Precise ablation of metals using tightly focused femtosecond laser pulses with intensities close to the damage threshold can yield sub-wavelength, nanometer-sized holes or craters. These structures in metals can exhibit plasmonic effects, thereby affecting the interactions involved. We numerically simulate light propagation inside such holes and model the ablation process. We show that surface plasmon resonances can be excited at near-infrared and visible wavelengths. At resonance wavelengths, significant enhancement of aspect ratio is possible. Our results show that plasmonic effects are essential for the understanding of precision laser processing of metals, and they can be exploited to significantly enhance the performance of laser micro- and nano-machining.