LONDON, Ontario--(BUSINESS WIRE)--Fortune Minerals Limited (TSX: FT) (OTCQB: FTMDF) (“Fortune” or the “Company”) (www.fortuneminerals.com) is pleased to report that it has commenced the recently announced geophysical program over the expected east extension of the Company’s 100% owned NICO Gold-Cobalt-Bismuth-Copper Deposit (“NICO Deposit”) in Canada’s Northwest Territories. Fortune contracted Yellowknife-based Aurora Geosciences Ltd. (“Aurora”) to conduct the initial phase of work comprised of induced polarization (“I.P.”) and ground magnetometer surveys over known geophysical anomalies along the east strike projection of the NICO Deposit. The objective of this work is to delineate targets for follow-up drilling where the Company believes the NICO Deposit has been displaced by faults.
Aurora is conducting the I.P. and ground magnetometer surveys over five priority targets identified in earlier airborne and ground geophysical surveys completed for Fortune and the Geological Survey of Canada (“GSC”). All five targets have coincident magnetic and gravity high anomalies with corresponding low resistivity indicative of a magnetic, dense and conductive source. The primary target is the 1.2 km wide Peanut Lake Anomaly, where the GSC also identified a coincident magnetotelluric anomaly that was also highlighted by three-dimensional inversion modelling of the combined data. The Peanut Lake Anomaly is centered 1 km southeast of the NICO Deposit and the underlying geology is largely covered by overburden and wetlands. Its significance was recently upgraded after road construction uncovered bedrock and boulders with mineralization that is similar to the NICO Deposit. Compilation of previous drilling in this area also identified five holes with gold values greater than 1 gram per tonne over 3 metre core lengths, including one hole intersecting 3 metres, grading 1.105 grams of gold per tonne and 0.355% cobalt. The mineralization unearthed by road construction and intersected in drill core confirm the continuation of gold and cobalt values east of the known NICO Deposit where the geology has been displaced by faults. The I.P. method is being applied to identify near surface concentrations of disseminated sulphide minerals that typically host the ores in Iron Oxide Copper-Gold (“IOCG”)-type deposits, including the NICO Deposit and Sue-Dianne satellite deposit.
The NICO Deposit, located 160 km northwest of Yellowknife, contains an IOCG-type ore deposit with 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 Project is an advanced development asset comprised of a planned mine and concentrator in the Northwest Territories and a related refinery in southern Canada where metal concentrates would be processed to gold doré, cobalt sulphate, bismuth ingots and oxide, and copper precipitate. The NICO Project has received environmental assessment approval and the major mine permits for the facilities in the Northwest Territories and has also been assessed in a positive Feasibility Study by Micon International Limited in 2014.
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 Gold-Cobalt-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 planned exploration program at Peanut Lake, 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 timing of the planned exploration 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 the Peanut Lake exploration may not proceed as anticipated, 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