Mayfair Delivers Robust Pre-Feasibility Study for the Fenn-Gib Gold Project
Mayfair Pivots to Starter Pit Strategy with Robust PFS as Financing Mountain Looms
The most recent news (January 8, 2026) reports the results of a Pre-Feasibility Study (PFS) for the Fenn-Gib gold project in Ontario. Key highlights include a maiden mineral reserve of 1.04 million ounces of gold and a 14.3-year mine life. The study outlines a 4,800 tonne-per-day (tpd) open-pit operation focusing on a high-grade starter zone. Economically, the project boasts an after-tax NPV (5%) of $652 million CAD and an IRR of 24.1% based on a gold price of $3,100 USD/oz. All-in sustaining costs (AISC) are estimated at $1,171 USD/oz. Initial capital costs are pegged at $450 million CAD.
The news is Material - Positive as it transitions Mayfair from an explorer with a large, low-grade resource into a developer with a defined, economically viable mine plan. - Confirmation of Economics: The 24.1% IRR and sub-3-year payback are robust, even if the "Base Case" gold price of $3,100 USD/oz is high by historical standards (though conservative relative to the $4,450 USD spot case mentioned). - Strategic Shift: By focusing on a smaller 4,800 tpd "starter" operation rather than a massive low-grade build, management is attempting to reduce execution risk and initial capital requirements. - Reserve Definition: Converting a portion of the 4.3 million ounce Indicated resource into a 1.04 million ounce Probable reserve is a critical de-risking step required for project financing. - Cash Position: The company is well-funded for the immediate next steps with approximately $41.8 million CAD (as of Q3 2025), thanks to a major financing in September 2025.
Mayfair Gold’s flagship is the 100%-controlled Fenn-Gib gold project located in the Timmins gold district of Northeastern Ontario. The project is characterized by a large, near-surface gold deposit with an Indicated resource of 4.3 million ounces. The recent strategy emphasizes a "starter pit" approach to access high-grade mineralization early in the mine life to maximize cash flow and accelerate debt repayment. The project benefits from excellent infrastructure, including highway access and nearby power.