Announcement • Apr 15
Fredonia Mining Inc. Provides Update on El Dorado Monserrat Project Preliminary Economic Assessment
Fredonia Mining Inc. had announced continued technical advancement at its flagship El Dorado–Monserrat gold project in the Deseado Massif, Santa Cruz Province, Argentina, including progress toward its maiden Preliminary Economic Assessment. The Company has formally initiated work on a Preliminary Economic Assessment for the El Dorado–Monserrat project, marking a key milestone in its transition from exploration toward development-stage evaluation. The Preliminary Economic Assessment will assess the potential economic viability of a conceptual open-pit gold mining operation and will include analysis of mining methods, processing routes, infrastructure requirements, capital and operating costs, and project economics. The study will be based on the Company’s current mineral resource estimate, which outlines a large-scale gold-silver system within the Deseado Massif, including: 81,300,000 tonnes of Measured and Indicated mineral resources, 0.86 g/t gold equivalent grade, containing approximately 2,250,000 ounces of gold equivalent, including 1,590,000 ounces of gold and 49,100,000 ounces of silver. Gold equivalent grade (Au Eq) is derived using a gold price of USD 1,800/oz, and silver metal price USD 24/oz. Au Eq assumes Au and Ag recoveries of 90.0%. The limited metallurgical studies by Fredonia to date (selective Bottle rolls from Main Veins material) have indicated high (>90%) recovery of gold in oxide material. The Cerro Vanguardia mine to the east of El Dorado–Monserrat with similar mineralization reports recoveries higher than 90% for Au. Accordingly, the formula used for Au Eq is: Au Eq (g/t) = Au (g/t) + [Ag (g/t) x (24/1,800) x (0.9/0.9)]. Importantly, the current mineral resource captures only a portion of the broader mineralized system, which remains open in multiple directions and continues to offer potential for further resource growth through additional drilling. Fredonia has engaged GeoInvestment SpA, a Chile-based mining consulting firm, to lead the Preliminary Economic Assessment. GeoInvestment SpA brings extensive experience in geology, geotechnics, and mining engineering across Latin America, supporting projects from early-stage development through to feasibility studies and capital markets disclosure. With a strong balance sheet, the Company believes it is well positioned to complete the Preliminary Economic Assessment and execute its current planned phase of exploration and development programs. The Company believes the Preliminary Economic Assessment will provide the first integrated technical and economic framework for El Dorado–Monserrat and will be a key step in defining project scale, production potential, and development strategy. In parallel, the Company is preparing to commence its next phase of drilling, designed to support future resource conversion and test opportunities for expansion of the mineralized system. Fredonia expects to report the results of the Preliminary Economic Assessment during calendar Third Quarter 2026.
