Mayfair Delivers Robust Pre-Feasibility Study for the Fenn-Gib Gold Project
Mayfair Delivers Robust Pre-Feasibility Study for the Fenn-Gib
Gold Project
All amounts are in Canadian Dollars unless otherwise noted
Base Case -
US$3,100
/oz Au and C$/US$ exchange rate of 1.35:
After-Tax NPV
(5%)
:
$652 million
Payback Period: 2.7 years
NPV to Capex: 1.4x
Cumulative Free Cash Flow
1
Years 1-6:
$896 million
VANCOUVER, BC
,
Jan. 8, 2026
/CNW/ - Mayfair Gold Corp. ("
Mayfair
",
"
Mayfair Gold
" or the "
Company
") (TSXV: MFG)
(OTCQX: MFGCF) is pleased to announce the results of its 2026 Pre-Feasibility Study (
"PFS"
) for the Fenn-Gib gold project in the
Timmins Gold District of
Ontario, Canada
. The study has been prepared in accordance with
National Instrument 43-101 – Standards
of Disclosure for Mineral Projects
(
"NI 43-101"
). The NI 43-101 Technical Report for the PFS will be filed within the next 45 days and
will be made available under the Company's profile on SEDAR+ and on the Company's website. Unless otherwise stated, all dollars in
this news release are expressed in Canadian dollars.
Highlights of the 2026 PFS for the Fenn-Gib Gold Project in
Ontario
:
After-tax NPV
(5%) of
$652 million
, IRR of 24% at
US$3,100
/oz base case gold price and
1.35 C$
/US$ exchange rate
2
After-tax NPV
(5%) of
$1.37 billion
, IRR of 38% at
US$4,450
/oz spot gold price
3
and
1.38 C$
/US$ exchange rate
Average grade processed of 1.47 g/t gold over the first 6 years of operations for average annual gold production of
71,336 ounces at an AISC
4
of
US$1,171
/oz
Average grade processed of 1.29 g/t gold over the 14.3-year reserve life for average annual gold production of 64,096
ounces at an AISC of
US$1,292
/oz
Free cash flow in the first 6 years of operation of over
$896 million
at base case gold price and
$1.43 billion
at spot
gold price
Initial development capital costs of
$450 million
Short payback period of 2.7 years on base case, dropping to 1.7 years at spot gold
Mine plan and associated economics only exploit 1.04 Moz (24%) of the total 4.3 Moz Indicated Resource, preserving
optionality for future growth
Environmental Baseline studies well advanced to allow for early 2026 commencement of Environmental Assessment
and
Ontario
permitting process
Final investment decision expected within 3 years with commercial operation within 5 years
5
_________________________________
1
Cumulative Free Cash Flow ("
FCF
") is defined as calculated as cash flows from operating activities less capital expenditures. Refer to the "Non-GAAP Financial Measures" section of this news release for more information.
2
See Table 2: sensitivity table below for various scenarios if gold prices change
3
Spot Gold price and C$/US$ exchange rate as of 6 January 2026
4
All-in sustainable cost ("
ASIC
") includes mining, processing and administrative costs, royalties, production taxes, sustaining capital expenditures, closure allowance, and other costs necessary to maintain planned production. Refer to the
"Non-GAAP Financial Measures" section of this news release for more information.
5
See Cautionary Note Regarding Forward Looking Information
The PFS lead author was Ausenco Engineering ULC. ("Ausenco") with contributions from Knight Piésold Ltd. ("KP"), AGP Mining
Consultants Inc. ("AGP"), Ecometrix Inc. an Egis Group Company ("Ecometrix"), and T. Maunula & Associates Consulting Inc.
("TMAC").
Nick Campbell
, CEO of
Mayfair Gold
stated,
"The 2026 PFS demonstrates the strong economics and free cash flow potential
associated with developing the Fenn-Gib Gold project as a targeted, high-grade operation that can be advanced through the
Ontario
permitting process. This strategy allows Mayfair to advance Fenn-Gib without requiring excessive up-front capital with
substantially lower execution risk as compared with a large-scale development. We believe the permitting process can be
advanced quickly, positioning the Project for timely development within the current gold cycle. Importantly, this mine plan targets
only 24% of the total indicated gold resource at Fenn-Gib, leaving significant longer-term optionality associated with the larger
resource should market conditions be supportive. At current gold prices, the Project has exceptional value potential, with strong
free cash flow and robust economics that further enhance its attractiveness to investors."
Drew Anwyll
, P.Eng, Chief Operating Officer noted, "
This Pre-Feasibility Study is a realistic representation of the estimated
operating and capital costs, production profile, and overall economics of the Fenn-Gib Project. Our plan is straightforward: we
intend to build this mine and bring it into operation in the near term. The team is focused on executing efficiently and delivering on
our commitments - completing this Project and sticking the landing. The next phase is clear: finalize engineering and design work,
and advance environmental approvals in preparation for a construction decision within two to three years.
"
Fenn-Gib PFS Highlights and Mayfair's Strategic Approach to Fenn-Gib Development
The study outlines Mayfair's strategy to reduce execution risk and prioritizing high-margin material early in the mine plan, supported
by a realistic and financeable initial capital outlay. This approach enables rapid value generation from Fenn-Gib while preserving long-
term flexibility to deploy free cash flow toward regional growth opportunities or advancing secondary assets to diversify and expand
production.
Economic results are presented on an unlevered basis to highlight the strong standalone project returns. Mayfair intends to prudently
utilize project-level debt and other financing options to minimize overall cost of capital and maximize per-share economic returns.
Initial capital expenditures are estimated at
$450 million
, including a 26% contingency on direct costs. The PFS considers a
conventional open-pit mining operation and incorporates modular processing plant designs, allowing for a simplified construction
schedule of less than 24 months, reducing inflationary and execution risks.
The Project will proceed under the Provincial Class Environmental Assessment (EA) process and does not trigger a Comprehensive
EA or federal Impact Assessment under current regulations.
Social and community engagement has focused primarily on the Apitipi Anicinapek Nation (AAN) due to its proximity to the Fenn-Gib
site. The Company and AAN have an active Exploration Agreement in place and will continue to advance consultation collaboratively,
with the intention of developing a Community Benefit Agreement for the Project.
The Project plans to advance three key strategies in parallel:
Ontario
-led environmental approvals, Indigenous agreements, and
engineering-design-procurement. These initiatives aim to enable major construction within 24–36 months, with commercial operations
targeted within five years.
The 2026 PFS assumes an average annual gold production of 71.3 koz over the first 6-years of operation and a total life of mine
("LOM") production of 920 koz over 14.3 years of operation.
Description
Unit
Base Case
Spot Price
General Assumptions
Mine Life
yrs
14.3
Gold Price
US$/oz
$3,100
$4,450
Exchange Rate
C$/US$
1.350
1.376
Canadian Dollar Gold Price
$/oz
$4,185
$6,123
Daily Throughput
t/d
4,800
Annual Throughput
k t/a
1,750
Years 1-6
Strip Ratio
w:o
7.7
Average Gold Grade
g/t
1.47
Average Gold Recovery
%
88.7
Average Annual Gold Production
k ozs Au
71.3
All-in Sustaining Cost (AISC)
US$/oz
1,171
1,173
Average Annual Free Cash Flow (FCF)
1
$ M
$149
$239
Cumulative FCF
$ M
$896
$1,432
Life of Mine
Strip Ratio
w:o
6.0
Average Gold Grade
g/t
1.29
Average Gold Recovery
%
88.3
Average Annual Gold Production
k ozs Au
64.1
AISC
US$/oz
$1,292
$1,291
Average Annual FCF
$ M
$114
$192
Cumulative FCF
$ M
$1,707
$2,880
Initial Capital Costs
$ M
$450
Sustaining Capital Costs
$ M
$61
Closure Costs
$ M
$49
Payback Period (after tax)
Years
2.7
1.7
NPV (5%) (after-tax)
$ M
$652
$1,373
IRR (after tax)
%
24.1
38.0
Table 1: Fenn-Gib - Economic Model PFS Highlights
Note:
Assumes site royalty as per agreements with no buy-back; key consumables of $1.13/l diesel and $0.11/kWh electricity
1
FCF is modeled post-initial capital and excluding closure
Source: Mayfair, 2025
The base case economics have been calculated on an unlevered basis, based on a gold price of
US$3,100
and flat exchange rate of
C$1.35
per
US$ 1
. The economics include an effective royalty rate averaging 1.7%, based on all current royalties and encumbrances
associated with the reserve at Fenn-Gib.
Free cash flow ("FCF") after working capital changes is expected to amount to
$896M
in the first six years of operation. Using a spot
gold price of
US$4,450
/oz (equivalent to
$6,123
/oz at
1.376 C$
/US$ rate) FCF for the first six years of operation is expected to be
$1.43 B
.
Figure 1: After-Tax Cash Flow (FCF) (CNW Group/Mayfair Gold Corp.)
The mine plan and associated economics reflect total gold processing of 1.04 Moz with 88.3% recovery. This represents only 24% of
the
September 3, 2024
Indicated Mineral Resource estimate of 4.3 Moz.
Figure 2: Annual gold production and AISC (CNW Group/Mayfair Gold Corp.)
The tables below highlight NPV, IRR and payback sensitivity to operating expenses, capital expenditures, foreign exchange rates and
the gold price. On average, every
US$100
change in the gold price assumption results in an approximate
$50 M
change in NPV.
After-Tax Results
OPEX Sensitivity
-30 %
-15 %
0 %
15 %
30 %
NPV 5% (M $)
826
739
652
564
476
IRR (%)
27.7 %
25.9 %
24.1 %
22.1 %
20.0 %
Payback (yrs)
2.4
2.5
2.7
2.9
3.2
After-Tax Results
CAPEX Sensitivity
-30 %
-15 %
0 %
15 %
30 %
NPV 5% (M $)
773
713
652
591
530
IRR (%)
34.2 %
28.4 %
24.1 %
20.7 %
17.8 %
Payback (yrs)
1.9
2.3
2.7
3.1
3.6
After-Tax Results
FX Sensitivity
1.25
1.30
1.35
1.40
1.45
NPV 5% (M $)
536
594
652
710
767
IRR (%)
21.4 %
22.7 %
24.1 %
25.4 %
26.6 %
Payback (yrs)
3.0
2.8
2.7
2.6
2.5
After-Tax Results
Gold Price Sensitivity (US$/oz)
1,600
2,100
2,600
3,100
3,600
4,100
4,600
NPV 5% (M $)
-141
144
399
652
903
1,155
1,405
IRR (%)
N/A
10.3 %
17.9 %
24.1 %
29.4 %
34.3 %
38.6 %
Payback (yrs)
N/A
5.2
3.5
2.7
2.2
1.9
1.7
Table 2: Sensitivity Analysis
Mineral Resource Estimate
Resource
Category
Cut-Off
(Au g/t)
Tonnes
(Mt)
Gold Grade
(g/t)
Contained Gold
(M oz)
Indicated
0.3
181.3
0.74
4.3
Inferred
0.3
8.9
0.49
0.1
Table 3: Fenn-Gib Mineral Resource Table
Notes:
1.
Effective date of this updated mineral resource estimate is September 3, 2024. The assay cut-off date for drill holes included in the mineral resource was April 30, 2024.
2.
All mineral resources have been estimated in accordance with the CIM Definitions Standards, as required under National Instrument (NI) 43-101. Mineral Resource Statement prepared by Tim Maunula, P.Geo. (TMAC) in accordance
with NI 43
101.
3.
Mineral Resources reported demonstrate reasonable prospect of eventual economic extraction, as required under NI 43-101. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. The Mineral
Resources may be materially affected by environmental, permitting, legal, marketing, and other relevant issues.
4.
Mineral Resources are reported at a cut-off grade of 0.30 g/t Au for an open-pit mining scenario using a 50° pit slope angle. Cut-off grades are based on a price of US$2,000/oz gold, and an open pit mining cost of $3.25/t, process
cost of $15.50/t and G&A $2.00/t. Metallurgical recovery of 94% was used. Densities were assigned based on interpreted lithology.
5.
Troy ounce = tonnes x grade / 31.10348. All numbers have been rounded to reflect the relative accuracy of the estimate.
6.
The quantity and grade of reported Inferred Resources are uncertain in nature and there has not been sufficient work to define these Inferred Resources as Indicated or Measured Resources. It is reasonably expected that many of
the Inferred Mineral Resources could be upgraded to Indicated Mineral Resources with continued exploration.
7.
Tonnages and ounces in the tables are rounded to the nearest thousand. Numbers may not total due to rounding.
Source: TMAC, 2025
Maiden Mineral Reserve Estimate
The Fenn-Gib Mineral Reserves estimate is based on a design metal price of
US$1,750
/oz gold and is approximately 25.1 Mt of ore
with a gold grade of 1.29 g/t for a contained 1.04 Moz of gold.
Reserve Class
Process Feed
(Mt)
Gold Grade
(g/t)
Contained Gold
(M oz)
Proven
-
-
-
Probable
25.13
1.29
1.04
Total Reserves
25.13
1.29
1.04
Table 4: Fenn-Gib Mineral Reserve Estimate
Notes:
1.
This mineral reserve estimate has an effective date of December 19, 2025.
2.
The Mineral Reserve estimation was completed under the supervision of Gordon Zurowski, P.Eng. of AGP Mining Consultants Inc., who is a Qualified Person as defined under NI 43-101.
3.
Mineral Reserves are stated within the ultimate design pit based on:
a.
US$1750/oz gold price
b.
Pit Limit corresponds to a pit shell with a revenue factor of 0.55, corresponding to a price of US$962/oz Au.
c.
An elevated cut-off grade of 0.80 g/t Au for all pit phases.
d.
Preliminary mining cost assumptions of $3.24/t mined of waste, $3.23/t mined of ore, with an incremental mining cost of $0.02/t/5m bench mined below the 5310m elevation.
e.
Preliminary processing cost assumptions of $14.50/t processed, general & administration assumption of $2.10/t processed, and stockpile rehandle cost assumption of $1.00/t processed.
f.
Preliminary process recovery assumptions of 92.6% for gold.
g.
An exchange rate of C$1.35 equal to US$1.00.
h.
The preliminary economic, cost and recovery assumptions used at the time of mine planning and reserve estimation may not necessarily conform to those stated in the economic model.
4.
Pit slope inter-ramp slope angle assumptions ranged from 49 - 65° and overall slope angles ranging from 40 - 51° in rock.
Source: AGP, 2025
Fenn-Gib Capital and Operating Cost Estimates
The initial capital cost (Capex) is estimated at
$450 million
including
$66 million
of contingency representing approximately 26% of the
direct costs.
The main construction period, excluding early works is estimated at 18 to 24 months.
Sustaining Capital includes mining fleet additions and replacement, highway relocation and future TSF dam raises and associated
construction. No provision has been made for potential plant expansion capital.
WBS Description
Initial Capital ($ M)
Sustaining Capital ($ M)
Total Capital ($ M)
Mining
31.4
24.4
55.8
Crushing
21.6
1.1
22.7
Process Plant
114.7
1.4
116.1
On-Site Infrastructure
72.4
14.6
87.0
Off-Site Infrastructure
15.6
13.3
28.9
Total Direct Costs
255.8
54.7
310.5
Project Preliminaries
35.9
0.0
35.9
Project Delivery
30.7
2.5
33.3
Owner's Costs
61.7
3.7
65.3
Total Indirect Costs
128.3
6.2
134.5
Total Direct + Indirect Costs
384.1
60.9
444.9
Contingency
65.9
0.0
65.9
Total Capital Cost
450.0
60.9
510.9
Table 5: Capital Costs
Note:
Capex period ends at completion of commissioning with no allowance for pre-production cost and revenue
LOM unit operating costs are estimated at
$59.43
/tonne of ore processed. Average LOM cash costs and all-in sustaining costs
("AISC") are estimated at
US$1,203
and
US$1,292
showing a margin to the base case gold price of
US$1,897
and
US$1,808
/oz Au
respectively and a margin on spot gold price of
US$3,246
and
US$3,159
/oz Au.
Description
Unit
Life-of-Mine Average
Operating Costs
Mining Cost
$/t mined
4.53
$/t processed
30.66
Processing Cost
$/t processed
19.22
G&A Cost
$/t processed
6.82
Royalties and Refining Cost
$/t processed
2.73
Total Operating Cost
$/t processed
59.43
Cash Costs and All-In Sustaining Costs
1
Cash Costs
1
US$/oz Au
1,203
All-In Sustaining Cost (AISC)
1
US$/oz Au
1,292
Table 6: Operating Costs
1
See on non-GAAP terms contained at the end of the News Release
Fenn-Gib Production Profile
The PFS outlines a production profile based on a high-grade open pit with a projected operating mine life of 14.3 years, averaging
1.29 g/t Au and an anticipated metallurgical recovery averaging 88.3%. During the first 6 years of operations (years 1-6), annual gold
production is expected to average 71,336 oz at a feed grade of 1.47 g/t, with peak output of over 82,000 oz in year 2. The mined
Reserves represent only 24% of the overall 4.3 Moz Indicated Mineral Resource.
Figure 3: Gold Production Profile (CNW Group/Mayfair Gold Corp.)
Fenn-Gib Project Design Details
Mining
The Fenn-Gib mine design is based on a conventional truck-and-shovel open-pit operation. The mine plan incorporates an elevated,
operating cut-off grade (COG) of 0.8 g/t Au and is structured into three primary mining phases with two smaller satellite pits. Total
mined tonnes peak at 16 Mt per year or approximately 44 kt per day.
____________________________
6
*Mineralized waste is not processed in the PFS mine plan. This material falls below the elevated cut
off grade used for plant feed but remains above the economic cut
off grade. At the end of the mine life, approximately 27 Mt of this material
is stockpiled at an average grade of 0.51 g/t
Figure 4: Mined Tonnage by Material Type6 (CNW Group/Mayfair Gold Corp.)
Figure 5: Strip Ratio (CNW Group/Mayfair Gold Corp.)
In total, waste material mined over the LOM is estimated at
152 Mt
and will be placed in overburden stockpiles, mine rock storage
areas, and utilized in the construction of the tailings storage facility (TSF) embankments.
Figure 6: Fenn-Gib Ultimate Pit Design with Phases Source: AGP, 2025. (CNW Group/Mayfair Gold Corp.)
Processing and Recovery
The PFS process plant design for Fenn-Gib is based on metallurgical testwork completed to date and is considered a conventional
metallurgical flowsheet to treat gold ore to produce doré bars. The circuit consists of crushing and grinding targeting 80% passing
grind size (P
80
) of 106 µm, sulphide flotation at a mass pull of between 23 to 29%, rougher concentrate regrinding targeting P
80
of 13
µm and cyanidation, carbon-in-leach (CIL) adsorption, desorption and regeneration, with cyanide detoxification of the CIL tailings. The
design also considers the addition of a gravity concentration circuit in the future. The overall metallurgical recovery of 89.6% Au is
expected for a head grade of 1.5 g/t Au.
Figure 7: Process flow diagram Source: Ausenco, 2025 (CNW Group/Mayfair Gold Corp.)
The PFS plant design incorporates modularization concepts for key equipment and infrastructure. Modularization offers several
potential benefits, including reduced construction timelines, improved cost predictability, and enhanced quality control through off-site
fabrication. This approach also minimizes on-site labour requirements and mitigates weather-related delays, supporting a more
efficient and streamlined project execution.
Infrastructure
The Fenn-Gib Project infrastructure plan includes all major facilities required for mine development, processing, and support
operations. Key components include a process plant with crushing facilities, covered stockpile, and a reagent warehouse, as well as
mine maintenance facilities such as a truck shop, wash bay, and warehouses. Essential buildings will be constructed on-site, while
non-essential services are anticipated to be located in
Matheson
.
Site access will be via Highway 101, which connects to the Trans-Canada Highway with regional air service provided by the Timmins
Airport. A 5 km segment of Highway 101 will be realigned to ensure a safe clearance from the ultimate pit design. The PFS considers
the highway realignment construction following the initial construction phase. This timing will be reassessed in the next phase
depending on the timing related to the Ministry of Transport,
Ontario
approvals.
Tailings and waste management will utilize a paddock-style Tailings Storage Facility (TSF) constructed using a downstream design,
which is widely regarded as the preferred approach for long-term stability. The TSF design incorporates extensive site investigations
completed as part of the PFS work, ensuring that geotechnical, hydrological, and environmental conditions are fully considered. The
facility is engineered for co-disposal of tailings and Potentially Acid Generating (PAG) mine rock, with staged construction and
integrated water reclaim systems.
The site layout includes designated mine rock storage areas and overburden stockpiles, along with water management systems
designed to capture runoff and seepage. These systems will incorporate water management ponds and a treatment plant.
Construction power requirements of approximately 3 MW will be supplied via a grid connection early in the construction phase, with
provisions for emergency backup power to ensure continuity. For operations, the site will require approximately 16 MW of power,
with the preferred solution being a Hydro One grid connection through a 27.6 kV line from the Ramore Transformer Station. To
mitigate risk in the event of delays to the Hydro One distribution connection or approvals process, the Project has conceptualized an
alternate power source as a contingency. The operations power supply includes emergency backup systems as may be needed.
A construction camp (owned and operated by a third-party) is anticipated to be located off-site in
Matheson
, and no operations camp
is planned at this time.
Figure 8: Conceptual PFS Infrastructure and Site Layout Source: Mayfair, 2025 (CNW Group/Mayfair Gold Corp.)
Environmental and Permitting
Extensive baseline environmental studies have been underway since 2021, covering terrestrial and aquatic ecosystems, including
Species at Risk, groundwater, air quality, noise, geochemical characterization, and cultural heritage resources. Follow-up studies
continued through 2025 and are planned to extend into 2026. Results indicate environmental conditions typical of northeastern
Ontario
, with no critical constraints identified that would prevent mine development. Studies are considered suitably advanced to
initiate the environmental approvals process.
The Project is anticipated to proceed through the Provincial Class Environmental Assessment (EA) process and not trigger an
Individual EA under provincial requirements or a federal Impact Assessment (IA) under the Impact Assessment Act.
Early engagement with regulators has commenced, and the Company is in discussions with the
Ontario
government to advance the
EA and permitting processes in parallel. It is expected that the Company will submit the required application to the Ministry of Energy
and Mines (MEM) regarding participation in the 'One Project, One Process' (1P1P) initiative, which facilitates provincial approvals
through a dedicated Mine Authorization and Permitting Delivery Team early in 2026.
The Fenn-Gib Project will require permits and approvals typical of mine developments, primarily under provincial jurisdiction. An
authorization under the federal Fisheries Act may be required to address potential impacts to fish and fish habitat. A conceptual
closure strategy, forming the basis of the Closure Plan, has been developed in alignment with the Mine Rehabilitation Code of
Ontario
.
Community and Indigenous Affairs
Social and community engagement has focused primarily on the Apitipi Anicinapek Nation (AAN) due to its proximity to the Fenn-Gib
site. The Project is situated within Treaty 9 territory, approximately 20 km from the AAN community and within their traditional lands.
The Company and AAN have an active Exploration Agreement in place and will continue to advance consultation collaboratively, with
the intention of developing a Community Benefit Agreement for the Project. In addition, the Project is approximately 17 km from the
Town of Black River-
Matheson
and anticipates utilizing and contributing to the services and infrastructure of the Town. A 'good
neighbour' agreement with the Town of Black River-Matheson is anticipated.
Engagement with the identified regional Indigenous communities and local stakeholders will commence upon submission of the
Environmental Assessment documentation. The Company is committed to transparent communication regarding the Fenn-Gib Project
and its environmental design and impacts. The Project is expected to deliver regional benefits through employment, procurement
opportunities, and community investment.
Project Timelines and Next Steps
Figure 9: High-Level Schedule Source: Mayfair, 2025 (CNW Group/Mayfair Gold Corp.)
The Project plans to advance three key strategies in parallel:
Ontario
-led environmental approvals, Indigenous agreements, and the
engineering-design-procurement phase. These elements will progress concurrently to enable the start of major construction within an
estimated 24 to 36 months.
Beginning in early 2026, the Project will move into front-end engineering, followed by detailed engineering and long-lead, critical-path
procurement activities. It is anticipated that the Project control estimate will be finalized with 70% to 100% engineering completion
and critical construction and supply contracts in place.
Project designs related to environmental aspects of the Project and the permitting tasks are expected to be the critical path for
construction commencement.
The Project is envisioned to achieve commercial production within a five-year timeframe
Technical Report Preparation and Qualified Persons
The Pre-Feasibility Study and Mineral Reserves have an effective date of
19 December 2025
with the Mineral Resource estimate
having an effective date of
3 September 2024
. The Pre-Feasibility Study was prepared by independent Qualified Persons in
accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects. The report covers all key aspects of the
Project, including property description and location, geology, mineral resource and reserve estimates, mining methods, metallurgical
testing and recovery processes, project infrastructure, capital and operating cost estimates, economic analysis, and execution
planning.
For readers to fully understand the information in this news release, they should review the technical report that will be filed within 45
days in its entirety, including all qualifications, assumptions, exclusions, and risks. The report is intended to be read as a whole, and
individual sections should not be relied upon out of context.
The Qualified Persons ("QPs") responsible for the Study include:
Tommaso Roberto Raponi
, P.Eng., (Ausenco) – process plant design, process infrastructure, metallurgy, recovery methods, and
operating (plant and G&A) cost estimates, financial analysis
Gordon Zurowski
, P.Eng., (AGP) – mineral reserves, mining methods, mine design, and capital and operating costs related to
the mine, as well as contribution to the economic analysis
Craig Hall
, P.Eng. and
Richard Cook
, P.Geo. (Ltd.) (KP) – tailings and water management design, geotechnical aspects,
environmental and permitting considerations and closure cost estimates
Sarah Barabash
, P.Geo. (Ltd.) (Ecometrix) – geochemistry
Tim Maunula
, P.Geo. (TMAC) – mineral resource estimation and geological interpretation
Full detail of areas of responsibility of the QPs can be found in the Technical Report.
The content of this news release from the Study has been reviewed and approved by the QPs who authored the Study. In addition,
Drew Anwyll
, P.Eng., Chief Operating Officer of Mayfair, a QP as defined in NI 43-101, has reviewed the PFS on behalf of the
Company and has approved the technical disclosure contained in this news release. The full technical report, titled
"National
Instrument 43-101 Technical Report – Pre-Feasibility Study for the Fenn-Gib Project,
Ontario, Canada
"
, will be filed on SEDAR+
under
Mayfair Gold's
profile and will also be available on the Company's website at
www.mayfairgold.ca
.
Prefeasibility Study Conference Call
The Company will hold a conference call and webcast to discuss the financial results on
Friday, January 9, 2026
, at
10:00 am
Eastern Time
.
Conference Call
Participant Dial In (Toll Free):
1-866-807-9684
Participant International Dial In:
1-412-317-5415
Participants, please ask to join to the Mayfair Gold Fenn-Gib Pre-Feasibility Conference Call.
Webcast
Webcast URL:
https://event.choruscall.com/mediaframe/webcast.html?webcastid=mMj3MwRo
.
Replay Information
A conference call and webcast replay will be available until
January 16, 2026
. To access the conference call replay, please see
details below:
US/Canada Toll Free:
1-855-669-9658
International Toll:
1-412-317-0088
Replay Access Code:
2186285
Engaging Investor Relations and Communication Advisory Services
As part of its strategy to enhance communication and engagement with investors and other stakeholders following its transition year
in 2025, Mayfair has engaged several investor relations and capital markets consultants.
Mayfair has entered into an agreement with Adelaide Capital (
Adelaide
) a full-service investor relations and social media firm that
specializes in small-cap growth companies.
Adelaide
will help with investor marketing and communication, creation and design of
materials, co-ordination of
North America
focused non-deal roadshows, virtual campaigns and social media awareness building. As
per the agreement with
Adelaide
, the Company has agreed to pay a monthly fee of
C$10,000
for a 3-month term.
Adelaide
is
principally owned by Deborah Honig and is an arm's length company based in
Toronto, Ontario
. To the best of the company's
knowledge
Adelaide
does not have any interest, directly or indirectly, in the securities of the Company.
In addition, Mayfair has entered into an agreement with Swiss Resource Capital AG (SRC) a
Switzerland
-based investor relations
firm specializing in the resource space. Focusing its efforts in
Europe
, SRC will assist in messaging, communication, creation and
design of materials, non-deal roadshows, virtual campaigns, targeted investor outreach and affiliated media awareness programs.
Pursuant to the agreement, the company has agreed to pay a monthly fee of
6,000 CHF
per month for a 12-month term. SRC is an
arms-length private company based in Herisau,
Switzerland
and led by CEO
Marc Ollinger
. To the best of the company's knowledge
SRC does not have any interest, directly or indirectly, in the securities of the Company.
Lastly, Mayfair has entered into an agreement with Triomphe Holdings Ltd., doing business as Capital Analytica, a marketing and
public awareness company in the mining sector. Capital Analytica will provide digital awareness, monitoring and engagement
reporting services. Pursuant to the agreement, the company has agreed to pay
$150,000
payable in two tranches for a 6-month term
with an option to renew for additional 6-month terms at a rate of
$75,000
. Capital Analytica is an arms-length company based in
Nanaimo, B.C.
and led by its Founder
Jeff French
. To the best of the company's knowledge Capital Analytica does not have any
interest, directly or indirectly, in the securities of the Company.
About
Mayfair Gold
Mayfair Gold
is a Canadian gold development stage company focused on advancing the 100% controlled Fenn-Gib Project in the
Timmins
region of
Northern Ontario
. The PFS outlines the potential to develop Fenn-Gib into a new gold mine for initial development
capital of
$450 million
, with a base case payback period of 2.7 years and cumulative free cash flow of
$890 million
over the first six
years of production. The Company is advancing permitting activities, detailed engineering and stakeholder engagement with the goal
of starting construction in 2028 with initial production in 2030.
Cautionary Notes to U.S. Investors Concerning Resource Estimates
This news release has been prepared in accordance with the requirements of the securities laws in effect in
Canada
, which differ
from the requirements of the U.S. Securities and Exchange Commission applicable to domestic
United States
issuers. Accordingly,
the information concerning the Company's mineral properties contained in this news release is not comparable to the disclosure of
United States
issuers subject to the SEC's mining disclosure requirements, and the Company's disclosure of mineralization and other
technical information may differ significantly from the information that would be disclosed had the Company prepared the information
under the standards applicable to
United States
issuers.
Use of Non-GAAP Measures
Certain financial measures referred to in this news release are not measures recognized under IFRS (as defined below) and are
referred to as non-GAAP financial measures or ratios. These measures have no standardized meaning under IFRS and may not be
comparable to similar measures presented by other companies. The definitions established and calculations performed by Mayfair
are based on management's reasonable judgement and are consistently applied. These measures are intended to provide additional
information and should not be considered in isolation or as a substitute for measures prepared in accordance with IFRS.
The non-GAAP financial measures used in this news release and common to the gold mining industry are "free cash flow",
"Cumulative Net FCF", "Average Annual FCF", "
ASIC
" and "all-in sustaining cost per ounce of gold sold". These measures are non-
GAAP financial measures and have no standardized meaning under IFRS Accounting Standards ("IFRS") and may not be comparable
to similar measures used by other issuers.
Operating Costs include the direct costs of mining, processing, and site administration. Cash Costs include Operating Costs plus
royalties and production taxes. AISC includes mining, processing and administrative costs, royalties, production taxes, sustaining
capital expenditures, closure allowance, and other costs necessary to maintain planned production. Free Cash Flow is calculated as
cash flows from operating activities less capital expenditures and is intended to provide an indication of the cash generated by the
project.
As the Company is not in production, it does not have historical non-GAAP financial measures nor historical comparable measures
under IFRS, and therefore the foregoing prospective non-GAAP financial measures or ratios may not be reconciled to the nearest
comparable measures under IFRS.
Cautionary Note Regarding Forward Looking Information
This news release contains forward-looking information which reflects management's expectations regarding the Company's growth,
results of operations, performance and business prospects and opportunities. Forward-looking information in this news release
includes, but is not limited to, statements regarding the design, development and execution of the Project, the PFS demonstrating the
strong economics and free cash flow potential associated with developing the Project as a targeted, high-grade operation that can be
advanced through the
Ontario
permitting process, the belief that the permitting process can be advanced quickly, positioning the
Project for timely development within the current gold cycle, the Project having exceptional value potential, with strong free cash flow
and robust economics that further enhance its attractiveness to investors, finalizing engineering and design work, advancing
environmental approvals in preparation for a construction decision within the Company's target goal of two to three years, advancing
permitting activities, detailed engineering and stakeholder engagement with the goal of starting construction in 2028 with initial
production in 2030, and all economics set out in the PFS.
Forward-looking information is based on various reasonable assumptions including, without limitation, the expectations and beliefs of
management; the assumed long-term price of gold; that the Company can access financing, appropriate equipment and sufficient
labour; and that the political environment where the Company operates will continue to support the development and operation of