Fortuna Mining has strengthened its position as a growing gold producer after releasing a highly positive feasibility study for the Diamba Sud gold project in Senegal, highlighting the asset’s potential to become a major low-cost contributor to the company’s future production profile.
The study presents Diamba Sud as a large-scale open-pit mining operation with conventional carbon-in-leach (CIL) processing technology, delivering strong economic returns under current gold price assumptions. With gold prices remaining elevated, the project has attracted attention as a potential growth platform for Fortuna, although important development milestones — including permitting, financing and construction execution — remain ahead.
Senegal Gold Project Shows Strong Economic Potential
According to Fortuna’s feasibility study, Diamba Sud demonstrates robust financial performance at different gold price scenarios.
At a gold price of US$3,500 per ounce, the project is expected to generate:
- an after-tax net present value (NPV) at a 5% discount rate of US$1 billion;
- an internal rate of return (IRR) of 60%;
- a payback period of approximately one year.
Under a higher gold price assumption of US$4,000 per ounce, Fortuna estimates the project’s after-tax NPV5% could increase to US$1.3 billion, while the IRR could rise to 72%. The strong financial metrics underline the growing attractiveness of new gold developments as bullion prices remain supported by central-bank demand, geopolitical uncertainty and investor interest in precious metals.
Diamba Sud Designed as Long-Life Gold Operation
The proposed mine would operate as an open-pit gold project using conventional processing methods.
Fortuna expects Diamba Sud to deliver average annual production of:
- approximately 158,000 ounces of gold during the first four years;
- around 116,000 ounces annually over the estimated 9.4-year mine life.
The project’s cost profile is also expected to remain competitive.
Fortuna estimates:
- all-in sustaining costs (AISC) of US$1,056 per ounce during the first four years;
- life-of-mine AISC of US$1,332 per ounce.
Total initial capital investment is forecast at approximately US$397.5 million, positioning Diamba Sud as a significant but manageable development project within Fortuna’s broader growth strategy.
Permitting Process Remains the Next Critical Milestone
Despite the strong feasibility results, Diamba Sud is not yet fully approved for construction.
Fortuna said a final investment decision (FID) will follow the completion of the mining permit process.
The company is targeting:
- receipt of the exploitation permit;
- construction approval;
- first gold production in the second quarter of 2028.
Fortuna has already received an important regulatory milestone after obtaining the environmental decree from the Senegalese government, allowing the project to advance toward the final investment stage once the remaining mining approvals are secured.
Strategic Location in Senegal’s Kédougou Gold Region
The Diamba Sud project is located in southeastern Senegal’s Kédougou Region, close to the border with Mali. The project is operated by Boya S.A., an indirect wholly owned subsidiary of Fortuna Mining.
The location places Diamba Sud within one of West Africa’s most prospective gold-producing regions, where several major deposits and operating mines have attracted international mining investment. Under Senegal’s mining framework, once an exploitation permit is granted, the government is expected to receive a 10% free-carried ownership interest in the project.
Diamba Sud Supports Fortuna’s Gold Production Growth Strategy
For Fortuna, the strategic importance of Diamba Sud extends beyond the project itself. The company said the Senegal development, combined with the expansion of the Séguéla gold mine, supports its ambition to increase annual gold production by approximately 60%, reaching more than 500,000 ounces in 2028.
The growth strategy reflects Fortuna’s broader transformation from a company with a diversified precious metals portfolio into a larger-scale gold producer. Adding new production capacity in West Africa could strengthen the company’s position in a global gold market where quality development assets remain highly sought after.
Investors Await Financing and Construction Execution
The feasibility study provides Fortuna with a strong technical and economic foundation, but investors will now focus on the next stages of project development.
Key issues likely to influence market confidence include:
- timing of the mining permit;
- financing structure;
- capital management;
- construction schedule;
- operating performance.
The challenge for Fortuna is moving Diamba Sud from an attractive feasibility-stage project into a fully permitted and producing mine. The stock market’s response will depend on whether investors value the project’s strong economics today or prefer to wait for additional certainty around funding and execution.
A Potential New Gold Growth Engine for Fortuna
Diamba Sud represents one of Fortuna Mining’s most important future growth opportunities. The feasibility study demonstrates the potential for a high-return gold operation with competitive costs, strong production levels and significant economic value.
The project’s ultimate success will depend on Fortuna’s ability to secure approvals, finance development and deliver construction on schedule. If executed successfully, Diamba Sud could become a cornerstone asset in Fortuna’s expanding gold production portfolio and strengthen Senegal’s position as one of Africa’s leading gold mining jurisdictions.
