Fortune Bay (FOR) - Updated Gold Resource & Drill on Site

April 23 2021, 06:47 GMT+01:00

Fortune Bay

  • TSX-V: FOR
  • Shares Outstanding: 30.8M
  • Share price C$0.94 (06.04.2021)
  • Market Cap: C$29M

Fortune Bay is a gold-focused exploration and development company with 100% ownership in 2 advanced gold exploration 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. Fortune Bay's corporate strategy is driven by a Board and Management team with a proven track record of discovery, project development and value creation.

We recently had a chance to talk with Dale Verran, Chief Executive Officer of Fortune Bay, a Nova Scotia-based gold exploration and mining company. He shared some interesting updates about the company’s recent business activities.

Company Overview

Fortune Bay is a publicly traded gold exploration and development company. Its goal is to grow into a mid-tier precious metals company through the advancement of its existing projects and the strategic acquisition of new projects to create a pipeline of growth opportunities.  

In addition to CEO Verran, management consists of Sarah Oliver, CFO, and Gareth Garlick, Technical Director. In addition, the company has a 5-person board of directors headed by Wade K. Dawe, Executive Chairman.

Fortune Bay (FOR) is listed on the TSXV and has 29.2M outstanding shares, of which 19% is help by management and board members. Market cap stands at C$33M.Fortune Bay (FOR) - Updated Gold Resource & Drill on Site

Key Projects

The company currently has 2 assets: It’s flagship asset, the Goldfields Project in northern Saskatchewan, and the Ixhuatan Project in Chiapas State, Mexico. Both are 100% owned by Fortune Bay Corp.

The Goldfields Project

This advanced exploration asset, located about 13km from Uranium City, Saskatchewan, has excellent established infrastructure. The principal ore-bearing occurrences are in the Box and Athona deposits. Orogenic gold mineralization occurs in altered granite zones containing quartz vein fracturing.

A new MRE, completed in 2021, has established the following resource at Goldfields: Indicated and inferred resources of 975,000oz. of gold and of 176,000oz. of gold, respectfully. Goldfields had gold production from 1939 to 1942 amounting to 64,000oz.

Since September of 2020, Fortune Bay has made real progress with the Goldfields project. In Verran’s words: “For us coming onto this project, we realised that it needed something new. It needed to be relooked at in the right way and the real opportunity here was that there was never a geological model for either of these deposits. If you go back to the historical 2011 PFS, there was simple mineralized wireframes capturing all the grade information, but no representation of the geology whatsoever. When we got boots on the ground last year we realized these are orogenic gold deposits. They have a strong structural control. And if you're going to turn these things into real assets and get the most from an exploration point of view, you need to create proper geological models that best represent reality”.Fortune Bay (FOR) - Updated Gold Resource & Drill on Site

The new geologic model has shed light on exactly where the gold is located and where the higher-grade ore occurs. They are now in a better position to sharp-shoot cut-off grade ore.

Verran continued: “We can do more selective open-pit mining to improve economics further.” And additionally, the model opens up underground mining potential: “It also give us the opportunity for underground potential at both deposits where we see grades that we think would be amenable to underground mining”.

Next on the agenda, according to Verran, is the Pre-Feasibility study. This could commence immediately, or be on hold a bit as they see how the results of the current exploration phase come in.

Ideally, Fortune Bay is looking to bring the greatest value possible for shareholders. Verran let us know that: “We see ourselves taking this project down the development path, de-risking it, showing it's a project that's going to move and then looking to partner up or look for a suitable company to take us out”.Fortune Bay (FOR) - Updated Gold Resource & Drill on Site

The Ixhuatan Project

Ixhuatan, located near the town of Rayon, Chiapas, Mexico, is an advanced gold project with significant exploration and development upside. The precious metal is contained within six separate zones. Measured and indicated resource consists of 1.04Moz of gold and 4.4Moz of silver. Inferred resources currently stand at 0.7Moz of gold and 2.3Moz of silver. There are no royalties or back-in right encumbering the asset.

Veran gave us some insight on how this asset found its way into the company’s portfolio: “We see this as a significant asset for the company, both as a pipeline opportunity or something to arrange into with the right partner. We took a deep dive on the project technically last year, and our new technical team really dug through the data and created new models for the project. It’s a very exciting asset. Its geologically outstanding in terms of its setting. The magnetic data shows this deep-buried porphyritic intrusive, and that's given rise to the epithermal system.”

He also said that their recent drilling at the asset was “exceptional” and that there are numerous other prospects on the asset property.Fortune Bay (FOR) - Updated Gold Resource & Drill on Site

Fortune Bay: A Development Company or an Exploration Company?

During the interview we conveyed that we were a little perplexed about the main focus of Fortune Bay, whether they are largely an exploration company or a development firm. Verran cleared that up for us: “We're going down 2 paths here: there's a project development path and we are a developer”. In addition: “We definitely want to, concurrently with our project development, to continue to explore. We're going to keep marching down, doing mining studies, we're going to do scoping work, but we're going to concurrently do exploration at both deposits”.Fortune Bay (FOR) - Updated Gold Resource & Drill on Site

Share Price Concerns?                            

Since July 2020, the share price of Fortune Bay has been on a sideways to downward track. It’s high over that period was C$1.56, As of mid-April, 2021, it stood at C$0.90. We asked Verran if he was concerned.

He answered by reiterating what has been accomplished and is currently happening at Goldfields: “We've come to this process of getting familiar with this project with a substantial legacy of data, doing a new mineral resource estimate, putting the company together. We only got going last year; the team’s in place, the resource is in place. Now we’re in a position to really get momentum in this market and move things forward, both from a project development point of view, where we will be doing internal scoping toward a Pre-Feasibility study, and with an exploration program that's currently in progress; we've got drill rigs in the field. It takes time to set up these companies and get our story moving but we’re now in a position where we really can deliver catalysts”.

Final Thoughts From the CEO

As we closed out our interview, Verran left us with these final thoughts, which he indicated represent significant traction for the company right now:

  • “Fortune Bay has been essentially under the radar for the last while. We are now getting traction as a company.”
  • “We've recently completed a new mineral resource estimate for our Goldfields project. We're going to be looking to move that into a Pre-feasibility Study. Concurrent to that we've started our exploration program, a phase 1 drilling program is currently underway on site. We are expecting assays in the coming weeks”.
  • “We also have a project in Mexico where we’re really excited about the geological potential, that we looking to advance as an asset with a partner in the nearer term”.

He closed the conversation bullishly by saying that he expects that “The market can expect to hear a lot more from us”.

 To find out more, go to Fortune Bay's Website. 

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