Fuerte Metals awards contract for Coffee road

Executive Summary

• Fuerte Metals Corp. has awarded the construction contract for the Northern Access Route (NAR) to Cobalt Construction Inc., marking the first stage of early infrastructure development for its flagship Coffee gold project.
• The NAR will connect the project to the city of Dawson and the Yukon highway network, with construction activities expected to begin in spring following permit issuance.
• The project involves significant local collaboration, including a cooperative approach with the Tr'ondek Hwech'in First Nation, and is estimated to generate $77 million in economic activity for the region.

Key Details

• Contract Award: Awarded to Cobalt Construction Inc. for the construction of the Northern Access Route (NAR).
• Project Scope: The NAR is a 214-kilometre, all-season gravel road connecting the Coffee gold project to the Yukon highway network and Dawson.
• Construction Specifications:
  • Includes upgrades to approximately 180 km of existing road.
  • Involves construction or realignment of approximately 34 km of new single-lane, forestry-type access road with regular pull-outs for two-way operation.
  • Requires seasonal barge crossings on the Stewart and Yukon rivers, with ice bridges in winter months.
• Timeline and Permits:
  • Equipment staging is underway.
  • Construction activities will begin once permits are issued by the Government of Yukon, with guidance toward permit issuance in spring.
  • A final construction decision is anticipated in early 2027, following the release of an updated feasibility study and receipt of final mine permits.
• Economic Impact:
  • Estimated $77 million to be spent on supplies, materials, equipment, and services during the two-year construction period.
  • Creation of employment and contracting opportunities for Yukoners, with a focus on meaningful participation from First Nations communities.
• Partnerships and Land Base:
  • Collaboration with Tr'ondek Hwech'in to explore cooperative arrangements for construction.
  • Routing falls wholly within Tr'ondek Hwech'in Traditional Territory, with some new construction/upgrades in shared territory with Selkirk First Nation and asserted territory of White River First Nation.
  • Minor upgrades fall within shared territory of the First Nation of Na-cho Nyak Dun.
• Future Outlook: The company expects to award additional contracts in the upcoming months.

Notable Quotes

• Tim Warman, CEO: "Awarding the Northern Access Route construction contract is an important step forward for Coffee... With mobilization already under way, we are positioning the project for success as we move towards a final construction decision early next year."
• Hahke (Chief) Taylor, Tr'ondek Hwech'in: "We look forward to exploring a partnership or other collaborative arrangement for the construction of the access road to the Coffee project and strengthening our existing relationship with Fuerte through this first stage of work."
• Shaun Rudolph, President, Cobalt Construction: "Cobalt Construction is proud to partner with Fuerte to deliver this first stage of Coffee... This project highlights the strength of local knowledge, partnerships and the benefits of working together to support responsible resource development in the territory."