Fortuna Mining Corp. (NYSE: FSM | TSX: FVI) has released positive results from the feasibility study (FS) for its Diamba Sud Gold Project in Senegal, confirming an economically robust open-pit conventional carbon-in-leach (CIL) gold mine. The study highlights an after-tax internal rate of return (IRR) of 60% and a net present value (NPV5%) of US$1 billion using a gold price of US$3,500 per ounce.
Key Financial Metrics
At a gold price of US$3,500/oz, the project delivers a 1-year payback period. At US$4,000/oz, the after-tax NPV5% increases to US$1.3 billion, IRR rises to 72%, and payback shortens to 11 months. The total initial capital expenditure is estimated at US$397.5 million, with funding secured by the company's strong cash flow generation and liquidity of over US$800 million as of March 31, 2026.
Production and Cost Profile
Over the first four years, average annual gold production is projected at 158,000 ounces. The 9.4-year life of mine (LOM) yields an average annual production of 116,000 ounces. All-in sustaining costs (AISC) average US$1,056/oz over the first four years and US$1,332/oz over the LOM, positioning Diamba Sud as Fortuna’s lowest-cost mine.
Management Commentary
Jorge A. Ganoza, President and CEO of Fortuna, stated: “Diamba Sud is a standout growth project with high returns, fast payback, and is expected to be our lowest-cost mine. Together with our Séguéla mine expansion, Diamba Sud supports our plan to grow our annual gold production rate by approximately 60% to more than 500,000 ounces in 2028.” He added, “With the recent receipt of the environmental decree from the Senegalese government and the feasibility study complete, we are ready to move Diamba Sud toward a final investment decision upon completion of the mining permit process.”
Next Steps and Timeline
A final investment decision is expected after receipt of the mining permit, with first gold targeted by Q2 2028. Early works are already advancing, including camp construction, office facilities, and a new site access road. A letter of intent has been executed with African Power Services as the power station EPC contractor for heavy-fuel oil and light-fuel oil generators. Front-end engineering design is being completed to support early procurement of critical-path equipment, such as the SAG mill, to reduce project schedule risk.
Study Preparation
The feasibility study was prepared by Fortuna with support from independent experts including Lycopodium, Knight Piesold, Kenmore Mine Consulting, SOJUFISC, Infinity Corporate Finance, Piteau Associates, Entech, and Earth Systems.
