Fury shares rally on Quebec gold project PEA
Fury Gold Mines Ltd. [FURY-TSX, NYSE American] has announced the results of a preliminary economic assessment (PEA) for its high-grade Eau Claire deposit, which is located in the Eeyou Istchee Territory of the James Bay region of Quebec.
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.
On Tuesday, Fury shares rose 7.14% or $0.05 to 75 cents. The shares trade in a 52-week range of 81 cents and 49 cents.
“The Eau Claire PEA scenarios each demonstrate an exceptional internal rate of return and net present value,” said Fury CEO Tim Clark. “The results validate our belief that the market has significantly undervalued the project within Fury’s broader asset portfolio,” he said. With strong infrastructure in place, including access to hydro power, and roads, combined with favourable metallurgy, Clark said Eau Claire stands out as a highly attractive development opportunity with substantial exploration upside.
On May 14, 2024, the company released an updated mineral resource estimate for its Eau Claire project, which coves 24,000 hectares and is located 57 kilometres south of Newmont’s Eleonore mine.
Eau Claire contains a combined resource of 1.16 million ounces of gold at a grade of 5.64 g/t in the measured and indicated category as well as an additional 723,000 ounces of gold at a grade of 4.13 g/t gold in the inferred category. That material is located in the Eau Claire and nearby Percival deposits.
The estimate includes the addition of 307,000 ounces of gold in the measured and indicated category, plus an additional 223,000 ounces of gold in the inferred category.
The PEA contemplates a primary underground mining operation complemented by two small open pits. Production from the underground mine will start with a small bulk sample, with full underground operations continuing through year 11.
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