Fortuna Mining enters Guyana with Quartzstone deal

Fortuna Mining (TSX: FVI; NYSE: FSM) is expanding beyond its traditional hubs with a new earn-in agreement that will allow it to gain a foothold in the prospective Guiana Shield.

Vancouver-based Fortuna can earn a 51% stake in the Quartzstone gold project by funding at least 60,000 metres of drilling over four years, with the option to boost its interest to 70% by funding a feasibility study within three years of exercising the first option, according to a statement issued Monday. Having paid private Guyanese company Qstone an upfront $5 million (C$6.9 million) non-refundable cash option premium, Fortuna will fund all exploration and license costs.

“The earn‑in agreement provides exposure to a new high‑grade gold district with exploration upside for a modest upfront investment,” Scotia Capital mining analyst Eric Winmill said Monday in a note. “We see this supporting the company’s longer‑term growth objectives in building out a portfolio of exploration opportunities.”

Emerging region

Monday’s deal lets Fortuna – traditionally active in Argentina, Peru, Côte d’Ivoire and Senegal – add an emerging gold jurisdiction that has seen multiple discoveries and attracted growing attention from international miners. Two weeks ago, Canadian miner G Mining Ventures (TSX: GMIN; US-OTC: GMINF) agreed to buy G2 Goldfields (TSX: GTWO; US-OTC: GUYGF) in a C$3 billion ($2.2 billion) deal that aims to bring two adjacent Guyana gold projects under one roof. 

Besides state royalties, Quartzstone is subject to a 4.5% net smelter returns royalty in favour of an unidentified previous owner. The royalty may be repurchased at a price to be determined by the parties at any time.

Some 183 diamond core drill holes, comprising 23,190 metres, were completed at Quartzstone between 2010 and 2017, Fortuna said. Drilling along a 5-km corridor identified multiple zones of high grade near-surface gold mineralization. 

Highlights included hole DQS-01, which cut 5.6 metres grading 27.78 grams gold per tonne from 23 metres depth, and hole DQS-057, which cut 13.2 metres grading 15.93 grams gold from 92 metres downhole.

Drilling so far has tested only about 5 km of the 26-km shear zone within the concession area. Several geochemical anomalies along northeast-southwest trending cross-structures also remain untested and will be prioritized by a $5.5 million initial exploration program, Fortuna said.

Prolific camp

Located 120 km west of the capital, Georgetown, and 35 km northwest of G Mining’s Oko West project, Quartzstone covers about 296 sq. km. The area hosts vein-style gold mineralization typical of the Guiana Shield.

Quartzstone, “where historical drilling has identified multiple high-grade zones of near-surface gold mineralization, is located in a prolific exploration camp,” Fortuna CEO Jorge Ganoza said. “This transaction provides Fortuna with a staged path to unlock its potential through systematic exploration and drilling.”

Guyana’s greenstone belts are considered underexplored compared with comparable terrains in West Africa. In recent years, government support and improving infrastructure have enhanced the country’s investment appeal.

Fortuna fell 2.4% to C$14.54 Monday morning in Toronto, cutting the company’s market value to about C$4.2 billion. The stock has traded between C$7.32 and C$18.99 in the past year.