In developing West Africa as a primary growth engine, targeting a consolidated yearly output of 500 000 gold equivalent ounces, the Diamba Sud gold project, in eastern Senegal, is expected to play a central role in Canadian precious metals miner Fortuna’s medium-term growth profile.

Diamba Sud contains approximately one-million ounces of gold in resources and continues to deliver exploration success, says Fortuna Mining CEO Jorge Ganoza.

An in-house preliminary economic assessment points to an after-tax internal rate-of-return of 72% at a gold price of only $2 750/oz, with capital payback expected within ten months of production startup, which is expected in the second quarter of 2028.

The company plans to commit about $100-million to the project this year, covering exploration, early works, studies and permitting.

In addition, Fortuna is already advancing site infrastructure, including camp construction, and the establishment of water storage facilities and access roads, with a final construction decision targeted for mid-year.

“Diamba Sud is key in our portfolio today, as it allows us to project strong growth at a time of rising gold prices. It is expected to be our lowest-cost operating mine, with average all-inclusive sustaining costs for the life-of-mine estimated at approximately $1 300/oz. It will be a major catalyst for value as we grow gold production,” says Ganoza.

In its production projections for Diamba Sud, Fortuna estimates the project could increase consolidated yearly production by 40% to 50%, while lowering overall cost levels, given the project’s position as the company’s cheapest source of gold ounces.

Fortuna is also evaluating a plant expansion at the Séguéla gold mine, in Côte d’Ivoire, following strong exploration results over the past two years. A processing plant expansion study is expected to be completed by mid-year, after which early works could start, based on operational economics.

Fortuna’s gold production growth has been driven most notably by the development of the Séguéla mine, which poured first gold in May 2023 and has increased gold production every year since commissioning, he highlights.

Stakeholder Engagement, Growth Imperative

Stakeholder engagement and regulatory alignment are also key focuses as Fortuna advances its Senegal operations, states Ganoza.

The company reports extensive engagement with national, regional and local authorities to align on local-content objectives, employment, training and procurement, thereby positioning itself as a long-term partner in the country’s mining sector.

With liquidity exceeding $700-million and a net cash position of more than $350-million, Ganoza believes that Fortuna is well placed to advance its organic growth projects without financial strain, thereby de-risking execution as it aims to capitalise on a favourable gold market over the next 12 to 24 months.

The company, historically associated with silver, has in recent years grown its gold output as new opportunities have emerged, particularly in West Africa, with Ganoza stressing that this shift reflects improved project availability and more favourable economics, rather than a fundamental change in commodity preference.

“For over a decade now, we have been agnostic between silver and gold. Our growth in gold versus silver has more to do with where we have been able to identify opportunities, rather than a strategic decision to favour one metal over the other,” explains Ganoza.

“Fortuna is structured to withstand commodity price volatility, with a focus on asset quality, jurisdictional risk and cost control, and the current gold price environment has translated into a significant expansion in margins across the company’s operating portfolio.

“At Fortuna, we focus on what we can control, which is our cost and the type of assets we choose to develop. We have been investing through the precious metals cycle and are now in a position to harvest, particularly at a time of higher gold prices,” he concludes.