Fuerte Announces a Positive Preliminary Economic Assessment for the Coffee Gold Project; Positioning the Company as one of Canada's Next Gold Producers After-Tax NPV(5%) of US$2.3 Billion and IRR of 47.8% at Consensus Gold Prices
Fuerte Announces a Positive Preliminary
Economic Assessment for the Coffee Gold
Project; Positioning the Company as one of
Canada's Next Gold Producers
After-Tax NPV(5%) of US$2.3 Billion and IRR of 47.8% at Consensus Gold Prices
After-Tax NPV(5%) of US$4.0 Billion and IRR of 67.2% at Spot Gold Price
Vancouver, British Columbia--(Newsfile Corp. - February 22, 2026) -
Fuerte Metals Corporation
(TSXV: FMT) (OTCQB: FUEMF) ("Fuerte" or the "Company")
is pleased to announce the results of
its Preliminary Economic Assessment ("PEA") for the 100% owned Coffee Gold Project ("Coffee") in
Yukon, Canada.
Highlights:
Very robust economics:
After-Tax NPV(5%) of US$2.3 Billion, IRR of 47.8%, and payback
achieved in 1.7 years at analyst consensus gold prices
(1)
. After-Tax NPV(5%) of US$4.0 Billion,
IRR of 69.7%, and payback achieved in 1.2 years at spot gold prices
(2)
.
High-quality open-pit heap-leach mine with significant production:
249,000 oz per year on
average in the first full five years of production and 217,000 oz on average over the 13-year Life of
Mine.
Attractive cost profile:
Cash operating costs of US$1,136/oz and All-In Sustaining Costs
("AISC") of US$1,274/oz position the project in 2
nd
quartile of global producers.
Stable, supportive jurisdiction:
Strong support from the Yukon Government and agreements in
place with key First Nations provide momentum in a politically secure, established mining
jurisdiction.
Clear pathway to production:
PEA is the catalyst for significant early works in 2026, expected
receipt of mine permits by end of year, and a construction decision in early 2027.
1
Analyst consensus prices as at February 18, 2026: US$4,100/oz in 2029 and US$3,620 in 2030 and beyond.
2
Spot price scenario is based on US$5,000/oz, which is the LBMA gold price as of the close of business on February 18, 2026, of US$5,003/oz
rounded to the nearest $100/oz.
Fuerte's CEO, Tim Warman, commented:
"The positive results of the PEA strongly validate our
decision to acquire the Coffee project in 2025. We will be moving ahead with an aggressive timeline
and early works program in 2026, including construction of the remaining portions of the access road
from Dawson to the Coffee Project, which we anticipate beginning on receipt of road-related permits
later this spring. We expect to obtain the key remaining mine licenses by year-end, which would pave
the way for a construction decision for the project in early 2027. We are excited to drive forward with
Coffee and to deliver significant economic benefits to our shareholders, residents of the Yukon, and
our First Nations partners."
We respectfully acknowledge that protection of the water and lands around the Coffee Creek and mine
project area is of high importance to First Nations. Through cooperation, transparency, and respect, we
pledge to continue to build on relationships with Tr'ondëk Hwëch'in, White River First Nation, Selkirk
First Nation, and the First Nation of Na-Cho Nyäk Dun, whose Traditional Territories overlap or partially
overlap with the project access road, and areas where exploration and mining activities may occur.
PEA Summary
The PEA contemplates a high-grade open-pit heap-leach mine with an initial planned mine life of
approximately 13 years. Coffee is expected to produce 249,000 saleable gold ounces per year on
average for the first full five years of production and an average of 217,000 saleable gold ounces per
year over the life of mine ("LOM") at an attractive AISC of US$1,274/oz.
Consistent with PEA studies, the production profile includes Inferred resources and is provided in the
chart below. Approximately 16% of the ounces mined in the PEA profile are in the Inferred category,
which cannot be included in the Feasibility Study scheduled for Q4/26. In order to upgrade a portion of
these Inferred ounces to the Indicated category, the Company will commence an infill drilling program in
Q1/26. The mineralization at Coffee is such that it hosts a number of high grade near surface zones that
enable the mining of good grade material early in the mine plan allowing for higher average production in
the initial five years.
LOM annual gold production with Inferred contribution
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The PEA mine plan estimates a robust internal rate of return (IRR) of 47.8% and after-tax net present
value (NPV5%) of US$2.3 billion at analyst consensus gold prices (US$3,620/oz long-term) and a
foreign exchange rate of 1.39 CAD per 1.00 USD. The mineral resources included in the mine design
are from pit shells developed using a gold price of US$2,500/oz.
PEA Study Highlights
PEA Study Highlights
LOM Production
Material Mined
Mt
90.5
Gold Grade
(g/t)
1.25
Contained Gold
kozs
3,644
Processed Material Stacking Rate
Mtpa
7.4
Average Recovery
Rec
%
77.5%
Recovered Gold
kozs
2,824
Strip Ratio
waste: material
processed
7.6
Mine Life
years
13
Annual Production (Saleable Gold)
Annual Production - First Full 5 Years
oz/yr
249,000
Annual Production - Life of Mine
oz/yr
217,000
Operating Costs
Avg. LOM Operating Costs
C$/t processed
44.24
Total Cash Costs
1
US$/oz
1,136
All-in Sustaining Cost - First Full 5 Years
1
US$/oz
1,166
All-in Sustaining Cost
1
US$/oz
1,274
Capital Costs
Total Direct Capital Costs
C$M
638.5
Indirect Costs
C$M
165.3
Contingency
C$M
179.4
Total Initial Capital
C$M
983.1
Sustaining Capital
C$M
558.8
Economic Attributes
Gold Price
US$/oz
Consensus
2
Spot
3
After Tax NPV(5%)
US$B
2.3
4.0
After Tax IRR
%
47.8
67.2
Payback Period
years
1.7
1.2
1
Total Cash Costs are a non-GAAP financial measure and include mining, processing, refining & transport, G&A and royalty costs. All-in Sustaining
Costs (AISC) is a non-GAAP financial measure and is comprised of total cash costs, sustaining capital expenditures to support the on-going
operations, and closure costs.
2
Analyst consensus prices as at February 18, 2026: US$4,100/oz in 2029 and US$3,620 in 2030 and beyond.
3
Spot price scenario is based on US$5,000/oz, which is the LBMA gold price as of the close of business on February 18, 2026, of US$5,003/oz
rounded to the nearest $100/oz.
Economic Sensitivities
The following table provides a sensitivity analysis of key project economic parameters at various gold
prices.
Project Economics - Gold Price Sensitivity
Gold Price (US$/oz)
$2,500
Consensus
1
$4,500
Spot
2
$5,500
Pre-tax NPV(5%) (US$M)
1,678
3,770
5,414
6,234
7,282
After-tax NPV(5%) (US$M)
983
2,326
3,380
3,963
4,578
Pre-tax NPV(5%) (C$M)
2,332
5,241
7,526
8,665
10,122
After-tax NPV(5%) (C$M)
1,366
3,233
4,698
5,508
6,363
After-tax IRR (%)
26.4
47.8
62.1
67.2
76.9
Payback (years)
2.9
1.7
1.4
1.2
1.1
1
Analyst consensus prices as at February 18, 2026: US$4,100/oz in 2029 and US$3,620 in 2030 and beyond.
2
Spot price scenario is based on US$5,000/oz, which is the LBMA gold price as of the close of business on February 18, 2026, of US$5,003/oz
rounded to the nearest $100/oz.
The following chart provides the rolling after-tax NPV(5%) at both analyst consensus and spot prices.
The chart demonstrates the go-forward value of the project once the capital for the project has been
incurred.
Rolling After-Tax NPV(5%)
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Resource Estimate
The Mineral Resource Estimate ("MRE") used in the PEA is unchanged from that presented in the
technical report prepared for Fuerte Metals Corporation and entitled "NI 43-101 Technical Report for the
2025 Mineral Resource Estimate Update on the Coffee Gold Project, Yukon, Canada" prepared by
Micon International Ltd. ("Micon"). The MRE has an effective date of August 21, 2025.
Resource Category
Tonnage
(kt)
Gold Grade
(g/t)
Contained Gold
(gold koz)
Measured
1,200
1.80
69
Indicated
78,846
1.14
2,888
Measured + Indicated
80,046
1.15
2,957
Inferred
21,200
1.17
800
Notes to Table
1
.
Economic parameters used in the resource are a gold price of US$2,500/oz; heap leach average recoveries for the individual metallurgical
domains of 86.3% for Oxide, 76.0% for Upper Transition, 54.5% for Middle Transition and 31.4% for Lower Transition; a mining cost of
C$3.27-$3.50/t, processing costs of C$6.64/t, and general and administrative costs of C$6.0/t. A CAD:USD exchange rate of 1.35 was also
assumed.
2
.
The calculated cut-off grades vary between 0.13 g/t Au and 0.48 g/t Au, depending on the metallurgical domain. The global weighted
average cut-off grade is 0.18 g/t Au, with domain tonnage contributions comprising 64% Oxide, 18% Upper Transition, 5% Middle Transition,
and 13% Lower Transition.
3
.
Design inter-ramp angles vary between 46.3 and 48.3 degrees in pit walls governed by bedding and foliation stability. Pit walls not expected
to be impacted by southerly dipping bedding and foliation are designed at inter-ramp angles between 51.7 and 55.3 degrees.
4
.
Pit optimization was done on 12x12x10 m re-block model with a minimum of 4x4x5 m regularized SMU.
5
.
Numbers have been rounded to the nearest for thousand tonnes and ounces. Differences may occur in totals due to rounding.
6
.
The mineral resources described above have been prepared in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum
Standards and Practices.
7
.
Messrs. Alan J. San Martin, P.Eng. and Charley Murahwi, P.Geo. from Micon International Limited are the Qualified Person (QP) for this
Mineral Resource Estimate.
8
.
Mineral resources are not mineral reserves as they have not demonstrated economic viability. The quantity and grade of reported Measured,
Indicated and Inferred mineral resources in this news release are uncertain in nature; however, it is reasonably expected that a significant
portion of Inferred Mineral Resources could be upgraded into Measured and Indicated Mineral Resources with further exploration.
9
.
Micon's QPs have not identified any legal, political, environmental, or other factors that could materially affect the potential development of
the mineral resource estimate.
Mining
The Coffee Gold Project will be mined by conventional truck / loader open pit operations with an average
annual production rate of 7.4 Mt of material processed, and a LOM strip ratio of 7.6:1. Material to be
leached will be mined principally from four pits, with minor production from smaller pits, over an expected
13-year mine life. Mining will take place year-round, with material to be leached delivered by truck from
the pits to the crusher except in the coldest period of the year (approximately three months) when this
material will be stockpiled.
Processing
Run-of-mine ("ROM") process material will be delivered from the pits via trucks and dumped into the
primary gyratory crusher at an average daily rate of about 26,900 t. A ROM stockpile area with a
capacity of ~1.5 Mt will allow the stockpiling of material to be processed when the crusher is not running,
particularly during the winter months. There will be two-stage crushing with a final target product size of
P80 of 50 mm. Material to be processed will be stacked on the Heap Leach Facility ("HLF") by
conveyors.
The HLF will consist of a conventional, multi-lift, free-draining ridge-top leach pad, ponds, access roads,
and leachate solution distribution and collection piping. Barren solution will be irrigated onto the heap
using drip irrigation. Pregnant (gold-bearing) solution will be collected at the base of the heap leach pad
by impermeable membranes and piping. The pregnant solution will flow to the process plant by gravity
for gold recovery.
The leach pad will be constructed in stages, with each stage large enough to provide capacity for one
and a half to three years of operation. The pad will be lined with two liners: a geosynthetic clay liner at the
base directly overlain by an impermeable collection geomembrane. A network of drainage pipes within a
layer of permeable gravel at the base of the pad will collect and direct the pregnant solution into trunk
lines on each flank of the pad and transport it by gravity to the process plant. A series of horizontal
trenches or wick drains will be installed beneath the liner system to detect leakage.
Process solution (barren, pregnant and heap rinse water) will be stored in tanks located at the plant. The
barren solution will be heated when necessary to ensure that the thermal integrity of the system and the
leach pad is maintained. Ponds adjacent to the heap leach pad will be used to store contact and clean
water generated from seasonal and storm events, heap upset conditions (e.g., power loss), and normal
precipitation runoff.
Leached gold will be recovered from solution using an activated carbon adsorption circuit. The gold will
then be stripped from carbon using a desorption process followed by electrowinning to produce a
precipitate sludge, which is refined on site in a furnace to produce doré bars as final products.
Heap Leach Facility Engineering and Safety
The safety of the HLF is of paramount importance to our team, who have taken a proactive approach to
carry out a robust technical review of the HLF design and operating procedures, including:
A
third-party expert review
of all existing HLF documentation, including but not limited to;
foundation investigations, design plans, stability assessments, HLF water balance, and operating
and closure plans. That work was completed and recommendations from that review were made to
HLF design and operating procedures planning and documentation.
A failure modes and effects analysis
was completed in 2025 for the HLF which included the
third-party technical experts, as well as the project team and HLF engineers and informed by
findings from
the Independent Review Board
investigation into the Eagle Gold Mine Heap
Leach Failure. Recommendations from that investigation have been evaluated and integrated into
the Project HLF design, operation, maintenance and closure plans where appropriate. The design
and operation of the Coffee HLF will be monitored by an Independent Technical Review Board,
one of the key recommendations arising from the Eagle Mine investigation.
The HLF design has had 10 years of progressively detailed design and substantial engineering review,
and the design incorporates conventional stacking of well-drained material and a conservative
water/solution management design that allows for unplanned events and contingencies.
Capital Costs
The direct construction capital for Coffee is estimated at C$638.5 million, including off-site costs of
C$71.3 million for the Northern Access Route, which will provide road access to site from Dawson City.
Mobile mining equipment costs are included in the direct construction capital at C$89.2 million for the
primary equipment and $39.2 million for the auxiliary equipment, reflecting the purchase of an owner-
operated mining fleet. Indirect costs are estimated at C$165.3 million and contingency is C$179.4
million. Sustaining capital over the life of mine (including contingency) is estimated at C$558.8 million
and closure costs are estimated at C$182.6 million.
Capital Cost Summary
C$ millions
Direct Construction Capital
567.2
Northern Access Route
71.3
Total Direct Capital Costs
638.5
Indirect Costs
165.3
Contingency
179.4
Total Initial Capital
983.1
Sustaining Capital - LOM
558.8
Reclamation Costs
182.6
Total LOM Capital Incl. Sustaining & Reclamation
1,724.5
Operating Costs
Operating costs average C$44.24/tonne stacked and are based on estimates provided by WSP for
labour and consumables. Total cash costs are forecast to average US$1,136/oz of gold produced over
the life of mine and All-in Sustaining Costs (AISC) are expected to average US$1,274/oz. Costs in the
first full five years of the mine plan will benefit from the processing of higher-grade material and AISC will
average US$1,166/oz over the period.
Operating Cost Summary
(C$)
(US$)
Mining Costs ($/t material stacked)
30.32
21.81
Site Services Costs ($/t material stacked)
1.84
1.32
Processing Costs ($/t material stacked)
6.48
4.67
G&A Costs ($/t material stacked)
5.60
4.03
Total Operating Costs ($/t material stacked)
44.24
31.83
Total Operating Costs ($/oz gold sold)
1,412
1,016
Royalties ($/oz)
1
140
101
Refining & Transport ($/oz)
28
20
Total Cash
Cost ($/oz gold sold)
1,579
1,136
Sustaining Capital & Other ($/oz)
192
138
All-in Sustaining Cost ($/oz sold)
1,771
1,274
1
Royalty costs include payments to third party royalty holders and assume that a buyback of half of a 2% NSR is exercised prior to commercial
production and that the 3% NSR to Newmont is re-purchased at the end of the first year of commercial production.
Environmental, Social, and Permitting
The Coffee Gold Mine Project is nearing the completion of mine permitting; the environmental and
socioeconomic assessment process was completed in 2022, and major mine license applications were
filed in 2023.
The Quartz Mining Licence (QML) and Water Use Licence (WUL) are required to advance
major mine construction and operations activities, and the company anticipates receipt of these permits
by year-end 2026.
The Coffee Gold Mine Project licensing documents do not fully reflect the scope of the project outlined in
the PEA and amended permits will be required to fully realize the value of the Coffee Project.
The first
several years of mine construction and operation will not require material divergence from the mine
permit approvals, and the Company intends to pursue additional permitting, as required, in parallel with
mine development and production.
Next Steps
The Company is planning a 40,000-metre drill program in 2026, for the purposes of both upgrading the
confidence level of existing mineral resources and testing new targets.
The infill drill program will focus on upgrading the mineral resource confidence in the Supremo Extension
deposit and parts of Latte deposit to the Measured and Indicated category to improve confidence and
bring additional resources into the Feasibility Study. The Feasibility Study will also evaluate potential
opportunities to improve productivity and overall project performance.
While the majority of drilling will focus on infill, a portion of the 2026 drill program will be allocated to test
new targets at the project. The Coffee project is situated on a 70,000 hectare claim package with the
potential for resource expansion as well as new discoveries.
With the positive results of the PEA, the Company is planning an Early Works program to complete
several strategic initiatives that will help accelerate the construction timeline once a construction
decision is made. The initiatives permissible under our existing permits include:
New airstrip that allows larger aircraft and night flights
Installation of a construction camp
Development of laydown areas
Other minor projects (Ex., aggregate stockpiling, powder magazine, etc.)
Upon receipt of the remaining permits for the Northern Access Route ("NAR"), the company is also
planning to begin work on the site access road from Dawson City to the project. The NAR is a ~214 km
road, much of which currently exists in the form of public roads to access nearby placer gold operations.
Approximately 40 km of new road will be built with the remainder requiring upgrades for more permanent
use.
The Company is also advancing the previously announced Feasibility Study with G Mining Services, who
will also manage construction of the project. Once the permits are received, our ambition is to be in a
position to make a construction decision in early 2027.
About Fuerte Metals Corporation
Fuerte is a Canadian exploration and development company focused on advancing high-potential
precious metals and base metals projects across the Americas. Our flagship asset is the 100%-owned
Coffee Project in the Yukon, Canada - a high-quality gold project advancing through the final stages of
permitting, engineering, and resource expansion drilling in preparation for a construction decision.
Coffee hosts 3.0 million ounces of open-pit heap-leach Measured and Indicated Resource and an
Inferred Resource of 0.8 million ounces. We respectfully acknowledge that protection of the water and
lands around the Coffee Creek and mine project area is of high importance to First Nations. Through
cooperation, transparency, and respect, we pledge to continue to build on relationships with Tr'ondëk
Hwëch'in, White River First Nation, Selkirk First Nation, and the First Nation of Na-Cho Nyäk Dun, whose
Traditional Territories overlap or partially overlap with the project access road, and areas where
exploration and mining activities may occur. In addition to Coffee, Fuerte holds a portfolio of copper and
gold assets, including the Placeton-Caballo Muerto Project in Chile and the Cristina and Yecora Projects
in Mexico, offering additional growth and exploration upside. At Fuerte, we are committed to building
value through disciplined project development, responsible stewardship of the land, a safety-focused
culture, and creating long-term returns for shareholders.
Qualified Persons
The Preliminary Economic Assessment was prepared by independent Qualified Persons in accordance
with National Instrument 43-101 - Standards of Disclosure for Mineral Projects. A technical report on the
Coffee Gold Project will be prepared in accordance with National Instrument 43-101 and filed under the
Company's profile on SEDAR+ and on the Company website within 45 days.
The report will cover all key aspects of the Project, including property description and location, geology,
mineral resource estimates, mining methods, metallurgical testing and recovery processes, project
infrastructure, permitting, capital and operating cost estimates, and economic analysis.
The Qualified Persons ("QPs") responsible for the Study include:
Charley Murahwi., (Micon) - Mineral Resource Estimates
William Richard McBride and David Jin., (WSP) - Process Plant Design, Process Infrastructure,
Metallurgy, Recovery Methods, and Operating (plant and G&A) Cost Estimates, Financial Analysis
Lasha Young and Kim Ferguson., (WSP) - Environmental Studies, Permitting and Social or
Community Impacts
Marc Rougier., (WSP) - Waste Rock Storage Design, Project Infrastructure
John Kurylo., (SRK) - Mine Waste and Water Management Infrastructure (geotechnical)
Samantha Barnes., (SRK) - Mine Waste and Water Management Infrastructure (hydrotechnical)
Hannah Chiew., (Ensero) - Water Treatment
Russ Downer., (Open Contour) - Responsible for Mine Optimization, Mine Design, and Mine
Schedule
Barry Calson., (Forte Dynamics) - Heap Leach
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, Mr. Denis Flood, P.Eng., Chief Operating Officer of Fuerte Metals and a
QP as defined in NI 43-101, has reviewed the PEA on behalf of the Company and has approved the
technical disclosure contained in this news release.
The PEA is preliminary in nature and includes inferred mineral resources that are considered too
speculative geologically to have economic considerations applied that would enable them to be
categorized as mineral reserves. There is no certainty that the PEA will be realized. Mineral resources
that are not mineral reserves do not have demonstrated economic viability.
Additional Information