Project advances to licensing and permitting phase
Issued Capital: 121,276,976
LONDON, ON, July 19, 2013 /PRNewswire/ - Fortune Minerals
Limited (TSX: FT) (OTCQX: FTMDF) ("Fortune" or the "Company")
(www.fortuneminerals.com) is pleased to announce that it has
received approval for the NICO gold-cobalt-bismuth-copper mine and
mill in the Northwest Territories
("NT") from the Tlicho Government, as well as from the Honourable
Bernard Valcourt as Federal Minister of Aboriginal Affairs and
Northern Development Canada ("AANDC"), and on behalf of the
Responsible Ministers (Environment Canada, Fisheries and Oceans
Canada, Natural Resources Canada, Transport Canada and the
Government of the Northwest
Territories). This acceptance of the Mackenzie Valley Review
Board's ("MVRB") Report of Environmental Assessment and Reasons for
Decision ("EA Report"), dated January 25,
2013, allows Fortune to complete the water licensing and
land use permits process and to secure the primary permits required
for the mine development. The Company is conducting site
preparations at NICO this summer in anticipation of commencing
construction in 2014, subject to completion of the project
financing and receipt of all applicable permits.
Dr. Richard
Schryer, Fortune's Director of Regulatory and Environmental
Affairs stated, "Approval of the NICO mine and mill by the Minister
and Tlicho Government allows us to enter the regulatory phase of
project permitting using information gathered during the review of
the environmental assessment. Our efforts over the last few months
preparing for this final stage of the permitting process will
facilitate receipt of the permits required to initiate construction
in 2014."
Mr. Robin Goad,
CEO of Fortune commented, "This permitting milestone at NICO
contributes to the momentum the Company is building for the
development of our two key Canadian mining assets. We are a step
closer to our goal of transitioning to a multi-asset producer."
The MVRB completed its EA Report in January of
this year and recommended approval of the mine and mill (see
Fortune News Release dated January 28,
2013). Acceptance of the Report by the Minister of AANDC and
the Tlicho Government allows the NICO project to proceed to the
regulatory approvals phase with the Wek'èezhìi Land and Water Board
and other parties to develop the water license and land use
permits. Fortune has prepared for this final stage of the
permitting process and fully expects to progress in an efficient
manner given the positive foundation already built during the
environmental assessment process.
About NICO
NICO is positioned to become a reliable
Canadian-based producer of gold, cobalt and bismuth. Mining
will be conducted primarily by open pit methods with underground
ores also contributing mill feed during the first two years from
the existing underground workings that were established from
previous test mining. The ores will be processed in a
concentrator at the site, using simple flotation to produce a bulk
concentrate for shipment to a refinery and additional processing to
high value metal products. The deposit contains Proven and
Probable Mineral Reserves totalling 33 million tonnes containing
1,085,000 ounces of gold, 82 million pounds of cobalt, 102 million
pounds of bismuth (representing 15% of global bismuth reserves),
and 27 million pounds of copper (see Fortune News Releases dated
July 2, 2012 and July 4, 2012). At the planned mill
throughput rate of 4,650 tonnes of ore per day, the mineral
reserves will sustain operations for 19.8 years. More than
$110 million of work has already been
invested in the NICO project including completion of Front-End
Engineering and Design and feasibility studies, underground test
mining, and pilot plant tests to verify the process methods.
NICO is located 50 km north of the Tlicho community of Whati and
160 km northwest of the City of
Yellowknife.
Fortune continues to work with Deloitte
Corporate Finance Inc. to complete project financing agreements for
the NICO project. Fortune recently announced a strategic investment
by Procon Resources Inc. to provide financing to advance NICO and
discussions are ongoing with several parties interested in
participating in the development.
The disclosure of scientific and technical
information contained in this press release has been approved by
Robin Goad, M.Sc., P. Geo.,
President and Chief Executive Officer of the Company, who is a
"qualified person" under National Instrument 43-101.
About Fortune Minerals:
Fortune is a diversified resource company with several mineral
deposits and a number of exploration projects, all located in
Canada. The Company is
focused on the development of the Arctos Anthracite Project in
British Columbia and the
vertically integrated NICO gold-cobalt-bismuth-copper project that
is comprised of a mine and mill in the NT that will produce a bulk
concentrate for shipment to a refinery for processing to high value
metal products. In addition, the Company owns the Sue-Dianne
copper-silver-gold deposit and other exploration projects in the
NT. Fortune is focused on outstanding performance and growth of
shareholder value through assembly and development of high quality
mineral resource projects.
This press release contains forward-looking
information. This forward-looking information includes statements
with respect to, among other things, the Company's expectations
with respect to progressing and facilitating the permitting process
relating to the NICO project as well as the anticipated development
of, and construction at, the NICO project and the timing thereof,
the anticipated mining and processing methods to be used at the
NICO project, anticipated production at the NICO project, mineral
reserves estimates and the expected mine life at the NICO project
and the proposed development of the Arctos 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 business
and ability to generate sufficient funds). 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 inherent
risks involved in the exploration and development of mineral
properties, the inherent volatility of metal prices, the risk that
the Company may not be able to arrange the necessary financing to
construct and operate the NICO mine, uncertainties with respect to
the receipt or timing of all applicable permits for the development
of the NICO project, the possibility of delays in the commencement
of production from the NICO project, uncertainties relating to the
estimation of mineral reserves and other factors. 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