en.Wedoany.com Reported - Fortune Bay Corp. has extended historical shallow near-surface mineralization at the Goldfields project in northern Saskatchewan, Canada, through drilling at the Goldfields Pool target, which is located north of the Box gold mine that predates uranium mining in the region. Highlight hole GP26-02 intercepted 23.2 meters grading 1.2 g/t gold from a depth of 15 meters, and hole GP26-03 returned 6.8 meters grading 2.06 g/t gold from 43.1 meters downhole, the company said Tuesday.
"The results from Goldfields Pool are an important addition to our recent exploration success at Goldfields," Fortune Bay CEO Dale Verran said in a news release. "Together with the recent step-out drilling results from the Box deposit, these results demonstrate broader opportunities to expand and add to the Goldfields resource base from targets in close proximity to past production and planned mine infrastructure."
Goldfields is located approximately 13 kilometers south of Uranium City and offers a rare gold play in Saskatchewan, a province better known for uranium and potash mining. It is also one of the very few gold projects in the province to have advanced to a preliminary economic assessment. Fortune Bay's Box target is located at the site of the underground mine of the same name, which produced approximately 64,000 ounces of gold between 1939 and 1942. Gold exploration and mining in the area predates uranium activity by at least a decade.
On Tuesday morning in Toronto, the company's share price rose 4% to 64 Canadian cents per share, giving the company a valuation of C$44.7 million (US$32.5 million). The stock has traded in a 12-month range of 49 Canadian cents to C$1.17.
Other notable intercepts from Goldfields Pool include hole GP26-05, which intercepted 7.1 meters grading 1.06 g/t gold from a depth of 14 meters, and hole GP26-04, which returned 9.8 meters grading 0.69 g/t gold from 17.2 meters downhole.
The 771-meter drill program at Goldfields Pool also confirmed that mineralization at the target is associated with sulphide-bearing quartz veins primarily hosted in gneiss, locally extending into amphibolite units. A geological structure known as the Goldfields Syncline traverses the property.
An updated preliminary economic assessment for Goldfields released last fall outlined a 14-year mine life with an after-tax net present value (discounted at 5%) of C$610 million and an after-tax internal rate of return of 44%. Initial capital costs were estimated at C$301 million (US$220.2 million), with all-in sustaining costs of US$1,330 per ounce over the life of mine, based on an assumed base case gold price of US$2,600 per ounce. The open-pit mine could produce up to 4,950 tonnes per day.
The combined resource inventory for the Box and Athona targets totals: indicated resources of 24 million tonnes grading 1.28 g/t gold, containing 990,000 ounces of gold; and inferred resources of 7.4 million tonnes grading 0.9 g/t gold, containing 210,000 ounces of gold.
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