Fredonia Mining Inc. has delivered a Preliminary Economic Assessment and updated mineral resource estimate for its flagship El Dorado Monserrat gold-silver project in Santa Cruz Province, Argentina, marking a major expansion from its previous development disclosures.

The updated resource estimate increases Measured and Indicated resources to 126.45 million tonnes grading 0.68 g/t gold equivalent and containing 2.76 million ounces of gold equivalent. This compares with the previous position of 81.35 million tonnes of Measured and Indicated resources containing approximately 2.25 million ounces of gold equivalent. The increased inventory is supported by nearly 60,000 metres of drilling and builds on the company's district consolidation in May 2026, when Fredonia expanded the project land position to approximately 33,500 hectares following the acquisition of contiguous mineral properties from a Pan American Silver subsidiary.

The Preliminary Economic Assessment models an average life-of-mine production of approximately 146,000 ounces of gold equivalent per year over a mine life exceeding 17 years, led by approximately 183,000 ounces per year during the first five years. The base-case economic model yields a post-tax net present value at a 10% discount rate of US$1.49 billion and a 65% internal rate of return, underpinned by initial capital expenditure of approximately US$346 million. Life-of-mine cash costs are estimated at approximately US$1,632 per ounce of gold equivalent.

Trading activity surged on the announcement, with trading volume on August 31, 2026, reaching 416,086 shares, which is 339% above the 50-day average of 122,604 shares. Fredonia is currently trading at $0.71.

“The PEA demonstrates the scale of EDM and the strength of the project on a realistic production ramp-up and a comprehensive initial-capital framework. Average production of approximately 146,000 ounces of gold equivalent per year over a 17+ year mine life, including approximately 183,000 ounces per year during the first five years, provides a compelling foundation for the next stage of development. With a post-tax NPV10 of approximately US$1.49 billion and a 65% IRR, we believe EDM combines scale, strong early production and capital efficiency in a way that is unusual for a project at this stage. Just as importantly, the current mine plan is based only on the Main Veins and La Herradura deposits, while Monserrat West and multiple additional mineralized veins and targets remain outside the present economic assessment. Our priority now is to continue increasing geological confidence, advance metallurgy and engineering, progress environmental and permitting work, and systematically evaluate the additional opportunities across the broader EDM property.”

— Estanislao Auriemma, Chief Executive Officer

Regional activity across the Deseado Massif continues to advance alongside Fredonia's development pipeline, highlighted by developments such as Orosur Mining completing an NI 43-101 technical report and acquiring 100% ownership of its El Pantano gold-silver project within the surrounding district in July 2026.

The project remains subject to further evaluation. Fredonia is required to file the technical report for the Preliminary Economic Assessment on SEDAR+ within 45 days of the August 31, 2026 news release. Additional mining, processing, and infrastructure studies to pre-feasibility or feasibility study level are planned throughout 2027.

Read the full announcement: Fredonia Mining Announces Positive PEA for EDM Highlighting 146,000 oz AuEq Annual Production, US$1.49 Billion NPV10 and 65% IRR