Goldfields Project, Canada
The Goldfields Project, located in northern Saskatchewan, Canada, is Fortune Bay’s most advanced gold asset. Goldfields is situated approximately 60 kilometres south of the Saskatchewan and Northwest Territories boundary, and consists of two gold deposits, known as the Box and Athona deposits.
Both the Box and Athona deposits, located two kilometres apart, are envisioned as large tonnage, open pit mining operations, using a central 5,000 tonnes per day mill processing facility.
As outlined in the historical technical report dated October 6, 2011 (reissued March 13, 2014), was commissioned by March Consulting Associates Inc. in cooperation with Wardrop (now Tetra Tech), DMA and EHA Engineering Ltd. in compliance with National Instrument 43-101 Standards of Disclosure for Mineral Projects, the Goldfields Project includes 22,333,045 tonnes of ore at an average gold grade of 1.42 grams per tonne for a total of 1,020,000 ounces of gold and identified the following key findings:
- Estimated mine life of thirteen years;
- 5,000 tpd capacity with gold recoveries of 91% at the Box deposit and 89% at the Athona deposit;
- Strip ratio of 4.56:1 at the Box deposit and 1.10:1 at the Athona deposit;
- CAD$144.3 million pre-tax net present value using a base case of USD$1250/oz of gold;
- Total capital costs of $159.2 million including a 13.7% contingency; and
- Processing of sulphide ore includes gravity, flotation, cyanide leach and Merrill-Crowe recovery.
The reader is cautioned that a qualified person has not done sufficient work to classify this historical estimate as current resources or reserves and Fortune Bay is not treating this historical estimate as a current mineral resource or reserve. While this estimate was prepared in accordance with National Instrument 43-101, Standards of Disclosure for Mineral Projects (“NI 43-101”) and the “Canadian Institute of Mining, Metallurgy and Petroleum Standards on Mineral Resources and Mineral Reserves Definition Guidelines” in effect at the time, there is no guarantee that it would be consistent with current standards and it should not be regarded as consistent with current standards. The historical estimate is relevant to obtain a reference to mineral potential present on the property. Fortune Bay has not undertaken any verification of the historical data upon which the historical estimates are based on.
In 2015 Mercator Geological Services Limited was assigned the responsibility of carrying out a site visit, completing initial field evaluation of selected exploration target areas, and preparation of a property technical report in accordance with NI 43-101 which was completed on March 19, 2016.
Mr. John Dixion, P. Geo. is the qualified person responsible for the preparation of technical information included on the Fortune Bay website, unless otherwise noted.
Fortune Bay continues to invest in and further advance the project.
Ixhuatán Project, Mexico
Fortune Bay owns a 100% ownership interest in the Ixhuatán Project, which consists of the Rio Negro concession that covers 4,176 hectares, located in northern Chiapas State, Mexico. The Ixhuatán Project is located immediately southwest of the Santa Fe mine and is accessible by roads running five kilometers east of the town of Rayon, Chiapas. Fortune Bay has a history of positive community relations and has worked with the local people and businesses to ensure a cohesive working relationship.
Key attributes of the Ixhuatán Project include:
- Measured and Indicated Resources of 1,041,000 ounces of gold at 1.84 grams per tonne with 4,400,000 ounces of silver resources at 7.79 grams per tonne
- Additional Inferred Resources of 703,000 ounces of gold at 1.01 grams per tonne with 2,260,000 ounces of silver at 3.23 grams per tonne
- Resource estimate is based on 8,372 gold and silver assays from 85 diamond drill holes
Fortune Bay continues to incur expenditures on this property related to ongoing maintenance and is currently evaluating its alternatives for the development and advancement of the Ixhuatán Project.