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Fortune Bay Corp (2)
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Fortune Bay receives drill permit for Goldfields

2021-02-26 07:46 ET - News Release

Mr. Dale Verran reports


Fortune Bay Corp. has received a drilling permit for its Goldfields project located in Northern Saskatchewan. 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 are planned in 15 holes.
  • Drilling will be focused on expanding the mineral resources at the Box and Athona deposits through stepout drilling from high gold grades, which remain open.

Dale Verran, chief executive officer 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 Oct. 13, 2020, the company has identified drill targets at both the Box and Athona deposits. A phase 1 drilling program has been developed to commence testing these targets through stepout 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, stepout drilling is planned both along strike and downdip of the higher-grade drill intercepts in both zones 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 1930s historical results, infill drilling to establish continuity with mineralization to the north and stepout drilling to the south.

Summary of drill targets (announced Oct. 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 prefeasibility study for Box:

  • Two priority higher-grade zones have been identified for drill targeting and resource expansion, Box zone A and Box zone B. 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 grams per tonne over 6.00 metres (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 m 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 prefeasibility study.
  • The Athona mine granite that hosts the gold mineralization extends southward to and beyond the historical No. 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. 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 data set. 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, MSc, PGeo, chief executive officer of the company, who is a qualified person as defined by National Instrument 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-per-cent-owned Goldfields project is the company's most advanced asset located in Northern Saskatchewan, approximately 13 kilometres from Uranium City, for which a historical prefeasibility study 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 per cent and 89 per cent, 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 (net present value) (at a 5-per-cent discount rate) of $144.3-million (pretax) and a 19.6-per-cent IRR (internal rate of return) (pretax) using a base case of $1,250 per ounce of gold. Total capital costs were estimated at $159.2-million including a 13.7-per-cent 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 230,000 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, power line and nearby facilities and an airport at Uranium City. The project has a history of gold production (64,000 ounces Au produced between 1939 and 1942), numerous exploration drilling campaigns (about 80,000 metres of drilling in about 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 Corp.

Fortune Bay is a gold-focused exploration and development company with 100-per-cent ownership in two advanced exploration gold projects in Saskatchewan, Canada (Goldfields project), and Chiapas, Mexico (Ixhuatan 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 record of discovery, project development and value creation.

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