|Location||Northern Saskatchewan, Canada|
|Status||Advanced exploration project with approximately 1 Moz of Indicated open-pit gold resources|
The 100% owned Goldfields Project, located in northern Saskatchewan, Canada, is Fortune Bay's most advanced gold asset.
The Goldfields Project (“Goldfields” or the “Project”) is located approximately 13 kilometres from Uranium City, and approximately 60 kilometres south of the Saskatchewan and Northwest Territories provincial boundary. The Project is comprised of 22 mineral dispositions, covering approximately 10,300 hectares, and is host to the Box and Athona gold deposits and numerous other gold prospects and occurrences. The Project is endowed with established infrastructure including existing roads, powerline, and nearby facilities and an airport at Uranium City.
The Project has a history of gold production (64,000 oz produced between 1939 to 1942), numerous exploration drilling campaigns (over 1,000 drill holes) and various historical mining studies (including the 2007 Feasibility Study for the Box deposit and the 2011 PFS for the Box and Athona deposits that were prepared in accordance with NI 43-101). The Box open-pit mine and mill development is permitted having received Ministerial approval under the Environmental Assessment Act in May 2008. The Project presents numerous exploration opportunities, including the potential to expand the Box and Athona deposits and discover additional resources at several other gold prospects and occurrences.
A new Mineral Resource Estimate (“MRE”) was reported for Goldfields with an effective date of March 15, 2021. The new MRE replaces the historical MRE, as outlined in the historical 2011 Pre-Feasibility Study (“2011 PFS”), and serves to classify current mineral resources for the Project in accordance with National Instrument 43-101 (“NI 43 101”).
Highlights of the new MRE include:
- Indicated mineral resources of 975,000 ounces of gold (22.6 million tonnes at an average grade of 1.34 g/t)
- Inferred mineral resources of 176,000 ounces of gold (6.0 million tonnes at an average grade of 0.92 g/t)
- Reported at a cut-off grade of 0.3 g/t gold and constrained within a conceptual open-pit shell using a gold price of USD$1,600/oz
- Based on verified historical drilling data and new geological and mineralization models that incorporate structural controls on gold mineralization
- Reconciles to within 1% of historical mine production at the Box deposit
- Indicated mineral resources comprise 85% of the estimate, with the remaining 15% classified at an inferred level of confidence
- Confirms resource expansion opportunities at both the Box and Athona deposits, and resource upside through further infill and confirmatory drilling
Historical Pre-Feasibility Study
The 2011 PFS was completed for the Project in accordance with NI 43-101 with an effective date of October 6, 2011. The 2011 PFS envisaged open-pit mining of the Box and Athona gold deposits, located two kilometres apart, over 13 years with estimated gold recoveries of 91% and 89% respectively, processed at a shared mill facility with a capacity of 5,000 tonnes per day. The 2011 PFS was scoped to comply with the Project’s existing mine and mill development permit. Economic highlights from the 2011 PFS include an NPV (at a 5% discount rate) of CAD$144.3 million (pre-tax) and a 19.6% IRR (pre-tax) using a base case of CAD$1,250/oz of gold (exchange rate CAD = 0.96 USD). Total capital costs were estimated at CAD$159.2 million including a 13.7% contingency. Mineral reserve and mineral resource estimates for the 2011 PFS (Box and Athona deposits) included 1.02 million ounces of gold (22.3 million tonnes at 1.4 g/t Au) in proven and probable reserves (included in the measured and indicated resources); 1.03 million ounces of gold (20.9 million tonnes at 1.5 g/t Au) in measured and indicated resources; and 0.23 million ounces of gold (4.6 million tonnes at 1.5 g/t Au) in inferred resources.
The 2011 PFS, and the associated mineral resource and reserve estimates, are historical in accordance with NI 43-101, but are considered relevant to assess the economic potential of the Project.
Technical Reports and Qualified Persons
The current MRE, with an effective date of March 15, 2021, was announced on March 22, 2021 by way of a Company news release, available on SEDAR (www.sedar.com) and the Company’s website. The MRE was prepared by SRK Consulting (Canada) Inc. An updated independent Technical Report will be prepared for the Goldfields Project and will be filed on SEDAR within 45 days of the news release.
Details regarding the 2011 PFS are provided in the Technical Report titled “NI 43-101 Technical Report Pre-Feasibility Study, Brigus Gold Corp., Goldfields Project, Saskatchewan, Canada” with an effective date of October 6, 2011 (the “2011 PFS Technical Report”), prepared by March Consulting Associates Inc. in cooperation with Wardrop (now Tetra Tech), Dan Mackie Associates (DMA) and EHA Engineering Ltd. The 2011 PFS Technical Report was issued to Brigus Gold Corp. (“Brigus”), and subsequently re-issued to successor company, Fortune Bay Corp. on March 13, 2014. The 2011 PFS Technical Report is available on Fortune Bay’s website and filed on SEDAR under Brigus’s issuer profile.
The technical and scientific information for the Goldfields Project has been reviewed and approved by Dale Verran, M.Sc., P.Geo., Chief Executive Officer for Fortune Bay Corp., who is a Qualified Person as defined by NI 43-101. Mr. Verran is an employee of Fortune Bay and is not independent of the Company under NI 43-101.