fortune bay map500Goldfields Project, Canada

The 100% owned 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 includes 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.  

A Pre-Feasibility Study (the “PFS Technical Report”), with an effective date of October 6, 2011, was completed for the Goldfields Project by March Consulting Associates Inc. in cooperation with Wardrop (now Tetra Tech), Dan Mackie Associates (DMA) and EHA Engineering Ltd. The mineral resources and mineral reserves were classified according to the CIM Standards on Mineral Resources and Reserves: Definitions and Guidelines, November 2005 (“CIM 2005”) and incorporated, by reference, into National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”). The PFS Technical Report was issued to Brigus Gold Corporation (“Brigus”).
Highlights from the PFS Technical Report include:

•    Proven and Probable Mineral Reserves of 22,333,000 tonnes of ore which includes 1,020,000 ounces of gold at an average gold grade of 1.42 grams per tonne (using a cut-off grade of 0.72 grams per tonne);
•    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 NPV 5% and 19.6% pre-tax IRR using a base case of CAD$1250/oz of gold (Exchange rate $ CAD = 0.96 USD);
•    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 table below provides a summary of the mineral resources and reserves estimated in the PFS Technical Report:

goldfields table2 The reader is cautioned that a Qualified Person has not done sufficient work to classify the mineral resources and mineral reserves stated in the PFS Technical Report as current resources and reserves. Fortune Bay is not treating this historical estimate as current mineral resources or reserves. While this estimate was prepared in accordance with NI 43-101 and CIM 2005 in effect at the time, there is no guarantee that it would be consistent with current standards and it should not be regarded as such. Fortune Bay has not undertaken any independent verification of the data upon which the historical estimates are based. The historical estimate is considered relevant to assess the mineralization and economic potential of the property.

In 2015 Mercator Geological Services Limited was assigned the responsibility of carrying out a site visit, completing initial field evaluations of selected exploration target areas, and preparation of a technical report (the “Property Technical Report”) in accordance 
                                                                                                                                                                                     *Proven and Probable Mineral Reserves are the economically mineable (as per the
with NI 43-101 which was completed on March 19, 2016. The full Property Technical                                              PFS Technical Report)  part of the Measured and Indicated Mineral Resources.
Report is filed on SEDAR (www.sedar.com) under the Fortune Bay’s issuer profile.

Fortune Bay continues to invest in and further advance the project, which includes numerous historical gold prospects and occurrences in addition to the Box and Athona deposits.


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 communities and businesses to ensure a cohesive working relationship.

A mineral resource estimate (the “2006 Resource Estimate Report”) with an effective date of June 22, 2006, was prepared for the Campamento Deposit on the Ixhuatán Project by Gary H. Giroux, P.Eng for Linear Gold Corp. (“Linear”), a predecessor company of Fortune Bay. The mineral resources were classified according to the CIM Standards on Mineral Resources and Reserves: Definitions and Guidelines, August 2000 (“CIM 2000”) and incorporated, by reference, into NI 43-101.

Key attributes of the mineral resource estimate for the Campamento Deposit include:

•    Measured and Indicated Mineral Resources of 17,560,000 tonnes of mineralization which includes 1,041,000 ounces of gold at an average grade of 1.84 grams per tonne, and 4,400,000 ounces of silver resources at 7.79 grams per tonne.
•    Additional Inferred Resources of 21,750,000 tonnes of mineralization which includes 703,000 ounces of gold at 1.01 grams per tonne, and 2,260,000 ounces of silver at 3.23 grams per tonne.
•    The mineral resource estimate is based on 8,372 gold and silver assays from 85 diamond drill holes and is reported above a cut-off grade of 0.5 grams per tonne.

The reader is cautioned that a Qualified Person has not done sufficient work to classify the mineral resources stated in the 2006 Resource Estimate Report as current resources. Fortune Bay is not treating this historical estimate as a current mineral resource. While this estimate was prepared in accordance with NI 43-101 and CIM 2000 in effect at the time, there is no guarantee that it would be consistent with current standards and it should not be regarded as such. Fortune Bay has not undertaken any independent verification of the data upon which the historical estimates are based. The historical estimate is considered relevant to assess the mineralization and economic potential of the property.

A summary report for the Ixhuatán Project (the “2011 Summary Report”), with an effective date of May 18, 2011, was prepared by Philip K. Seccombe, PhD, MAIG of Equity Exploration Consultants Ltd. and Gary H. Giroux, PEng. The 2011 Summary Report was prepared for Cangold Limited who previously optioned the property from Brigus (successor to Linear). The report provided an updated review of the project and included the mineral resource estimate from the 2006 Resource Estimate Report since no further holes had been drilled in the resource area since 2006.

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.

Qualified Person

The technical and scientific information on the Fortune Bay website 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.
 

 

The table below provides a summary of the mineral resources and reserves estimated in the PFS Technical Report: