- Fuerte Metals (TSXV:FMT) released a preliminary economic assessment for its 100-per-cent-owned Coffee gold project in the Yukon
- The planned open-pit heap-leach mine is estimated at an after-tax net present value (5 per cent) of US$4 billion
- The small-cap gold stock has added 820.21 per cent year-over-year
Fuerte Metals (TSXV:FMT) released a preliminary economic assessment for its 100-per-cent-owned Coffee gold project in the Yukon, and the results speak highly of the asset’s long-term potential for shareholder value creation.
The planned open-pit heap-leach mine is estimated at an after-tax net present value (5 per cent) of US$4 billion, with a payback of only 1.2 years based on a US$5,000 gold price.
This valuation translates into average production of 217,000 ounces of gold per year over a 13-year life of mine at all-in sustaining costs of only US$1,274 per ounce, placing Coffee in the second quartile among global producers, according to Sunday’s news release. Estimated resources stand at 3 million ounces measured and indicated and 800,000 ounces inferred.
Backed by support from First Nations and the Yukon government, Fuerte’s leadership team expects to begin early project work imminently, with mine permits expected by year-end, positioning the company and partner G Mining Services to make a final construction decision by early 2027.
The company will now turn its attention to a 40,000-metre drilling program to further substantiate known resources and test new targets.
Management commentary
“The positive results of the PEA strongly validate our decision to acquire the Coffee project in 2025,” Tim Warman, chief executive officer of Fuerte Metals, said in a statement. “We will be moving ahead with an aggressive timeline and early works program in 2026, including construction of the remaining portions of the access road from Dawson to the Coffee project, which we anticipate beginning on receipt of road-related permits later this spring. We expect to obtain the key remaining mine licenses by year-end, which would pave the way for a construction decision for the project in early 2027. We are excited to drive forward with Coffee and to deliver significant economic benefits to our shareholders, residents of the Yukon and our First Nations partners.”
About Fuerte Metals
Fuerte Metals is a Canada-based mineral exploration and development company focused on precious and base metals across the Americas.
Fuerte Metals stock (TSXV:FMT) last traded at C$8.65 and has added 820.21 per cent year-over-year.
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