Fuerte Announces a Positive Preliminary Economic Assessment for the Coffee Gold Project; Positioning the Company as one of Canada's Next Gold Producers
Executive Summary
- Fuerte Metals released a PEA for its 100% owned Coffee Gold Project in Yukon, showing after‑tax NPV(5%) of US$2.3 bn (consensus gold price) and US$4.0 bn (spot gold price) with IRRs of 47.8% and 67.2%, respectively.
- The project is modeled as a 13‑year open‑pit heap‑leach mine producing ~249,000 oz Au/yr in the first five years and ~217,000 oz Au/yr over life‑of‑mine, with cash costs of US$1,136/oz and AISC of US$1,274/oz.
- Company plans early works in 2026, expects all key permits by year‑end 2026, and targets a construction decision in early 2027; a 40,000 m infill drill program is slated for 2026 to upgrade resources.
Key Details
- Economic Highlights
- After‑tax NPV(5%): US$2.3 bn (consensus) / US$4.0 bn (spot).
- After‑tax IRR: 47.8% (consensus) / 67.2% (spot).
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Payback period: 1.7 yr (consensus) / 1.2 yr (spot).
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Production Profile
- First full 5 years: 249,000 oz Au/yr (saleable).
- Life‑of‑mine average: 217,000 oz Au/yr.
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Material mined: 90.5 Mt @ 1.25 g/t Au → 3,644 koz contained gold.
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Cost Structure
- Cash operating cost: US$1,136 per ounce.
- All‑in Sustaining Cost (AISC): US$1,274 per ounce (US$1,166/oz for first five years).
- Total direct capital: C$638.5 M (incl. C$71.3 M Northern Access Route).
- Indirect costs: C$165.3 M; Contingency: C$179.4 M; Initial capex total: C$983.1 M.
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Sustaining capital (LOM): C$558.8 M; Reclamation: C$182.6 M; Total LOM capital: C$1,724.5 M.
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Resource Estimate (as of Aug 21 2025)
- Measured: 1,200 kt @ 1.80 g/t → 69 koz Au.
- Indicated: 78,846 kt @ 1.14 g/t → 2,888 koz Au.
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Inferred: 21,200 kt @ 1.17 g/t → 800 koz Au.
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Mining & Processing
- Open‑pit truck/loader operation; 7.4 Mt processed annually; strip ratio 7.6:1.
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Heap‑leach plant with two‑stage crushing, P80 ≈ 50 mm, average recovery 77.5%.
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Permitting & Timeline
- Major licences (Quartz Mining Licence, Water Use Licence) filed 2023; expected receipt by end‑2026.
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Early works in 2026 include airstrip, construction camp, laydown areas, and road upgrades (≈ 40 km new road, remainder upgrades).
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Next Steps
- 40,000 m infill drill program in 2026 to upgrade Measured/Indicated confidence and test new targets.
- Continue Feasibility Study with G Mining Services; aim for construction decision early 2027.
Notable Quotes
“The positive results of the PEA strongly validate our decision to acquire the Coffee project… we will be moving ahead with an aggressive timeline and early works program in 2026…” – Tim Warman, CEO & Director, Fuerte Metals Corp.