Fortuna Mining's Diamba Sud Gold Project: A High-Potential Catalyst for Shareholder Value

Fortuna Mining Corp. (FT) has positioned its Diamba Sud Gold Project in Senegal as a standout asset in its portfolio, with recent developments suggesting the project is on the cusp of a significant valuation re-rating. The project's updated resource estimates, aggressive exploration strategy, and the impending release of a Preliminary Economic Analysis (PEA) in Q4 2025 create a compelling case for investors seeking exposure to high-growth, low-risk gold projects.

Resource Growth: A Foundation for Long-Term Value

The Diamba Sud Gold Project has seen extraordinary resource expansion, with Indicated Resources surging 53% to 724,000 ounces and Inferred Resources rising 93% to 285,000 ounces since the end of 2024. This growth stems from 243 drill holes totaling 31,652 meters completed between July 2024 and July 2025. Key areas like Area A, Area D, Karakara, and Kassassoko have seen improved geological modeling, while the Southern Arc and Moungoundi deposits—previously unestimated—now contribute 194,000 and 31,000 ounces, respectively.

High-grade intercepts such as 113.7 g/t over 6.4 meters in Area D and 8.6 g/t over 13.6 meters in the Southern Arc underscore the project's potential for near-term production. These results are not just incremental—they signal a shift from exploration-stage optimism to tangible resource definition. For context, the updated Indicated Resource of 14.2 million tonnes at 1.59 g/t Au represents a robust foundation for mine planning, with shallow mineralization reducing capital intensity.

Strategic Exploration: Unlocking Open-Pit Potential

Fortuna's exploration strategy at Diamba Sud is a masterclass in brownfield and greenfield synergy. Infill drilling is converting Inferred Resources to Indicated, while expansion drilling targets depth and strike extensions at Southern Arc and Moungoundi. Systematic auger drilling has already identified new gold-in-soil anomalies, suggesting the resource base could grow further.

The project's location within the Kenieba-Koudougou Inlier—a geological trend hosting world-class deposits like Bissa and Kedougou—adds strategic weight. This region's favorable tectonic history and historical gold production make Diamba Sud a high-probability target for resource expansion. With 31,652 meters of drilling already completed, the company is well-positioned to refine its understanding of the deposit's geometry and metallurgical characteristics.

PEA-Driven Valuation Upside: From Exploration to Production

The PEA, expected in Q4 2025, will crystallize Diamba Sud's economic potential. Using a long-term gold price assumption of $2,600/oz (aligned with rising inflation and central bank demand), the analysis is likely to outline a low-cost, high-margin production model. Shallow mineralization at Southern Arc and Moungoundi could support an initial production phase of 10,000 ounces/year, with scalability as exploration continues.

The PEA will also assess capital and operating costs, pit shell optimization, and payback timelines. With Senegal's stable political climate and low jurisdictional risk, Diamba Sud avoids the volatility that plagues many African gold projects. Investors should note that African gold equities trade at a 20–30% discount to global peers, creating a valuation arbitrage opportunity for projects like Diamba Sud.

Investment Case: A Catalyst-Driven Play

The Diamba Sud project's combination of resource growth, strategic exploration, and PEA-driven clarity makes it a standout in Fortuna's portfolio. The PEA will likely reclassify the project from an exploration-stage asset to a near-term production asset, unlocking significant shareholder value.

Key risks include execution delays in the PEA or softer-than-expected gold prices, but the project's low stripping ratios and shallow mineralization provide a margin buffer. For investors, the Q4 2025 PEA represents a critical inflection point. A positive outcome could trigger a re-rating of Fortuna's shares, particularly if the PEA outlines a clear path to feasibility.

In a market where gold prices remain elevated and African gold projects trade at a discount, Diamba Sud offers a rare combination of technical rigor and geopolitical safety. As Fortuna transitions from exploration to production, the project's upside is not just speculative—it is anchored in data, geology, and strategic clarity.

For those seeking a high-conviction play in the gold sector, Diamba Sud's Q4 2025 PEA is a must-watch event.