Fortune Bay (TSXV: FOR; OTCQB: FTBYF) began work to further advance its Goldfields gold project located in northern Saskatchewan. The company completed a preliminary economic assessment (PEA) – commissioned by Ausenco Engineering Canada in October 2022 – demonstrated robust economics for Goldfields.
Fortune Bay engaged Fuse Advisors to define a project development roadmap to advance the project toward the next stage of engineering and design. The study’s objective is to define the optimal path to production by evaluating permitting scenarios and various mine design, flowsheet and throughput cases. This builds upon the 2022 PEA and the 2008 environmental impact statement (EIS).
The study will leverage the project’s substantial repository of historical technical data from a 2011 prefeasibility study and a 2008 feasibility study for the Box deposit, and the environmental baseline data set acquired for the 2008 EIS. As part of the study, a plan and budget will be developed for advancing the project into development. The study is expected to take approximately two months to complete.
Fortune Bay pointed out robust economics from its PEA for the Goldfield project, which was completed in October 2022. A mine would have an after-tax net present value (5% discount) of US$4,559 million, and internal rate of return of 50.5%, and a 13-year payback at a gold price of US$1,950/oz. Annual production will be 101,000 oz. at an all-in sustaining cost of US$889/oz. Initial capital costs are low, only C$234 million.
The company also mentioned de-risked mineral resources with an upside. Current open pit resource estimate of 979,900 indicated oz. in 23.2 million tonnes grading 1.31 g/t and 210,800 inferred oz. in 7.1 million tonnes at 0.92 g/t gold). The PEA utilized 99% indicated resources with no additional delineation drilling required for conversion to mineral reserves.
The assessment also mentioned the site had established infrastructure in a historical mining area, including a road and powerline to the site. It also had well-advanced permitting with an approved EIS from 2008 for an open pit mine at the Box deposit and a 5,000 t/d mill. Finally, the assessment stated the site had an existing foundation for local engagement, as it had an exploration agreement with First Nation communities, as well as agreements with local municipalities.
Fortune Bay owns two advanced gold projects: Goldfields in Saskatchewan and the Ixhuatán copper-gold project in Chiapas, Mexico. The company is also advancing seven uranium exploration projects on the northern rim of the Athabasca Basin.
More information is posted on www.FortuneBayCorp.com.
