Mayfair Gold Corp. press release
Mayfair Delivers Robust Pre-Feasibility Study for the Fenn-Gib Gold Project
TSXV - TSX Venture Exchange · Gold · Canada
Mayfair Delivers Robust Pre-Feasibility Study for the Fenn-Gib Gold Project Canada NewsWire
All amounts are in Canadian Dollars unless otherwise noted
Base Case - US$3,100/oz Au and C$/US$ exchange rate of 1.35:After-Tax NPV (5%): $652 million
Payback Period: 2.7 years
NPV to Capex: 1.4x
Cumulative Free Cash Flow1 Years 1-6: $896 million
VANCOUVER, BC, Jan. 8, 2026 /CNW/ - Mayfair Gold Corp. ("Mayfair", "Mayfair Gold" or the "Company") (TSXV: MFG) (OTCQX: MFGCF) is pleased to announce the results of its 2026 Pre-Feasibility Study ("PFS") for the Fenn-Gib gold project in the Timmins Gold District of Ontario, Canada. The study has been prepared in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects ("NI 43-101"). The NI 43-101 Technical Report for the PFS will be filed within the next 45 days and will be made available under the Company's profile on SEDAR+ and on the Company's website. Unless otherwise stated, all dollars in this news release are expressed in Canadian dollars.
Highlights of the 2026 PFS for the Fenn-Gib Gold Project in Ontario:
After-tax NPV(5%) of $652 million, IRR of 24% at US$3,100/oz base case gold price and 1.35 C$/US$ exchange rate2
After-tax NPV(5%) of $1.37 billion, IRR of 38% at US$4,450/oz spot gold price3 and 1.38 C$/US$ exchange rate
Average grade processed of 1.47 g/t gold over the first 6 years of operations for average annual gold production of 71,336 ounces at an AISC4 of US$1,171/oz
Average grade processed of 1.29 g/t gold over the 14.3-year reserve life for average annual gold production of 64,096 ounces at an AISC of US$1,292/oz
Free cash flow in the first 6 years of operation of over $896 million at base case gold price and $1.43 billion at spot gold price
Initial development capital costs of $450 million
Short payback period of 2.7 years on base case, dropping to 1.7 years at spot gold
Mine plan and associated economics only exploit 1.04 Moz (24%) of the total 4.3 Moz Indicated Resource, preserving optionality for future growth
Environmental Baseline studies well advanced to allow for early 2026 commencement of Environmental Assessment and Ontario permitting process
Final investment decision expected within 3 years with commercial operation within 5 years5
_________________________________
1 Cumulative Free Cash Flow ("FCF") is defined as calculated as cash flows from operating activities less capital expenditures. Refer to the "Non-GAAP Financial Measures" section of this news release for more information.
2 See Table 2: sensitivity table below for various scenarios if gold prices change
3 Spot Gold price and C$/US$ exchange rate as of 6 January 2026
4 All-in sustainable cost ("ASIC") includes mining, processing and administrative costs, royalties, production taxes, sustaining capital expenditures, closure allowance, and other costs necessary to maintain planned production. Refer to the "Non-GAAP Financial Measures" section of this news release for more information.
5 See Cautionary Note Regarding Forward Looking Information
The PFS lead author was Ausenco Engineering ULC. ("Ausenco") with contributions from Knight Piésold Ltd. ("KP"), AGP Mining Consultants Inc. ("AGP"), Ecometrix Inc. an Egis Group Company ("Ecometrix"), and T. Maunula & Associates Consulting Inc. ("TMAC").
Nick Campbell, CEO of Mayfair Gold stated, "The 2026 PFS demonstrates the strong economics and free cash flow potential associated with developing the Fenn-Gib Gold project as a targeted, high-grade operation that can be advanced through the Ontario permitting process. This strategy allows Mayfair to advance Fenn-Gib without requiring excessive up-front capital with substantially lower execution risk as compared with a large-scale development. We believe the permitting process can be advanced quickly, positioning the Project for timely development within the current gold cycle. Importantly, this mine plan targets only 24% of the total indicated gold resource at Fenn-Gib, leaving significant longer-term optionality associated with the larger resource should market conditions be supportive. At current gold prices, the Project has exceptional value potential, with strong free cash flow and robust economics that further enhance its attractiveness to investors."
Drew Anwyll, P.Eng, Chief Operating Officer noted, "This Pre-Feasibility Study is a realistic representation of the estimated operating and capital costs, production profile, and overall economics of the Fenn-Gib Project. Our plan is straightforward: we intend to build this mine and bring it into operation in the near term. The team is focused on executing efficiently and delivering on our commitments - completing this Project and sticking the landing. The next phase is clear: finalize engineering and design work, and advance environmental approvals in preparation for a construction decision within two to three years."
Fenn-Gib PFS Highlights and Mayfair's Strategic Approach to Fenn-Gib Development
The study outlines Mayfair's strategy to reduce execution risk and prioritizing high-margin material early in the mine plan, supported by a realistic and financeable initial capital outlay. This approach enables rapid value generation from Fenn-Gib while preserving long-term flexibility to deploy free cash flow toward regional growth opportunities or advancing secondary assets to diversify and expand production.
Economic results are presented on an unlevered basis to highlight the strong standalone project returns. Mayfair intends to prudently utilize project-level debt and other financing options to minimize overall cost of capital and maximize per-share economic returns.
Initial capital expenditures are estimated at $450 million, including a 26% contingency on direct costs. The PFS considers a conventional open-pit mining operation and incorporates modular processing plant designs, allowing for a simplified construction schedule of less than 24 months, reducing inflationary and execution risks.
The Project will proceed under the Provincial Class Environmental Assessment (EA) process and does not trigger a Comprehensive EA or federal Impact Assessment under current regulations.
Social and community engagement has focused primarily on the Apitipi Anicinapek Nation (AAN) due to its proximity to the Fenn-Gib site. The Company and AAN have an active Exploration Agreement in place and will continue to advance consultation collaboratively, with the intention of developing a Community Benefit Agreement for the Project.
The Project plans to advance three key strategies in parallel: Ontario-led environmental approvals, Indigenous agreements, and engineering-design-procurement. These initiatives aim to enable major construction within 24–36 months, with commercial operations targeted within five years.
The 2026 PFS assumes an average annual gold production of 71.3 koz over the first 6-years of operation and a total life of mine ("LOM") production of 920 koz over 14.3 years of operation.
Description
Unit
Base Case
Spot Price
General Assumptions
Mine Life
yrs
14.3
Gold Price
US$/oz
$3,100
$4,450
Exchange Rate
C$/US$
1.350
1.376
Canadian Dollar Gold Price
$/oz
$4,185
$6,123
Daily Throughput
t/d
4,800
Annual Throughput
k t/a
1,750
Years 1-6
Strip Ratio
w:o
7.7
Average Gold Grade
g/t
1.47
Average Gold Recovery
%
88.7
Average Annual Gold Production
k ozs Au
71.3
All-in Sustaining Cost (AISC)
US$/oz
1,171
1,173
Average Annual Free Cash Flow (FCF)1
$ M
$149
$239
Cumulative FCF
$ M
$896
$1,432
Life of Mine
Strip Ratio
w:o
6.0
Average Gold Grade
g/t
1.29
Average Gold Recovery
%
88.3
Average Annual Gold Production
k ozs Au
64.1
AISC
US$/oz
$1,292
$1,291
Average Annual FCF
$ M
$114
$192
Cumulative FCF
$ M
$1,707
$2,880
Initial Capital Costs
$ M
$450
Sustaining Capital Costs
$ M
$61
Closure Costs
$ M
$49
Payback Period (after tax)
Years
2.7
1.7
NPV (5%) (after-tax)
$ M
$652
$1,373
IRR (after tax)
%
24.1
38.0
Table 1: Fenn-Gib - Economic Model PFS Highlights
Note:
Assumes site royalty as per agreements with no buy-back; key consumables of $1.13/l diesel and $0.11/kWh electricity
1 FCF is modeled post-initial capital and excluding closure
Source: Mayfair, 2025
The base case economics have been calculated on an unlevered basis, based on a gold price of US$3,100 and flat exchange rate of C$1.35 per US$ 1. The economics include an effective royalty rate averaging 1.7%, based on all current royalties and encumbrances associated with the reserve at Fenn-Gib.
Free cash flow ("FCF") after working capital changes is expected to amount to $896M in the first six years of operation. Using a spot gold price of US$4,450/oz (equivalent to $6,123/oz at 1.376 C$/US$ rate) FCF for the first six years of operation is expected to be $1.43 B.
The mine plan and associated economics reflect total gold processing of 1.04 Moz with 88.3% recovery. This represents only 24% of the September 3, 2024 Indicated Mineral Resource estimate of 4.3 Moz.
The tables below highlight NPV, IRR and payback sensitivity to operating expenses, capital expenditures, foreign exchange rates and the gold price. On average, every US$100 change in the gold price assumption results in an approximate $50 M change in NPV.
After-Tax Results
OPEX Sensitivity
-30 %
-15 %
0 %
15 %
30 %
NPV 5% (M $)
826
739
652
564
476
IRR (%)
27.7 %
25.9 %
24.1 %
22.1 %
20.0 %
Payback (yrs)
2.4
2.5
2.7
2.9
3.2
After-Tax Results
CAPEX Sensitivity
-30 %
-15 %
0 %
15 %
30 %
NPV 5% (M $)
773
713
652
591
530
IRR (%)
34.2 %
28.4 %
24.1 %
20.7 %
17.8 %
Payback (yrs)
1.9
2.3
2.7
3.1
3.6
After-Tax Results
FX Sensitivity
1.25
1.30
1.35
1.40
1.45
NPV 5% (M $)
536
594
652
710
767
IRR (%)
21.4 %
22.7 %
24.1 %
25.4 %
26.6 %
Payback (yrs)
3.0
2.8
2.7
2.6
2.5
After-Tax Results
Gold Price Sensitivity (US$/oz)
1,600
2,100
2,600
3,100
3,600
4,100
4,600
NPV 5% (M $)
-141
144
399
652
903
1,155
1,405
IRR (%)
N/A
10.3 %
17.9 %
24.1 %
29.4 %
34.3 %
38.6 %
Payback (yrs)
N/A
5.2
3.5
2.7
2.2
1.9
1.7
Table 2: Sensitivity Analysis
Mineral Resource Estimate
Resource
Category
Cut-Off
(Au g/t)
Tonnes
(Mt)
Gold Grade
(g/t)
Contained Gold
(M oz)
Indicated
0.3
181.3
0.74
4.3
Inferred
0.3
8.9
0.49
0.1
Table 3: Fenn-Gib Mineral Resource Table
Notes:
1.
Effective date of this updated mineral resource estimate is September 3, 2024. The assay cut-off date for drill holes included in the mineral resource was April 30, 2024.
2.
All mineral resources have been estimated in accordance with the CIM Definitions Standards, as required under National Instrument (NI) 43-101. Mineral Resource Statement prepared by Tim Maunula, P.Geo. (TMAC) in accordance with NI 43‑101.
3.
Mineral Resources reported demonstrate reasonable prospect of eventual economic extraction, as required under NI 43-101. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. The Mineral Resources may be materially affected by environmental, permitting, legal, marketing, and other relevant issues.
4.
Mineral Resources are reported at a cut-off grade of 0.30 g/t Au for an open-pit mining scenario using a 50° pit slope angle. Cut-off grades are based on a price of US$2,000/oz gold, and an open pit mining cost of $3.25/t, process cost of $15.50/t and G&A $2.00/t. Metallurgical recovery of 94% was used. Densities were assigned based on interpreted lithology.
5.
Troy ounce = tonnes x grade / 31.10348. All numbers have been rounded to reflect the relative accuracy of the estimate.
6.
The quantity and grade of reported Inferred Resources are uncertain in nature and there has not been sufficient work to define these Inferred Resources as Indicated or Measured Resources. It is reasonably expected that many of the Inferred Mineral Resources could be upgraded to Indicated Mineral Resources with continued exploration.
7.
Tonnages and ounces in the tables are rounded to the nearest thousand. Numbers may not total due to rounding.
Source: TMAC, 2025
Maiden Mineral Reserve Estimate
The Fenn-Gib Mineral Reserves estimate is based on a design metal price of US$1,750/oz gold and is approximately 25.1 Mt of ore with a gold grade of 1.29 g/t for a contained 1.04 Moz of gold.
Reserve Class
Process Feed
(Mt)
Gold Grade
(g/t)
Contained Gold
(M oz)
Proven
-
-
-
Probable
25.13
1.29
1.04
Total Reserves
25.13
1.29
1.04
Table 4: Fenn-Gib Mineral Reserve Estimate
Notes:
1.
This mineral reserve estimate has an effective date of December 19, 2025.
2.
The Mineral Reserve estimation was completed under the supervision of Gordon Zurowski, P.Eng. of AGP Mining Consultants Inc., who is a Qualified Person as defined under NI 43-101.
3.
Mineral Reserves are stated within the ultimate design pit based on:
a.
US$1750/oz gold price
b.
Pit Limit corresponds to a pit shell with a revenue factor of 0.55, corresponding to a price of US$962/oz Au.
c.
An elevated cut-off grade of 0.80 g/t Au for all pit phases.
d.
Preliminary mining cost assumptions of $3.24/t mined of waste, $3.23/t mined of ore, with an incremental mining cost of $0.02/t/5m bench mined below the 5310m elevation.
e.
Preliminary processing cost assumptions of $14.50/t processed, general & administration assumption of $2.10/t processed, and stockpile rehandle cost assumption of $1.00/t processed.
f.
Preliminary process recovery assumptions of 92.6% for gold.
g.
An exchange rate of C$1.35 equal to US$1.00.
h.
The preliminary economic, cost and recovery assumptions used at the time of mine planning and reserve estimation may not necessarily conform to those stated in the economic model.
4.
Pit slope inter-ramp slope angle assumptions ranged from 49 - 65° and overall slope angles ranging from 40 - 51° in rock.
Source: AGP, 2025
Fenn-Gib Capital and Operating Cost Estimates
The initial capital cost (Capex) is estimated at $450 million including $66 million of contingency representing approximately 26% of the direct costs.
The main construction period, excluding early works is estimated at 18 to 24 months.
Sustaining Capital includes mining fleet additions and replacement, highway relocation and future TSF dam raises and associated construction. No provision has been made for potential plant expansion capital.
WBS Description
Initial Capital ($ M)
Sustaining Capital ($ M)
Total Capital ($ M)
Mining
31.4
24.4
55.8
Crushing
21.6
1.1
22.7
Process Plant
114.7
1.4
116.1
On-Site Infrastructure
72.4
14.6
87.0
Off-Site Infrastructure
15.6
13.3
28.9
Total Direct Costs
255.8
54.7
310.5
Project Preliminaries
35.9
0.0
35.9
Project Delivery
30.7
2.5
33.3
Owner's Costs
61.7
3.7
65.3
Total Indirect Costs
128.3
6.2
134.5
Total Direct + Indirect Costs
384.1
60.9
444.9
Contingency
65.9
0.0
65.9
Total Capital Cost
450.0
60.9
510.9
Table 5: Capital Costs
Note:
Capex period ends at completion of commissioning with no allowance for pre-production cost and revenue
LOM unit operating costs are estimated at $59.43/tonne of ore processed. Average LOM cash costs and all-in sustaining costs ("AISC") are estimated at US$1,203 and US$1,292 showing a margin to the base case gold price of US$1,897 and US$1,808/oz Au respectively and a margin on spot gold price of US$3,246 and US$3,159/oz Au.
Description
Unit
Life-of-Mine Average
Operating Costs
Mining Cost
$/t mined
4.53
$/t processed
30.66
Processing Cost
$/t processed
19.22
G&A Cost
$/t processed
6.82
Royalties and Refining Cost
$/t processed
2.73
Total Operating Cost
$/t processed
59.43
Cash Costs and All-In Sustaining Costs1
Cash Costs1
US$/oz Au
1,203
All-In Sustaining Cost (AISC)1
US$/oz Au
1,292
Table 6: Operating Costs
1 See on non-GAAP terms contained at the end of the News Release
Fenn-Gib Production Profile
The PFS outlines a production profile based on a high-grade open pit with a projected operating mine life of 14.3 years, averaging 1.29 g/t Au and an anticipated metallurgical recovery averaging 88.3%. During the first 6 years of operations (years 1-6), annual gold production is expected to average 71,336 oz at a feed grade of 1.47 g/t, with peak output of over 82,000 oz in year 2. The mined Reserves represent only 24% of the overall 4.3 Moz Indicated Mineral Resource.
Fenn-Gib Project Design Details
Mining
The Fenn-Gib mine design is based on a conventional truck-and-shovel open-pit operation. The mine plan incorporates an elevated, operating cut-off grade (COG) of 0.8 g/t Au and is structured into three primary mining phases with two smaller satellite pits. Total mined tonnes peak at 16 Mt per year or approximately 44 kt per day.
____________________________
6 *Mineralized waste is not processed in the PFS mine plan. This material falls below the elevated cut‑off grade used for plant feed but remains above the economic cut‑off grade. At the end of the mine life, approximately 27 Mt of this material is stockpiled at an average grade of 0.51 g/t
In total, waste material mined over the LOM is estimated at 152 Mt and will be placed in overburden stockpiles, mine rock storage areas, and utilized in the construction of the tailings storage facility (TSF) embankments.
Processing and Recovery
The PFS process plant design for Fenn-Gib is based on metallurgical testwork completed to date and is considered a conventional metallurgical flowsheet to treat gold ore to produce doré bars. The circuit consists of crushing and grinding targeting 80% passing grind size (P80) of 106 µm, sulphide flotation at a mass pull of between 23 to 29%, rougher concentrate regrinding targeting P80 of 13 µm and cyanidation, carbon-in-leach (CIL) adsorption, desorption and regeneration, with cyanide detoxification of the CIL tailings. The design also considers the addition of a gravity concentration circuit in the future. The overall metallurgical recovery of 89.6% Au is expected for a head grade of 1.5 g/t Au.
The PFS plant design incorporates modularization concepts for key equipment and infrastructure. Modularization offers several potential benefits, including reduced construction timelines, improved cost predictability, and enhanced quality control through off-site fabrication. This approach also minimizes on-site labour requirements and mitigates weather-related delays, supporting a more efficient and streamlined project execution.
Infrastructure
The Fenn-Gib Project infrastructure plan includes all major facilities required for mine development, processing, and support operations. Key components include a process plant with crushing facilities, covered stockpile, and a reagent warehouse, as well as mine maintenance facilities such as a truck shop, wash bay, and warehouses. Essential buildings will be constructed on-site, while non-essential services are anticipated to be located in Matheson.
Site access will be via Highway 101, which connects to the Trans-Canada Highway with regional air service provided by the Timmins Airport. A 5 km segment of Highway 101 will be realigned to ensure a safe clearance from the ultimate pit design. The PFS considers the highway realignment construction following the initial construction phase. This timing will be reassessed in the next phase depending on the timing related to the Ministry of Transport, Ontario approvals.
Tailings and waste management will utilize a paddock-style Tailings Storage Facility (TSF) constructed using a downstream design, which is widely regarded as the preferred approach for long-term stability. The TSF design incorporates extensive site investigations completed as part of the PFS work, ensuring that geotechnical, hydrological, and environmental conditions are fully considered. The facility is engineered for co-disposal of tailings and Potentially Acid Generating (PAG) mine rock, with staged construction and integrated water reclaim systems.
The site layout includes designated mine rock storage areas and overburden stockpiles, along with water management systems designed to capture runoff and seepage. These systems will incorporate water management ponds and a treatment plant.
Construction power requirements of approximately 3 MW will be supplied via a grid connection early in the construction phase, with provisions for emergency backup power to ensure continuity. For operations, the site will require approximately 16 MW of power, with the preferred solution being a Hydro One grid connection through a 27.6 kV line from the Ramore Transformer Station. To mitigate risk in the event of delays to the Hydro One distribution connection or approvals process, the Project has conceptualized an alternate power source as a contingency. The operations power supply includes emergency backup systems as may be needed.