Goldfields Project (Box & Athona) PEA: C$610M NPV, 44% IRR
Fortune Bay Corp.'s Goldfields Project (Box & Athona) in Saskatchewan, Canada has a Preliminary Economic Assessment (PEA) outlining an after-tax NPV of C$610M, an after-tax IRR of 44%, and initial capital of C$301M. The proposed mine plan runs 14 years.
Fortune Bay Corp.'s Goldfields Project (Box & Athona) has reported Preliminary Economic Assessment (PEA) results for the gold project in Saskatchewan, Canada. The study headlines an after-tax net present value of C$610M at a 5% discount rate. It reflects Fortune Bay Corp.'s (FOR.V) latest disclosed economics for the asset.
Economics. The after-tax NPV is C$610M using a 5% discount rate. After-tax IRR is 44%. Initial capital expenditure is estimated at C$301M. The study models a payback period of 1.67 years. All-in sustaining costs are pegged at 1330 USD/oz. Economics are based on Base case US$2,600/oz Au; intermediate case US$3,100/oz Au; upper case US$3,650/oz Au.
Production and mine plan. The project envisions an open-pit operation. Life of mine is 14 years. Average head grade is 1.2 g/t Au (mill head grade). Metallurgical recovery averages 95.4%. The open-pit strip ratio is 3:1.
Resources and ownership. The company holds a 100% interest in the project.
These figures are extracted from Fortune Bay Corp.'s technical disclosures and reflect the most recent PEA on file. Compare this project against other developers and producers in our project economics database, and always verify the numbers against the original technical report before making any investment decision.
Reserves & Resources
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Indicated | 16.2 Mt | 1.41 g/t Au | 734.3 koz Au |
| Indicated | 7.8 Mt | 1.02 g/t Au | 255.4 koz Au |
| Total Indicated | 24.0 Mt | 1.28 g/t Au | 989.6 koz Au |
| Inferred | 3.4 Mt | 1.04 g/t Au | 114.1 koz Au |
| Inferred | 4.0 Mt | 0.78 g/t Au | 100.1 koz Au |
| Total Inferred | 7.4 Mt | 0.90 g/t Au | 214.2 koz Au |
Our Analysis
- IRR after-tax
- 44%
higher than 63% of 120 projects we track
- NPV after-tax
- C$610M
higher than 50% of 193 projects we track
- Initial capex
- C$301M
49% of NPV
costlier than 61% of 175 projects we track
- Payback
- 1.7yrs
slower than 31% of 104 projects we track
- Mine life
- 14yrs
- Discount rate
- 5%
- Study price assumption
- Base case US$2,600/oz Au; intermediate case US$3,100/oz Au; upper case US$3,650/oz Au
- Spot gold today
- $4,204.50/oz
A C$301M build against a US$35M market capitalisation is the fact that governs everything else here. The company would need to raise roughly six times its own equity value to construct this mine, and it carries seven other projects alongside it. No nano-cap writes a cheque of that size from its own balance sheet. The realistic routes are a heavily dilutive equity raise, a partner or streaming deal that hands away a large share of the economics, a sale of the asset, or some combination. Existing holders should assume their stake in the eventual mine is materially smaller than their stake in the company today, and that the terms will be set by whoever provides the capital, not by the company.
The economics underneath are genuinely good, and that is what makes the funding question live rather than academic. A 44% after-tax IRR sits above 63% of the 120 gold projects we track, payback of 1.7 years is faster than 69% of the 104 we track, and the after-tax NPV of C$610M ranks mid-pack among 193 projects. Capex at 49% of NPV is lower than 39% of the 175 projects we track, so this is not a capital sink relative to what it returns. The study uses US$2,600/oz against a live spot of $4,204.50/oz, so the base case is conservative on price, and the intermediate and upper cases at US$3,100 and US$3,650 bracket the current market.
Two caveats temper all of it. This is a PEA, scoping-level, potentially drawing on inferred material, with a capital estimate that typically carries a plus or minus 50% band; the build cost could move enough in either direction to change the financing conversation entirely. Saskatchewan is a mining-friendly jurisdiction, which helps permitting and helps attract institutional capital, but it does not shrink the cheque. The question that decides this project is not whether the returns clear a financing hurdle. It is who funds C$301M, and on what terms existing shareholders are diluted to get it built.
Our take, benchmarked against the project economics in the Mining Stocks database. Figures are estimates drawn from company technical reports — not investment advice; always verify against the source filing.
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