Fuerte Announces a Positive Preliminary Economic Assessment for the Coffee Gold Project; Positioning the Company as one of Canada's Next Gold Producers

Core Viewpoint - Fuerte Metals Corporation announced positive results from its Preliminary Economic Assessment (PEA) for the Coffee Gold Project, indicating strong economic viability and plans for aggressive development timelines [1][2]. Economic Assessment - The PEA estimates an After-Tax NPV (5%) of US$2.3 billion and an IRR of 47.8% at analyst consensus gold prices, with a potential NPV of US$4.0 billion and an IRR of 67.2% at spot gold prices [1][8]. - The project is expected to produce an average of 249,000 saleable gold ounces per year for the first five years and 217,000 ounces per year over its 13-year mine life, with an AISC of US$1,274/oz [3][8]. Production and Costs - The PEA outlines a high-grade open-pit heap-leach mine with a total material mined of 90.5 million tonnes and a gold grade of 1.25 g/t, resulting in contained gold of 3,644,000 ounces [7][9]. - Average cash operating costs are projected at US$1,136/oz, positioning the project in the second quartile of global producers [8][28]. Project Development Timeline - The company plans to initiate an aggressive timeline for development, including construction of access roads and obtaining key mine licenses by the end of 2026, aiming for a construction decision in early 2027 [2][35][36]. - An infill drilling program is set to commence in Q1 2026 to upgrade Inferred resources to Indicated status, which will be included in the upcoming Feasibility Study [4][33]. Environmental and Social Considerations - The company acknowledges the importance of protecting the water and lands around the Coffee Creek area and is committed to building relationships with local First Nations [2][37]. - The environmental and socioeconomic assessment process was completed in 2022, with major mine license applications filed in 2023 [30][31]. Future Plans - A 40,000-meter drill program is planned for 2026 to upgrade existing mineral resources and explore new targets within the 70,000-hectare claim package [32][34]. - The company is advancing its Feasibility Study with G Mining Services, which will also manage construction once permits are received [36].