Wallbridge Mining Company Limited press release
Wallbridge Mining Completes Updated Positive Preliminary Economic Assessment of Fenelon Gold Project
TSX - Toronto Stock Exchange · Gold · Canada
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TORONTO, March 27, 2025 (GLOBE NEWSWIRE) -- Wallbridge Mining Company Limited (TSX:WM, OTCQB:WLBMF) ( “Wallbridge” or the “Company” ) is pleased to report results from an updated positive Preliminary Economic Assessment (“ PEA ”) completed on its 100%-owned Fenelon gold project (“ Fenelon ” or the “ Project ”) located in the Abitibi Greenstone Belt, along the Detour-Fenelon Gold Trend, Quebec. A PEA prepared in accordance with National Instrument 43-101 – _Standards of Disclosure for Mineral Projects _(“ NI 43-101 ”) has been filed on SEDAR+ and is available on the Company’s website and can be accessed here .
All results herein are reported in Canadian dollars unless otherwise indicated.
PEA HIGHLIGHTS
Average annual gold production of 107,000 oz per year over 16-year life of mine (“ LOM ”); 96% average gold recovery Average annual gold production of 127,000 oz during the first five years Average annual free cash flow of $120 million over LOM After-tax Internal Rate of Return (“ IRR ”) of 21% After-tax Net Present Value (“ NPV ”) of $706 million at base case gold price of US$2,200 and CAD$:US$ of 1.35:1.00 at a 5% discount rate Initial capital expenditures ( 1) of $579 million Sustaining capital expenditures ( 1) of $449 million Total cash costs ( 1) of US$851/oz All-in sustaining costs ( 1) (“ AISC ”) of US$1,046/oz 16.6 Mt of mineralized material mined at an average grade of 3.34 g/t
1. Non-IFRS financial measures with no standardized definition under IFRS. Refer to Non-IFRS Measures at end of this news release.
The Company cautions that the results of the PEA are preliminary in nature and include inferred mineral resources that are considered too speculative geologically to have economic considerations applied to them to be classified as mineral reserves. There is no certainty that the results of the PEA will be realized.
Brian Penny, CEO of Wallbridge, commented:
“Fenelon is a gold project with tremendous potential. This updated Fenelon PEA generates strong project economics under a lower risk, higher grade, lower startup capital scenario. Fenelon has now reached another milestone with a robust PEA that demonstrates a viable path to development and attractive economic returns based on reasonable assumptions. The PEA was designed to be rigorous, using current cost data from contractors, suppliers and mining companies operating in the region to arrive at realistic projections. It represents a new starting point to build upon as we scope out the full opportunities at Fenelon and Martiniere, the two most advanced projects on our large, underexplored property.
In this historically high gold price environment, we need to rapidly advance the project. The current plan has a shorter payback than the previous plan and allows us to consider expansion options after payback has been achieved.
I would like to thank everyone who contributed to the completion of this study, as well as our employees, stakeholders, and shareholders for their continuous support. I believe Wallbridge has a bright future, and we look forward to taking the necessary steps to increase value for our shareholders.”
Table 1: PEA Summary of Key Metrics and Project Economics
| SUMMARY OF PROJECT ECONOMICS | | Mar 21, 2025 | | Base case gold price | (US$) | 2,200 | | Exchange rate | (CAD$:US$) | 1.35:1.00 | | Discount rate | (%) | 5.0 | | NSR Royalty on Fenelon Mine Property | (%) | 4.0 | | Mining Parameters | | | | Average grade mined | (g/t) | 3.34 | | Cut-off grades | (g/t) | 2.25 (CTC) 2.51 (A51) | | Mining rate | (tpd) | 3,000 | | Total tonnage mined | (Mt) | 16.6 | | Mine life | (years) | 16.0 | | Processing Parameters | | | | Processing recovery | (%) | 96.0 | | Processing rate | (tpd) | 3,000 | | Total tonnage milled | (Mt) | 16.6 | | Average annual production | (oz/year) | 107,000 | | Average annual production (first five years) | (oz/year) | 127,000 | | Total production | (oz) | 1,711,000 | | Capital Expenditures | | | | Initial capital expenditure (3) | ($M) | 579 | | Sustaining capital expenditure (3) | ($M) | 449 | | Closure costs (3) | ($M) | 9 | | Salvage value | ($M) | 26 | | Operating Costs | | | | Total operating costs | ($/t milled) | 106 | | Cost Per Ounce | | | | LOM total cash costs ( 1 ) (3) | (US$/oz) | 851 | | LOM all-in sustaining costs (2) (3) | (US$/oz) | 1,046 | | Financial Analysis | | | | Pre-tax NPV 5% | ($M) | 1,176 | | Pre-tax IRR | (%) | 27 | | Post-tax NPV 5% | ($M) | 706 | | Post-tax IRR | (%) | 21 | | Post-tax payback period (from start of commercial production) | (years) | 4.0 | | Profitability Index (post-tax NPV 5% /initial capital) | - | 1.22 |
1. Total cash costs per ounce are operating costs, composed of mining (UG and OP), processing, water treatment and tailings, minesite G&A and royalty costs, divided by payable gold ounces. 2. AISC/oz includes operating costs, sustaining capital expenditures to support the on-going operations, and closure costs, divided by payable gold ounces. 3. Non-IFRS financial measures with no standardized definition under IFRS. Refer to note at end of this news release.
Financial Analysis
The PEA assumes a base case gold price of US$2,200/oz. Using that base case assumption, the Project generates an after-tax NPV of $706 million using a 5% discount rate and an after-tax IRR of 21%.
The Project generates cumulative free cash flow of $1,367 million and averages annual free cash flow of $120 million over a mine life of 16 years (Figure 1). Total taxes payable over LOM at the base case gold price is $776 million.
Figure 1. Annual After-Tax Free Cash F low (millions)
Sensitivities
The PEA financial economic analysis is significantly influenced by gold prices. At a gold price of US$3,000/oz and FX of CAD$:US$ of 1.35:1.00, the Project generates an after-tax NPV of $1,381 million and an after-tax IRR of 34% with a payback period of 2.4 years from the start of commencement of production (Table 2).
Table 2: PEA Sensitivity Analysis Gold Price
| Gold Price (USD) | FX | NPV ($M) | IRR | Payback (Years) | | 1800 (-18%) | 1.35 | 353 | 13% | 5.7 | | 1900 (-14%) | 1.35 | 443 | 15% | 5.0 | | 2000 (-9%) | 1.35 | 532 | 17% | 4.6 | | 2100 (-5%) | 1.35 | 619 | 19% | 4.3 | | 2200 | 1.35 | 706 | 21% | 4.0 | | 2300 (+5%) | 1.35 | 792 | 22% | 3.7 | | 2400 (+9%) | 1.35 | 878 | 24% | 3.4 | | 2500 (+14%) | 1.35 | 963 | 26% | 3.1 | | 2600 (+18%) | 1.35 | 1047 | 27% | 2.9 | | 3000 (+36%) | 1.35 | 1381 | 34% | 2.4 |
| Operating Costs | NPV ($M) | IRR | | Base Case -30% | 912 | 25% | | Base Case -20% | 845 | 24% | | Base Case -10% | 776 | 22% | | Base Case 0% | 706 | 21% | | Base Case +10% | 635 | 19% | | Base Case +20% | 563 | 18% | | Base Case +30% | 490 | 16% |
| Capital Expenditures | NPV ($M) | IRR | | Base Case -30% | 855 | 30% | | Base Case -20% | 806 | 26% | | Base Case -10% | 756 | 23% | | Base Case 0% | 706 | 21% | | Base Case +10% | 655 | 19% | | Base Case +20% | 604 | 17% | | Base Case +30% | 552 | 15% |
Production
Annual production over LOM is expected to average 107,000 ounces with peak production of 141,000 ounces in year 1 (Figure 2).
Figure 2. Production Profile
Capital Expenditures
The initial capital expenditures are estimated at $579 million, and the sustaining capital expenditures are estimated at $449 million (Tables 3 & 4). A contingency of $57 million and $20 million is included in initial and sustaining capital expenditures, respectively.
Initial and sustaining capital expenditures were estimated based on current costs received from vendors as well as developed from first principles, while some were estimated based on factored references and experience from similar operating projects.
Table 3: Initial Capital Expenditures
| Cost Element | Initial Capital ($M) 1,2 | | Mill | 217 | | Paste Plant | 43 | | Tailings and Water Treatment | 22 | | Capitalized Operating (Pre-production) | 75 | | Surface Civil & Infrastructure | 80 | | Mining Equipment | 31 | | Underground Development | 54 | | Underground Infrastructure | 28 | | Hydro Electric Line & Distribution | 29 | | Total Initial Capital | $579 |
1. All values stated are undiscounted. No depreciation of costs was applied. 2. Non-IFRS financial measures with no standardized definition under IFRS. Refer to Non-IFRS Measures at end of this news release.
Table 4: Sustaining Capital Expenditures
| Cost Element | Sustaining Capital ($M) 1,2,3 | | Mining Equipment | 145 | | Development | 161 | | Tailings & Water Treatment | 64 | | Paste Distribution Network | 8 | | Underground Infrastructure | 32 | | Surface Infrastructure | 29 | | Closure | 9 | | Open pit (OB Excavation + Contractor) | 3 | | Total Sustaining Capital | $449 |
1. All values stated are undiscounted. No depreciation of costs was applied. 2. Non-IFRS financial measures with no standardized definition under IFRS. Refer to Non-IFRS Measures at end of this news release. 3. Due to rounding, columns may not add up.
Total Cash Costs
The total unit cash costs are estimated at US$851/oz. The AISC is estimated at US$1,046/oz. Operating cost estimates were developed using first principles methodology, vendor quotes, and productivities being derived from benchmarking and industry practices.
Table 5: Total Cash Costs
| | LOM Total $ million | Average LOM ($/tonne milled) | Average LOM (US$/oz) | | Mining (UG & OP) | 900 | 56 | 390 | | Processing | 423 | 25 | 183 | | Water Treatment & Tailings | 66 | 4 | 28 | | General & Admin. | 374 | 22 | 162 | | Royalty (4%) | 202 | 12 | 88 | | Total Cash Costs 2,3 | 1,965 | 119 | 851 |
1. All values stated are undiscounted. No depreciation of costs has been applied. 2. Non-IFRS financial performance measures with no standardized definition under IFRS. Refer to Non-IFRS Measures at the end of this news release. 3. Total cash costs include mining (UG and OP), processing, water treatment and tailings, minesite G&A and royalty costs.
Mineral Resource Estimate
The updated mineral resource estimates (“ MRE ”) for the Fenelon and Martiniere deposits presented in this news release were prepared by Mauro Bassotti, P.Geo., an independent mineral resource consultant using all available information. The effective date of the 2025 MRE is March 20, 2025. The databases supporting the 2025 MREs are complete, valid and up to date, with close-out dates of October 22, 2024 and January 8, 2025 for Fenelon and Martiniere respectively. The 2025 Mineral Resource Statement for the Detour-Fenelon Gold Trend Property is presented below in Table 6. The statement provides the consolidated estimates for the Fenelon and Martiniere deposits. Details are provided in Item 14 of the PEA technical report.
Table 6: Detour-Fenelon Gold Trend Property 2025 Mineral Resource Statement by Deposit
| DEPOSIT | INDICATED | INFERRED | | | | | | | Tonnes (000’s) | Gold Grade (Au g/t) | Gold Ounces (000’s) | Tonnes (000’s) | Gold Grade (Au g/t) | Gold Ounces (000’s) | | | | FENELON | | | | | | | | | OP @ > 0.45 g/t Au | 3,121 | 2.50 | 251 | 2,313 | 2.53 | 188 | | | UG @ > 1.45 g/t Au | 11,966 | 3.91 | 1,503 | 12,715 | 3.57 | 1,461 | | | | Total | 15,087 | 3.62 | 1,754 | 15,028 | 3.41 | 1,649 | | MARTINIERE | | | | | | | | | OP @ > 0.49 g/t Au | 3,928 | 1.97 | 249 | 1,982 | 2.22 | 142 | | | UG LH @ > 1.60 g/t Au | 750 | 3.89 | 94 | 1,813 | 4.06 | 237 | | | UG CF @ > 2.15 g/t Au | 25 | 4.29 | 3 | 75 | 3.62 | 9 | | | | Total | 4,703 | 2.29 | 346 | 3,870 | 3.11 | 387 | | Total Fenelon & Martiniere Open Pit & Underground | 19,790 | 3.30 | 2,100 | 18,899 | 3.35 | 2,037 | |
Notes to accompany the Detour-Fenelon Gold Trend Property 2025 Mineral Resource Statement:
1. The effective date of the 2025 MREs is March 20, 2025. 2. The 2025 MREs follow CIM Definition Standards (2014) and CIM MRMR Guidelines (2019). 3. The qualified person (“ QP ”) for the 2025 MREs is Mr. Mauro Bassotti (P.Geo.) who is an independent mineral resource consultant. 4. The criterion of reasonable prospects for economic extraction has been met by having constraining volumes applied to estimated blocks using GEOVIA Whittle pit optimizer (“Whittle”) software for open pit mineral resources and using Deswik Stope Optimizer (“ DSO ”) software for underground mineral resources, and by the application of cut-off grades appropriate to the potential mining extraction scenario (i.e., open pit, underground long-hole, underground cut-and-fill). Constraining 3D Whittle open pit and DSO underground stope volumes have been generated based on a gold price assumption of US$2,150 per troy ounce. A minimum mining width of 2.0 m was used for underground stope optimization. 5. The potentially economic open pit shells and underground DSO shapes used for reporting the 2025 MREs have been generated by Mr. Simon Boudreau (P.Eng.), Senior Mining Engineer for InnovExplo Inc., a member of Norda Stelo Inc. 6. For the Fenelon deposit, sixteen (16) mineralized domains and four (4) surrounding alteration envelopes were modelled in 3D to the true thickness of the mineralization. Supported by measurements, a density value of 2.80 g/cm 3 was applied to blocks inside mineralized domains and 2.81 g/cm 3 to blocks inside alteration envelopes. High-grade capping was applied to raw assay data and established on a per-zone basis, ranging between 7 g/t Au and 100 g/t Au for the mineralized domains, and a fixed capping value of 10 g/t Au for the alteration envelopes. One-metre (1.0 m) sample assay composites were calculated within the mineralized domains and alteration envelopes using the grade of the adjacent material when assayed or a value of 0.001 when not assayed. 7. For the Martiniere deposit, sixteen (16) mineralized domains and ten (10) surrounding alteration envelopes were modelled in 3D to the true thickness of the mineralization. Supported by measurements, the mean density value of the domain was applied to the blocks inside mineralized domains and alteration envelopes, with density values ranging from 2.80 to 3.09 g/cm 3 . High-grade capping was applied to raw assay data and established on a per-zone basis, ranging between 15 g/t Au and 100 g/t Au for the mineralized domains, and a fixed capping value of 5 g/t Au for the alteration envelopes. 1.0 m composites were calculated within the mineralized domains and alteration envelopes using the grade of the adjacent material when assayed or a value of 0.001 when not assayed. 8. The cut-off grades for the Fenelon deposit were calculated using a gold price of US$2,250/oz; a USD/CAD exchange rate of 1.35; a refining cost of $5.00/t; a processing cost of $30.00/t; a mining cost of $5.75/t (bedrock) or $5.95/t (overburden) for the surface portion; a mining cost of $90.00/t for the underground portion; and a G&A cost of $10.00/t. A metallurgical recovery of 95.0% and royalty of 4.0% were applied to the cut-off grade calculations. 9. The cut-off grades for the Martiniere deposit were calculated using a gold price of US$2,250/oz; a USD/CAD exchange rate of 1.00:1.35; a refining cost of $5.00/t; a processing cost of $30.00/t; a mining cost of $5.75/t (bedrock) or $5.95/t (overburden) for the surface portion; a mining cost of $125.00/t for the underground portion using the long-hole mining method (“LH”), a mining cost of $135.00/t for the underground portion using the cut-and-fill mining method (“CF”); and a G&A cost of $10.00/t. A metallurgical recovery of 85.0% and royalty of 2.0% were applied to the cut-off grade calculations. The metallurgical recovery is based upon a metallurgical characterization study completed in December 2024 (SGS, 2024; Wallbridge news release dated December 19, 2024). 10. Tonnage estimates are reported to the nearest 1000 tonnes (000’s). Contained gold estimates are reported to the nearest 1000 troy ounces (000’s). 11. These mineral resources are not mineral reserves as they do not have demonstrated economic viability. 12. The QP is not aware of any known environmental, permitting, legal, title-related, taxation, sociopolitical or marketing issues, or any other relevant issue, that could materially affect the potential development of mineral resources other than those discussed in the 2025 MREs. 13. Results are presented in situ. Ounce (troy) = metric tons x grade/31.10348. Any discrepancies in the totals are due to rounding effects; rounding followed the recommendations as per NI 43-101.
The reader should note that the 2025 PEA does not include the Martiniere deposit mineral resource estimate.
Mining
The mine will have a production rate of 3,000 tonnes per day (“ tpd ”) over a 16-year LOM.
A total of 16.6 Mt of mineralized material at an average grade of 3.34 g/t will be extracted from three different mining zones:
1. Contact-Tabasco-Cayenne (“ C-T-C ”), with 54.6% of the ounces to be mined; 2. Area 51, with 44.9% of the ounces to be mined; and 3. Gabbro open pit, with 0.5% of the ounces to be mined.
The mining method will be long hole with longitudinal stopes measuring 5 to 8 m wide, corresponding to 44% of the stope tonnage. Transverse stopes are designed for stopes 8 to 15+ m wide, which account for 56% of the remaining stope tonnage.
Stope dimensions are 30 m (Area 51 zone) to 40 m (C-T-C zones) high, 5 to 15 m wide, and 20 m long. The average stope size in all zones is approximately 15,000 t. An average of 70 stopes will be mined annually. Mining recovery is estimated at 95%. Stope backfilling will be done mostly with paste backfill (66%) or cemented rock fill (2%) or rock fill (32%), depending on the stope dimensions and sequence.
A mining contractor will carry out development during pre-production. Starting in pre- production Year -1, the development will be done with the owner’s equipment and personnel. The priority is to develop the main C-T-C ramp and access production horizon.
The mining fleet, comprised of a maximum of 66 pieces of mobile equipment, will be purchased via a financing agreement. Supporting underground infrastructure includes two ventilation intake raises and heating systems, and one exhaust raise.
Figure 3. Overview of the Fenelon Project on a Longitudinal View Looking North
Metallurgy
The main metallurgical testwork program was conducted in two phases, in 2020 and 2021, on material from the Area 51 and C-T-C zones by SGS Canada Inc.
Grindability testing, including semi-autogenous grinding (“ SAG ”) mill comminution testing, was completed in 2021. The samples were characterized as hard in terms of resistance to impact breakage during the SMC test, with A×b drop weight test values ranging from 23 to 31. The Bond rod mill work index results ranged from 15.6 to 16.9 kWh/tonne, classifying the material as moderately hard to hard. The Bond ball mill work index ranged from 13.4 to 16.2 kWh/tonne, indicating a medium hardness range.
Gravity gold recovery testing was performed in 2021 on a representative composite sample from the C-T-C and Area 51 zones. The testwork results for E-GRG (Extended Gravity Recoverable Gold) showed gold recoveries of up to 82% for the Contact zone and 90% for the Area 51 zone, aligning with the results from prior testing conducted in 2020. These findings confirm the necessity of incorporating a gravity circuit in the process flowsheet.
Cyanidation testing was conducted in 2020 on representative samples following gravity recovery. Overall gold recoveries ranged from 94.6% to 96.9% for the C-T-C zones and from 95.3% to 97.1% for the Area 51 Zone.
Based on the metallurgical testwork conducted in 2020 and 2021, and considering the planned process flowsheet, the estimated average payable gold recovery for the process plant is expected to be 96.0% over the LOM.
Processing
The process plant is designed to treat a total of 3,000 tpd of material. It will incorporate a SAG mill operating in closed circuit with a pebble crusher, and a ball mill in closed circuit with cyclones, forming a Semi-Autogenous Ball Mill Crusher circuit.
Gold recovery will be achieved through a leaching circuit. The cyclone overflow will be processed through a pre-leach tank, followed by a seven-tank carbon-in-leach (“ CIL” ) circuit and an SO 2 /Air cyanide destruction system. Gold will be recovered via an adsorption-desorption-recovery circuit using the Zadra process, followed by electrowinning cells. The final gold product will be refined in the gold room, where gold bars will be produced and subsequently shipped to facilities for purification.