Canadian primary cobalt asset
positioned for near-term development
Issued Capital: 338,603,220
LONDON, ON, July 11, 2018 /CNW/ - Fortune Minerals
Limited (TSX: FT) (OTCQX: FTMDF) ("Fortune" or
the "Company") (www.fortuneminerals.com) is pleased to
provide an update on the progress of environmental work and
rezoning efforts needed to support construction of the NICO
Cobalt-Gold-Bismuth-Copper Project in Canada ("NICO Project"). The 100% owned
NICO Project is a development stage primary cobalt asset consisting
of a planned mine, mill and concentrator in the Northwest Territories ("NWT") and
hydrometallurgical refinery in Saskatchewan to process concentrates from the
mine to cobalt sulphate, gold, bismuth and
copper. Environmental work to support the water license issued
by the Wek'èezhìi Land and Water Board ("WLWB") is being
carried out for the NWT site. The Company is also advancing the
rezoning of lands it owns near Langham,
Saskatchewan to enable construction of the
hydrometallurgical refinery. Fortune has already received its
Environmental Assessment ("EA") approvals for both the NWT
and Saskatchewan sites and is
working to secure Project Financing.
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Mine Site Northwest Territories:
The Wek'èezhìi Land and Water Board issued a Land Use Permit and
approved the Type A Water License required to construct and operate
the NICO Project mine and concentrator in 2014.
In 2017, with the assistance of Tlicho residents from the
community of Whati, Fortune completed the study design outlined in
the Supplemental Baseline Monitoring Plan that is a requirement of
the water license. This work included additional studies on
hydrology, water quality, benthic invertebrates, sediment
chemistry, fish population and fish flesh chemistry in the Marian
River and lakes near the NICO Project mine site in the NWT. The
data collected has since been analyzed and compiled into the
Aquatic Baseline Summary Report which was submitted to the WLWB on
June 19, 2018. This report will be an
integral part of the Aquatic Effects Monitoring Plan for operations
and requires approval from the WLWB prior to construction.
Fortune is now modelling the quality of the seepage water
expected to be generated from the Co-Disposal Facility
("CDF") that the Company intends to build at the NICO
Project mine site to permanently store waste rock and tailings
generated from the mine. The results of this source term modelling
will be used in the design of the CDF Management Plan, the CDF
Final Design Report, and in the Constructed Wetland Treatment
System pilot studies that are also required to be completed prior
to construction. Fortune intends to collect cattails from the NICO
Project mine site this summer for use in the wetland treatment
study.
Pursuant to the requirements of the water license, Fortune is
also in the process of completing the Geochemical Characterization
and Management Plan. The Company will conduct a borrow source
survey at the mine site this summer to determine the
characteristics and quantities of soil, gravel, and sand near the
proposed CDF location to determine the best options for cover
material to be placed at closure. This information will also be
used to develop the Interim Closure and Reclamation Plan.
Both the CDF Final Design Report and the Aquatic Effects
Monitoring Plan require the input of separate expert panelists.
Three expert panel members are to be appointed by Fortune, the WLWB
and the Tlicho Government. The Company is in the process of
organizing these expert panels.
Fortune has engaged Tetra Tech Inc. to conduct additional
geotechnical work in August for the NICO Project access road from
the community of Whati to the mine site and for the proposed
airstrip. This work is being completed to provide more detailed
information on the amount of fill and civil works required to
construct these facilities and enable construction companies
participating in the Company's ("RFP") process to provide
more detailed quotes.
Refinery Lands Rezoning in Saskatchewan:
Earlier this year Fortune submitted its Comprehensive
Development Report to rezone the lands it owns in Saskatchewan to Industrial. The rezoning is
required to construct and operate the NICO Project
hydrometallurgical refinery. The lands purchased in Saskatchewan were identified in consultation
with the Saskatchewan Ministry of Economy and the Saskatoon
Regional Economic Development Authority to encourage Fortune to
locate the facility in Saskatchewan. Fortune held an information
session in the community of Langham on July 5,
2018 as part of the rezoning process that is expected to be
completed later this year. Government officials, Fortune
representatives, and teams from SNC-Lavalin and Associated
Engineering were present to answer questions on the proposed
refinery and the re-zoning process.
Provided Fortune receives the requisite financing for the NICO
Project and the remaining regulatory approvals in 2018,
construction of the mine facilities could begin in 2019 and is
expected to take approximately two years depending on ice-road
logistics, which are required for construction. The all-season road
is expected to be available for the commencement of production and
transportation of metal concentrates during operations. The
refinery requires about 18 months for construction unless it is
deferred if the Company decides to initially sell metal
concentrates. This construction timeline would allow the NICO
Project to be in commercial production in the early 2020's, at time
when the global automotive industry is expected to increase
electric vehicle production.
The cobalt market has had approximately 6% compounded annual
growth ("CAGR") for more than 20 years, primarily due to the
increasing use of cobalt in rechargeable batteries in portable
electronic devices. At current prices for metal, the value of the
cobalt market has risen to greater than US$10 billion. Accelerated double digit CAGR is
projected by auto OEM's and cobalt industry analysts in the 2020's,
primarily from the demand in the cathodes of lithium-ion batteries
used to power electric vehicles and stationary storage cells to
improve the efficiency of the electrical grid.
The disclosure of scientific and technical information
contained in this news release has been approved by Robin Goad, M.Sc., P.Geo., President and Chief
Executive Officer of Fortune, who is a "Qualified Person" under
National Instrument 43-101. The Technical Report on the Feasibility
Study referred to above, entitled "Technical Report on the
Feasibility Study for the NICO-Gold-Cobalt-Bismuth-Copper Project,
Northwest Territories, Canada",
dated April 2, 2014 and prepared by
Micon International Limited (the "Technical Report"), from
which certain information in this press release has been extracted,
has been filed on SEDAR and is available under the Company's
profile at www.sedar.com.
About Fortune Minerals
Fortune is a Canadian mining company focused on developing the
vertically integrated NICO cobalt-gold-bismuth-copper project in
the Northwest Territories and a
related refinery the Company plans to construct in Saskatchewan. Fortune also owns the Sue-Dianne
copper-silver-gold deposit located 25 km north of the NICO Project
and a potential future source of incremental mill feed to
potentially extend the life of the NICO Project mill.
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This press release contains forward-looking information and
forward-looking statements within the meaning of applicable
securities legislation. This forward-looking information includes
statements with respect to, among other things, the Company's plans
to develop the NICO Project, the timing and results of the
necessary reports, surveys and management plans, the Company's
plans to secure project financing and regulatory approvals for the
NICO Project, the commencement of construction of the NICO Project
and the timing thereof, the rezoning of the Saskatchewan refinery lands and the timing
thereof, anticipated growth in the demand for cobalt and the
estimated timing for construction of the NICO Project.
Forward-looking information is based on the opinions and estimates
of management as well as certain assumptions at the date the
information is given (including, in respect of the forward-looking
information contained in this press release, assumptions regarding:
the Company's ability to arrange the necessary financing to
continue operations and develop the NICO Project; the construction
of the Tlicho All-Season Road (the "TASR") and the timing of its
completion; the receipt of all necessary regulatory approvals and
the timing thereof, the results of the updated Technical Report;
the rezoning of the Saskatchewan
refinery lands and the timing thereof; growth in the demand for
cobalt; the time required to construct the NICO Project; and
the economic environment in which the Company will operate in the
future, including the price of gold, cobalt and other by-product
metals, anticipated costs and the volumes of metals to be produced
at the NICO Project). However, such forward-looking information is
subject to a variety of risks and uncertainties and other factors
that could cause actual events or results to differ materially from
those projected in the forward-looking information. These factors
include the risks that the Company may not be able to finance and
develop NICO on favourable terms or at all, the updated Technical
Report may take longer than anticipated, uncertainties with respect
to the receipt or timing of required permits, approvals and
agreements for the development of the Nico Project, the Technical
Report may not generate improved economics for the NICO Project to
the extent anticipated, the TASR may not be constructed in a timely
fashion or at all, the construction of the NICO Project may take
longer than anticipated, the Company may not be able to secure
offtake agreements for the metals to be produced at the NICO
Project, the inherent risks involved in the exploration and
development of mineral properties and in the mining industry in
general, the market for rechargeable batteries and the use of
stationary storage cells may not grow to the extent anticipated,
the future supply of cobalt may not be as limited as anticipated,
the risk of decreases in the market prices of cobalt and other
metals to be produced by the NICO project, discrepancies between
actual and estimated mineral resources or between actual and
estimated metallurgical recoveries, uncertainties associated with
estimating mineral resources and the risk that even if such
resources prove accurate the risk that such resources may not be
converted into mineral reserves, once economic conditions are
applied, the Company's production of cobalt and other metals may be
less than anticipated and other operational and development risks,
market risks and regulatory risks. Readers are cautioned to not
place undue reliance on forward-looking information because it is
possible that predictions, forecasts, projections and other forms
of forward-looking information will not be achieved by the Company.
The forward-looking information contained herein is made as of the
date hereof and the Company assumes no responsibility to update or
revise it to reflect new events or circumstances, except as
required by law.
SOURCE Fortune Minerals Limited