- Experienced team of gold developers with access to capital
- Set for 80,000 metres of continuous exploration over next 18 months
- Over 3.5 million ounces of gold across new development platform
What Fury Gold Mines does:
It came into being following the completion of the deal which saw junior Auryn Resources Inc (TSE:AUG) reorganize, spin out its Peruvian assets (NYSEAMERICAN:AUG) and acquire Eastmain Resources Inc (TSS:ER).
Shares in Fury Gold begin trading on the NYSE American on October 12 and on the Toronto Stock Exchange on October 13 - following the Canadian Thanksgiving holiday.
Under the transaction, which required shareholder approval, Auryn bought Eastmain after spinning out its assets in Peru into two new companies and distributing the shares of those firms to Auryn shareholders.
The group is now fully funded to carry out over 50,000 metres (m) of drilling at its Eau Claire project in Quebec and has working capital for 12 months after closing a C$23 million bought-deal financing. Sitting in around 113,00 hectares in James Bay, Eau Claire boasts 853,000 ounces at a high grade of 6.18 grams per ton (g/t) gold in the measured and indicated (M&I) category.
A preliminary economic assessment (PEA) in 2018 showed an after-tax net present value (NPV) of C$397 million at a gold price of US$1,500 and total capex of US$283 million.
Over the next 18 months, the firm also plans to drill over 20,000m at the 7,500 hectare Homestake Ridge in British Columbia, which has 166,000 ounces at 7.02 g/t gold and 1.8 million ounces at 74.8 g/t silver. This year, a PEA showed an NPV for Homestake of US$108 million and an internal rate of return (IRR) after tax of 23.6% at US$1,350 per ounce of gold.
Elsewhere, Fury's Committee Bay property (300km) in Nunavut has indicated resources of 524,000 ounces at 7.85 g/t gold and 720,000 inferred ounces at 7.64 g/t gold. More than 10,000m of drilling is planned here.
How is it doing:
Fury Gold Mines aims to advance the efforts of those firms who have gone before it.
In October this year, Eastmain revealed it had begun a gradient array induced polarization survey at Eau Claire, the results of which results will be used in the planned 50,000m drilling program expected to begin in the fall.
It will be a key tool in developing additional targets immediately surrounding the Eau Claire deposit and the Snake Lake and Clovis targets.
Meanwhile, on September 29, Auryn outlined details of 12 drill targets, refined by geophysics, at the Committee Bay gold project in Nunavut, setting the stage for a 2021 drill program.
The planned summer 2021 drill program will test both target extensions at the Three Bluffs deposit in a bid to expand mineralization there as well as several regional greenfield targets.
Committee Bay is covered by a thin layer of till cover that can obscure mineralized systems, making geophysics to help discover target areas very important.
Regionally, at the Aiviq target, a high conductivity fold hinge has been defined that is coincident with high-grade boulder trains. It lies 5km northeast of Auryn’s previous drilling, where 12.2 meters of 4.7g/t gold was intercepted, the firm said.
At the Kalulik target, previous shallow drilling from Auryn has intercepted 16.8 meters at 0.49 g/t gold and 16.8 meters at 0.45 g/t gold in areas above interpreted hinge zones.
Elsewhere, at the Anuri targets (Anuri and Enigma Lake) historical drilling has cut up to 14.8 meters at 2.66 g/t of the yellow metal. There are six geophysical targets in all within the flat-lying fold at Anuri that remain completely untested.
When the merger deal was finalized, Fury also revealed the new make-up of the top team at the firm. It confirmed Mike Timmins as CEO and director of Fury Gold and welcomed other new members to the board.
Geologist David Rivard became the group's Exploration Manager for Canada, while Saga Williams was added as a director. Ms Williams is a member of Curve Lake First Nation and is currently an elected official for her community. She has worked in Indigenous communities for over 20 years in government and corporate roles in the capacity of legal counsel, negotiations and governance, and as a strategic advisor.
Eastmain’s former finance chief Joe Fazzini will not be continuing in that role at Fury but will continue to work with the firm as a consultant through the integration phase. Auryn's interim chief financial officer (CFO) Elizabeth Senez, however, will continue with Fury Gold as interim CFO.
- Beginning of work program
- Precious metals moves
- New exploration results
What the boss says:
Fury Gold chief executive Mike Timmins said in a statement when the new firm was launched: "On behalf of Fury Gold, I would like to thank the investors who had the conviction and foresight to participate in our September subscription receipt financing, which supported the launch of the company. It’s a pleasure to officially welcome Eastmain shareholders to Fury Gold as we reposition them to participate in the considerable growth and discovery potential we see in the company’s Canadian gold assets.
He added: "I look forward to the upcoming drill program at Eau Claire in Quebec, engaging with our surrounding communities and staying connected with our shareholders as we plan to ‘unleash the fury’ and embark on the next leg of significant value creation."
Contact the author at email@example.com