Fury Gold confirms high-grade continuity at Quebec project

Fury Gold Mines Ltd. [FURY-TSX, NYSE American] has announced additional assay results from its ongoing Phase 2 drill program at the Eau Claire Gold Project which is located in the Eeyou Istchee Territory of the James Bay region of Quebec.

The Phase 2 program consists of approximately 25,000 metres of diamond drilling designed to increase geological confidence within the current mineral resource estimate and support the conversion of inferred mineral resources to higher confidence resource categories. The company said all drill holes reported in its latest press release were completed within areas currently classified as inferred and continue to demonstrate strong grade and geological continuity throughout the deposit.

Results are highlighted by drill hole 26EC-131, which intersected 14.95 g/t gold over 4.25 metres true width, approximately 60 metres up-dip from historical hole ER15-572, which previously returned 6.18 g/t gold over 5.05 metres.

“This intercept confirms the continuity of the high-grade mineralized system and further validates the company’s geologic model,’’ the company said.  “The result significantly increases confidence in the continuity of the modeled mineralized zone and is expected to contribute to the conversion of portions of the current inferred resource to the indicated category in a future mineral resource update.’’

On Monday, Fury shares eased 1.04% or $0.005 to 47.5 cents. The shares trade in a 52-week range of $1.02 and 48 cents. Fury is a well-financed Canada-focused company, holding a 5.8% equity stake in Cantango Silver and Gold Inc. [CTGO-TSX, NYSE American] which recently announced gold assay results from surface diamond drilling at the Lucky Shot project in Alaska.

Eau Claire contains a measured and indicated resource of 1.16 million ounces of gold and an inferred resource of 723,000 ounces.

Fury recently announced the results of a preliminary economic assessment (PEA) for its high-grade Eau Claire deposit.

The company said the PEA represents an initial conceptual evaluation of the economic potential of Eau Claire’s mineral resources and is compliant with NI 43-101 standards of disclosure.

The company is looking at three possible scenarios all based on the same mine plan, including a full stand-alone operation with all processing on site, a highbred case starting with two years of toll milling, followed by full standalone crushing, milling, and processing on site. The third scenario involves full toll milling, processing mineralized material off-stie at a third party facility.

PEA highlights include total recovered gold production of 834,000 ounces at an average grade of 4.46 g/t gold. Average annual production is projected to be approximately 76,000 ounces of gold over an 11-year life of mine at an all-in-sustaining cost of US$1,140 an ounce for the base case; US$1,153 per ounce for the hybrid case, and US$1,170 an ounce for the total milling case.

The PEA forsees low initial capital expenditures ranging from $117 million in the toll milling case to $217 million in base case.