Why invest in gold?

Gold has retained its perceived value for thousands of years, due to its rarity and inherent beauty, first being used as currency more than 2,500 years ago. Historically, almost all countries directly fixed their currencies to the value of gold, allowing them to adopt, use and guarantee the value of paper currency (by stockpiling gold) while preventing governments from manipulating money supply by overprinting currency, fixing and controlling foreign exchange rates. The “Gold Standard” is no longer used by any countries, but this has not reduced gold’s value; it has actually increased its value substantially as gold is now traded freely by investors.

Gold is considered an important part of a diversified investment portfolio because its price increases in response to events that cause the value of paper investments, such as stocks and bonds, to decline. Although the price of gold can be volatile in the short term, it always has maintained its value over the long term. Gold is therefore seen as a safe haven for investors in times when other markets and economies are facing challenges, and during inflation, gold is seen as a hedge against it— when inflation begins to outpace interest rates, investors seek to put their money in more stable investments. Gold appreciates when the U.S. dollar declines in value due to inflation.

The recent unprecedented worldwide government spending during the Covid Pandemic, combined with a land war in Eastern Europe, plus lingering supply chain issues surrounding Covid, makes it likely that the economy won't rebound in the near-term. All of that bodes well for gold, given that it has historically overperformed during times of inflation. Demand hit an 11-year high in 2022 according to the World Gold Council, largely driven by central bank purchases.

Gold discovery rates have continued to decline, and unless discovery rates begin an upswing in the near future, there could be a lack of quality assets available for development in the longer term. According to S&P Global Market Intelligence, spending on finding new gold ounces remains at historically high levels, with the US$54.3 billion allocated to gold exploration over the past decade almost 60% higher than the US$32.2 billion spent over the preceding 18-year period. However, the increase in dollars spent has not yet resulted in more new discoveries or discovered ounces compared with the previous period: only 215.5 Moz of gold has been defined in 41 discoveries over the most recent 10 years, compared with 1,726 Moz in 222 discoveries in the preceding 18 years.

How does exploration differ from mining?

Exploration is the process of searching for new mineral deposits. It usually begins with desktop targeting studies, combining knowledge about the processes that form mineral deposits with information about geological conditions and known mineral deposit occurrences in different areas to identify target locations for exploration. Explorers will then need to acquire the legal right to explore for minerals in that area, a process that varies in scope and cost depending on the jurisdiction in which the exploration is taking place.

Historically, many deposits were identified simply because they were exposed at surface; nowadays, new deposits are harder to find. Exploration activities typically involve a range of activities such as geological mapping, geochemical sampling, geophysical survey, and drill testing of targets to find new mineral deposits. 

Mining is the process of extracting and concentrating commodities from a mineral deposit for sale for profit. Between exploration and mining, a development process involves defining how much of a commodity is present at a deposit, and carrying out mining studies to confirm that the project is economically viable.

What are the stages of discovery to production?

The mining industry operates through a sequence of stages: exploration, discovery, development, production and reclamation. All stages of this Mining Cycle provide direct economic stimulus.

What is the difference between inferred, indicated and measured resources?

In Canada, as per the definitions provided by the Canadian Institute of Mining, Metallurgy and Petroleum, Mineral Resources are sub-divided, in order of increasing geological confidence, into Inferred, Indicated and Measured categories. An Inferred Mineral Resource has a lower level of confidence than that applied to an Indicated Mineral Resource. An Indicated Mineral Resource has a higher level of confidence than an Inferred Mineral Resource but has a lower level of confidence than a Measured Mineral Resource. 

An Inferred Mineral Resource is that part of a Mineral Resource for which quantity and grade or quality are estimated on the basis of limited geological evidence and sampling. Geological evidence is sufficient to imply but not verify geological and grade or quality continuity. An Inferred Mineral Resource cannot be converted to a Mineral Reserve. It is reasonably expected that the majority of an Inferred Mineral Resource could be upgraded to Indicated Mineral Resources with continued exploration.

An Indicated Mineral Resource is that part of a Mineral Resource for which quantity, grade or quality, densities, shape and physical characteristics are estimated with sufficient confidence to allow the application of Modifying Factors in sufficient detail to support mine planning and evaluation of the economic viability of the deposit. Indicated Mineral Resources may be converted to Probable Mineral Reserves. 

A Measured Mineral Resource is that part of a Mineral Resource for which quantity, grade or quality, densities, shape, and physical characteristics are estimated with confidence sufficient to allow the application of Modifying Factors to support detailed mine planning and final evaluation of the economic viability of the deposit. A Measured Mineral Resource may be converted to a Proven or Probable Mineral Reserve.

What is the difference between a mineral resource and a mineral reserve?

In Canada, as per the definitions provided by the Canadian Institute of Mining, Metallurgy and Petroleum, a Mineral Resource is a concentration or occurrence of solid material of economic interest in or on the earth’s crust in such form, grade or quality and quantity that there are reasonable prospects for eventual economic extraction. The location, quantity, grade or quality, continuity and other geological characteristics of a Mineral Resource are known, estimated or interpreted from specific geological evidence and knowledge, including sampling. The difference between a Mineral Resource and a Mineral Deposit is that a Mineral Deposit is simply an occurrence of a commodity in elevated concentrations, while a Mineral Resource is declared by a Qualified Person as a culmination of a study of verified geological information and an assessment that there are in fact reasonable prospects for eventual economic extraction.

A Mineral Reserve is defined by the Canadian Institute of Mining, Metallurgy and Petroleum as an estimate of the economically extractable or mineable part of a mineral resource. A Mineral Reserve is the part of a (Indicated or Measured, but not Inferred) Mineral Resource that can be mined, as demonstrated by a Pre-Feasibility or Feasibility Study.

What is gold used for?

Jewellery accounts for approximately half of the global demand for gold, with India and China being the two largest consumers in the recent past.

Approximately a quarter of the global demand relates to bullion, i.e. gold coins and bars that are used for currency and investments.

The remaining quarter of global demand predominantly relates to (1) accumulation by Central Banks (United States, Germany and Italy are the recent highest consumers), and (2) use in industry, predominantly electronics, as gold is used in small amounts in virtually every modern electronic device.

How does gold get to the market?

Processing plants at operating mines produce what is called doré. This is an alloy (mixture) of gold and other metals (usually silver), with a gold content typically between 70 and 80 percent. Doré is then shipped to refineries for further refining to produce gold with a purity of 99.5 percent or higher. This final purified product is then sold into wholesale world-wide markets.

Bullion banks play a crucial middleman role in this cycle as they ensure a stable flow of produced gold between the miners and the wholesale industry. They facilitate the gold trade by providing financing and delivering the physical gold. In this clearing role, they buy the gold from producers and sell the gold to consumers including jewelry houses, Central Banks and major investors.

Which countries/mines are the biggest gold producers?

As of the end of 2022, the largest gold-producing countries in the world by annual production are:

1. China (375.0 tonnes)
2. Russian Federation (324.7 tonnes)
3. Australia (313.9 tonnes)
4. Canada (194.5 tonnes)
5. United States (172.7 tonnes)
6. Ghana (127 tonnes)
7. Peru (125.7 tonnes)
8. Indonesia (124.9 tonnes)
9. Mexico (124.0 tonnes)
10. Uzbekistan (110.8 tonnes)

By annual production in 2021, the largest gold mines in the world are:

1. Nevada Gold Mines (USA) produced 3.3 million ounces
2. Muruntau Mine (Uzbekistan) produced 3.0 million ounces
3. Grasberg Mine (Indonesia) produced 1.4 million ounces
4. Olimpiada Mine (Russia) produced 1.2 million ounces
5. Pueblo Viejo Mine (Dominican Rep.) produced 0.8 million ounces
6. Kibali Mine (Democratic Rep. of Congo) produced 0.8 million ounces
7. Cadia Mine (Australia) produced 0.8 million ounces
8. Lihir Mine (Papua New Guinea) produced 0.7 million ounces
9. Canadian Malartic (Canada) produced 0.7 million ounces
10. Boddington (Australia) produced 0.7 million ounces

In what year was Fortune Bay Corp formed?

Fortune Bay Corp. ("Fortune Bay") was formed in 2016 through a series of public transactions that have been spearheaded by Fortune Bay's Executive Chairman, Wade Dawe. 

The company originated as Linear Resources Inc. in 1999. In 2003 the company changed its name to Linear Gold Corp., acquiring and operating the Ixhuatán property in Mexico. In 2009 Linear Gold Corp. purchased the Goldfields Property in Canada. In 2010, Linear amalgamated with Apollo Gold Corporation to form Brigus Gold Corp. Post-merger Brigus operated the Black Fox gold mine in Ontario, Canada, while advancing its gold deposits in Mexico and Canada. 

In 2016, Fortune Bay Corp. was spun out as a new gold-focused corporation to hold the Goldfields and Ixhuatán Projects.

Where is Fortune Bay Corp’s head office?

Our head office is located in Halifax:
1969 Upper Water Street

Suite 2001, Halifax, Nova Scotia

B3J 3R7, Canada
Visit our Contact us page for more details

Who are Fortune Bay and what do they do?

Fortune Bay Corp. is an exploration and development company with 100% ownership in two advanced gold exploration projects in Canada, Saskatchewan (Goldfields Project) and Mexico, Chiapas (Ixhuatán Project), both with exploration and development potential. The Company is also advancing the 100% owned Strike and Murmac uranium exploration projects, located near the Goldfields Project, which have high-grade potential typical of the Athabasca Basin. The Company has a goal of building a mid-tier 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.

How much gold does Fortune Bay produce?

Fortune Bay is not currently a gold producer, but is in the stages of advancing our flagship Goldfields Project towards production. The Goldfields Project has announced a recent positive PEA, read more about it here.

Has Fortune Bay found any gold and uranium?

Fortune Bay’s 100% owned Goldfields Project hosts current Mineral Resources (effective date September 1, 2022) including:

• 0.98 million ounces of gold (at 1.31 g/t) in the Indicated category
• 0.21 million ounces of gold (at 0.93 g/t) in the Inferred category

Fortune Bay’s 100 % owned Ixhuatán Project hosts a historical mineral resource estimate (effective date of June 22, 2006, not considered current mineral resources under NI 43-101) including:

• 1.04 million ounces gold (at 1.80 g/t) and 4.4 million ounces of silver (at 7.8 g/t) in the Measured and Indicated categories, and
• 0.70 million ounces gold (at 1.00 g/t) and 2.3 million ounces of silver (at 3.2 g/t) in the Inferred category

Fortune Bay’s 100 % owned Strike and Murmac Uranium Projects are still at an exploration stage. Maiden drill campaigns in 2022 at these projects discovered elevated uranium (>100 ppm U) in 9 of the total 24 holes drilled (6,232 m in total), with a maximum individual assay of 0.43 % U3O8. Shallow, elevated uranium in drill core is associated with “pathfinder” elements (typical of high-grade Athabasca deposits) and is hosted in prospective highly-graphitic units with favorable brittle structures and alteration​. The drill results confirm that an Athabasca Basin unconformity-style mineralizing system has been active at both projects, and the company is excited to follow-up these positive results, and to continue exploring the remaining +40 km of prospective electromagnetic conductor (graphite-rich) corridors within the project areas.

At what stage are Fortune Bay’s projects?

Goldfields Project: Positive PEA completed in 2022
A Preliminary Economic Assessment (effective date October 31, 2022) (“2022 PEA”) was carried out by Ausenco Engineering Canada Inc. to assess the viability of the Goldfields Project. Ausenco recommended that the Project advance to a Pre-Feasibility Study based on the positive outcomes, which included:

• Robust economics with after-tax net present value (“NPV”) (discount rate 5%) of C$285M, internal rate of return (“IRR”) of 35.2% and payback of 1.7 years estimated with gold price of US$1,650 per ounce
• Average annual gold production of 101,000 ounces over life of mine (“LOM”), with an average of 122,000 ounces per year in the first 4 years
• 8.3 year LOM producing 835,000 ounces of gold
• Average cash cost of US$778/oz and all-in sustaining cost (“AISC”) of US$889/oz gold
• Initial capital expenditure of C$234M, including C$34M contingency
• Mill capacity of 7,500 tonnes per day (2.7 Mt per annum) with average gold recovery of 95.3%
• Over 80% of mineable ounces coming from the Box deposit
• A total of 98.6% of the Mineral Resources subset used in the PEA are classified as Indicated.

Ixhuatán Project:
Stage: Historical Gold Resource with Numerous Exploration Targets
Fortune Bay’s predecessor company, Linear Gold, defined mineral resources at the Campamento gold-silver deposit. No work has been carried out at this project since 2009. Additional resource expansion drilling is warranted, as well as geotechnical and metallurgical study to provide information required to advance Campamento to a Preliminary Economic Assessment. The historical mineral resources (not considered current resources under NI 43-101) included:

• 1.04 million ounces gold (at 1.80 g/t) and 4.4 million ounces of silver (at 7.8 g/t) in the Measured and Indicated categories, and
• 0.70 million ounces gold (at 1.00 g/t) and 2.3 million ounces of silver (at 3.2 g/t) in the Inferred category

Exploration potential at Ixhuatán includes:

• The entire Ixhuatán tenement is underlain by a large partially-exposed porphyry system, with confirmed mineralization in the partially drilled Cerro La Mina porphyry breccia pipe (best hole to date IXM08-51: 601.4 m @ 0.28% Cu, 0.68 g/t Au and 2.71 g/t Ag). No copper-focussed exploration has been carried out, and the whole property is highly prospective for copper-gold porphyry deposits.
• Numerous gold-silver soil anomalies defined by geochemical sampling have not been drill tested. These are targets for additional gold-silver epithermal deposits like Campamento.
• The property is also highly prospective for copper-gold-silver skarns and gold intrusive-hosted quartz stockwork deposits.

Strike Uranium Project: Exploration
In 2022 Fortune Bay carried out ground gravity survey over the extensive EM conductor targets and completed a maiden drill program of 9 holes (2,064 m) in summer 2022. Anomalous uranium was intersected in three of the holes, up to a maximum individual assay of 0.43% U3O8. Shallow, elevated uranium in drill core is associated with “pathfinder” elements (typical of high-grade Athabasca deposits) and is hosted in prospective graphitic units with favorable brittle structure and alteration​. The drill results confirm that an Athabasca Basin unconformity-style mineralizing system has been active at Strike. Follow-up of newly intersected mineralization is warranted, as well as drill testing of numerous geophysical and structural targets.

Murmac Uranium Project: Exploration
In 2022 Fortune Bay carried out VTEMTM and ground gravity geophysical surveys, and completed a maiden drill program of 15 holes (3,168 m). Anomalous uranium (>100 ppm U) was intersected in six of the holes, up to a maximum individual assay of 0.18% U3O8. Shallow, elevated uranium in drill core is associated with “pathfinder” elements (typical of high-grade Athabasca deposits) and is hosted in prospective highly-graphitic units with favorable brittle structures and alteration​. The drill results confirm that an Athabasca Basin unconformity-style mineralizing system has been active at Murmac. Follow-up of newly intersected mineralization is warranted, as well as drill testing of numerous geophysical and structural targets.

Is Fortune Bay committed to maintaining strong community relations?

Fortune Bay is strongly committed to building meaningful, mutually beneficial relationships with project communities, and to implement responsible stewardship of the environment during exploration and development activities.
Fortune Bay was pleased to announce its conclusion of an Exploration Agreement in November 2022 that formalizes the Company’s relationship with Ya’ thi Néné Lands and Resources, Hatchet Lake Denesułiné First Nation, Black Lake Denesułiné First Nation, Fond du Lac Denesułiné First and the Northern Hamlet of Stony Rapids, the Northern Settlement of Uranium City, the Northern Settlement of Wollaston Lake and the Northern Settlement of Camsell Portage (collectively, the “Basin Communities”). 

This Exploration Agreement formalizes Fortune Bay’s relationship with the Basin Communities and its commitments to the environment, while establishing consent for current and future exploration and evaluation activities up to completion of a Feasibility Study.

How do I invest in Fortune Bay Corp?

Shares in Fortune Bay Corp can be purchased on three exchanges:

TSXV under ticker FOR
FWB under ticker 5QN
OTCQB under ticker FTBYF

Does Fortune Bay Corp pay a dividend?

Fortune Bay does not currently pay any dividends. Cash reserves are used to fund exploration and development activities.

Where can I find Fortune Bay Corp’s financial reports?

Our Financial Reports are published on SEDAR+ or on our website.

When does Fortune Bay Corp’s fiscal year end?

December 31st

Who is Fortune Bay Corp’s Auditor?

PriceWaterhouseCooper LLP

Can I purchase shares directly from the Company?

Fortune Bay Corp does not offer a direct stock purchase plan (DSPP). Shares are sold on the open market and can be purchased via a registered broker.

Who do I call if I am a shareholder and have a question regarding my shares?

Please contact the Company directly or Computershare Investor Services.

How can I contact Investor Relations?

Please contact the Company directly.

Where does Fortune Bay Corp operate?

Fortune Bay’s current development and exploration activities are being carried out in Saskatchewan, Canada’s Top-Ranked Jurisdiction. Our active projects include:

• Goldfields Project 
• Strike Uranium Project
• Murmac Uranium Project

Our Ixhuatán Copper-Gold Project is located in Chiapas State, Mexico. Fortune Bay is not currently operating Ixhuatán, it is a pipeline project for future development.

How many producing mines does Fortune Bay Corp currently have?

Fortune Bay is not a mining company, it is currently focussed on development and exploration activities- the part of the mining cycle where the most value can be generated.

Does Fortune Bay Corp own 100 percent of its assets?

Yes, all projects are owned 100%.

Where can I find Fortune Bay Corp’s Governance materials?

The Governance materials can be found here.

Who are the members of Fortune Bay Corp’s Board of Directors?

Executive Chairman: Wade K. Dawe

Independent Directors:

• Derrick Gill
• Michael Gross
• Melinda Lee
• Robert Shaw

Please view more details about our Board of Directors

Who is on Fortune Bay Corp’s Management team?

• Dale Verran, Chief Executive Officer
• Sarah Oliver, Chief Financial Officer
• Gareth Garlick, Technical Director

Read more about the Management Team

When is Fortune Bay Corp’s Annual General Meeting of Shareholders held?

Fortune Bay Corp holds their Annual General Meeting (AGM) in May or June of each year.