Blog Single

Average Annual Gold Production of 101 koz, After-Tax NPV5% of C$285M, and IRR of 35.2%

Highlights:

• Robust economics with after-tax net present value (“NPV”) (discount rate 5%) of C$285M, internal rate of return (“IRR”) of 35.2% and payback of 1.7 years estimated with gold price of US$1,650 per ounce
• Average annual gold production of 101,000 ounces over life of mine (“LOM”), with an average of 122,000 ounces per year in the first 4 years
• 3 year LOM producing 835,000 ounces of gold
• Average cash cost of US$778/oz and all-in sustaining (“AISC”) cost of US$889/oz gold
• Initial capital expenditure of C$234M
• Mill capacity of 7,500 tonnes per day (2.7 Mt per annum) with average gold recovery of 3%
• Over 80% of mineable ounces coming from the Box deposit

HALIFAX, NS November 1, 2022 – Fortune Bay Corp. (TSXV:FOR, FWB:5QN, OTCQX: FTBYF) (“Fortune Bay” or the “Company”) is pleased to announce positive results from the independent Preliminary Economic Assessment (“PEA”) for its 100% owned Goldfields Project (“Goldfields” or the “Project”) located near Uranium City, Saskatchewan. The PEA provides a base case assessment for developing the Goldfields mineral resource by conventional open pit mining methods, and gold recovery with a standard free milling flowsheet, incorporating gravity and leaching of the gravity tails. The economic model supports an operation with low capital cost and high rate of return over an 8.3 year mine life, with average annual production of 101,000 ounces of gold. The PEA was prepared by Ausenco Engineering Canada Inc. (“Ausenco”) in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”). The PEA NI-43-101 Technical Report will be filed on SEDAR (www.sedar.com) within 45 days of this News Release.

Dale Verran, CEO of Fortune Bay, commented, “Goldfields shows potential to become a highly profitable gold mine supported by a PEA produced by Ausenco, one of the most experienced and reputable engineering firms working on gold projects in Canada. Goldfields has now established itself as a leading gold development project in Saskatchewan, which is significant given it is the top-ranked mining jurisdiction in Canada and ranked number two globally. The PEA, based upon 99% of Indicated Mineral Resources, together with the substantial repository of project data, lays a solid foundation for the advancement of the Project.”