Canadian mining company, Fortuna Mining is advancing one of its biggest growth projects in Africa after a feasibility study confirmed the strong economics of its Diamba Sud gold project in Senegal, highlighting the country's continued appeal to international investors despite growing resource nationalism across the continent.

The Toronto Stock Exchange-listed miner said the study values the open-pit project at an after-tax net present value (NPV) of $1 billion, with an internal rate of return (IRR) of 60% and a capital payback period of just one year, based on a gold price of $3,500 per ounce.

Diamba Sud is expected to produce an average of 158,000 ounces of gold annually during its first four years, before averaging 116,000 ounces over its 9.4-year mine life. Fortuna estimates all-in sustaining costs of $1,056 per ounce during the first four years and $1,332 per ounce over the life of the mine, making it the company's lowest-cost operation.

The feasibility study also upgrades the project's outlook from its 2025 preliminary economic assessment, extending the mine life from 8.1 years to 9.4 years while increasing average annual production and confirming 1.15 million ounces of probable gold reserves.

Fortuna has approved $73 million for early works, including site infrastructure and engineering, with first gold production targeted before the end of the second quarter of 2028, subject to final permitting and an investment decision.

For Fortuna, Diamba Sud is central to its strategy of increasing annual gold production by about 60% to more than 500,000 ounces by 2028 alongside the expansion of its Séguéla mine in Côte d'Ivoire.

The project's low operating costs, rapid payback and exploration upside make it a valuable long-term asset. Continued drilling could expand mineral reserves beyond the current 20.5 million tonnes, potentially extending the mine's life and increasing future production.

The project highlights Senegal's ability to attract mining investment even as several African countries tighten control over their natural resources. Governments in Mali, Burkina Faso, Niger and Ghana have strengthened mining laws, increased state participation and pushed for greater local value addition to ensure more mineral wealth remains within their economies. Rather than deterringb investment, Senegal has sought to balance investor confidence with stronger oversight, making it one of West Africa's more stable mining destinations.

For Senegal, the project represents an estimated $397.5 million investment that could create jobs, boost export earnings and generate tax and royalty revenues while supporting local contractors and suppliers.

As global demand for gold remains strong, Diamba Sud reinforces the country's growing importance in West Africa's mining sector while offering Fortuna a profitable foothold in one of the world's most prospective gold belts.