Fortune Bay Advancing Flagship Gold Project While Exploring Upside In World-Class Uranium District

• Fortune Bay Corp Overview: Fortune Bay Corp, with CEO Dale Vern, is an exploration development company listed on the tsxv under symbol FRR. They have three main projects: their flagship Goldfields project in Saskatchewan, two uranium projects, and a copper-gold project in Mexico.
• Goldfields Project & PEA: Despite challenging market conditions for gold, the preliminary economic assessment (PEA) for their Goldfields project showed strong economic potential. At a gold price of $1,650 per ounce, the project yielded an after-tax net present value (NPV) of $285 million and an internal rate of return (IRR) of 35%. With current gold prices nearing $1,920 per ounce, the NPV goes up to $416 million, with an IRR just over 50%.
• Market Discrepancy: Despite the strong PEA numbers, Fortune Bay Corp's market capitalization is at 16 million Canadian dollars, indicating a significant undervaluation or trading discount when compared to the project's estimated worth.
• Uranium Exploration: The company's uranium projects show potential with promising results from initial drill tests, adopting the Athabasca Basin model for high-grade deposits. They believe there's a significant potential value in these uranium projects.
• Company Strategy & Shareholding: The company is contemplating the best approach to gain market recognition and maximize the value of both its gold and uranium assets. It remains tightly held, with the board and management owning 15%, and only 43 million shares outstanding.

About Fortune Bay Corp

Fortune Bay Corp is a Canadian gold and uranium exploration and development company. Its flagship asset is the advanced-stage Goldfields gold project located in Saskatchewan, which recently had a robust Preliminary Economic Assessment (PEA) completed. Fortune Bay also holds over 30,000 hectares of prospective uranium land in the Athabasca Basin. With technical expertise and project generation capabilities, the company aims to advance assets from early exploration through development and realize value for shareholders. Fortune Bay trades on the TSXV under symbol FOR, as well as on the OTCQX and Frankfurt exchanges.

Interview with Dale Verran, CEO of Fortune Bay Corp

Goldfields Project Displays sector-Leading Economics

In November 2021, Fortune Bay released a PEA for its 100% owned Goldfields project in northern Saskatchewan. The study outlines an open-pit mine producing 100,000 ounces of gold per year over a 10 year mine life. Using a conservative $1650/oz gold price, Goldfields displays an after-tax NPV of C$285 million and IRR of 35%. The project benefits from a low strip ratio of just 3:1, simple metallurgy and proximity to infrastructure like roads and power.

More importantly, the PEA economics shine at today's gold prices. With gold now trading around $1920/oz, the NPV rises to C$416 million with an IRR exceeding 50%. The initial capex is a modest C$234 million and all-in sustaining costs are projected at $889/oz. Compared to similar open-pit projects, Goldfields boasts the highest IRR and one of the lowest capex requirements.

According to CEO Dale Verran, Goldfields also holds advantages on the permitting front. It has a valid development permit from its previous scope, which could expedite the timeline to construction. Fortune Bay has already commenced discussions with regulators in Saskatchewan regarding permit amendments.

Significant Upside As Goldfields Remains Undervalued

Despite the robust economics outlined in the 2021 PEA, Fortune Bay continues trading at just a fraction of the after-tax NPV for Goldfields. With an enterprise value of only $16 million, the company trades at 4% of the project NPV – far below the typical 30-40% seen for open-pit projects at the PEA stage.

On an EV per ounce basis, Fortune Bay's projects trade below $10/oz compared to sector averages of $30-40/oz. The cheap relative valuation points to significant upside potential as the company looks to realize value at Goldfields. Advancing the project could also serve as a catalyst for re-rating closer to peers.

Optimization Work Could Further Improve Project Economics

According to Verran, there are several opportunities to improve Goldfields’ already robust economics. Metallurgical testing points to potential increases in gold recovery above the 95.3% rate used in the PEA. The company also sees room to optimize costs through ore sorting techniques, which could reduce both capex and operating costs.

Fortune Bay has allocated $2.5-3 million towards a Pre-Feasibility Study in 2023, which will incorporate additional metallurgy and ore sorting test work. The PFS could outline an even more optimized and profitable project for advancement.

Leveraging Exploration Upside In Prolific Uranium District

Apart from its flagship gold project, Fortune Bay has assembled over 30,000 hectares of prospective uranium exploration ground in the world-class Athabasca Basin. Its Strike and Murmac projects are located near high-profile discoveries like Fission’s Triple R deposit, but have yet to see significant exploration using modern techniques.

Initial drill programs in 2022 intersected altered, graphitic basement rocks with uranium mineralization, proving the concept that deposits may be found. The company’s technical team aims to follow up these results and vector into high-priority targets along multiple kilometers of prospective conductors.

According to Verran, the initial drill holes saw all the right ingredients for Athabasca-style uranium deposits, including the correct alteration, structure and rock types. With continued success, the large property package provides substantial resource upside potential.

Well-Positioned To Advance Assets With Improving Markets

With approximately $500,000 remaining in the treasury, Fortune Bay is planning to raise capital in early 2023 to continue advancing its projects. The improved gold price environment serves as a positive backdrop for attracting investment. Planned activities include engineering studies at Goldfields and follow-up exploration drilling at the uranium projects.

Conclusion

In summary, Fortune Bay offers exposure to both near-term gold development upside and early-stage resource potential in uranium. The stock trades at a steep discount to the NPV outlined for its Goldfields project. As the company continues derisking assets and realizing value, the share price holds potential for significant re-rating. With strengthening precious metals markets and renewed demand for nuclear power, Fortune Bay is positioned to unlock value across its pipeline of projects.