Fortune Bay Corp. (TSX.V: FOR) released a Preliminary Economic Assessment independent technical report on its 100% owned Goldfields Project, located near Uranium City, Saskatchewan.

The Goldfields mineral resource, located in Saskatchewan and included in Fortune Bay’s Goldfields Project, is assessed in the Goldfields PEA as a conventional open-pit mine with a free milling flowsheet. The Goldfields PEA, released on November 1, 2022, includes the key results, assumptions, and estimates resulting in a base case estimate of 101,000 ounces of gold produced annually over an 8.3-year mine life with a low capital cost and high rate of return.

The project’s economics are quite positive, with a net present value of C$285M, an internal rate of return (“IRR”) of 35.2%, and a payback period of 1.7 years using gold prices of US$1,650 per ounce. The mine will produce an average of 122,000 ounces of gold per year for the first four years, for a total of 101,000 ounces annually. The life of the mine will last for 8.3 years, during which time 835,000 ounces of gold will be produced. Initial capital expenditures will be C$234M. 

In accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”), Ausenco Engineering Canada Inc. collaborated with Moose Mountain Technical Services for the mine design and SRK Consulting Inc. for the updated mineral resource estimate and environmental, permitting, and social aspects, to prepare the PEA technical report.