Fortune Bay Corp: Assay Results Reinforce Resource Growth Potential at Goldfields

DISCLAIMER: Any written content contained herein should be viewed strictly as analysis & opinion and not in any way as investment advice. Visitors to this site are encouraged to conduct their own due diligence. As a Research Spotlight product, HoldCo Markets has received financial compensation for the written content and analysis below. Please read the full disclaimer here: holdcomarkets.com/disclaimer

After the market close on March 3^rd, Fortune Bay (FOR) announced assay results for the initial three drill holes from the ongoing drilling campaign at the wholly-owned Goldfields Project, located in northern Saskatchewan. The three drill holes were designed to test substantial down-dip gaps in previous drill coverage at the Box deposit, targeting resource expansion. Highlighted by 6.61 g/t Au over 5.0m, the results confirmed the continuation of structurally-controlled, higher-grade mineralization at depth.

The results confirm the continuation of structurally-controlled, higher-grade mineralization at depth. The three drill holes were designed to test substantial down-dip gaps in previous drill coverage at the Box deposit, targeting resource expansion. Highlighted by 6.61 g/t Au over 5.0m, the results confirmed the continuation of structurally-controlled, higher-grade mineralization at depth. The initial three drill holes at Box were designed to test significant gaps in down-dip drill coverage (up to 170m), extending down-dip up to 300m beyond the open-pit designed in the Updated PEA. Just as importantly, all three holes successfully intersected the mineralized Box Mine Granite (BMG) at or near the depths as predicted by the geological model. The results from drill holes B25-346, B25-347 and B25-348 contribute to an expanding dataset of strong down-dip assay intercepts at Box, supporting the potential for delineation of additional mineral resources.

Initiated in late 2025, the 2025-2026 exploration program comprises an estimated 3,250m of planned drilling. The program is designed to evaluate opportunities for mineral resource expansion at the Box and Athona deposits, as well as the potential to define new mineral resources at underexplored historical occurrences.

GOLDFIELDS MINERAL RESOURCE ESTIMATE    

The primary host lithologies to the mineralization are the Box (BMG) and Athona (AMG) granites, the modelled volumes also represent the main resource domains bounded by relatively unmineralized footwall and hanging wall lithological domains. To further constrain the mineralization within the BMG and AMG domains, a vein system model was generated within each of the granite domains. The latest NI43-101 compliant Mineral Resource Estimate models (replacing the MRE with an effective date of October 31, 2022) included a total of 838 boreholes, of which 494 are located within the Box deposit and 344 within the Athona deposit. Gold grades were interpolated into the block models using ordinary kriging (OK) for all granite and vein-set domains within the Box and Athona deposits. Grade estimation for each domain was conducted using multiple passes, with successively expanding search criteria in subsequent estimation passes.

Ultimately, both the Box and Athona deposits remain open at depth. Exploration drilling began this past November at the Box deposit with 3 holes completed totaling 1,125m. At Box, current drilling is focused on down-dip step-outs (200m-350m) into significant gaps in drill coverage within and below current Inferred Mineral Resources, well outside of the mine pit outlined in the updated PEA. A total of 17 drill holes (3,250m) are in process for this winter split between Box (4 total holes) and Athona (2 holes). Additionally, exploration drilling will also focus on targets such as Frontier (3 drill holes planned for), Golden Pond (6 holes) and Triangle (2 holes).

HISTORICAL GOLD PRODUCTION

Gold was first discovered on the Goldfields Project in 1934 with Cominco subsequently acquiring the discovery by staking claims. Between 1934-1942, both the Box and Athona deposits were explored and delineated with surface and underground drilling. Horizontally oriented underground core drilling was carried out to intersect gold-bearing quartz veins and crosscuts were driven at each shaft station and along certain underground drill holes to check analytical results. Stope and mill development continued during a period between 1936-1938. Production from underground operations began in June 1939 at 450 tpd, with capacity ramping up to a maximum

PEER VALUATION

For comparative purposes, we assembled a peer group of North American gold development projects ranging from Quebec to the Yukon and extending as far south to Nevada and Utah (among others). Though the individual peer group projects vary in terms of development and de-risking, most of the projects listed below have a relatively recent PEA or PFS technical study. In the very least, a relatively recent MRE has been published (as is the case for Bonterra Resources, Sitka Gold, Maple Gold and Lafleur Minerals).

Though Fortune Bay ‘s Goldfields Project ranks among one the smaller deposits given a current global resource of 1.2M gold ounces, this fact is reflected in the current enterprise value which accordingly, ranks among the lower echelon on the peer group. Fortune Bay is currently trading at a $53 per ounce EV valuation given the current 1.2M lb global resource from the Goldfields Project. This is at a near ~40% discount relative to the peer group trading at a valuation of $92 per ounce.  We feel that given the current 3,250 drilling campaign, the risk remains on the upside for resource growth at Goldfields. Additionally, the fact that management is targeting a PFS for Q4/2026 or Q1/2027, we feel that as the de-risking work continues, the corporate valuation will re-rate as the story is told and as development milestones are met. 

VALUATION & CONCLUSION

We continue to value Goldfields using a base case, LT gold price of $4,000 per ounce (current spot at $5,175). Factoring in a partial future equity financing (post-PFS provided a positive FID), we derive a 12-month price objective of C$3.15 per share by applying a 0.20x NAV8% multiple. Given the most recent close (March 3), shares of Fortune Bay currently trade at a 0.05x P/NAV multiple. As mentioned, Fortune Bay also trades at an attractive EV $53 per ounce multiple – well below the peer group. Acknowledging the acute sensitivities to the LT gold price, our price objective equates to upside of +275% from the most recent close.

We are excited with Fortune Bay’s prospects this year and note that 2026 will be the first year in which the company should potentially re-rate to being viewed as a pure-play gold company with an advanced project working towards PFS completion by year-end. Recall that in previous years, the company was considered as a uranium exploration company focused primarily on the Murmac uranium project. We expect material news flow to trickle out from the winter drill program at Goldfields. With a PFS expected to be competed by year-end or Q1/2027, as the story becomes more familiar to the market, we would expect this company to re-rate to similar valuation metrics as seen with the North American Peer group. For additional details, refer to our February 3, 2026 initiation of coverage report.

NEAR-TERM TIMELINE & POTENTIAL CATALYSTS

• Drill results from the current 3,250m program at Goldfields. Details for a Summer program.

• Metallurgical and Geotech results over the course of the year.

• Goldfields PFS details leading up to an actual study scheduled for year-end or Q1/2027.