Séguéla Mine, Côte d’Ivoire

First gold pour achieved in May 2023

Overview

The Séguéla Mine in Côte d’Ivoire consists of the Antenna, Koula, Agouti, Boulder, Ancien, and Sunbird deposits, which will be mined via open-pit methods. Within a total land package of 62,000 hectares, there are more than 30 highly prospective targets. It is located near existing infrastructure, including grid power, transport, and water resources. (Latitude: 8° 8.905′ N, Longitude: 6° 47.312′ W)

In September 2021, Fortuna made the decision to proceed with the construction of an open pit gold mine, with a 3,750 tpd processing plant. In May 2023, Séguéla poured its first gold on-time and on-budget, and consequently became our fifth operating mine. Séguéla has compelling economics, with an eight-year mine life in reserves. The initial six years are expected to report an average of 133,000 ounces of gold production annually. In 2023, Séguéla produced 78,617 ounces of gold.

Based on reserves reported as of December 31, 2023 the operation has a mine life of eight years.

The villages of Bangana, Tiéma, and Kouégo located several kilometers from the mine site are the closest settlements. Trust and strong relationships established with the local communities are pivotal to the success of the project development and its upcoming operation.

We have been building this trust and cultivating these relationships for over five years. In 2023, we employed 901 direct employees and contractors.

The Inauguration of the Séguéla Mine – 2023

Commodities

Gold

Ownership

90%

(State of Cote d’Ivoire holds 10% interest)

Operation

807,616

tonnes milled in 2023

Exploration permit area

35,000

hectares

Deposit type

Orogenic gold

Mining method

Conventional open pit mining

Operating highlights	2023¹	2024E¹
Gold production (koz)	78.6	126 – 138
AISC^2,3,4 (US$/oz AuEq)	760	1,110 – 1,230

Notes

Refer to Fortuna news releases dated January 18, 2024, “Fortuna reports record 2023 production of 452 koz Au Eq and 2024 annual guidance of 457 to 497 koz Au Eq“
Cash Cost and all-in sustaining cost (AISC) are non-IFRS financial measures which are not standardized financial measures under the financial reporting framework used to prepare the financial statements of the Company and might not be comparable to similar financial measures disclosed by other issuers. Refer to the note under “Non-IFRS Financial Measures” on this website.

The following table provides the historical cash costs and historical AISC for the four operating mines for the year ended December 31, 2022, as follows:

Mine	Cash Cost^a,b,c	AISC^a,b,c
SILVER	($/oz AgEq)	($/oz AgEq)
San Jose, Mexico	10.56	15.11
Caylloma, Peru	12.34	17.97
GOLD	($/oz Au)	($/oz Au)
Lindero, Argentina	740	1,142
Yaramoko, Burkina Faso	840	1,529

Cash cost and AISC are non-IFRS financial measures; refer to the note under “Non-IFRS Financial Measures” on this website.
Silver equivalent was calculated at metal prices of $1,802/oz Au, $21.75/oz Ag, $2,161/t Pb and $3,468/t Zn for the year ended December 31, 2022
Further details on the cash costs and AISC for the year ended December 31, 2022 are disclosed on pages 38, 40, and 41 (with respect to cash costs) and pages 39 and 42 (with respect to AISC) of the Company’s management discussion and analysis (“MD&A”) for the year ended December 31, 2022 dated as of March 15, 2023 (“2022 MD&A”) which is available under Fortuna’s SEDAR+ profile at www.sedarplus.ca and is incorporated by reference into this news release, and the note under “Non-IFRS Financial Measures” on this website.

Cash cost includes production cash cost. AISC includes sustaining capital expenditures, worker’s participation (as applicable) commercial and government royalties mining tax, export duties (as applicable), subsidiary G&A and Brownfields exploration and is estimated at metal prices of $1,800/oz Au, $22/oz Ag, $2,000/t Pb, and $2,500/t Zn. AISC excludes government mining royalty recognized as income tax within the scope of IAS-12.

Location

The Séguéla Mine is located in the Worodougou Region of the Woroba District, Côte d’Ivoire, approximately 500 km from Abidjan, via major highways to the regional city of Séguéla. From Séguéla, the property is accessed via 40 km of unsealed roads. The Séguéla Mine is operated under the Permis d’exploration minière No.56 and the adjacent Permis de recherche minière No.638 which combined cover an area of 62,000 hectares.

Learn more Learn more about our relationship with the Séguéla community

Geology and mineralization

The Séguéla Mine is situated within the Paleoproterozoic (“Birimian”) Baoule-Mossi Domain of the West African Craton. Two cycles of volcanism/sedimentation are recognised within the Birimian rocks of the Baoule-Mossi Domain; each followed by a period of orogenesis, and together described as the Eburnian Orogeny which is dated c. 2.19–2.08 Ga. Rocks of the Baoule-Mossi Domain are primarily polyphase granitoids, and volcano-sedimentary sequences forming granite-greenstone terranes. The first cycle of sedimentation and orogenesis (“Eburnian 1”) is described by the accumulation of volcanic and volcaniclastic rocks; then subsequently intruded by early stage granitoids. Following a period of uplift and erosion, the Eburnian 2 cycle is described by the filling of intra-montaine basins with predominantly arenaceous sediments of the Tarkwaian Series.

Mineral reserves

11.8 million tonnes

averaging 3.05 g/t Au containing 1.2 Moz Au

Refer to Mineral Reserves and Resources table below for full disclosure

The Antenna deposit occurs within a greenstone package deposited during Eburnian 1, is an orogenic lode-style gold system, hosted by a brittle-ductile quartz-albite vein stockwork predominantly contained within flow banded rhyolite units.
The Koula deposit is located approximately one kilometer to the east of Antenna and was discovered through field reconnaissance and coincident recent artisanal workings in an area previously considered to be a lower exploration priority. Results from the first of four drill holes testing the projected depth extensions approximately 120 meters down-plunge from the previously deepest intersection of 14 meters at 4.3 g/t Au included an intersection of six meters at 10.8 g/t Au from 355 meters downhole.
The Ancien deposit is associated with an interpreted D2 sinistral shear zone. Significant mineralization is restricted to the more reactive and competent tholeiitic basalt unit and is best developed in zones of strong brittle-ductile brecciation and shearing, with selective sericite+/-silica alteration and intense quartz and quartz-carbonate veining.
The Boulder and Agouti prospects are both located within a distinct northerly-trending litho-structural corridor that extends from Boulder in the south to Gabbro in the north. Gold mineralization at the Boulder and Agouti prospects is associated with strongly foliated or mylonitized, quartz/quartz-carbonate veined basalt and the margins of the felsic intrusives.
The Sunbird deposit is hosted in the same mafic lithological package as Ancien and Koula, with the setting analogous to Koula. Hosted within a strongly foliated and sheared tholeiitic basalt unit, mineralization is best developed in discrete zones of strong shearing with associated biotite-sericite alteration and quartz-carbonate veining. Visible gold to 5mm is common within quartz veins, similar to what is also seen at Ancien and Koula. Mineralization remains open at depth.

Brownfields exploration

The Brownfields exploration program budget for 2024 at Séguéla is $7.8 million, which includes 41,750 meters of exploration drilling, focused on testing and extending underground targets associated with the Sunbird, Ancien, and Koula deposits, as well as advancing emerging deposits such as Barana, Badior, and Kestral, and continuing to explore for additional prospects.

Technical reports

Download the latest Séguéla Technical Report, effective date: December 31, 2023 (28 MB)

Mineral reserves and resources

				Contained Metal
Property	Classification	Tonnes (000)	Au (g/t)	Au (koz)
Mineral Reserves – Proven and Probable
Séguéla, Côte d’Ivoire
Stockpiles	Proven	436	2.06	29
Antenna	Probable	4,354	2.30	321
Koula	Probable	1,445	5.77	268
Ancien	Probable	1,811	3.80	221
Agouti	Probable	905	2.39	70
Boulder	Probable	710	1.73	39
Sunbird	Probable	2,102	3.04	206
Combined	Proven + Probable	11,763	3.05	1,154
Mineral Resources – Measured and Indicated
Séguéla, Côte d’Ivoire
Open pit (OP)
Antenna	Indicated	1,333	1.32	57
Koula	Indicated	54	5.84	10
Ancien	Indicated	195	2.79	17
Agouti	Indicated	298	1.69	16
Boulder	Indicated	433	1.13	16
Sunbird	Indicated	548	1.77	31
OP Combined	Measured + Indicated	2,860	1.60	147
Underground (UG)
Koula	Indicated	45	4.54	7
Ancien	Indicated	192	3.79	23
Sunbird	Indicated	1,562	4.05	203
UG Combined	Measured + Indicated	1,799	4.03	233
Combined	Measured + Indicated	4,659	2.54	381
Mineral Resources – Inferred
Séguéla, Côte d’Ivoire
Open pit
Antenna	Inferred	1,734	1.61	90
Koula	Inferred	373	4.44	53
Ancien	Inferred	17	0.89	1
Agouti	Inferred	49	1.53	2
Sunbird	Inferred	23	2.29	2
OP Combined	Inferred	2,196	2.09	147
Underground
Koula	Inferred	290	3.24	30
Ancien	Inferred	154	3.82	19
Sunbird	Inferred	419	3.62	49
UG Combined	Inferred	863	3.53	98
Combined	Inferred	3,059	2.50	245

Notes:

Mineral Reserves and Mineral Resources are as defined by the 2014 CIM Definition Standards for Mineral Resources and Mineral Reserves
Mineral Resources are exclusive of Mineral Reserves
Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability
Factors that could materially affect the reported Mineral Resources or Mineral Reserves include; changes in metal price and exchange rate assumptions; changes in local interpretations of mineralization; changes to assumed metallurgical recoveries, mining dilution and recovery; and assumptions as to the continued ability to access the site, retain mineral and surface rights titles, maintain environmental and other regulatory permits, and maintain the social license to operate
Mineral Resources and Mineral Reserves for the Seguela Gold Mine are estimated and reported as of December 31, 2023
Mineral Reserves are reported on a 100% ownership basis at an incremental gold grade cut-off of 0.65 g/t Au for Antenna, 0.72 g/t Au for Agouti, 0.69 g/t Au for Boulder, 0.66 g/t Au for Koula, 0.73 g/t Au for Ancien, and 0.66 g/t Au for Sunbird deposits based on a gold price of US$1,600/ounce, metallurgical recovery rates of 94.5%, surface mining costs of $3.12/t, processing cost of $15,42/t and G&A cost of 8.83/t, and only Proven and Probable categories reported within the final pit designs. The Mineral Reserves pit design were completed based on the next overall slope angles: 36.8° for oxide material, 44.2° for transitional material and 51° for fresh material except for Sunbird that uses slope angles of 36.8° for oxide material, 36.5° for transitional material and 50° for fresh material. The Mineral Reserves are reported with modifying factors of mining dilution and mining recovery represented by regularizing the block models to an appropriate selective mining unit (SMU) block size. The Seguela Mine is subject to a 10% carried interest held by the government of Côte d’Ivoire
Eric Chapman is the Qualified Person responsible for Mineral Resources, Raul Espinoza is the Qualified Person responsible for Mineral Reserves, both being full time employees of Fortuna Mining Corp.
Totals may not add due to rounding procedures