HALIFAX, NS, July 28, 2020 /CNW/ - Fortune Bay Corp. (TSXV:
FOR) ("Fortune Bay" or the "Company") is pleased to announce plans
for the second half of 2020, focused on advancing the Goldfields
Project ("Goldfields" or the "Project") located in northern
Saskatchewan. A location and
infrastructure map for Goldfields is provided in Figure 1.
Plans for the Goldfields Project in the upcoming months include
the following:
- Mineral resource modelling and estimation, with the
objective of completing an updated mineral resource estimate before
the end of Q1 2021 to verify the historical estimate (effective
date October 6, 2011) and classify
current mineral resources in accordance with National Instrument
43-101 ("NI 43-101").
- Resource expansion and exploration drill planning, to
design a drill program to expand the known mineral resources at the
Box and Athona deposits.
- Project development review and planning, commencing with
review and validation of the historical 2011 Pre-Feasibility Study
("2011 PFS") to identify opportunities, risks and any potential
data gaps in preparation for a future updated pre-feasibility
study.
Dale Verran, CEO for Fortune Bay,
commented, "We are pleased to commence the process of advancing
the Goldfields Project. We have a unique opportunity to build value
at Goldfields through further exploration and development work
during an exciting time in the gold market. The Company is well
poised to execute on its work plans with a strong technical team
supported by management and our experienced Board."
Mineral Resource Modelling and Estimation
Historical mineral resource estimates for the Project (effective
date October 2011) include 1.03
million ounces of gold in measured and indicated mineral resources
(20.9 million tonnes at 1.5 g/t Au) and 0.23 million ounces of gold
in inferred mineral resources (4.6 million tonnes at 1.5 g/t
Au).
- An updated mineral resource estimate is planned before the end
of Q1 2021 to verify historical estimates and classify current
mineral resources in accordance with NI 43-101. The schedule for
completion of the updated estimate will be subject to the review
and verification of historical data by an independent Qualified
Person.
- Planned work involves generating updated geological and
resource models through comprehensive review of historical drilling
and assay data (currently in progress), as well as field-based
review and relogging of selected historical drill cores (September
and October 2020).
Resource Expansion and Exploration Drill Planning
Opportunity exists to expand the mineral resources on the
Project. The gold mineralization at the Box and Athona deposits
remains open, specifically at depth below the Box deposit where
meaningful grades and thicknesses have been intersected outside the
boundaries of the historical resource estimates. Key drill
intersections below the Box mineral resource include 52.8 metres at
2.12 g/t Au, 55.0 metres at 1.97 g/t Au, and 66.6 metres at 1.39
g/t Au (see Figure 2).
- The development of updated geological and resource models (as
detailed above), incorporating structural controls on
mineralization, will support targeting for resource expansion at
the Box and Athona deposits.
- Field work scheduled for early fall 2020 will also include the
review of other known gold prospects on the property (specifically
Frontier Lake, Golden Pond and
Triangle – see Figure 3) and the development of future targeting
strategies and exploration plans.
Project Development Review and Planning
The 2011 PFS includes open-pit proven and probable mineral
reserves of 1.02 million ounces (22.3 million tonnes at 1.4 g/t
Au).
- Review and validation of the 2011 PFS is planned for Q3 2020
and Q4 2020 to identify opportunities, risks and any data gaps in
preparation for a future updated pre-feasibility study.
- The review will aim to identify focus areas for project
optimization, that are envisaged to include various trade-off
studies, and the development of a project development work plan and
schedule for 2021.
Approval of the Company's deferred share unit plan ("DSU
Plan")
The Company is also pleased to announce that on June 25, 2020 at the Company's Annual General and
Special Meeting of Shareholders, the disinterested shareholders
voted in favour of adopting the new DSU Plan as outlined in the
Company's Management Information Circular. The maximum number
of common shares that may be issued under the DSU Plan is 500,000
shares.
About Goldfields
The 100% owned Goldfields Project is the Company's most
advanced asset located in northern Saskatchewan, approximately 13 kilometres from
Uranium City, for which a
historical Pre-Feasibility Study ("2011 PFS") was completed in
October 2011 in accordance with NI
43-101. 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, 1.03 million
ounces of gold (20.9 million tonnes at 1.5 g/t Au) in measured and
indicated resources (included in the proven and probable reserves),
and 0.23 million ounces of gold (4.6 million tonnes at 1.5 g/t Au)
in inferred resources. The Project is endowed with established
infrastructure including existing roads, powerline, and nearby
facilities and an airport at Uranium
City. Saskatchewan is the top ranked jurisdiction for mining
in Canada according to the Fraser
Institute Annual Survey of Mining Companies (2019), Investment
Attractiveness Index. The Project has a history of gold production
(64,000 oz Au produced between 1935 to 1942), numerous exploration
drilling campaigns (~80,000 metres of drilling in ~675 drill holes)
and various mining studies (including a 1995 Feasibility Study for
the Box deposit that was not 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.
About Fortune Bay
Fortune Bay Corp. (TSXV:FOR) is a gold-focused exploration
and development company with 100% ownership in two high-quality
advanced gold projects in Canada,
Saskatchewan (Goldfields Project)
and Mexico, Chiapas (Ixhuatán Project), both with
exploration and development potential. The Company has a goal of
building a mid-tier gold exploration and development Company
through the advancement of its existing projects and the strategic
acquisition of new projects to create a pipeline of growth
opportunities. The Company's corporate strategy is driven by a
Board and Management team with a proven track record of discovery,
project development and value creation. Further information
on Fortune Bay and its assets can be found on the Company's website
at www.fortunebaycorp.com or by contacting us
as info@fortunebaycorp.com or by telephone at
902-334-1919.
Qualified Person
The technical and scientific information in this news release
has been reviewed and approved by Dale
Verran, M.Sc., P.Geo., Chief Executive Officer of the
Company, 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.
On behalf of Fortune Bay Corp.
"Dale Verran"
Chief Executive Officer
902-334-1919
Cautionary Statement Regarding Forward-Looking
Information
Information set forth in this news
release contains forward-looking statements that are based on
assumptions as of the date of this news release. These statements
reflect management's current estimates, beliefs, intentions and
expectations. They are not guarantees of future performance.
Fortune Bay Corp. ("Fortune Bay" or the "Company") cautions that
all forward-looking statements are inherently uncertain, and that
actual performance may be affected by a number of material factors,
many of which are beyond Fortune Bay's control. Such factors
include, among other things: risks and uncertainties relating to
metal prices, changes in planned work resulting from weather,
logistical, technical or other factors, the possibility that
results of work will not fulfill expectations and realize the
perceived potential of Fortune Bay's mineral properties,
uncertainties involved in the interpretation of drilling results
and other tests, the possibility that required permits may not be
obtained in a timely manner or at all, risk of accidents, equipment
breakdowns or other unanticipated difficulties or interruptions,
the possibility of cost overruns or unanticipated expenses in work
programs, the risk of environmental contamination or damage
resulting from the exploration operations, the need to comply with
environmental and governmental regulations and the lack of
availability of necessary capital, which may not be available to
Fortune Bay, acceptable to it or at all. Fortune Bay is subject to
the specific risks inherent in the mining business as well as
general economic and business conditions. Accordingly, actual and
future events, conditions and results may differ materially from
the estimates, beliefs, intentions and expectations expressed or
implied in the forward-looking information. Except as required
under applicable securities legislation, Fortune Bay undertakes no
obligation to publicly update or revise forward-looking
information. Fortune Bay does not intend, and does not assume any
obligation, to update these forward-looking statements, except as
required under applicable securities legislation. For more
information on Fortune Bay, readers should refer to Fortune Bay's
website at www.fortunebaycorp.com.
Cautionary Note Regarding Historical Mineral Resource and
Mineral Reserve Estimates
A Pre-Feasibility Study
(the "2011 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 2011 PFS
Technical Report was issued to Brigus Gold Corp. ("Brigus"), and
subsequently re-issued to successor company, Fortune Bay on
March 13, 2014. The full 2011 PFS
Technical Report is filed on SEDAR (www.sedar.com) under
Brigus's issuer profile. The
reader is cautioned that a Qualified Person has not done sufficient
work to classify the mineral resources and mineral reserves stated
in the 2011 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.
SOURCE Fortune Bay Corp.