|Location||Northern Saskatchewan, Canada|
|Status||Advanced exploration project with +1 Moz of open-pit gold reserves (historical) at 1.4 g/t|
The 100% owned Goldfields Project, located in northern Saskatchewan, Canada, is Fortune Bay's most advanced gold asset.
The Goldfields Project is located approximately 13 kilometres from Uranium City, and approximately 60 kilometres south of the Saskatchewan and Northwest Territories provincial boundary. The Goldfields Project is comprised of 18 mineral dispositions, covering approximately 9,500 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.
A 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. 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 mineral resource and reserve estimates for the Project are considered historical in accordance with NI 43-101. Further details regarding historical estimates can be found under Resources & Reserves.
The Project has a history of gold production (64,000 oz Au produced between 1939 to 1942), numerous exploration drilling campaigns (~80,000 metres of drilling in ~675 drill holes) and various mining studies (including a 2007 Feasibility Study for the Box deposit prepared for GLR Resources Inc. that 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 9,500 hectare Goldfields property 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.
Details regarding the 2011 PFS and the historical mineral reserve and resource estimates 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 (www.sedar.com) under Brigus’s issuer profile.
Additional details regarding the Goldfields Project are provided in the most recent NI 43-101 Technical Report titled “Goldfields Project National Instrument 43-101 Property Technical Report”, with an effective date of March 19, 2016 (the “2016 Property Technical Report”), prepared by Mercator Geological Services Limited. The 2016 Property Technical Report provides an update of the Project including field evaluations of selected exploration target areas and the results of metallurgical testing completed during 2015 and 2016. The 2016 Property Technical Report is available on Fortune Bay’s website and filed on SEDAR (www.sedar.com) under Fortune Bay’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.