| A big head start on a gold mine in Canada | | | Please find below a special message from our advertising sponsor, Fortune Bay. Golden Opportunities is a free service that gives you valuable investment intelligence all year long at no charge, and advertisements allow us to continue sending these reports. | |
In a market where every junior gold explorer and developer seems to have a story to tell, Fortune Bay’s (FOR.V; FTBYF.OTC; 5QN.F) value proposition is particularly compelling.
The company boasts two core projects that collectively host no less than 3 million ounces of gold, including one project that’s raring to get into production.
| | |
It’s always nice when a company has ounces in the ground.
|
In a secular bull market like the one we appear to be in, companies with established projects offer a variety of paths to higher valuation.
They can benefit from the optionality their in situ resources offer, with their valuations rising along with gold prices.
They can advance those resources along the development curve, giving the company the chance of significant positive market re-ratings as they de-risk their projects.
They can even advance those projects to the point where a lucrative takeout by a mid-tier or major gold producer becomes possible.
|
As it happens, all those paths, plus the potential of rapid resource growth through exploration, are open to Fortune Bay (FOR.V; FTBYF.OTC; 5QN.F).
|
Simply put, thanks to the ounces it already has in the ground and the development advantages of its flagship Goldfields project, Fortune Bay offers current investors a number of ways to win.
|
Large In Situ Gold Resource Provides Optionality Play
|
Fortune Bay’s Goldfields project in northern Saskatchewan and its Ixhuatán project in southern Mexico give it a global, historical resource of three million ounces.
That total consists of 1.03 million oz. of historical measured and indicated resources (including 1.02 million oz. of historical reserves) at Goldfields — plus another 230,000 oz. of historical inferred resources.
It also includes 1.04 million oz. of historical measured and indicated resources and 700,000 oz. of historical inferred resources at Ixhuatán.
| |
| | Between its Goldfields project in Canada and its Ixhuatán project in Mexico, Fortune Bay has an historical global resource of about three million ounces of gold. |
Now granted, those estimates have aged to the point where the company will need to verify the historical data to classify current mineral resources in accordance with NI 43-101.
But even “as is,” these historical resources give Fortune Bay a clear optionality play, where its in situ gold bank can deliver returns based solely on rising gold prices.
|
Goldfields Project Is Development-Ready
|
And the good news doesn’t stop there.
You see, the Box and Athona deposits that comprise the Goldfields resource are open-pittable and situated near key pieces of infrastructure.
Having easy-to-process, open-pittable ounces gives Goldfields a leg up on more underground-focused projects.
Adding to its allure is the fact that it lies just 13 kilometers from the mining center of Uranium City, with road access via a provincial highway and, in winter, an ice road.
Power from a nearby hydroelectric station is readily available, and Saskatchewan itself is one of the world’s more mining-friendly jurisdictions.
| |
| | Fortune Bay’s Goldfields project lies in the mining friendly province of Saskatchewan near key pieces of infrastructure. |
Better still, Fortune Bay is already grandfathered in for a 5,000 tonne-per-day development permit at Goldfields.
That’s huge, because it can make it a very attractive takeout target by dramatically compressing the timeline for putting the project into production.
Save
Not A Subscriber Yet?
Get Golden Opportunities For Free
Subscribe to our Golden Opportunities e-letter to receive timely market
updates from the Gold Newsletter research team, plus video
presentations by expert speakers from the New Orleans Conference
— and the Investor’s Guide to Gold and Silver — all at no cost!
CLICK HERE to start your subscription.
|
Historical Prefeasibility Study Highlights Potential
|
Another feather in Goldfield’s cap is an historical prefeasibility study on the project.
Again, as an historical NI 43-101 report, this study needs to be verified and updated, but it does point a path to a higher valuation for the project — and Fortune Bay as a whole — thanks to today’s much loftier gold price.
Generated in 2011 using a C$1,250 gold price and a 0.96 US-dollar-to-Canadian-dollar exchange rate, the project had a pre-tax NPV, discounted at 5%, of C$144 million.
| |
| | An updated PFS, potentially next year, would classify current mineral reserves in accordance with NI-43 101, likely applying much higher gold prices. |
That estimate was based on a mine that would produce 81,695 oz. annually over a 13-year mine life, scoped to fit within the 5,000 tonne-per-day development permit.
With current gold prices exceeding C$2,400/oz. at the current exchange rate, you have a project that should show significant improvement when Fortune Bay optimizes and updates the study.
|
A Golden Backstop In Mexico
|
Providing a backstop to Goldfields is Ixhuatán, a precious metals and copper project located in Chiapas State, Mexico.
Ixhuatán saw more than 89,000 meters of drilling between 2004 and 2009. Its Campamento deposit hosts a 1.74-million-oz. historical resource (measured and indicated and inferred).
Other targets on the property are open to gold-silver-copper mineralization, with the Cerro La Mina target reporting 601.4 meters of 0.68 g/t gold, 2.71 g/t silver and 2,802 ppm copper.
Fortune Bay is considering a variety of options to extract value from Ixhuatán, including a JV partnership or even an outright sale of the asset.
|
“Layup” Catalysts Straight Ahead
|
For now, though, the company’s focus is clearly on advancing Goldfields, and for good reason.
With an uber-tight share structure (just 37.9 million shares fully diluted), Fortune Bay is set up to deliver share price moving news in the months ahead:
|
• An updated, NI 43-101 compliant resource estimate for Goldfields — due out in early 2021 — is expected to remind the market that the project hosts more than a million ounces of gold resources.
• A follow-on updated prefeasibility study will likely apply much higher gold prices than those used in 2011 and demonstrate significant value to the market.
• The company will continue to actively explore Goldfields, with expected resource expansion drilling at Box and Athona that could deliver high-grade assays to the market.
|
Add in the possibility that the company’s aggressive management team will stay active on the acquisition and deal-making fronts, and you have a gold story perfectly set up to deliver good news into a rising gold market.
| | | | You are receiving this message because you have specifically subscribed to Golden Opportunities, have purchased a product or have registered for a conference with us or with one of our partners. If you'd rather not receive emails from us, please unsubscribe here. Remember, your personal information will never be rented or sold and you may unsubscribe at any time. Advertisements included in this issue do not constitute endorsements from us of any stock or investment recommendation made by our advertisers.
Warnings and Disclaimers: As you know, every investment entails risk. Golden Opportunities hasn’t researched and cannot assess the suitability of any investments mentioned or advertised by our advertisers. We recommend you conduct your own due diligence and consult with your financial adviser before entering into any type of financial investment. This profile should be viewed as a paid advertisement. The publisher and staff
of this publication may hold positions in the securities of companies discussed or recommended. The information contained herein has been received from sources which the publisher deems reliable. However, the publisher cannot guarantee that such information is complete and true in all respects. The advertiser provided a review of the factual content of this advertisement at the time of publication. The publisher
is not a registered investment adviser and does not purport to offer personalized investment related advice; the publisher does not determine the suitability of advice and recommendations contained herein for any reader. Each person must separately determine whether such advice and recommendations are suitable and whether they fit within such person’s goals and portfolio. The advertiser featured in this edition of Golden
Opportunities has paid the publisher for the costs and compensation related to the authorship, overhead, design and distributing this online edition, in the amount of $7,500. The publisher may receive revenue, the amount of which cannot be predetermined, from sales resulting from any accompanying offer. Authors of articles contained herein may have been compensated for their services in preparing such articles.
Golden Opportunities
Jefferson Companies
111 Veterans Memorial Blvd. Suite 1555
New Orleans, LA 70118
1-800-648-8411
| | | |
.png)
