Mayfair tables PFS results for Ontario gold project
Mayfair Gold Corp. [MFG-TSXV] has released the results of a pre-feasibility study for its Fenn-Gib gold project located in the Timmins Gold District, northern Ontario.
Highlights of the study include a forecast $450 million capital expenditure and annual production of 64,097 ounces over a 14.3-year mine life at an all-in-sustaining cost of under US$1,300 an ounce. The study forsees an average processed grade during that period of 1.29 g/t gold. Free cash flow in the first six years of operations is pegged at $896 million at a base case gold price. The company said the mine plan and associated economics only exploit 1.04 million ounces or 24% of the total 4.3 million ounces of indicated resources, preserving optionality for future growth.
The PFS considers a conventional open-pit mining operation and incorporates modular processing plant designs, allowing for a simplified construction schedule of less than 24 months.
“We believe the permitting process can be advanced quickly, positioning the project for timely development within the current gold cycle,’’ said Mayfair CEO Nick Campbell. “This strategy allows Mayfair to advance Fen-Gib without requiring excessive up-front capital with substantially lower execution risk as compared to a large-scale development.’’
Mayfair shares eased 7.03% or 39 cents to $5.16 and trade in a 52-week range of $5.69 and $3.00.
The project plans to advance three strategies in parallel: Ontario-led environmental approvals, Indigenous agreements, and engineering design procurement. These initiatives aim to enable major construction within 24 to 36 months, with commercial operations targeted within five years.
In keeping with that goal, the company recently closed a LIFE offering of 24.2 million common shares priced at $1.65 each that raised $40 million, funds that will be used for metallurgical and detailed engineering at the Fenn-Gib project.
As a result, the company is well funded to advance the Fenn-Gib project which hosts an indicated resource of 181.3 million tonnes of grade 0.74 g/t gold or 4.3 million gold ounces. The company recently launched a drilling program designed to give Mayfair more data to better define waste to ore boundaries and improve confidence in the grade profile of the mine over the first several years of production. Results from the drill program are expected to be available in the first quarter of 2026.
“The Fenn-Gib deposit is unique in that the highest-grade material occurs near the surface which allows for the potential start of operations with a smaller, targeted mining operation focused on low strip ratio, high-grade gold mineralization,’’ said Campbell.
Campbell went on to say that with the gold price trading at near record levels, Mayfair is encouraged by the opportunity to rapidly advance the Fenn-Gib Project as a potential new gold producer within the current cycle.
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