LaFleur Minerals Inc. announced the results of its Preliminary Economic Assessment for the proposed development of the Swanson Gold Deposit and existing mining lease, confirming a technically straightforward, capital efficient project with significant economic returns. The PEA study was completed by Environmental Resources Management Technical Mining Services Group and highlights the significant advantage of leveraging the Company?s 100%-owned and refurbished Beacon Gold Mill, an existing CAD 49 million asset with a proven operating history and a permitted tailings storage facility located only 20 kilometres east of the city of Val-d?Or, Québec, with direct access to CN railway infrastructure. The PEA demonstrates strong resilience by applying a USD 2,750/oz gold price for the base case and maintaining leverage to current spot gold prices (~USD 5,300/oz) and market conditions.
The Project delivers compelling economics with an after-tax IRR of 65% and CAD 101 million NPV (5%) and an all-in sustaining cost (AISC) of USD 1,569/oz gold. The PEA delineates strong free cash flow generation through a staged mill expansion to 1,250 tonnes per day, expected to materially lower operating costs through economies of scale. With a strategic rail-linked mine-to-mill model over the long-term, the Project demonstrates a low-capex, rapid payback, high return profile with significant leverage to rising gold prices, which combined with a meaningful increase in the Swanson Gold Deposit?s Mineral Resource Estimate that supports a seven-year mine life, further bolstering operational resilience.
The updated 2026 MRE for the Swanson Gold Deposit includes an Indicated Mineral Resource of 2.96 Mt at 1.69 g/t Au for 160.3 koz of contained gold (combined open-pit and underground) and an Inferred Mineral Resource of 1.08 Mt at 1.93 g/t Au for 66.8 koz of contained gold (combined open pit and underground). A 30% increase in Indicated Mineral Resources ounces compared to the 2024 MRE, due to updated cut-off grades of 0.5 g/t Au using an open pit shell and 1.85 g/t Au using underground MSO shapes. Historical drilling data was validated by a program of 12 diamond drill holes completed by LaFleur Minerals in December 2025, which support the continuity and geological model used in the updated 2026 MRE.
The 2026 MRE does not incorporate the positive results of the recently released diamond drill holes. Increasing the Beacon Gold Mill?s base case capacity to 1,250 tonnes per day from its current 750 tpd capacity through the installation of a three-stage crushing circuit followed by a rod, ball, and stirred mill for additional grinding. This would represent a major step-change in throughput costing an estimated CAD 15 million in upgrades.
The 750 tpd mill capacity would be upgraded in a step-wise manner to 1,250 tpd to match the mine output. Additional capital estimated at CAD 175 million could bring the mill from 1,250 tpd to 3,000 tpd or higher. Equipment suppliers, such as Bumigene Inc. and others have already been engaged to support flowsheet optimization and finalize the upgraded plant design to 1,250 tpd.
While the expanded configuration will require minimal additional labour, the higher-throughput equipment is expected to significantly improve productivity and reduce operating costs. Historically operating at about CAD 42/t, the Beacon Gold Mill is forecast to benefit from economies of scale, lowering operating costs to approximately CAD 28/t with the increased feed rate. Utilizing the existing Canadian National railway track, which passes both, directly through the Swanson Gold Project and next to the Beacon Gold Mill, provides a clear logistical and cost advantage for a larger mining operation, with an estimated rail transport cost of approximately CAD 5/t compared with CAD 15/t for regional trucking as reviewed in a recent trade-off study.
Rail transportation of mineralized material also offers a lower-carbon, community-safe, and operationally efficient method for moving mill feed. Mineralized material from the Swanson Gold Deposit could be loaded onto a dedicated, nearby rail spur and integrated into an existing manifest train already operating through the site, reducing diesel trucking requirements, limiting road traffic exposure, and enhancing overall environmental performance. The planned processing upgrades at the 100%-owned Beacon Gold Mill, including installation of a three-stage crushing circuit followed by rod, ball, and stirred milling, are designed to increase throughput to 1,250 tpd.
By expanding capacity through enhancements to existing infrastructure and within current permit conditions, the Project maintains a low-capital efficient pathway to development without needing to increase the installed hydro-electric power of 4 MW currently onsite. Gold recovery is currently estimated at 84% based on metallurgical testwork completed by Agnico Eagle on the Swanson Gold Deposit in 2009. ERM is advancing the updated 1,250 tpd flowsheet through engagement with Bumigeme and third-party local equipment suppliers.
Representative samples, totalling approximately 400 kg from the recent diamond drilling program from the Swanson Gold Deposit have been submitted to SGS Canada for metallurgical testing. The metallurgical program is focused on validating the proposed circuit configuration, optimizing the upgraded flowsheet, and refining the expected gold recovery for the enhanced design. The PEA shows robust economics using a gold price of USD 2,750/oz resulting in an after-tax NPV (5%) of CAD 101 million, a 65% IRR, and a 1.8-year payback supported by a Class 4 ACCE estimate.
The Project is further enhanced by detailed Bumigeme mill-upgrade estimates based on the current mill restart project that improve confidence to roughly ±30?40%.
