Fuerte Metals (TSXV: FMT) on Sunday released the results of a positive preliminary economic statement for their wholly owned Coffee project in the Yukon. The study follows the company acquiring the project from Newmont in October of 2025.
The economic study has outlined a net present value (5%) of US$2.3 billion, alongside an IRR of 47.8% and a payback period of 1.7 years at what they call consensus gold prices. Pricing is based on $4,100 an ounce gold in 2029, and $3,620 gold from 2030 thereafter.
At spot prices of $5,000 an ounce gold, the after-tax NPV is said to rise to US$4.0 billion, while the IRR climbs to 69.7% and the payback period drops to 1.2 years.
Those estimates are based on a proposed open pit, heap leach operation that will operate for an initial 13 years. Production is expected to average 249,000 ounces per year over the first five years, and 217,000 ounces a year over the life of mine.
Initial capital under the project is estimated at $983.1 million, while sustaining capital is estimated at $558.8 million. Cash costs meanwhile are pegged at $1,136 an ounce, alongside all in sustaining costs of $1,274 an ounce.
“The positive results of the PEA strongly validate our decision to acquire the Coffee project in 2025. We will be moving ahead with an aggressive timeline and early works program in 2026, including construction of the remaining portions of the access road from Dawson to the Coffee Project, which we anticipate beginning on receipt of road-related permits later this spring,” commented Tim Warman, CEO of Fuerte.
An aggressive timeline is said to be in place for the development of the project, with early works slated to begin later this year. Mine permits are currently expected to be received by year end, with a construction decision anticipated in early 2027.
Fuerte Metals last traded at $8.65 on the TSX Venture.
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