FFM - FireFly Metals

[Swervin Mervin]

Making us wait til Thursdays a bit harsh!

 

[greggles]

I don't know much about AUT, but after scanning some charts this morning I couldn't help but notice what appears to be a double bottom formation at 8c, and then a share price rebound with today seeing a nice move up to 9.3c on higher than average volume.

The company's focus appears to be the Pickle Crow Project in Ontario, Canada and after spending most of 2021 drilling they are due to release a Resource Update this month.

I get the feeling this company might be flying under the radar. I have only scanned the drilling results briefly but they look pretty good and I expect that the Resource Update will probably surprise to the upside.

Worth a look IMO.

 

[Sean K]

Never heard of these guys until seeing this ann today. Looks like pretty high grade stuff in there. MC about $130m with 1.7m ounces @ 8.1g/t. Doesn't get much higher grade than that unless you're Fosterville. Looks cheap based on that. A lot of shares on issue, need to consolidate.

Pretty experienced board and management as well. Old Bellevue and Gryphon team.

The last MRE was released in July 21. There's been three assay announcements since then drilling 50,000m with similar results as below and one new high grade discovery. So, you'd think they'll crack 2m ounces at around the same grade. That's quite significant.

Most of it's vein hosted so not sure how easy that is to mine. The historic mine was all underground following the veins. Doesn't sound simple.

 

[Sean K]

The last MRE was released in July 21. There's been three assay announcements since then drilling 50,000m with similar results as below and one new high grade discovery. So, you'd think they'll crack 2m ounces at around the same grade. That's quite significant.

Into a TH for CR not long after the MRE upgrade that was a ripper, but perhaps Mr M expected more. This is a significant resource with this grade. High grade component at nearly 10g/t. That's Fosterville type stuff.

Still a lowly MC around $136m for these numbers. It must be the ore body that has people worried. Maybe the vein material consistency? But, even the BIF stuff is 3.8g/t and is bulk mineable so???

 

[greggles]

Looks very promising. Shaw have a price target of 21c on it. The CR might create a good entry point if it pulls back a little when it starts trading again.

 

[Sean K]

Looks very promising. Shaw have a price target of 21c on it. The CR might create a good entry point if it pulls back a little when it starts trading again.

View attachment 137718

On the surface of it this looks like pretty low hanging fruit to me.

 

[Sean K]

So, should be able to pick this up around the 8c mark.

 

[greggles]

$20 million will keep them going for quite a while and 8c is a reasonable CR price IMO. Based on what I have read, I still think this is great value around 8c and I'm seriously considering jumping on board.

 

[Sean K]

$20 million will keep them going for quite a while and 8c is a reasonable CR price IMO. Based on what I have read, I still think this is great value around 8c and I'm seriously considering jumping on board.

I've just picked some up at the CR price. LOL So, they didn't need to do an spp for current holders who would have been disappointed they weren't included in the discount.

 

[greggles]

AUT looking rock solid around 8c despite all the geopolitical and market turmoil of recent times. There doesn't seem to be a lot of motivation for sellers to part with the stock at lower levels. It continues to trade sideways while waiting for a catalyst, most likely to be upcoming drilling results.

 

[Sean K]

Not sure why this wasn't price sensitive. The only thing I'm not sure about with this deposit is the narrow veins in Shaft 3 and Tyson and how easy they are to track and mine. It was mined for 1.5m ounces previously so I guess it's feasible.

Another 50K of drilling this year with MRE update in Dec should provide for some regular news. Getting to 3Moz looks achievable with these discoveries and resource extensions. If it remains above 7g/t should be quite a valuable deposit.

 

[Sean K]

This very unloved little puppy is putting out some pretty good drill results. Looks like there's potential for significant resource growth. Some of the grades are outstanding here. Just wonder how consistent it is and easy to find once they put shovels in it.

Glad they've got plenty of cash in this environment. They should weather this storm and with resource upgrades coming in the post storm calm might get some attention.

 

[Sean K]

Might have made a higher low here, which is encouraging. MC about $80m with a very high grade deposit which should have a 3 in front of it at the next MRE. They're probably unloved because of the type of deposit it is. Veins can be unpredictable.

 

[Sean K]

Expecting some extension drill results at Pickled Crow this month. Hopefully follow up drilling at the new discovery unearths something significant. Pushing this project into the 3m ounce category, at this grade, should make punters take notice.

 

[Sean K]

These high grades are just rock chips so nothing too exciting to me. It does make their tenament seem likely to host some additional ounces though, so need to follow up with drilling. The vein hosted stuff is very high grade but needs selective mining. Would prefer to see more wide hits in the BIF really.

Ooops, can't attach the announcement, will do so once the system is back up and running.

 

[greggles]

These high grades are just rock chips so nothing too exciting to me. It does make their tenament seem likely to host some additional ounces though, so need to follow up with drilling. The vein hosted stuff is very high grade but needs selective mining. Would prefer to see more wide hits in the BIF really.

Ooops, can't attach the announcement, will do so once the system is back up and running.

Might only be rock chip sampling but the results look very encouraging nonetheless. Can't ignore grades like that. Strong cash position too with $17.4 million in cash as of June 30.

This one might come good eventually but probably not this month.

 

[Sean K]

Might only be rock chip sampling but the results look very encouraging nonetheless. Can't ignore grades like that. Strong cash position too with $17.4 million in cash as of June 30.

This one might come good eventually but probably not this month.

Might come good in November maybe.

Any idea on that volume spike?

 

[Sean K]

Amazing grade but it's just over 40cm in the quartz vein part of their deposits. My only hesitation with this is most of the ounces they have are in the vein system. They're going to have a lot more ounces there at high grades, but I'm not sure how quickly they can mine it while following the veins. The BIF will be easier, but there's far fewer ounces. No idea how much the MRE will grow by the March quarter 23. Impossible to guess due to the type of deposit.

 

[Sean K]

These grades are great but it's hard to tell how much these extension hits are adding to the MRE due to the type of deposit. Hopefully we're looking at a 3 in front of the next MRE upgrade in H1 23. 3m oz at near 8g/t is significant.

I've got a feeling these guys are just going to be small fry unless they hit a motherload or have significant exploration success outside the current resources. The grades are amazing, but I imagine very tricky to mine so how efficiently and effectively they can dig it out is the question.

 

[Sean K]

CR at a decent discount just prior to an updated MRE? Hmmmm.

I’m sophisticated so looking forward to my 5c shares.

I‘ve got a feeling these guys are mining the market until someone makes an offer.