Wallbridge delivers PEA for Fenelon gold project
Wallbridge Mining Co. Ltd. [WM-TSX, WC7-FWB] has delivered a positive preliminary economic assessment (PEA) for its Fenelon gold project in Quebec. The 100%-owned project is located in the Abitibi greenstone belt, along the Detour-Fenelon gold trend.
The PEA forsees average annual gold production of 212,000 ounces over 12.3 years at an all-in-sustaining cost of US$924 an ounce, generating average annual free cash flow of $157 million over the life of the mine.
Initial capital expenditures are estimated at $645 million, with sustaining capital expenditures of $594 million. The after-tax net present value is pegged at $1,070-million at a spot price of US$1,950.
Details of the PEA were released after the close of trading on June 26, 2023, On Tuesday, Wallbridge shares rose 3.7% or $0.005 to 14 cents on volume of 794,730. The shares currently trade in a 52-week range of 24 cents and 12 cents.
In early November, 2021, Wallbridge announced a maiden resource estimate for the Fenelon gold property as well as an updated resource estimate for the Martiniere gold property. Martiniere is located 30 kilometres west of Fenelon.
Both are located on the company 910 square-kilometre land position on the Fenelon Gold Trend.
The PEA is based on the 2023 Fenelon deposit mineral resource estimate. Total indicated resources currently stand at 21.6 million tonnes at 3.40 g/t gold or 2.37 million ounces. On top of that is an inferred resource of 18.5 million tonnes of grade 2.89 g/t gold or 1.7 million ounces.
The underground mine will have a production rate of 7,000 tonnes per day over a 12.3-year mine life with 30.8 million tonnes of mineralized material at an average grade of 2.73 g/t being extracted from three different mining zones.
“Projects such as Fenelon, with a projected annual production profile of more than 200,000 ounces of gold, located in a mining-friendly jurisdiction with established infrastructure, having substantial exploration upside and access to clean hydroelectric energy are highly desirable yet exceedingly rare in the mining industry today,’’ said Wallbridge Chairman Tony Makuch.
“We are extremely pleased that the PEA on Fenelon along is demonstrating robust economics at this early stage,’’ he said. “We expect further improvements as we continue to add to the resource base through our exploration effort at Fenelon and elsewhere on our very large land position in the Abitibi greenstone belt.’’
“Over the next few months, we will evaluate alternatives to advance Fenelon,’’ said Wallbridge President and CEO Marz Kord. ”While doing so, we will continue to test new areas of mineralization at Fenelon. We have a great near-term opportunity to incorporate satellite deposits such as Martiniere into future studies, with potential for substantial synergies on a district scale.’’
Kord went on to say that the company’s 2023 exploration programs will further delineate the size and scale of the Fenelon and Mariniere deposits while also targeting new greenfield discoveries on the land package.