Fortuna Mining Corp (TSE: FVI) (NYSE: FSM) (FRA: F4S0) has increased its mineral resource estimate at an African exploration site considerably.
On Tuesday, the mid-tier precious metals producer reported a 53 per cent increase in the Diamba Sud operation’s indicated resources. This significant boost bumped it up to 724,000 ounces. The new projection is based on drilling completed since July of 2024.
Furthermore, the Ethiopian site’s inferred resource has risen by 93 per cent, but with much less gold at only 285,000 ounces. The previous MRE in both categories was finalized at the end of last year. Measured resources, which have the highest level of geological confidence, are yet to be delineated.
Shares rose by 7.3 per cent mid-way through the trading session on Tuesday on the back of the newly released approximations.
Now, Fortuna is moving forward with a preliminary economic assessment, slated to be finished by the end of 2025.
Despite selling a major mine in Burkina Faso earlier this year, Fortuna retains a substantial position in the African mining sector. The company’s flagship open pit asset is the Séguéla Mine in Côte d’Ivoire. It produced over 137 kilo ounces of gold throughout 2024 and will continue producing for another 4.5 years.
Read more: Antimony recovery results from NevGold’s Limo Butte project exceed expectations
Fortuna’s recent performance has been outstanding
In Q2 results, Fortuna reported record adjusted EBITDA margins at 55 per cent, driven by the high price of gold. Additionally, the mining operator’s net cash position rose by 56.9 per cent from Q1 at US$214.8 million.
The precious metals miner has robust liquidity at approximately US$537.3 million.
“Our strong balance sheet positions the company to pursue growth opportunities under our control,” said CEO Jorge A. Ganoza on Wednesday, “including the guided production expansion at the Séguéla Mine in 2026 and advancing to a construction decision at the Diamba Sud project in Senegal by the first half of 2026 following the completion of a PEA later this year.”
In 2024, Fortuna reported record production from its international assets in West Africa and Latin America at 455,958 gold equivalent ounces. It has been performing strongly overall on the financial and operational fronts.
Read more: NevGold’s latest Nevada drill results show exceptional gold mineralization
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