Fuerte Metals Corporation ($FMT) Provides Positive Preliminary Economic Assessment for Coffee Gold Project
Vancouver, British Columbia - Fuerte Metals Corporation (TSXV: FMT) is excited to announce the results of its Preliminary Economic Assessment (PEA) for the fully-owned Coffee Gold Project in Yukon, Canada. The PEA indicates an impressive After-Tax NPV(5%) of US$2.3 billion and an IRR of 47.8% based on analyst consensus gold prices, with projections of US$4,100/oz in 2029 and US$3,620 in 2030 and beyond.
In a more favorable spot price scenario of US$5,000/oz, the After-Tax NPV(5%) rises to US$4.0 billion, showcasing the project's robust economic potential. CEO Tim Warman expressed enthusiasm about the results, stating, "The positive results of the PEA strongly validate our decision to acquire the Coffee project in 2025."
Fuerte plans to initiate an aggressive timeline and early works program in 2026, which includes constructing the remaining access road from Dawson to the Coffee Project, anticipated to start once road-related permits are secured this spring. The company expects to obtain key mine licenses by the end of 2026, paving the way for a construction decision in early 2027.
Warman emphasized the importance of collaborating with First Nations, committing to environmental stewardship and transparency in their operations. The PEA outlines a high-grade open-pit heap-leach mine with a projected life of approximately 13 years, aiming to produce an average of 249,000 saleable gold ounces per year in the initial five years, and 217,000 ounces per year over the life of the mine.
As part of the PEA, the production profile incorporates Inferred resources, with about 16% of ounces mined categorized as Inferred. To advance this, Fuerte will start an infill drilling program in Q1/26 to upgrade some of these resources to the Indicated category.
The PEA estimates a robust internal rate of return (IRR) of 47.8% and an after-tax net present value (NPV5%) of US$2.3 billion at consensus gold prices, along with an AISC of US$1,274/oz. The production costs will average US$44.24/tonne stacked, with total cash costs forecasted at US$1,136/oz.
The Coffee Gold Mine Project is nearing completion of its permitting process, with major license applications submitted in 2023. The company plans a 40,000-meter drill program in 2026, focusing on upgrading the confidence level of existing mineral resources and exploring new targets within the project's expansive 70,000-hectare claim package.
Fuerte is also working on a feasibility study with G Mining Services to manage the project's construction once permits are received. This ambitious plan highlights the company's commitment to advancing the Coffee Gold Project, ensuring significant returns for shareholders and contributing to local communities.
For more information about Fuerte Metals Corporation and its projects, please visit insideticker.com/ticker/FMT.