Fury Consolidates Interests at Éléonore South Gold Project to 100%

Rhea-AI Summary

Fury Gold Mines Limited announces the purchase of Newmont Corporation's interest in Éléonore South and shares of Sirios Resources Inc. The acquisition aims to enhance exploration opportunities and potential returns for investors.

Insights

Geologist

The acquisition of Newmont's interest in the Éléonore South project by Fury Gold Mines Limited represents a strategic consolidation of assets in a region known for gold mineralization. The presence of structurally controlled quartz veins and intrusion-related disseminated gold mineralization suggests a geologically diverse area with multiple exploration targets. The historical drill results, such as 53.25m of 4.22 g/t gold, are significant as they indicate the presence of high-grade mineralization zones, which are crucial for the economic viability of mining projects. The undrilled gold in-till anomalies are particularly noteworthy as they represent potential new discoveries that could substantially increase the resource base of the project. The geological context of Éléonore South, adjacent to known deposits, enhances the exploration upside and could lead to the delineation of a significant gold system.

Financial Analyst

The transaction between Fury Gold Mines and Newmont is financially material due to the potential for Fury to increase its gold resources and reserves through exploration and development of the Éléonore South project. The purchase price of C$3M for the 49.978% interest and C$1.3M for the shares in Sirios Resources Inc. reflects a strategic investment in the future growth of Fury's asset portfolio. The market will likely monitor the progress of exploration activities closely, as successful exploration can lead to revaluation of Fury's stock. Investors should consider the exploration risks and the capital required for further development, balanced against the potential for significant returns if the project proves to be economically viable.

Market Research Analyst

The consolidation of the Éléonore South project under Fury Gold Mines could have implications for the broader gold mining sector, particularly in the region of interest. As Fury embarks on systematic exploration, peer companies may experience increased investor interest as the region's prospectivity is highlighted. The transaction may also prompt other companies to consider similar strategic consolidations to enhance their own portfolios. However, it is essential to monitor commodity prices, as fluctuations in gold prices can significantly impact the profitability and feasibility of gold mining projects. The strategic location and historical data suggest that Fury's investment could lead to a positive re-rating among investors if exploration results confirm the project's potential.

VANCOUVER, BC / ACCESSWIRE / February 26, 2024 / Fury Gold Mines Limited (TSX:FURY)(NYSE American:FURY) ("Fury" or the "Company") is pleased to announce that Fury and certain affiliates of Newmont Corporation ("Newmont") have entered into an agreement whereby Fury will purchase Newmont's 49.978% interest in Éléonore South for C$3M. As part of the consolidation of Éléonore South, Fury has also agreed to purchase Newmont's 30,392,372 shares of Sirios Resources Inc. ("Sirios") for C$1.3M. The Sirios shares will be acquired for investment purposes and Fury will evaluate its investment in Sirios on an ongoing basis with respect to any possible additional purchases or dispositions. Completion of the purchase is subject to certain conditions precedent and is expected to close in late February or early March 2024.

"We value the strong relationship with Newmont and are confident that this transaction is a positive outcome for both companies," commented Tim Clark, CEO of Fury. "Our team has historically ranked the ESJV as one of our more prolific targets for discovery. As such, we are excited to now have 100% ownership as we expect this to provide a clearer pathway for more exploration and potential upside in returns for our investors from this project consolidation and investment in Sirios."

Éléonore South Project

The Éléonore South project is strategically located in an area of prolific gold mineralization with Newmont's Éléonore Mine to the north and Sirios' Cheechoo deposit to the east (Figure 1). Prospecting to date has identified two distinct styles of mineralization within the project, structurally controlled quartz veins hosted within sedimentary rocks similar to the high-grade mineralization observed at the Éléonore Mine as well as intrusion-related disseminated gold mineralization similar to that seen at the low-grade bulk tonnage Cheechoo deposit with higher grade potential as seen at the JT and Moni prospects on the project (Table 1 and Figure 2).

Numerous gold in-till anomalies remain undrilled throughout the project (Figures 1 and 2) and will be a focus for Fury. The bulk of the untested gold anomalies are similar in characteristics to the Cheechoo style of mineralization. The JT and Moni prospects represent a potential higher-grade style of intrusion related gold mineralization with historical drilling intercepting 53.25 metres (m) of 4.22 g/t gold (Au); 6.0m of 49.50 g/t Au and 23.8m of 3.08 g/t Au (Figure 2). Several of the noted drill intercepts have not been followed up on and remain open.

Table 1: Regional styles of gold mineralization

Figure 1: Éléonore South Project Location.

Figure 2: Drilling around the Cheechoo Tonalite showing historical drill intercept highlights.

"Given the calibre of gold anomalies that we see at Éléonore South paired with the access to infrastructure and excellent address, we are looking forward to exploring the project in 2024. The project is surrounded by over 4.5 million ounces of gold in two distinct mineralization styles which speaks to the overall strength of the regional gold system indicative of the exploration potential. Our team is excited to apply Fury's systematic and disciplined exploration approach to Éléonore South," stated Bryan Atkinson, P.Geol., SVP Exploration of Fury.

Historical JT and Moni Drilling

Analytical samples were taken by sawing BTW diameter core into equal halves on site and sent one of the halves to ALS Lab in Rouyn-Noranda, Val d'Or, QC, and Sudbury, ON for preparation and analysis. All samples are assayed using 50 g nominal weight fire assay with atomic absorption finish (Au-AA24) and multi-element four acid digest ICP-AES/ICP-MS method (ME-MS61). Where Au-AA24 results were greater than 3 ppm Au the assay were repeated with 50 g nominal weight fire assay with gravimetric finish (Au-GRA22). QA/QC programs using internal standard samples, field and lab duplicates and blanks indicate good accuracy and precision in a large majority of standards assayed. True widths of mineralization are unknown based on current geometric understanding of the mineralized intervals.

David Rivard, P.Geo, Exploration Manager at Fury, is a "qualified person" within the meaning of Canadian mineral projects disclosure standards instrument 43-101 and has reviewed and approved the technical disclosures in this press release.

About Fury Gold Mines Limited

Fury Gold Mines Limited is a well-financed Canadian-focused exploration company positioned in two prolific mining regions across Canada and holds a 59.5 million common share position in Dolly Varden Silver Corp (22% of issued shares). Led by a management team and board of directors with proven success in financing and advancing exploration assets, Fury intends to grow its multi-million-ounce gold platform through rigorous project evaluation and exploration excellence. Fury is committed to upholding the highest industry standards for corporate governance, environmental stewardship, community engagement and sustainable mining. For more information on Fury Gold Mines, visit www.furygoldmines.com.

For further information on Fury Gold Mines Limited, please contact:

Margaux Villalpando, Manager Investor Relations
Tel: (844) 601-0841
Email: info@furygoldmines.com
Website: www.furygoldmines.com

Forward-Looking Statements and Additional Cautionary Language

This release includes certain statements that may be deemed to be "forward-looking statements" within the meaning of applicable securities laws, which statements relate to the future exploration operations of the Company and may include other statements that are not historical facts. Forward-looking statements contained in this release primarily relate to statements that suggest that the completion of the buy-out between Fury and Newmont will be completed on schedule or at all.

Although the Company believes that the assumptions and expectations reflected in those forward-looking statements were reasonable at the time such statements were made, there can be no certainty that such assumptions and expectations will prove to be materially correct. Mineral exploration is a high-risk enterprise.

Readers should refer to the risks discussed in the Company's Annual Information Form and MD&A for the year ended December 31, 2022 and subsequent continuous disclosure filings with the Canadian Securities Administrators available at www.sedarplus.ca and the Company's Annual Report available at www.sec.gov. Readers should not place heavy reliance on forward-looking information, which is inherently uncertain.

SOURCE: Fury Gold Mines Limited

View the original press release on accesswire.com

FAQ

What is the significance of Fury Gold Mines Limited's recent announcement?

Fury Gold Mines Limited has agreed to purchase Newmont Corporation's interest in Éléonore South and shares of Sirios Resources Inc., aiming to enhance exploration opportunities and potential returns for investors.

What is the expected closing date for the purchase agreement between Fury and Newmont?

The completion of the purchase is subject to certain conditions precedent and is expected to close in late February or early March 2024.

Who commented on the transaction between Fury and Newmont?

Tim Clark, the CEO of Fury, commented on the transaction, expressing confidence in the positive outcome for both companies.

Where is the Éléonore South project strategically located?

The Éléonore South project is strategically located in an area of prolific gold mineralization with Newmont's Éléonore Mine to the north and Sirios' Cheechoo deposit to the east.

What styles of mineralization have been identified at the Éléonore South project?

Two distinct styles of mineralization have been identified at the project: structurally controlled quartz veins hosted within sedimentary rocks and intrusion-related disseminated gold mineralization.