The mine went into care and maintenance when they were already mining. They are at the resource already, however are simply expanding it to see how far it goes. There is no end in sight so far and these deposits often continue for great depths.
Firefly are looking to increase the resource to a point they can warrant expanding the mill to a much larger size allowing the economics of scale to make this resource very profitable. The old plant that is currently sitting there is so small it would take over 100 years to mine what they have found so far. Because of this it makes the costs higher and therefore debt becomes expensive which is why the old owners went bust to begin with.
They are currently performing a drill drive which allows them to drill out the resource at much deeper depths. This allows the proving up/discovery of Cu tonnes to be done for a cheaper cost as the rigs will be far closer to the resource.
FFM Price at posting:
73.5¢ Sentiment: Buy Disclosure: Held
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