Wallbridge Mining Completes Updated Positive Preliminary Economic Assessment of Fenelon Gold Project
Wallbridge Mining Completes Updated
Positive Preliminary Economic Assessment of Fenelon Gold Project
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Toronto, Ontario – March 27 , 202 5 – Wallbridge Mining Company Limited (TSX:WM,
OTCQB:WLBMF) (“Wallbridge” or the “Company”) is pleased to report results from an
updated positive Preliminary Economic Assessment (“ PEA”) completed on its 100% -owned
Fenelon gold project (“Fenelon” or the “Project”) located in the Abitibi Greenstone Belt, along
the Detour -Fenelon Gold Trend, Quebec. A PEA prepared in accordance with National
Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) has been filed
on SEDAR+ and is available on the Company’s website and can be accessed here.
All results herein are reported in Canadian dollars unless otherwise indicated.
PEA HIGHLIGHTS
• Average annual gold production of 107,000 oz per year over 16-year life of mine (“LOM”);
96% average gold recovery
• Average annual gold production of 127,000 oz during the first five years
• Average annual free cash flow of $120 million over LOM
• After-tax Internal Rate of Return (“IRR”) of 21%
• After-tax Net Present Value (“NPV”) of $706 million at base case gold price of US$2,200
and CAD$:US$ of 1.35:1.00 at a 5% discount rate
• Initial capital expenditures (1) of $579 million
• Sustaining capital expenditures (1) of $449 million
• Total cash costs (1) of US$851/oz
• All-in sustaining costs (1) (“AISC”) of US$1,046/oz
• 16.6 Mt of mineralized material mined at an average grade of 3.34 g/t
1. Non-IFRS financial measures with no standardized definition under IFRS. Refer to Non-IFRS Measures at end of this news
release.
The Company cautions that the results of the PEA are preliminary in nature and include inferred
mineral resources that are considered too speculative geologically to have economic
considerations applied to them to be classified as mineral reserves. There is no certainty that the
results of the PEA will be realized.
Brian Penny, CEO of Wallbridge, commented:
“Fenelon is a gold project with tremendous potential. This updated Fenelon PEA generates
strong project economics under a lower risk, higher grade, lower startup capital
scenario. Fenelon has now reached another milestone with a robust PEA that demonstrate s a
viable path to development and attractive economic returns based on reasonable assumptions.
The PEA was designed to be rigorous, using current cost data from contractors, suppliers and
mining companies operating in the region to arrive at realistic pro jections. It represents a new
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starting point to build upon as we scope out the full opportunities at Fenelon and Martiniere, the
two most advanced projects on our large, underexplored property.
In this historic ally high gold price environment, we need to rapidly advance the project . The
current plan has a shorter payback than the previous plan and allows us to consider expansion
options after payback has been achieved.
I would like to thank everyone who contributed to the completion of this study, as well as our
employees, stakeholders, and shareholders for their continuous support. I believe Wallbridge
has a bright future, and we look forward to taking the necessary steps to increase value for our
shareholders.”
Table 1: PEA Summary of Key Metrics and Project Economics
SUMMARY OF PROJECT ECONOMICS Mar 21, 2025
Base case gold price (US$) 2,200
Exchange rate (CAD$:US$) 1.35:1.00
Discount rate (%) 5.0
NSR Royalty on Fenelon Mine Property (%) 4.0
Mining Parameters
Average grade mined (g/t) 3.34
Cut-off grades (g/t) 2.25 (CTC)
2.51 (A51)
Mining rate (tpd) 3,000
Total tonnage mined (Mt) 16.6
Mine life (years) 16.0
Processing Parameters
Processing recovery (%) 96.0
Processing rate (tpd) 3,000
Total tonnage milled (Mt) 16.6
Average annual production (oz/year) 107,000
Average annual production (first five years) (oz/year) 127,000
Total production (oz) 1,711,000
Capital Expenditures
Initial capital expenditure (3) ($M) 579
Sustaining capital expenditure (3) ($M) 449
Closure costs (3) ($M) 9
Salvage value ($M) 26
Operating Costs
Total operating costs ($/t milled) 106
Cost Per Ounce
LOM total cash costs (1) (3) (US$/oz) 851
LOM all-in sustaining costs (2) (3) (US$/oz) 1,046
Financial Analysis
Pre-tax NPV5% ($M) 1,176
Pre-tax IRR (%) 27
Post-tax NPV5% ($M) 706
Post-tax IRR (%) 21
Post-tax payback period (from start of commercial production) (years) 4.0
Profitability Index (post-tax NPV5% /initial capital) - 1.22
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1. Total cash costs per ounce are operating costs, composed of mining (UG and OP), processing, water treatment
and tailings, minesite G&A and royalty costs, divided by payable gold ounces.
2. AISC/oz includes operating costs, sustaining capital expenditures to support the on-going operations, and
closure costs, divided by payable gold ounces.
3. Non-IFRS financial measures with no standardized definition under IFRS. Refer to note at end of this news
release.
Financial Analysis
The PEA assumes a base case gold price of US$2,200/oz. Using that base case assumption,
the Project generates an after-tax NPV of $706 million using a 5% discount rate and an after -
tax IRR of 21%.
The Project generates cumulative free cash flow of $1,367 million and averages annual free
cash flow of $120 million over a mine life of 16 years (Figure 1). Total taxes payable over LOM
at the base case gold price is $776 million.
Figure 1. Annual After-Tax Free Cash Flow (millions)
Sensitivities
The PEA financial economic analysis is significantly influenced by gold prices. At a gold price
of US$3,000/oz and FX of CAD$:US$ of 1.35:1.00, the Project generates an after -tax NPV of
$1,381 million and an after-tax IRR of 34% with a payback period of 2.4 years from the start of
commencement of production (Table 2).
Table 2: PEA Sensitivity Analysis
Gold Price
(USD) FX NPV ($M) IRR Payback
(Years)
1800 (-18%) 1.35 353 13% 5.7
1900 (-14%) 1.35 443 15% 5.0
2000 (-9%) 1.35 532 17% 4.6
2100 (-5%) 1.35 619 19% 4.3
2200 1.35 706 21% 4.0
2300 (+5%) 1.35 792 22% 3.7
2400 (+9%) 1.35 878 24% 3.4
2500 (+14%) 1.35 963 26% 3.1
2600 (+18%) 1.35 1047 27% 2.9
3000 (+36%) 1.35 1381 34% 2.4
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Operating Costs NPV ($M) IRR
Base Case -30% 912 25%
Base Case -20% 845 24%
Base Case -10% 776 22%
Base Case 0% 706 21%
Base Case +10% 635 19%
Base Case +20% 563 18%
Base Case +30% 490 16%
Capital Expenditures NPV ($M) IRR
Base Case -30% 855 30%
Base Case -20% 806 26%
Base Case -10% 756 23%
Base Case 0% 706 21%
Base Case +10% 655 19%
Base Case +20% 604 17%
Base Case +30% 552 15%
Production
Annual production over LOM is expected to average 107,000 ounces with peak production of
141,000 ounces in year 1 (Figure 2).
Figure 2. Production Profile
Capital Expenditures
The initial capital expenditures are estimated at $579 million, and the sustaining capital
expenditures are estimated at $449 million (Tables 3 & 4). A contingency of $57 million and $20
million is included in initial and sustaining capital expenditures, respectively.
Initial and sustaining capital expenditures were estimated based on current costs received from
141 139
121 111 122 111 114 115 103 101 103
134 117
98
69
13
3.36
4.14
3.54 3.31
3.59
3.32 3.36 3.39
3.06 2.98 3.04
3.93
3.48
2.91 2.67 2.59
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
4.50
0
25
50
75
100
125
150
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Grade
Annual production, Koz
Production Year
Annual Ounces produced Grade
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vendors as well as developed from first principles, while some were estimated based on
factored references and experience from similar operating projects.
Table 3: Initial Capital Expenditures
Cost Element Initial Capital ($M)1,2
Mill 217
Paste Plant 43
Tailings and Water Treatment 22
Capitalized Operating (Pre-production) 75
Surface Civil & Infrastructure 80
Mining Equipment 31
Underground Development 54
Underground Infrastructure 28
Hydro Electric Line & Distribution 29
Total Initial Capital $579
1. All values stated are undiscounted. No depreciation of costs was applied.
2. Non-IFRS financial measures with no standardized definition under IFRS. Refer to Non-IFRS Measures at end of
this news release.
Table 4: Sustaining Capital Expenditures
Cost Element Sustaining
Capital ($M)1,2,3
Mining Equipment 145
Development 161
Tailings & Water Treatment 64
Paste Distribution Network 8
Underground Infrastructure 32
Surface Infrastructure 29
Closure 9
Open pit (OB Excavation + Contractor) 3
Total Sustaining Capital $449
1. All values stated are undiscounted. No depreciation of costs was applied.
2. Non-IFRS financial measures with no standardized definition under IFRS. Refer to Non-IFRS Measures at end of
this news release.
3. Due to rounding, columns may not add up.
Total Cash Costs
The total unit cash costs are estimated at US$851/oz. The AISC is estimated at US$ 1,046/oz.
Operating cost estimates were developed using first principles methodology, vendor quotes,
and productivities being derived from benchmarking and industry practices.
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Table 5: Total Cash Costs
LOM Total
$ million
Average LOM
($/tonne milled)
Average LOM
(US$/oz)
Mining (UG & OP) 900 56 390
Processing 423 25 183
Water Treatment &
Tailings 66 4 28
General & Admin. 374 22 162
Royalty (4%) 202 12 88
Total Cash Costs 2,3 1,965 119 851
1. All values stated are undiscounted. No depreciation of costs has been applied.
2. Non-IFRS financial performance measures with no standardized definition under IFRS. Refer to Non-IFRS
Measures at the end of this news release.
3. Total cash costs include mining (UG and OP), processing, water treatment and tailings, minesite G&A and
royalty costs.
Mineral Resource Estimate
The updated mineral resource estimates (“ MRE”) for the Fenelon and Martiniere deposits
presented in this news release were prepared by Mauro Bassotti , P.Geo., an independent
mineral resource consultant using all available information. The effective date of the 2025 MRE
is March 20, 2025. The databases supporting the 2025 MREs are complete, valid and up to
date, with close-out dates of October 22, 2024 and January 8, 2025 for Fenelon and Martiniere
respectively. The 2025 Mineral Resource Statement for the Detour -Fenelon Gold Trend
Property is presented below in Table 6. The statement provides the consolidated estimates for
the Fenelon and Martiniere deposits. Details are provided in Item 14 of the PEA technical
report.
Table 6: Detour-Fenelon Gold Trend Property 2025 Mineral Resource Statement by
Deposit
DEPOSIT
INDICATED INFERRED
Tonnes
(000’s)
Gold
Grade
(Au g/t)
Gold
Ounces
(000’s)
Tonnes
(000’s)
Gold
Grade
(Au g/t)
Gold
Ounces
(000’s)
FENELON
OP @ > 0.45 g/t Au 3,121 2.50 251 2,313 2.53 188
UG @ > 1.45 g/t Au 11,966 3.91 1,503 12,715 3.57 1,461
Total 15,087 3.62 1,754 15,028 3.41 1,649
MARTINIERE
OP @ > 0.49 g/t Au 3,928 1.97 249 1,982 2.22 142
UG LH @ > 1.60 g/t Au 750 3.89 94 1,813 4.06 237
UG CF @ > 2.15 g/t Au 25 4.29 3 75 3.62 9
Total 4,703 2.29 346 3,870 3.11 387
Total Fenelon & Martiniere
Open Pit & Underground 19,790 3.30 2,100 18,899 3.35 2,037
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Notes to accompany the Detour-Fenelon Gold Trend Property 2025 Mineral Resource Statement:
1. The effective date of the 2025 MREs is March 20, 2025.
2. The 2025 MREs follow CIM Definition Standards (2014) and CIM MRMR Guidelines (2019).
3. The qualified person (“ QP”) for the 2025 MREs is Mr. Mauro Bassotti (P.Geo.) who is an independent mineral resource
consultant.
4. The criterion of reasonable prospects for economic extraction has been met by having constraining volumes applied to
estimated blocks using GEOVIA Whittle pit optimizer (“Whittle”) software for open pit mineral resources and using Deswik Stope
Optimizer (“ DSO”) software for underground mineral resources, and by the application of cut -off grades appropriate to the
potential mining extraction scenario (i.e., open pit, underground long -hole, underground cut -and-fill). Constraining 3D Whittle
open pit and DSO u nderground stope volumes have been generated based on a gold price assumption of US$2,150 per troy
ounce. A minimum mining width of 2.0 m was used for underground stope optimization.
5. The potentially economic open pit shells and underground DSO shapes used for reporting the 2025 MREs have been generated
by Mr. Simon Boudreau (P.Eng.), Senior Mining Engineer for InnovExplo Inc., a member of Norda Stelo Inc.
6. For the Fenelon deposit, sixteen (16) mineralized domains and four (4) surrounding alteration envelopes were modelled in 3D
to the true thickness of the mineralization. Supported by measurements, a density value of 2.80 g/cm 3 was applied to blocks
inside mineralized domains and 2.81 g/cm3 to blocks inside alteration envelopes. High-grade capping was applied to raw assay
data and established on a per -zone basis, ranging between 7 g/t Au and 100 g/t Au for the mineralized domains, and a fixed
capping value of 10 g/t Au for the alteration envelopes. One-metre (1.0 m) sample assay composites were calculated within the
mineralized domains and alteration envelopes using the grade of the adjacent material when assayed or a value of 0.001 when
not assayed.
7. For the Martiniere deposit, sixteen (16) mineralized domains and ten (10) surrounding alteration envelopes were modelled in
3D to the true thickness of the mineralization. Supported by measurements, the mean density value of the domain was applied
to the blocks inside mineralized domains and alteration envelopes, with density values ranging from 2.80 to 3.09 g/cm 3. High-
grade capping was applied to raw assay data and established on a per -zone basis, ranging between 15 g/t Au and 100 g/t Au
for the mineralized domains, and a fixed capping value of 5 g/t Au for the alteration envelopes. 1.0 m composites were calculated
within the mineralized domains and alteration envelopes using the grade of the adjacent material when assayed or a value of
0.001 when not assayed.
8. The cut-off grades for the Fenelon deposit were calculated using a gold price of US$2,250/oz; a USD/CAD exchange rate of
1.35; a refining cost of $5.00/t; a processing cost of $30.00/t; a mining cost of $5.75/t (bedrock) or $5.95/t (overburden) f or the
surface portion; a mining cost of $90.00/t for the underground portion; and a G&A cost of $10.00/t. A metallurgical recovery of
95.0% and royalty of 4.0% were applied to the cut-off grade calculations.
9. The cut-off grades for the Martiniere deposit were calculated using a gold price of US$2,250/oz; a USD/CAD exchange rate of
1.00:1.35; a refining cost of $5.00/t; a processing cost of $30.00/t; a mining cost of $5.75/t (bedrock) or $5.95/t (overburden) for
the surface portion; a mining cost of $125.00/t for the underground portion using the long -hole mining method (“LH”), a mining
cost of $135.00/t for the underground portion using the cut -and-fill mining method (“CF”); and a G&A cost of $10.00/t. A
metallurgical recovery of 85.0% and royalty of 2.0% were applied to the cut -off grade calculations. The metallurgical recovery
is based upon a metallurgical characterization study completed in December 2024 (SGS, 2024; Wallbridge news release dated
December 19, 2024).
10. Tonnage estimates are reported to the nearest 1000 tonnes (000’s). Contained gold estimates are reported to the nearest 1000
troy ounces (000’s).
11. These mineral resources are not mineral reserves as they do not have demonstrated economic viability.
12. The QP is not aware of any known environmental, permitting, legal, title -related, taxation, sociopolitical or marketing issues, or
any other relevant issue, that could materially affect the potential development of mineral resources other than those discus sed
in the 2025 MREs.
13. Results are presented in situ. Ounce (troy) = metric tons x grade/31.10348. Any discrepancies in the totals are due to roundi ng
effects; rounding followed the recommendations as per NI 43 -101.
The reader should note that the 2025 PEA does not include the Martiniere deposit mineral
resource estimate.
Mining
The mine will have a production rate of 3,000 tonnes per day (“tpd”) over a 16-year LOM.
A total of 16.6 Mt of mineralized material at an average grade of 3.34 g/t will be extracted from
three different mining zones:
1. Contact-Tabasco-Cayenne (“C-T-C”), with 54.6% of the ounces to be mined;
2. Area 51, with 44.9% of the ounces to be mined; and
3. Gabbro open pit, with 0.5% of the ounces to be mined.
The mining method will be long hole with longitudinal stopes measuring 5 to 8 m wide,
corresponding to 44% of the stope tonnage. Transverse stopes are designed for stopes 8 to 15+
m wide, which account for 56% of the remaining stope tonnage.
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Stope dimensions are 30 m (Area 51 zone) to 40 m (C-T-C zones) high, 5 to 15 m wide, and 20
m long. The average stope size in all zones is approximately 15,000 t. An average of 70 stopes
will be mined annually. Mining recovery is estimated at 95%. Stope backfilling will be done mostly
with paste backfill (66%) or cemented rock fill (2%) or rock fill (32%), depending on the stope
dimensions and sequence.
A mining contractor will carry out development during pre-production. Starting in pre -
production Year -1, the development will be done with the owner’s equipment and personnel.
The priority is to develop the main C-T-C ramp and access production horizon.
The mining fleet, comprised of a maximum of 66 pieces of mobile equipment, will be purchased
via a financing agreement. Supporting underground infrastructure includes two ventilation intake
raises and heating systems, and one exhaust raise.
Figure 3. Overview of the Fenelon Project on a Longitudinal View Looking North
Metallurgy
The main metallurgical testwork program was conducted in two phases, in 2020 and 2021, on
material from the Area 51 and C-T-C zones by SGS Canada Inc.
Grindability testing, including semi-autogenous grinding (“SAG”) mill comminution testing, was
completed in 2021. The samples were characterized as hard in terms of resistance to impact
breakage during the SMC test, with A×b drop weight test values ranging from 23 to 31. The
Bond rod mill work index results ranged from 15.6 to 16.9 kWh/tonne, classifying the material as
moderately hard to hard. The Bond ball mill work index ranged from 13.4 to 16.2 kWh/tonne,
indicating a medium hardness range.