FireFly has lit up the ASX with high-grade copper hits. Pic: Getty Images
Resources Top 5: FireFly lights up ASX as Canadian copper takes flight
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- FireFly soars on high-grade copper hits at Green Bay
- Somerset catches the eye with its own Canadian copper acquisition
- Permitting win for Vic mineral sands player VHM
Your standout small cap resources stocks on Tuesday, December 10, 2024.
FIREFLY METALS (ASX:FFM)
$650-million-capped FireFly Metals is the toast of the ASX today, claiming a best-ever drill hit from its Green Bay copper and gold project in Newfoundland, Canada.
A 13% lift on Tuesday morning came off the back of a ripper strike of 86.3m at 3.7% copper equivalent, which the explorer reckons is true thickness, with one of the high-grade portions including 27.6m at 5.3% CuEq.
While equivalent grades can be prone to manipulation, the raw copper grade of 3.05% is turning heads for hole MUG24-079.
Alongside an intercept of 76.3m at 2.9% CuEq (2.4% Cu and 0.5g/t Au), the underground drill holes come in after 49,500m of a 130,000m drill drive to expand and infill the resource at the main Ming deposit.
It contains the bulk of the near 60Mt resource at Green Bay, which in turn boasts 1.2Mt CuEq (1Mt of it copper metal) at 2% CuEq.
“It could be a big step change and this project could be something much bigger than we thought,” FFM MD Steve Parsons told Stockhead.
“What we’re trying to get across to people at the moment is the scale looks like it’s growing substantially as we drill more holes.
“We want to make sure the drilling between now and August-September next year gives us the path and runway to make sure we’re scaling things for the right size of operation.”
The next resource upgrade is likely coming in the second half of 2025, with four rigs working on the underground drill out and drilling of regional targets 5-10km from Ming due in Q1 2025.
As the drilling progresses, FFM is also working through processing options, with a 500,000tpa concentrator 30km away that previously processed Green Bay’s ore increasingly looking unsuited to the task.
As the resource grows, Parsons says the company will be looking at larger scale options closer to Ming where there is access to cheap hydropower.
SOMERSET MINERALS (ASX:SMM)
Diving further into the Canadian copper scene, Somerset ran higher today after announcing a conditional agreement to acquire the Coppermine project, the $2.7 million minnow settling in next to $32m White Cliff Minerals (ASX:WCN), $1.7 billion Ivanhoe Electric and $35m-capped American West Metals (ASX:AW1) in the Nunavut region.
Coppermine contains 1208km2 of tenements across the southern end of the Coppermine district, with a bevy of high-grade rock chips to follow up including one grading some 44.13% copper and 263g/t silver at the Lloyd prospect.
The target is one of five in the 15km long Laphroaig district on SMM’s turf, with the Ardbeg district also containing a host of prospects near White Cliff’s Thor and Rocket targets.
Along with 75 historical occurrences, SMM is picking up ground surround the historic Danvers resource (4.16Mt at 2.96% Cu).
Other areas on Somerset’s side of the fence have historically held non-JORC compliant resources including Oban and Jura.
SMM’s Prescott meanwhile is located over a 240km stretch including 190km of strike on Prince of Wales Island, across the sea from Somerset Island, where American West has defined 17.5Mt at 1.2% copper and 3.4g/t silver at the Storm prospect.
Somerset also holds the Miguel prospect, 29km from Storm on Somerset Island, where an airborne geophysical survey is ~65% complete.
“The Coppermine project represents an exceptional, district-scale exploration opportunity, showcasing diverse, high-grade copper-silver mineralisation styles comparable to geological analogues such as the Mt Isa Inlier and the Keweenaw Peninsula,” SMM MD Chris Hansen said.
“The project’s potential is underscored by numerous high-grade surface samples, historical drilling, and resources, including surface results from Laphroaig of 45.4% Cu & 60.0g/t Ag and 44.1% Cu & 263.0g/t Ag.
“On completion of the acquisition, Somerset will hold 1,208km2 in the region, with 1055km2 covering the Copper Creek Formation basalts – a highly prospective geological formation known to host high-grade copper mineralisation. With multiple high-priority targets already identified across the Laphroaig, Ardbeg, Jura and Oban Districts, our maiden exploration campaign will leverage off an extensive historical dataset to test a number of drill-ready targets.
“These targets are supported by a wealth of high-grade surface and subsurface results, making this maiden campaign an exciting leap forward in unlocking the immense potential this region holds.
“Strategically located near Kugluktuk, the Coppermine project benefits from robust infrastructure, ensuring year-round logistical access. This readily positions the company to launch our maiden exploration campaign in Q1 2025, marking the beginning of a potentially transformative chapter in the district’s exploration history.”
AUSTRALIAN POTASH (ASX:APC)
Australian Potash has reemerged as APC Minerals after a recap and 40-for-1 share consolidation.
Matt Shackleton remains managing director and CEO of the company, which will be officially renamed on December 12.
The failures of the short-lived WA sulphate of potash scene led APC to eventually ditch its mainstay Lake Wells project, emerging from administration as a gold explorer.
It’s got three projects on the go, including an acquisition in the hot West Arunta region near WA’s border with the NT.
On top of that it holds gold projects at Laverton Downs and Lake Wells in the Yamarna district, famous for Gold Road Resources (ASX:GOR) and Gold Fields’ 350,000ozpa Gruyere gold project.
APC is aiming to drill at Laverton Downs in the first quarter of 2025, looking for extensions of trends which host gold mines owned by Focus Minerals (ASX:FML) and Regis Resources (ASX:RRL).
Previous gold intercepts have included hits of 3m at 10.17g/t, 4m at 1.99g/t and 2m at 1.19g/t gold.
AUREKA (ASX:AKA)
(Up on no news)
Among the companies moving on no news are another recapitalised goldie, Aureka, the recalibrated Navarre Minerals.
A $6 million recap has stocked up the explorer to return to its roots hunting gold in regional Victoria after it over-extended with the ill-fated acquisition of Evolution Mining’s (ASX:EVN) tired Mt Carlton gold mine in Queensland.
The company owns the Stawell Corridor gold project, located in an area that hosts the 6Moz Stawell gold mine and 1Moz Ararat field.
Aureka holds a 304,000oz inferred resource across the Resolution and Adventure deposits with an additional exploration target of 280,000-420,000oz.
Those are complemented by a host of prospects, including a JV at Tandarra near the Fosterville gold mine with now 100,000ozpa producer Catalyst Metals (ASX:CYL) and Jubilee, 25km south-west of the Ballarat gold mine, where AKA is looking for discoveries similar to Fosterville’s famous Swan Zone (not that those are easy to find).
Fellow microcap SI6, also post consolidation, is another that’s pivoting back to basics by focusing on its 154,000oz gold bounty in Laverton, WA.
SI6 says it is continuing to progress and review its Brazilian critical minerals assets amid weak rare earths market sentiment and considering ways to realise value from its base metals assets in Botswana as it looks closer to home.
VHM (ASX:VHM)
Shares in the Victorian mineral sands and rare earths hopeful soared after announcing ministerial endorsement for its Goschen project from the state’s planning minister Sonya Kilkenny.
It’s a key step to set up for a final investment decision, with its mining licence now open for assessment by Resources Victoria.
“VHM’s achievement in obtaining Ministerial endorsement of Goschen’s EES is a major step forward in the initiation of a new rare earth and minerals sands project in Victoria,” VHM CEO Ron Douglas said.
“This recommendation is the result of extensive technical, environmental, and social studies conducted over several years and follows a rigorous evaluation process. It is a momentous outcome for all parties involved.
“On behalf of the VHM Board I wish to thank the Hon. Sonya Kilkenny and other key decision-making authorities involved in the outcome of the Goschen EES assessment.”
“I thank VHM’s resilient shareholders who have been on VHM’s exploration and approvals journey with us, and I am looking forward to progressing the project through its next stages to FID, development and ultimate production.”
The project would run for over 20 years, targeting production of ~9400tpa of rare earth mineral concentrate and ~8500tpa mixed rare earth carbonate along with ~134,500tpa of zircon-titania heavy mineral concentrate.
According to a presentation at the developer’s AGM last month, FID is projected early next year with production to begin at the end of Q1 2026.
At Stockhead, we tell it like it is. While VHM is a Stockhead advertiser, it did not sponsor this article.
