year, we've got the study work going on in the background and we're looking at PFS by the middle of next year and then ad FS by the end of 2025. So we're working very rapidly to accelerate this project back towards production at a much larger scale and back to where we believe that you know that your body can support it. So look in summary, great opportunity. The Green Bay Copper gold project is truly world class. You know, you don't get many opportunities to get copper mines that are nearly ready to go. You know, they're very high grade compared to some of the other underground operations and compared to a porphyry or going underground on one of those things, the amount of Capex required to get this off the ground is very, very low and near term. Alright. And then we've got the people pro gold asset as well that will create a lot of value for our shareholders out of that. So, yeah, thank you very much. Appreciate the opportunity to speak here and happy to take any questions. Thank you, Darren. I don't see any questions in the audience and we're bumping right up against the next presentation. So I think what I'll, I'll thank you for your presentation today and, and and everybody please join me in welcoming and, and.


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