Fortune Bay (TSXV: FOR) has commenced work to further advance its Goldfields gold project in northern Saskatchewan, announcing on Wednesday that it has engaged Fuse Advisors to define a development roadmap to advance the project toward the next stage of engineering and design.
The 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 preliminary economic assessment (PEA) completed in October 2022, as well as the environmental impact statement (EIS) from 2008.
The study will leverage the project’s substantial repository of historical technical data from a 2011 prefeasibility study and subsequent 2008 feasibility study for the Box deposit, as well as 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 said.
The company also pointed out the robust economics outlined in the 2022 PEA. The Goldfields mine would have an after-tax net present value (5% discount) of $459 million, an internal rate of return of 50.5% and a 13-year payback at a gold price of $1,950/oz. Annual production will be 101,000 oz. at an all-in sustaining cost of $889/oz. Initial capital costs are at C$234 million.
It also mentioned de-risked mineral resources with further upside to build on the current open pit resource 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 in 2008 for an open pit mine at the Box deposit and a 5,000 t/d mill.
Finally, the PEA noted that 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.
The Goldfields project is one of two advanced projects held by Fortune Bay, the other being 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.
Source: MINING.COM – Read More
