Fortune Bay Announces Positive PEA For Goldfields Project

HALIFAX, NS - Fortune Bay Corp. reported positive results from the independent Preliminary Economic Assessment (PEA) for its Goldfields Project located near Uranium City, Saskatchewan. The PEA provides a base case assessment for developing the Goldfields mineral resource by conventional open pit mining methods, and gold recovery with a standard free milling flowsheet, incorporating gravity and leaching of the gravity tails. The economic model supports an operation with low capital cost and high rate of return over an 8.3 year mine life, with average annual production of 101,000 ounces of gold.

Dale Verran, CEO, said, "Goldfields shows potential to become a highly profitable gold mine supported by a PEA. Goldfields has now established itself as a leading gold development project in Saskatchewan, which is significant given it is the top-ranked mining jurisdiction in Canada and ranked number two globally. The PEA, based upon 99% of Indicated Mineral Resources, together with the substantial repository of project data, lays a solid foundation for the advancement of the Project.

The Project has numerous desirable attributes including a low strip ratio, simple mineralogy and free-milling gold. The robust PEA economics are highlighted by low initial capital costs, competitive all-in sustaining costs, a relatively short payback period and a favorable NPV:CAPEX ratio. In addition, the established infrastructure in a historical mining area, including a powerline to site, and a valid development permit is expected to facilitate the timeline towards construction and operations. The Project continues to present numerous opportunities, including exploration potential, and additional mining and processing opportunities to be further investigated during a pre-feasibility stage."

The Goldfields Project comprises 12 mineral dispositions, covering approximately 5,000 hectares, and is host to the Box and Athona gold deposits and numerous other gold prospects and occurrences. The Project is located within a historical mining area and benefits from established infrastructure, including a road and hydro-powerline to the Box deposit. Nearby facilities and services in Uranium City include bulk fuel, civil contractors, and a commercial airport. The Project has a history of gold production (64,000 oz produced between 1939 to 1942), numerous exploration drilling campaigns (over 1,000 drill holes) and historical mining studies by previous owners of the Project.

The current total gold resource for Box and Athona stands at 979,900 ounces of gold in the Indicated category (23.2 million tonnes at an average grade of 1.31 g/t gold) and 210,800 ounces of gold in the Inferred category (7.1 million tonnes at an average grade of 0.92 g/t gold). The PEA considers conventional open-pit mining at both the Box and Athona gold deposits.