Fortune Minerals Ltd

Published : July 28th, 2009

to Locate NICO Hydrometallurgical Process Facility in Southern Canada

( 0 vote, 0/5 ) Print article
  Article Comments Comment this article Rating Follow Company  
Keywords :   Bismuth |


London, Ontario - July 28, 2009 - Fortune Minerals Limited (TSX-FT) (�Fortune Minerals� or the �Company�) is pleased to announce its decision to locate the hydrometallurgical part of the process plant to treat concentrates produced from its NICO Gold-Cobalt-Bismuth-Copper development in the Northwest Territories (NWT) to a site in southern Canada.  This change in the NICO project will have a material positive impact on both capital and operating costs for the development.  It will also help mitigate future exposure to increasing energy costs, accelerate the construction schedule, reduce environmental impacts and help speed the permitting process already in progress.

The NICO mine is located 160 km northwest of the City of Yellowknife, 22 km west of the Snare hydro complex and 50 km northeast of the community of Whati, NWT.  NICO is a proposed vertically integrated project to mine and process ores to high value metal products, including gold dor�, cobalt and bismuth cathodes (metal) and a minor amount of copper and nickel by-products using proven hydrometallurgical process methods that have been confirmed in two pilot plant tests and are used at existing refineries. 

The Mackenzie Valley Environmental Impact Review Board, that is conducting the environmental assessment for the NICO development, and representatives of the federal, NWT and Tlicho (aboriginal) governments have been notified of Fortune Mineral�s decision.  The mine, mill and flotation concentrator will be constructed in the NWT as originally planned.  Conversely, the downstream hydrometallurgical part of the process plant, comprised of pressure and acid leaching followed by electro-winning to high value metal products, and the gold leach circuit, will now be constructed at a site in southern Canada.  Numerous locations have been investigated to construct this �Southern Hydrometallurgical Facility� (SHMF) over the past 6 months.  Fortune Minerals has now shortlisted four sites in Alberta, Saskatchewan and Manitoba and plans to acquire one of these sites shortly.
Approximately 80,000 tonnes of metal concentrates produced at NICO each year will be transported from the property by truck (5+ trucks per day) to the rail head at Hay River, NWT for delivery to the SHMF by rail.

The economic, social and environmental benefits of relocating the SHMF to southern Canada are as follows:

  1. To materially reduce capital costs for the development - there will be a significant reduction in the amount of process and construction materials to be transported to the NWT during construction, the camp facilities to accommodate workers at the NICO site will be smaller, and labour and travel expenses during construction will be lower;
  2. To materially reduce power costs during operations - electricity rates in the NWT are projected to be more than 20 cents per kWh as compared to rates as low as 3.7 cents per kWh in some southern provinces;
  3. To reduce reagent transportation costs - savings in reagent transportation to the NWT will offset approximately half the costs of transporting metal concentrates to the SHMF;
  4. To accelerate the construction period � construction of the NICO site and SHMF will be carried out concurrently and the most technically advanced part of the process plant will be less constrained by weather and access issues;
  5. To simplify the NICO project for permitting - moving the process facilities to southern Canada will eliminate the need for most of the process chemicals at the NICO site and will remove some waste products from processing, both simplifying the management of waste rock and tailings and help reduce treatment, monitoring and bonding costs;
  6. To accommodate aboriginal concerns for perceived potential water quality impacts � the Tlicho Government has informed the Company that removing most of the process chemicals and simplifying waste management will address most of the concerns from Elders;
  7. To mitigate risk of worker turnover - the labour requirements for the mine and concentrator as well as additional personnel required to transport concentrates south can be easily sourced from the existing labour pool in the NWT.  Conversely, engineers and chemical plant operators would need to be imported from southern Canada to work at a remote site and will now have the opportunity to commute daily from their homes near the SHMF;
  8. To align the Company�s power requirements with existing and planned hydro electric generation in the NWT - existing and planned hydro power in the NWT cannot satisfy the increased power loads at NICO as a result of recent operational improvements, but could supply the 9 MW of electrical demand from the mine and concentrator.  Selling hydro power to the NICO development presents an attractive long-term, environmentally sustainable business opportunity for the local Tlicho people and NWT government.

NICO will have average annual production of approximately 4 million pounds, each of cobalt and bismuth, as well as 81,000 ounces of gold in each of the first two years of the mine life, followed by 27,000 ounces of annual gold production in subsequent years.  The project will also produce a minor amount of copper and nickel by-products.  NICO will be a significant global producer of cobalt to service increasing demand in high performance rechargeable batteries used in portable electronic devices and electric- and hybrid-electric cars.  Cobalt is also used in superalloys, magnets, high strength steels, catalysts, pigments and food additives (Vitamin B12).  NICO is expected to be the largest independent producer of bismuth in the world to service growth in the demand for traditional products (medicines, flame retardants, fusible alloys, castings, cosmetics, lubricants and chemicals), plus a variety of new products that have been developed be cause bismuth is an environmentally safe replacement for lead due to lead-toxicity issues.  The gold contained in the NICO deposit is an attractive counter cyclical hedge, which is primarily recovered during early years of the mine life. 

Fortune Minerals is very pleased to report that relocating the SHMF to southern Canada produces positive net impacts for the NICO development for the benefit of all stakeholders.  It will also allow the Company to source materials from other projects for custom processing and also to participate in the metal recycling business for a sustainable project development.

Fortune Minerals acknowledges that on July 15, 2009, China Mining Resources Group Ltd. (China Mining), through its wholly-owned subsidiary, Best Tone Holdings Ltd., announced that it had purchased an aggregate of 9,285,000 shares in the capital of Fortune Minerals, representing 14.31% of the issued and outstanding shares in the Company.  China Mining reported that these shares were purchased on The Toronto Stock Exchange for investment purposes.  China Mining is a Hong Kong-based company involved in the mining, processing and selling of various metals and metal products, as well as investment and investment holding activities.

About Fortune Minerals
Fortune Minerals is a diversified natural resource company with several mineral deposits and a number of exploration projects, all located in Canada.  They include the Mount Klappan anthracite coal deposits in British Columbia, and the NICO cobalt-gold-bismuth deposit, the Sue-Dianne copper-silver deposit and other base and precious metals exploration projects in the Northwest Territories.  Fortune Minerals also owns the buildings and equipment from the Golden Giant Mine at Hemlo, Ontario for relocation to NICO.  Fortune Minerals is focused on outstanding performance and growth of shareholder value through assembly and development of high quality mineral resource projects.

For further information please contact:

Fortune Minerals Limited

Renmark Financial Communications Inc.

Robin Goad, President - or -

Lindsay Simmons, IR Coordinator

Dan Symons:

Barbara Komorowski:

Tel.: (519) 858-8188

Tel. (514) 939-3989

Fax: (519) 858-8155

Media � Fran�ois Tr�panier:

or Vanessa Napoli:


This press release contains forward-looking information.  This forward-looking information includes, or may be based upon, estimates, forecasts, and statements as to management�s expectations with respect to, among other things, the size and quality of the Company�s mineral resources, progress in development of mineral properties, demand and market outlook for metals and coal and future metal and coal prices. Forward-looking information is based on the opinions and estimates of management at the date the information is given, and 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, uncertainties with respect to the receipt or timing of required permits and regulatory approvals, the uncertaint ies involved in interpreting drilling results and other geological data, fluctuating metal and coal prices, the possibility of project cost overruns or unanticipated costs and expenses, uncertainties relating to the availability and costs of financing needed in the future and other factors. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Inferred mineral resources are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves.  There is no certainty that mineral resources will be converted into mineral reserves.  The forward-looking information contained herein is given as of the date hereof and the Company assumes no responsibility to update or revise such information to reflect new events or circumstances, except as required by law.

Data and Statistics for these countries : Canada | China | Hong Kong | All
Gold and Silver Prices for these countries : Canada | China | Hong Kong | All

Fortune Minerals Ltd

ISIN : CA34967D1015
Follow and Invest
Add to watch list Add to your portfolio Add or edit a note
Add Alert Add to Watchlists Add to Portfolio Add Note
Projects & res.
Asset profile
Contact Cpy

Fortune Minerals is a gold and copper development stage company based in Canada.

Fortune Minerals develops gold, copper, bismuth, coal and cobalt in Canada.

Its main assets in development are NICO and MOUNT KLAPPAN in Canada and its main exploration properties are JBG (JAMES BOND GIRL), OLYM-PIC-DAM, SALKELD LAKE, WHEEL OF FORTUNE, GREAT SLAVE, GREAT SLAVE and SUE DIANNE in Canada.

Fortune Minerals is listed in Canada, in Germany and in United States of America. Its market capitalisation is CA$ 23.7 millions as of today (US$ 19.0 millions, € 16.6 millions).

Its stock quote reached its highest recent level on March 27, 1998 at CA$ 6.70, and its lowest recent point on February 19, 2016 at CA$ 0.02.

Fortune Minerals has 296 700 000 shares outstanding.

Your feedback is appreciated, please leave a comment or rate this article.
Rate : Average note :0 (0 vote) View Top rated
In the News and Medias of Fortune Minerals Ltd
1/30/2019Fortune Minerals commits to hire locally at Canada's first p...
Annual reports of Fortune Minerals Ltd
releases 2009 annual results
2008 Annual report
2007 Annual Report
2006 Annual Report
2001 Annual information form
Financings of Fortune Minerals Ltd
7/2/2010Announces $2 Million Flow-Through Financing
Nominations of Fortune Minerals Ltd
5/12/2011Announces Expanded Management Team
4/15/2010announces the appointment of Grant Chen to the board of dire...
Financials of Fortune Minerals Ltd
4/1/2015Releases 2014 Annual Financial Results
8/14/2014Reports Second Quarter Financial Results
3/31/2014releases 2013 annual financial results
11/8/2013reports third quarter financial results
8/16/2011Releases Second Quarter 2011 Results
3/16/2011Releases 2010 Annual Results
5/14/2010releases first quarter 2010 results and reminder of Annual M...
Project news of Fortune Minerals Ltd
7/23/2014(Nico)receives final Water Licence approval to construct and opera...
1/9/2014(Nico)Announces Receipt of Nico Project Interim Land Use Permit fo...
1/28/2013(Nico)receives Environmental Assessment Board approval for the NIC...
1/9/2013(Nico)closes NICO refinery lands purchase
8/23/2011(Nico)Announces Permitting Update for Nico Mine & Concentrator in ...
8/9/2011(Mount Klappan)Announces that the Mount Klappan Joint Venture with POSCO Ca...
5/25/2011(Nico)Announces Major Permitting Milestone for the Nico Project in...
3/16/2011(Nico)Reports Succesful NICO Pilot Tests
8/23/2010(Mount Klappan)announces railway development strategy for Mount Klappan met...
7/29/2010(Nico)Successful Production of 99.99% Bismuth Ingot
6/30/2010(Mount Klappan)Engages Deloitte As Mount Klappan Anthracite Metallurgical C...
2/2/2010announces appointments for Senior Metalurgist and SMPP Permi...
11/4/2009(Nico)Updates NICO front-end engineering
9/17/2009(Nico)receives draft terms of reference for NICO environmental ass...
7/28/2009(Nico)to Locate NICO Hydrometallurgical Process Facility in Southe...
2/24/2009(Nico)Pilot Plant Hydrometallurgy Results for the NICO Gold-Cobalt...
2/9/2009(Mount Klappan)& Tahltan Nation enter into Environmental Assessment coopera...
1/21/2009(Nico)Increases Planned Production Rate for the Nico Gold-Cobalt-B...
1/8/2009(Mount Klappan)Fortune Minerals updates Mount Klappan coal project feasibil...
Corporate news of Fortune Minerals Ltd
8/3/2016Fortune Minerals announces extension of warrants
6/22/2016Fortune Minerals Announces Results of Annual and Special Mee...
4/18/2016Fortune Minerals Announces Appointment of Former Minister Da...
4/11/2016Fortune Minerals Announces Permitting Underway for Public Hi...
1/8/2016Fortune Minerals produces premium battery-grade cobalt sulph...
8/26/2015Fortune Minerals Sells Surplus Hemlo Equipment
7/20/2015IIROC Trade Resumption - FT
7/17/2015Fortune Minerals Executes Restructuring Agreement with its S...
7/17/2015IIROC Trading Halt - FT
7/3/2015IIROC Trade Resumption - FT
7/3/2015Fortune Minerals Receives Notice of Default Under Prepay Fac...
7/3/2015Receives Notice of Default Under Prepay Facility and Reaches...
7/2/2015IIROC Trading Halt - FT; PFT.UN
6/25/2015Announces Results of Annual Meeting of Shareholders and Prov...
4/1/2015Fortune Minerals Releases 2014 Annual Financial Results
3/27/2015Fortune Minerals receives additional financing from Lascaux ...
3/27/2015receives additional financing from Lascaux to fund Revenue S...
12/22/2014receives additional financing from Lascaux to fund Revenue S...
11/24/2014Issues Shares
11/12/2014Fortune Minerals receives share issuance approval to complet...
11/12/2014receives share issuance approval to complete the purchase of...
10/16/2014Fortune Minerals closes second and final US$ 10 million tran...
10/16/2014closes second and final US$ 10 million tranche of Lascaux fi...
7/31/2014Announces Extension of Revenue Silver Mine Purchase Agreemen...
6/25/2014announces results of Annual and Special Meeting of Sharehold...
5/1/2014U.S. Lead-free & European Union reach legislation contributi...
2/11/2014receives Environmental Assessment approval for Saskatchewan ...
11/14/2013(Nico)awards NICO detailed engineering and design contract to Hatc...
10/3/2013announces sale of Camsell River Project
9/23/2013takes voluntary steps to peacefully resolve Arctos Project d...
9/19/2013welcomes BC Government statement on Arctos Project
7/16/2013initiates 2013 EA program for Arctos
6/26/2013Announces Results of Annual and Special Meeting of Sharehold...
4/19/2013provides Arctos project environmental assessment update
12/16/2011(Nico)Announces NICO Permitting Update
8/29/2011Announces Additions to Management Team
7/13/2011(Mount Klappan)Partners with Posco Canada to Advance the Mount Klappan Coal...
2/17/2011Completes Public Information Meeting in Saskatchewan for Met...
6/16/2010commences NICO summer drill program
5/11/2010Updates NICO Field Programs
1/14/2010announces significant increase in NICO project mineral reser...
12/8/2009Applauds Saskatchewan Government Announcement
11/19/2009News Release
11/6/2009announces filing of preliminary short form prospectus for pr...
11/3/2009announces agreement to purchase lands near Saskatoon, Saskat...
9/22/2009Applauds Government Investment In Northwest BC Power Transmi...
8/12/2009Substantial Completion of Golden Giant Mine Dismantling and ...
Comments closed
Latest comment posted for this article
Be the first to comment
Add your comment
CA$ 0.080
02/06 15:37 0.010
Prev close Open
0.075 0.075
Low High
0.075 0.080
Year l/h YTD var.
0.070 -  0.080 14.29%
52 week l/h 52 week var.
0.065 -  0.145 -42.86%
Volume 1 month var.
1,002,020 14.29%
24hGold TrendPower© : 44
Develops Bismuth - Coal - Cobalt - Copper - Gold
Explores for Copper - Diamonds - Gold - Lead - Silver - Zinc
Interactive chart Add to compare
Print Compare Export
Last updated on : 2/24/2010
You must be logged in to use the porfolio and watchlists (free)
Top Newsreleases
Annual variation
5 years chart
3 months chart
3 months volume chart
Mining Company News
Plymouth Minerals LTDPLH.AX
Plymouth Minerals Intersects Further High Grade Potash in Drilling at Banio Potash Project - Plannin
AU$ 0.12-8.00%Trend Power :
announces expected non-cash impairment
AU$ 7.05+0.57%Trend Power :
Oceana Gold(Au)OGC.AX
AU$ 2.20+0.00%Trend Power :
Western Areas NL(Au-Ni-Pl)WSA.AX
Advance Notice - Full Year Results Conference Call
AU$ 3.86+0.00%Trend Power :
Canadian Zinc(Ag-Au-Cu)CZN.TO
Reports Financial Results for Q2 and Provides Project Updates
CA$ 0.12+4.55%Trend Power :
Stornoway Diamond(Gems-Au-Ur)SWY.TO
Second Quarter Results
CA$ 0.02+100.00%Trend Power :
McEwen Mining(Cu-Le-Zn)MUX
US$ 6.24-0.16%Trend Power :
Rentech Announces Results for Second Quarter 2017
US$ 0.20-12.28%Trend Power :
Reduced Funding Requirement
GBX 0.71+1.28%Trend Power :
Lupaka Gold Corp.LPK.V
Lupaka Gold Receives First Tranche Under Amended Invicta Financing Agreement
CA$ 0.06-13.33%Trend Power :
Closes Bridge Loan Financing
CA$ 2.08-2.80%Trend Power :
Guyana Goldfields(Cu-Zn-Pa)GUY.TO
Reports Second Quarter 2017 Results and Maintains Production Guidance
CA$ 1.84+0.00%Trend Power :
Lundin Mining(Ag-Au-Cu)LUN.TO
d Share Capital and Voting Rights for Lundin Mining
CA$ 9.47-2.47%Trend Power :
Canarc Res.(Au)CCM.TO
Canarc Reports High Grade Gold in Surface Rock Samples at Fondaway Canyon, Nevada
CA$ 0.24+20.00%Trend Power :
Q A April 2017 Quarterly Report
AU$ 0.35+0.00%Trend Power :
Uranium Res.(Ur)URRE
Commences Lithium Exploration Drilling at the Columbus Basin Project
US$ 6.80-2.86%Trend Power :
Platinum Group Metals(Au-Cu-Gems)PTM.TO
Platinum Group Metals Ltd. Operational and Strategic Process ...
CA$ 2.05-1.44%Trend Power :
Devon Energy(Ngas-Oil)DVN
Announces $340 Million of Non-Core Asset Sales
US$ 60.14-1.17%Trend Power :
Precision Drilling(Oil)PD-UN.TO
Announces 2017Second Quarter Financial Results
CA$ 8.66-0.35%Trend Power :
2nd Quarter Report
AU$ 0.03+27.27%Trend Power :