Fortitude Gold Discovers High-Grade Intersections in Golden Mile Drilling Campaign

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Gold miner Fortitude Gold (OTCQB:FTCO) has announced resource definition and expansion results from its ongoing drilling campaign on its Golden Mile property in Nevada. High grade intersections include 7.62 meters grading 18.22 grams per tonne (g/t) gold over 38.10 meters grading 4.60 g/t gold.

Latest drill results include 38 meters of 4.60 grams of gold per tonne which underlines the high gold grade present on the project. Additionally, the interception of over 18 meters of 1.24 grams of gold per tonne approximately 100 meters outside of the currently defined resource zone demonstrates the potential for expansion of the mineralization.

Where is the Golden Mile property located?

The Golden Mile property is located in the Bell Mining District, Mineral County, Nevada, approximately 23 miles east-southeast of Fortitude’s Isabella Pearl producing mine. The property covers 11,811 acres comprising 599 unpatented claims, 5 patented claims, 4 owned and 1 leased. Mineralization on the property is intrusion-related, with primary gold and copper mineralization associated with skarn-type replacement in carbonate units.

Fortitude Gold stands out in the US gold mining industry for its low operating costs, high margins and strong returns on capital. It is debt free and aims to distribute substantial dividends to its investors. Many non-mining investors are known to hold stocks solely because of the relatively high dividends they pay.

The company already owns the Isabella Pearl gold mine, located on the Isabella Pearl mineralized corridor, in which it holds a 100% interest. It is an open pit heap leach project that first produced gold in April 2019, just over 10 months after the initial project groundbreaking.

Final assay results expected by the end of the second quarter

Fortitude Gold published an initial mineral resource for its Golden Mile property in November 2021, which included 78,500 ounces grading 1.13 g/t gold in the indicated category and 84,500 ounces grading 1.13 g/t gold. 10 g/t in the presumed category. A fifty-three-hole reverse circulation delineation drill program was initiated in the first quarter of 2022 in preparation for upgrading and converting the indicated and inferred resources into an initial probable reserve.

“This drill program focused on infill and step-down targets with final assay results expected by the end of the second quarter,” explained Barry Devlin, vice president for exploration at Fortitude Gold. “Once these scoping analyzes are received and incorporated into our resource model, we will begin work on our pre-feasibility study for the Golden Mile resource, with a target of completion by the end of 2022.”

Fortitude said its team has worked diligently over the past year on the project’s engineering, open pit design, metallurgical heap leach test work as well as initiating the permitting process for the project.

“We are optimistic that these drill results and future results will add ounces of gold to the initial reserve estimate for this project, but we are positioning ourselves to make a development decision based on our current initial resource estimate and we will forward as such,” said Jason ReidCEO and President of Fortitude Gold.

He said there were only a few elements of due diligence left to make an internal decision to develop Golden Mile, and that “these recent high-grade gold drilling results add excitement to the growing potential of the second mine at open pit gold from Fortitude Gold by heap leaching in Nevada.

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