Fortune Bay announces plans for the Goldfields Project in H2 2020
Fortune Bay announces plans for the
Goldfields Project in H2 2020
HALIFAX, NS
,
July 28, 2020
/CNW/ - Fortune Bay Corp. (TSXV: FOR) ("Fortune Bay" or the
"Company") is pleased to announce plans for the second half of 2020, focused on advancing the
Goldfields Project ("Goldfields" or the "Project") located in northern
Saskatchewan
. A location and
infrastructure map for Goldfields is provided in Figure 1.
Plans for the Goldfields Project in the upcoming months include the following:
Mineral resource modelling and estimation
, with the objective of completing an updated
mineral resource estimate before the end of Q1 2021 to verify the historical estimate (effective
date
October 6, 2011
) and classify current mineral resources in accordance with National
Instrument 43-101 ("NI 43-101").
Resource expansion and exploration drill planning
, to design a drill program to expand the
known mineral resources at the Box and Athona deposits.
Project development review and planning,
commencing with review and validation of the
historical 2011 Pre-Feasibility Study ("2011 PFS") to identify opportunities, risks and any
potential data gaps in preparation for a future updated pre-feasibility study.
Dale Verran
, CEO for Fortune Bay, commented,
"We are pleased to commence the process of
advancing the Goldfields Project. We have a unique opportunity to build value at Goldfields
through further exploration and development work during an exciting time in the gold market. The
Company is well poised to execute on its work plans with a strong technical team supported by
management and our experienced Board."
Mineral Resource Modelling and Estimation
Historical mineral resource estimates for the Project (effective date
October 2011
) include 1.03
million ounces of gold in measured and indicated mineral resources (20.9 million tonnes at 1.5 g/t
Au) and 0.23 million ounces of gold in inferred mineral resources (4.6 million tonnes at 1.5 g/t Au).
An updated mineral resource estimate is planned before the end of Q1 2021 to verify historical
estimates and classify current mineral resources in accordance with NI 43-101. The schedule
for completion of the updated estimate will be subject to the review and verification of historical
data by an independent Qualified Person.
Planned work involves generating updated geological and resource models through
comprehensive review of historical drilling and assay data (currently in progress), as well as
field-based review and relogging of selected historical drill cores (September and
October
2020
).
Resource Expansion and Exploration Drill Planning
Opportunity exists to expand the mineral resources on the Project. The gold mineralization at the Box
and Athona deposits remains open, specifically at depth below the Box deposit where meaningful
grades and thicknesses have been intersected outside the boundaries of the historical resource
estimates. Key drill intersections below the Box mineral resource include 52.8 metres at 2.12 g/t Au,
55.0 metres at 1.97 g/t Au, and 66.6 metres at 1.39 g/t Au (see Figure 2).
The development of updated geological and resource models (as detailed above), incorporating
structural controls on mineralization, will support targeting for resource expansion at the Box and
Athona deposits.
Field work scheduled for early fall 2020 will also include the review of other known gold
prospects on the property (specifically Frontier Lake,
Golden Pond
and Triangle – see Figure 3)
and the development of future targeting strategies and exploration plans.
Project Development Review and Planning
The 2011 PFS includes open-pit proven and probable mineral reserves of 1.02 million ounces (22.3
million tonnes at 1.4 g/t Au).
Review and validation of the 2011 PFS is planned for Q3 2020 and Q4 2020 to identify
opportunities, risks and any data gaps in preparation for a future updated pre-feasibility study.
The review will aim to identify focus areas for project optimization, that are envisaged to include
various trade-off studies, and the development of a project development work plan and
schedule for 2021.
Approval of the Company's deferred share unit plan ("DSU Plan")
The Company is also pleased to announce that on
June 25, 2020
at the Company's Annual General
and Special Meeting of Shareholders, the disinterested shareholders voted in favour of adopting the
new DSU Plan as outlined in the Company's Management Information Circular. The maximum
number of common shares that may be issued under the DSU Plan is 500,000 shares.
About Goldfields
The 100% owned Goldfields Project is the Company's most advanced asset located in northern
Saskatchewan
, approximately 13 kilometres from
Uranium City
, for which a historical Pre-
Feasibility Study ("2011 PFS") was completed in
October 2011
in accordance with NI 43-101. The
2011 PFS envisaged open-pit mining of the Box and Athona gold deposits, located two kilometres
apart, over 13 years with estimated gold recoveries of 91% and 89% respectively, processed at a
shared mill facility with a capacity of 5,000 tonnes per day. Economic highlights from the 2011
PFS include an NPV (at a 5% discount rate) of
CAD$144.3 million
(pre-tax) and a 19.6% IRR (pre-
tax) using a base case of
CAD$1,250
/oz of gold (exchange rate CAD =
0.96 USD
). Total capital
costs were estimated at
CAD$159.2 million
including a 13.7% contingency. Mineral reserve and
mineral resource estimates for the 2011 PFS (Box and Athona deposits) included; 1.02 million
ounces of gold (22.3 million tonnes at 1.4 g/t Au) in proven and probable reserves, 1.03 million
ounces of gold (20.9 million tonnes at 1.5 g/t Au) in measured and indicated resources (included in
the proven and probable reserves), and 0.23 million ounces of gold (4.6 million tonnes at 1.5 g/t
Au) in inferred resources. The Project is endowed with established infrastructure including existing
roads, powerline, and nearby facilities and an airport at
Uranium City. Saskatchewan
is the top
ranked jurisdiction for mining in
Canada
according to the Fraser Institute Annual Survey of Mining
Companies (2019), Investment Attractiveness Index. The Project has a history of gold production
(64,000 oz Au produced between 1935 to 1942), numerous exploration drilling campaigns
(~80,000 metres of drilling in ~675 drill holes) and various mining studies (including a 1995
Feasibility Study for the Box deposit that was not prepared in accordance with NI 43-101). The Box
open-pit mine and mill development is permitted having received Ministerial approval under the
Environmental Assessment Act in
May 2008
. The 9,500 hectare Goldfields property presents
numerous exploration opportunities, including the potential to expand the Box and Athona deposits
and discover additional resources at several other gold prospects and occurrences.
About Fortune Bay
Fortune Bay Corp. (TSXV:FOR) is a gold-focused exploration and development company with
100% ownership in two high-quality advanced gold projects in
Canada
,
Saskatchewan
(Goldfields
Project) and
Mexico
,
Chiapas
(Ixhuatán Project), both with exploration and development potential.
The Company has a goal of building a mid-tier gold exploration and development Company
through the advancement of its existing projects and the strategic acquisition of new projects to
create a pipeline of growth opportunities. The Company's corporate strategy is driven by a Board
and Management team with a proven track record of discovery, project development and value
creation.
Further information on Fortune Bay and its assets can be found on the Company's
website at
www.fortunebaycorp.com
or by contacting us as
or by
telephone at 902-334-1919.
Qualified Person
The technical and scientific information in this news release has been reviewed and approved by
Dale Verran
, M.Sc., P.Geo., Chief Executive Officer of the Company, who is a Qualified Person as
defined by NI 43-101. Mr. Verran is an employee of Fortune Bay and is not independent of the
Company under NI 43-101.
On behalf of Fortune Bay Corp.
"Dale Verran"
Chief Executive Officer
902-334-1919
Cautionary Statement Regarding Forward-Looking Information
Information set forth in this news release contains forward-looking statements that are based on
assumptions as of the date of this news release. These statements reflect management's current
estimates, beliefs, intentions and expectations. They are not guarantees of future performance.
Fortune Bay Corp. ("Fortune Bay" or the "Company") cautions that all forward-looking statements
are inherently uncertain, and that actual performance may be affected by a number of material
factors, many of which are beyond Fortune Bay's control. Such factors include, among other
things: risks and uncertainties relating to metal prices, changes in planned work resulting from
weather, logistical, technical or other factors, the possibility that results of work will not fulfill
expectations and realize the perceived potential of Fortune Bay's mineral properties, uncertainties
involved in the interpretation of drilling results and other tests, the possibility that required permits
may not be obtained in a timely manner or at all, risk of accidents, equipment breakdowns or other
unanticipated difficulties or interruptions, the possibility of cost overruns or unanticipated expenses
in work programs, the risk of environmental contamination or damage resulting from the
exploration operations, the need to comply with environmental and governmental regulations and
the lack of availability of necessary capital, which may not be available to Fortune Bay, acceptable
to it or at all. Fortune Bay is subject to the specific risks inherent in the mining business as well as
general economic and business conditions. Accordingly, actual and future events, conditions and
results may differ materially from the estimates, beliefs, intentions and expectations expressed or
implied in the forward-looking information. Except as required under applicable securities
legislation, Fortune Bay undertakes no obligation to publicly update or revise forward-looking
information. Fortune Bay does not intend, and does not assume any obligation, to update these
forward-looking statements, except as required under applicable securities legislation. For more
information on Fortune Bay, readers should refer to Fortune Bay's website at
www.fortunebaycorp.com
.
Cautionary Note Regarding Historical Mineral Resource and Mineral Reserve Estimates
A Pre-Feasibility Study (the "2011 PFS Technical Report"), with an effective date of
October 6,
2011
, was completed for the Goldfields Project by March Consulting Associates Inc. in cooperation
with Wardrop (now Tetra Tech), Dan Mackie Associates (DMA) and EHA Engineering Ltd. The
mineral resources and mineral reserves were classified according to the CIM Standards on
Mineral Resources and Reserves: Definitions and Guidelines,
November 2005
("CIM 2005") and
incorporated, by reference, into National Instrument 43-101 – Standards of Disclosure for Mineral
Projects ("NI 43-101"). The 2011 PFS Technical Report was issued to Brigus Gold Corp. ("Brigus"),
and subsequently re-issued to successor company, Fortune Bay on
March 13, 2014
. The full 2011
PFS Technical Report is filed on SEDAR (
www.sedar.com
) under
Brigus's
issuer profile. The
reader is cautioned that a Qualified Person has not done sufficient work to classify the mineral
resources and mineral reserves stated in the 2011 PFS Technical Report as current resources and
reserves. Fortune Bay is not treating this historical estimate as current mineral resources or
reserves. While this estimate was prepared in accordance with NI 43-101 and CIM 2005 in effect at
the time, there is no guarantee that it would be consistent with current standards and it should not
be regarded as such. Fortune Bay has not undertaken any independent verification of the data
upon which the historical estimates are based. The historical estimate is considered relevant to
assess the mineralization and economic potential of the property.
Figure 1: Goldfields Project infrastructure and location map. (CNW Group/Fortune Bay Corp.)
Figure 2: Highlight gold intersections outside of the Box historical mineral resource estimate. (CNW
Group/Fortune Bay Corp.)
Figure 3: Structural map of the Goldfields property showing gold deposits, prospects and
occurrences. (CNW Group/Fortune Bay Corp.)
SOURCE
Fortune Bay Corp.
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For further information:
Dale Verran, Chief Executive Officer, 902-334-1919
CO: Fortune Bay Corp.
CNW 08:00e 28-JUL-20