Fortune and Aurora Geosciences recommending 13
holes for summer drill program
Fortune Minerals Limited (TSX: FT) (OTCQB: FTMDF)
(“Fortune” or the “Company”)
(www.fortuneminerals.com) is pleased to report that Aurora
Geosciences Ltd. (“Aurora”) has completed three-dimensional
(“3-D”) modelling and interpretation of the data from last
fall’s induced polarization (“I.P.”) and ground magnetometer
surveys carried out east of the NICO Cobalt-Gold-Bismuth-Copper
Deposit (“NICO Deposit”) in Canada’s Northwest Territories.
The geophysical interpretations were reconciled with the geology
and previous drill-hole information, identifying five high priority
targets for follow-up drilling this summer. The NICO Deposit and
Fortune’s nearby Sue-Dianne Copper-Silver-Gold satellite deposit
are Iron-Oxide-Copper-Gold-type (“IOCG”) deposits that have
world class global analogues, including Olympic Dam in South
Australia, the Carajas District deposits in Brazil and Candelaria
deposits in Chile. Both, the NICO Deposit and the Sue-Dianne
Deposit are open for potential expansion, and like other IOCG
deposits globally, are associated with coincident strong magnetic,
gravity, magnetotelluric, I.P. and radiometric geophysical
anomalies.
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Fortune retained Aurora last fall to extend ground magnetometer
and I.P. geophysical surveys east of the current terminus of the
NICO Deposit and over the Peanut Lake area where large coincident
magnetotelluric, gravity and magnetic anomalies had previously been
identified in earlier airborne and ground geophysical surveys. A
field report was delivered at the end of October identifying
several magnetic, chargeability and resistivity targets indicative
of dense, magnetic and conductive geological sources. Aurora was
subsequently retained to conduct 3-D modelling and an
interpretation of the results to identify targets for drill
testing. Fortune and Aurora are recommending a 13-hole, 3200 metre
drill program to test the five best targets:
Five High Priority Targets:
1) East Extension of NICO Deposit The east end of the
NICO Deposit is currently defined by a fence of holes drilled in
1997 before the ore controls were well understood. Most of these
holes were terminated short of the rock-type that hosts the known
NICO Deposit. A fault has also been identified in this area that
has likely displaced the east continuation of the deposit. The
Aurora surveys have identified coincident magnetic, chargeability
and resistivity anomalies extending several hundred metres east of
the presently defined terminus of the deposit, indicating it may
still be open for potential expansion. Four holes are planned to
test the east strike extension of the NICO Deposit beneath volcanic
cover rocks and to intersect the favorable NICO Deposit host
rock.
2) Ralph Zone A narrow zone of cobalt-gold-bismuth
mineralization similar to the NICO Deposit is exposed at the
surface approximately 600-700 metres east of the NICO Deposit. This
zone was previously tested by four holes drilled in 1997, two of
which identified significant alteration, including a 3 metre
interval grading 1.1 grams per tonne (“g/t”) gold. No
further drilling was completed while efforts were focused on
delineating the NICO Deposit. The Ralph Zone is associated with a
strong magnetic feature that extends westward to the east end of
the known NICO Deposit. There is also a partly coincident
chargeability high identified by Aurora that extends to the east of
the known showing and has not been tested. Two holes are planned to
test the east and west strike extensions of the Ralph Zone,
including the peak chargeability high.
3) Peanut Lake Zone The Peanut Lake Zone is associated
with a strong magnetic anomaly more than 500 metres in diameter
with coincident gravity and partly coincident chargeability high
anomalies. Five holes were previously drilled to test the north rim
of the magnetic feature in 1997, three of which intersected
significant grades. They include 3 metres, grading 1.76 g/t gold
and 0.113% cobalt, 3 metres, grading 1.82 g/t gold, 3 metres,
grading 1.105 g/t gold and 0.355% cobalt, and 3 metres grading 1.16
g/t gold and 0.06% cobalt. The peak chargeability high was not
tested. Three additional holes are planned to test the strike
continuation of these cobalt-gold intersections, including the
chargeability high.
4) Road Cut Mineralization Road construction in 2019
unearthed altered bedrock and boulders with sulphide mineralization
similar to the NICO Deposit, located approximately 800 metres
southwest of the previous Peanut Lake drill holes. Representative
grab samples returned highly anomalous cobalt and gold values and
up to 1.6% copper. The area is otherwise covered by overburden and
wetlands. Despite the presence of significant sulphide
mineralization, there was little geophysical response identified in
the 2020 Aurora survey, except a moderate chargeability high
feature located 300 metres north of where the sulphides are
encountered. Three holes are planned to test the extent of the
sulphides and identify the chargeability anomaly.
5) Magnetic Anomaly A Target Strong, partly coincident
magnetic and chargeability anomalies were identified approximately
800 metres northeast of the known NICO Deposit where there is a
surface copper showing associated with a unique cordierite
alteration that is sometimes associated with base metal deposits.
Two holes were previously drilled to test the peak of the magnetic
anomaly in 1997, one of which intersected low grade copper, plus 2
metres, grading 1.8 g/t gold and 0.115% cobalt. Neither of these
holes tested the chargeability peak and one hole is planned to test
this feature and the strike extension of the cobalt-gold-copper
mineralization.
Fortune is preparing a work plan and budget to conduct a 3,200
metre drill program this summer for approval by the company’s Board
of Directors. The Company will advise the public and requisite
officials when it expects to conduct this drilling in compliance
with local Covid-19 protocols and the applicable permitting
requirements.
Critical Minerals:
Natural Resources Canada (“NRCan”) released the Canadian
Critical Minerals List on March 12, 2021 with 31 minerals
identified to capitalize on the rising global demand needed in the
transition to a low-carbon and digitized economy and position the
country as a key leading mining nation. Fortune is pleased to
report that cobalt, bismuth and copper are identified by the
government of Canada as Critical Minerals. Cobalt and bismuth are
also identified as Critical Minerals on similar lists prepared by
the United States (“U.S.”) and European Union. Canada and
the U.S. have signed a Joint Action Plan on Critical Mineral Supply
designed to enable more Canadian production of the metals with
supply chain risks and considered essential for use in new
technologies and North American manufacturing and defense
industries.
Project Summary:
The NICO project is an advanced Canadian Critical Minerals
project and one of the few near-term development stage cobalt
assets in the world outside of the Democratic Republic of the
Congo. NICO is comprised of planned open pit and underground mine
and mill, located approximately 160 km northwest of Yellowknife,
Northwest Territories, and a related hydrometallurgical refinery in
southern Canada to treat concentrates from the mine and produce
cobalt sulphate, gold doré, bismuth ingot and oxide, and copper
precipitate. The NICO Project has been assessed in a positive
Feasibility Study in 2014 and the facilities in the Northwest
Territories have received environmental assessment approval and
secured the major mine permits. The NICO Deposit contains Proven
and Probable Open Pit and Underground Mineral Reserves totaling 33
million tonnes containing 1.1 million ounces of gold, 82.3 million
pounds of cobalt, 102.1 million pounds of bismuth, and 27.2 million
pounds of copper. The NICO Deposit stands out among other Critical
Mineral and cobalt development projects globally with more than one
million ounce in-situ gold as a highly liquid and countercyclical
co-product.
For more detailed information about the NICO Mineral Reserves
and certain technical information in this news release, please
refer to the Technical Report on the NICO Project, 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 which has been filed on SEDAR and is available under the
Company's profile at www.sedar.com. 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.
About Fortune Minerals:
Fortune is a Canadian mining company focused on developing the
NICO Cobalt-Gold-Bismuth-Copper Project in the Northwest
Territories. The Company has an option to purchase lands in
Saskatchewan where it may build the hydrometallurgical plant to
process NICO metal concentrates. Fortune also owns the satellite
Sue-Dianne Copper-Silver-Gold Deposit located 25 km north of the
NICO Project, which is a potential future source of incremental
mill feed to 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 potential for
expansion of the NICO Deposit, the Company’s plans to conduct a
drill program during 2021, the Company’s plans to develop the NICO
Project and the potential for the Sue-Dianne property to provide
incremental mill feed to 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 conduct and complete the planned drill program; the Company’s
ability to secure a site in southern Canada for the construction of
a NICO Project refinery; the Company’s ability to arrange the
necessary financing to continue operations and develop the NICO
Project; the receipt of all necessary regulatory approvals for the
construction and operation of the NICO Project and the related
hydrometallurgical refinery 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 further exploration of the
areas identified in this press release may not result in a
meaningful expansion of the NICO Deposit, the Company will require
additional financing to complete the planned drill program and such
financing may not be available, the COVID-19 pandemic may interfere
with the Company’s ability to conduct the drill program, the NICO
Project may not receive the benefit of any financing under the
published initiatives of the United States and European Union with
respect to critical minerals or any other benefits therefrom, the
Company may not be able to secure a site for the construction of a
refinery, the Company may not be able to finance and develop NICO
on favourable terms or at all, uncertainties with respect to the
receipt or timing of required permits, approvals and agreements for
the development of the NICO Project, including the related
hydrometallurgical refinery, 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 Sue-Dianne Property may not be developed to the point
where it can provide mill feed to 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
products that use cobalt or bismuth may not grow to the extent
anticipated, the future supply of cobalt and bismuth may not be as
limited as anticipated, the risk of decreases in the market prices
of cobalt, bismuth 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
Reserves and the risk that even if such Mineral Resources prove
accurate the risk that such Mineral Resources may not be converted
into Mineral Reserves once economic conditions are applied, the
Company’s production of cobalt, bismuth 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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210317005439/en/
For further information please contact: Fortune Minerals
Limited Troy Nazarewicz Investor Relations Manager
info@fortuneminerals.com Tel.: (519) 858-8188
www.fortuneminerals.com
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