Canadian gold producer Fortuna Mining has taken a major step toward expanding its footprint in West Africa after unveiling the results of a feasibility study for its Diamba Sud Gold Project in Senegal, confirming the project as one of the company’s strongest growth assets with an estimated net present value of approximately $1 billion and a projected 60% after-tax internal rate of return (IRR).
The study reinforces Senegal’s growing reputation as one of West Africa’s most attractive mining destinations and positions Diamba Sud among the region’s most promising undeveloped gold projects. According to Fortuna Mining, the project is expected to become its lowest-cost mining operation while significantly increasing the company’s overall gold production over the coming years.
The feasibility study estimates an after-tax net present value (NPV) of approximately $1 billion, based on a long-term gold price assumption of $3,500 per ounce. At current elevated gold prices, project economics improve even further, with the company estimating the NPV could exceed $1.3 billion if prices average around $4,000 per ounce. The projected 60% after-tax IRR and a payback period of roughly one year underscore the project’s strong financial outlook.
Located in southeastern Senegal near the border with Mali, the Diamba Sud project is expected to operate as a conventional open-pit mine using carbon-in-leach processing technology. Once operational, the mine is forecast to produce an average of 158,000 ounces of gold annually during its first four years, before averaging around 116,000 ounces per year over its estimated 9.4-year mine life. Total probable mineral reserves are estimated at approximately 1.1 million ounces of gold.
Fortuna Mining plans to invest approximately $397.5 million in initial capital expenditure to develop the mine. The company said the project will be financed through its existing liquidity and cash flows, which exceed $800 million, allowing development to proceed without requiring additional equity financing. Construction activities are expected to accelerate once the mining permit is granted, with first gold production targeted for the second quarter of 2028.
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Company President and Chief Executive Officer Jorge Ganoza described Diamba Sud as a cornerstone of Fortuna’s long-term growth strategy, noting that the project, together with the planned expansion of the company’s Séguéla Mine in Côte d’Ivoire, is expected to increase Fortuna’s annual gold production by approximately 60%, lifting total output to more than 500,000 ounces annually by 2028.
The announcement comes at a time when international mining companies are increasingly directing investment toward West Africa despite evolving regulatory frameworks across the region. Countries such as Senegal, Côte d’Ivoire and Burkina Faso continue to attract exploration and mine development because of their rich mineral deposits, improving geological data and relatively competitive production costs. At the same time, governments are seeking to secure greater economic benefits from mining through updated mining codes, increased local participation and stronger environmental standards.
Industry analysts have welcomed the feasibility study, describing the project as financially stronger than earlier development estimates despite higher capital costs. Improvements in mine life, production volumes and operational efficiency have offset increases in development expenditure, reinforcing confidence in the project’s long-term profitability. Analysts also believe Diamba Sud will become one of Fortuna’s lowest-cost operations, helping the company maintain strong margins even if global gold prices moderate.
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Beyond its commercial significance, the project is expected to generate substantial economic benefits for Senegal. Construction and mining operations are likely to create hundreds of direct jobs while supporting local contractors, suppliers and service providers. Under Senegal’s mining legislation, the state will receive a 10% free-carried ownership interest in the project once the exploitation permit is granted, ensuring the government shares in the long-term value generated by the mine.
Environmental permitting has also advanced, with Fortuna confirming that the environmental approval process has reached a key milestone. Early works are already underway, including site preparation, camp construction, road development and preliminary power infrastructure planning, allowing the company to move quickly toward a final investment decision once regulatory approvals are completed.
As demand for gold remains strong amid global economic uncertainty and elevated bullion prices, the Diamba Sud project strengthens Fortuna Mining’s position as a leading producer in West Africa. If development proceeds according to schedule, the mine is expected to become one of Senegal’s most significant new gold operations, boosting the country’s mining sector while contributing to employment, export earnings and long-term economic growth.
