In September, Fortuna decided to press ahead with construction of an open-pit mine at Seguela, where the company expects its first gold pour in about two years.
The company lists a reserve of 12.1 million tonnes averaging 2.8 grams of gold per tonne, about 1.09 million ounces, and it lists a further resource of just under 350,000 ounces at barely two grams per tonne....let's say 1.4 m ounces all categories
The feasibility study proposed a 3,750-tonne-per-day mine that would cost $173.5-million (U.S.) to build
. Seguela is projected to average 130,000 ounces per year over its first six years and about 95,000 ounces annually for the remaining 2.6 years, enough to support a discounted net present value of $380-million (U.S.) after taxes.
Updated for the current drillling Program, New Polaris will show an increase in gold resources, probably to 1.5 m ounces from 1.1 m ounces, both with grades over 10 gms per ton.
Given its premium grade , that makes New Polaris a better buy than Seguela.
Hence a discounted NPV above $380 million US which is about $500 m in CAD...and mining can resume with a capex less than $100 m..