HALIFAX, NS, Feb. 26, 2021 /CNW/ - Fortune Bay Corp. (TSXV:
FOR) (Frankfurt: 5QN) ("Fortune
Bay" or the "Company") is pleased to announce that it has received
a drilling permit for its Goldfields Project ("Goldfields" or the
"Project") located in northern Saskatchewan (see Figure 1). The Company has
commenced mobilization for a Phase 1 drilling program.
Highlights of the Planned Phase 1 Drill Program:
- Approximately 5,000 metres of core drilling is planned in 15
holes.
- Drilling will be focused on expanding the mineral resources at
the Box and Athona deposits through step-out drilling from high
gold grades which remain open.
Dale Verran, CEO for Fortune Bay,
commented, "We are pleased to have commenced mobilization for
our Phase 1 drilling program at Goldfields immediately following
receipt of a drilling permit. Our technical team has undertaken an
extensive review of the historical data and has developed targets
and a drilling plan with the potential to expand the historical
mineral resources at both Box and Athona. The last drilling
campaign at Goldfields was completed in 2011 and we look forward to
reviving exploration on the Project equipped with an improved
geological understanding of the deposits."
Planned Phase 1 Drilling Program
As announced on
October 13, 2020 the Company has
identified drill targets at both the Box and Athona deposits (see
Figures 2 and 3). A Phase 1 drilling program has been developed to
commence testing these targets through step-out drilling from high
gold grades which remain open. The primary objective of the
drilling program is to expand the historical mineral resources
beyond the extents of the historical mineral resource estimates and
current drilling coverage. Recent completion of mineralization
models for the deposits, based on structural studies, has
facilitated planning of the location and orientation of the initial
drill holes.
Box Deposit
At Box, step-out drilling is planned both
along strike and down-dip of the higher-grade drill intercepts in
both Zone A and B, with the objective of establishing continuity of
high grades. Drill hole orientation, to the east at a shallow
drilling angle, has been designed to optimize drilling efficiency
by obtaining significant internal coverage of the Box Mine Granite
and intersecting the interpreted mineralized vein-sets at
high-angles.
Athona Deposit
At Athona South, planned drilling
includes confirmatory drilling to verify the 1930's historical
results, infill drilling to establish continuity with
mineralization to the north, and step-out drilling to the
south.
Summary of Drill Targets (announced October 13, 2020)
Box Deposit
The Box deposit remains open, specifically
at depth where meaningful grades and thicknesses have been
intersected both outside the boundary of the historical mineral
resource estimate, and below the depth of the previous open pit
defined in the historical 2011 Pre-Feasibility Study for Box.
- Two priority higher-grade zones have been identified for drill
targeting and resource expansion, Box Zone A and Box Zone B (Figure
2). Highlight gold results from historical drilling completed along
these Zones outside of the boundaries of the 2011 mineral resource
estimate include:
-
- Box Zone A:
-
- 18.05 g/t over 6.00 m (drill hole
B07-294) contained within 47.70 m at
2.68 g/t
- 8.35 g/t over 9.00 m (drill hole
B07-292) contained within 49.79 m at
2.10 g/t
- 6.34 g/t over 6.00 m (drill hole
B11-315) contained within 25.00 m at
2.04 g/t
- 5.16 g/t over 12.00 m and 4.65
g/t over 3.00 m (drill hole B11-316)
contained within 72.00 m at 1.39
g/t
- Box Zone B:
-
- 8.72 g/t over 3.59 m (drill hole
B95-219) contained within 45.59 m at
1.02 g/t
- 4.97 g/t over 6.00 m (drill hole
B95-228) contained within 47.15 m at
1.05 g/t
- Drill intersections are from exploration holes with spacings
varying from 10 to 110 metres, approximate 45 metre average.
- The higher-grade intersections are interpreted to potentially
represent vein-sets within a plunging extension of the Box Mine
Granite.
Athona Deposit
- The Athona deposit remains open to the south, beyond the
extents of the mineral resources and reserves that were defined in
the historical 2011 pre-feasibility study.
- The Athona Mine Granite that hosts the gold mineralization
extends southwards to and beyond the historical Number 2 shaft,
where limited drill holes confirm the presence of significant gold
mineralization.
- Athona South has been selected as a priority zone for resource
expansion (Figure 3). Underground and surface drilling in this area
was carried out in the period 1935 to 1939. Gold samples from these
holes were collected on an approximate 1.5
m spacing, however in certain instances only composited
results for longer intervals are available. Selected highlight
historical gold results from Athona South include:
-
- 4.00 g/t over 48.80 m and 3.00
g/t over 30.80 m (drill hole 23)
- 6.00 g/t over 65.80 m and 1.00
g/t over 58.50 m (drill hole 34)
- 6.00 g/t over 68.90 m and 3.26
g/t over 6.10 m contained in
10.70 m at 2.21 g/t (drill hole
U-10)
Data Verification and Qualified Person
The historical
drill results contained within this news release have not been
verified and there is a risk that any future confirmation work and
exploration may produce results that substantially differ from the
historical results. The Company considers these drilling results
relevant to assess the mineralization and economic potential of the
property. For historical drill holes 23 and 34 at the Athona
deposit, only composited results are available in the historical
dataset. These composited grades may reflect highly anomalous
results in individual samples and should not be interpreted to
imply that mineralization is continuous throughout the
interval.
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.
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. 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 for GLR Resources Inc. that
was 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 10,300 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
ocurrences.
About Fortune Bay
Fortune Bay Corp.
(TSXV:FOR) is a gold-focused exploration and development company
with 100% ownership in two 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.
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,
COVID-19 restrictions, 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
Reserve Estimates and Historical Results
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.
Historical results, including
drilling results, have not been verified and there is a risk that
any future confirmation work and exploration may produce results
that substantially differ from the historical results. The Company
considers these drilling results relevant to assess the
mineralization and economic potential of the property.
SOURCE Fortune Bay Corp.