Fredonia Mining Inc. (TSXV: FRED) released results of a Preliminary Economic Assessment (PEA) for its El Dorado Monserrat (EDM) gold-silver project in Santa Cruz Province, Argentina, according to a company statement dated August 31, 2026.

The PEA, which carries an accuracy range of approximately -35% to +50%, estimates a post-tax net present value of $1.494 billion at a 10% discount rate and a post-tax internal rate of return of 65%, based on metal prices of $3,800 per ounce of gold and $45 per ounce of silver. The discounted payback period from start of construction is estimated at 1.9 years.

The project is designed as a conventional open-pit, heap-leach operation with an estimated mine life of more than 17 years. Average life-of-mine production is projected at approximately 146,000 ounces of gold-equivalent (AuEq) per year, comprising roughly 117,000 ounces of gold and 2.41 million ounces of silver annually. Production during the first five years is projected to average approximately 183,000 ounces AuEq per year.

Initial capital is estimated at $345.7 million, with total life-of-mine capital of $686 million. The life-of-mine cash cost is estimated at $1,632 per ounce AuEq. Total life-of-mine revenue is projected at $9.411 billion.

An updated mineral resource estimate, effective August 17, 2026, totals 126.45 million tonnes of Measured and Indicated resources grading 0.68 g/t AuEq, containing approximately 2.76 million ounces AuEq. An additional 73.89 million tonnes of Inferred resources grade 0.46 g/t AuEq, containing approximately 1.09 million ounces AuEq. Inferred resources represent 35.6% of the scheduled process-plant feed.

A separate scenario applying Argentina's RIGI investment incentive regime, using a 25% income tax rate and accelerated depreciation, yields an estimated post-tax NPV10 of $1.807 billion. That scenario remains subject to project qualification and is not included in the base case.

The company said further drilling, metallurgical testing, and engineering studies toward a pre-feasibility or feasibility level are planned through 2027. No mineral reserves have been declared for the EDM project. The PEA includes Inferred resources considered too speculative to be categorized as mineral reserves, and there is no certainty the PEA results will be realized.