11:56 AM EDT, 05/27/2025 (MT Newswires) -- Fortuna Mining ( FSM ) on Tuesday provided an update on drilling at the Southern Arc prospect of the Diamba Sud gold project in Senegal,f which the company said continues to yield strong results.

Highlights from recent drilling at the Southern Arc prospect include 8.6 grams per tonne gold over an estimated true width of 13.6 meters and 9.3 g/t gold over 11.8 meters. These results reinforce the project's potential for near-term resource growth, the company said.

Infill drilling at Area A, Area D and Karakara have also returned encouraging results, including a highlight of 113.7 g/t gold over 6.4 meters estimated true width.

Several nearby coincident geochemistry and geophysical anomalies further underscore the exploration potential of Southern Arc, including possible linkages to the adjacent Kassasoko deposit, located approximately one kilometer to the west.

Fortuna kept its Sector Perform rating and $10 price target at National Bank of Canada following the news.

The price target was based on 4.0x EV/EBITDA NTM, the bank said.

National Bank expected investors to react positively to Fortuna's update. "The results today are a positive for the company's organic growth objectives and any ability to further grow the resource base at the Diamba Sud project will reduce the need to do a large inorganic acquisition to strengthen the medium-term production profile of the company."

National Bank cited as upcoming catalysts: a construction decision for the Diamba Sud project is expected in mid-2026, pending final evaluation of exploration results; an exploration update from greenfield program; and integration of the Kingfisher deposit into the Seguela mine plan is underway, with completion targeted alongside the mineral resource estimate update in early 2026.

Fortuna traded down $0.01 at $8.09 per share at last look on the TSX.

Price: 8.04, Change: -0.06, Percent Change: -0.74