HALIFAX, NS, Oct. 13, 2020 /CNW/ - Fortune Bay Corp. (TSXV:
FOR) (Frankfurt: 5QN) ("Fortune
Bay" or the "Company") is pleased to announce drill targets for its
100% owned Goldfields Project ("Goldfields" or the "Project")
located in northern Saskatchewan.
The drill targets have been developed following a detailed review
of the Project's historical exploration and drilling results which
demonstrate potential to expand the mineral resources at both the
Box and Athona gold deposits, in addition to regional targets on
the Property.
The Company is also pleased to provide an update on the mineral
resource estimation process initiated for the Project in
August 2020, with the objective of
verifying the Box and Athona historical estimates and classifying
current mineral resources in accordance with National Instrument
43-101 ("NI 43-101") (see Fortune Bay's News Release dated
July 28, 2020). A location and
infrastructure map for Goldfields is provided in Figure 1.
Dale Verran, CEO for Fortune Bay,
commented, "The exploration drill targets identified to date
represent an exciting opportunity to expand the mineral resources
at both the Box and Athona deposits. Our initial focus will be on
step-out drilling from higher-grade zones that remain open, guided
by our improved understanding of the structural controls on the
mineralization. We are also encouraged by the regional potential to
discover additional deposits on the Property though modern,
systematic exploration. While the Company awaits a drilling permit
for Goldfields, work is also well underway on the updated mineral
resource estimate. The field program completed during September was
instrumental in advancing verification of the historical data and
understanding the nature and controls on gold mineralization, which
will form key inputs for the mineral resource estimation
process."
Drill Target Highlights
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 ore-shoots within a plunging extension of the Box "Mine
Granite", which is confirmed by these holes as being present and
open with depth.
- Step-out drilling is planned both along strike and down-dip of
the higher-grade drill intercepts in both zones with the objective
of establishing continuity of high grades and expanding the mineral
resources.
- Additional infill and delineation drilling is also planned at
various locations to increase confidence with the intention of
converting historical inferred mineral resources to an indicated
level of confidence.
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)
- Planned drill testing at Athona South includes confirmatory
drilling to verify these historical results, infill drilling to
establish continuity with mineralization to the north, and step-out
drilling southwards to define and extend mineral resources.
- Additional infill and delineation drilling is also planned at
various select locations at Athona to increase confidence with the
intention of converting historical inferred mineral resources to an
indicated level of confidence.
Regional Potential
The Box and Athona gold deposits
occur within the Goldfields Syncline – a major, open fold structure
which plunges gently to the south within the Property (Figure 4).
Box is located on the western limb of the structure and Athona
within the hinge zone, occurring along the same stratigraphic
contact. Gold mineralization at both deposits is associated with
quartz veining hosted within granitic rocks, also referred to as
"Mine Granites". These granitic rocks are interpreted to have
undergone brittle deformation during regional folding which allowed
for the infiltration of hydrothermal fluids along fractures and the
subsequent precipitation of quartz veins and gold.
Additional exploration potential exists within the Goldfields
Syncline, to locate and explore additional Mine Granites that may
have been subject to similar brittle deformation and gold
mineralizing processes. In particular, areas that are covered by
thin glacial tills and water bodies are considered unexplored to
date. Other gold prospects on the property, including Frontier
Lake, Golden Pond and Triangle, also
show granitic associations and indicate potential for Mine Granites
along other stratigraphic horizons.
Historical exploration has been primarily comprised of surface
prospecting and outcrop sampling followed by drilling. Opportunity
exists to make additional discoveries through systematic regional
exploration using modern orogenic gold exploration methodologies,
including high-resolution airborne surveying (magnetics and
radiometrics) and appropriate soil sampling techniques.
Next Steps
An application for an 18-month drilling
permit was submitted to the Government of Saskatchewan in mid-August, which is expected
to be granted later this year following successful completion of
the review and consultation process. Detailed planning for a
drilling program is underway, following on from the operational
assessment that was completed for the Project in September 2020.
Update on Mineral Resource Modelling and Estimation
As
announced previously, an updated mineral resource estimate is
planned before the end of the first quarter of 2021 to verify
historical estimates and classify current mineral resources in
accordance with NI 43-101. Work completed to date, following the
September 2020 field program,
includes verification of historical geological logs, sampling
intervals and drill collar positions, and the transformation of the
historic mine grid reference systems. Select relogging of
historical drill cores is underway in support of the development of
updated geological models. Work planned for October and November
includes a repeat sampling program and petrographic analysis to
verify historical assay results and refine understanding of the
nature and distribution of the gold mineralization.
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. 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 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
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.
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
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.
