Fortune Minerals hires P&E for new Nico estimates

Executive Summary

• Fortune Minerals Ltd. has retained P&E Mining Consultants Inc. to prepare new mineral reserve estimates, mine plans, and production schedules for the updated Nico Project Feasibility Study, currently being led by Worley Canada Services Ltd.
• The updated study incorporates optimizations such as reverting to a 4,650-tonne-per-day mill throughput, prioritizing high-margin underground ores early in the mine life, and implementing a stockpiling strategy to defer low-margin ore processing.
• The company highlights that current metal prices (Gold ~$4,000/oz, Cobalt ~$22/lb, Bismuth ~$17/lb) and a weaker Canadian dollar are expected to materially improve project economics compared to the 2014 feasibility study, which used base case prices of $1,350/oz for gold and $16/lb for cobalt.

Key Details

• Engineering Retention: P&E Mining Consultants Inc. retained for reserve estimates, mine plan, and production schedule; Worley Canada Services Ltd. leading the overall feasibility study; Micon International Ltd. preparing the technical report.
• Project Scope: Nico Project is a vertically integrated cobalt-gold-bismuth-copper project in the Northwest Territories (open-pit/underground mine) and Alberta (hydrometallurgical facility for value-added products).
• Operational Optimizations:
  • Mill throughput reverted to 4,650 tonnes of ore per day (matching 2014 study).
  • Increased contribution of gold-rich, higher-margin ores from underground mining in early mine life.
  • Stockpiling strategy implemented to defer processing of low-margin ores until later in the mine life.
• 2014 Feasibility Study Baseline (for comparison):
  • Reserves: 33.1 million tonnes.
  • Contained Metals: 1.1 million oz Gold, 82.3M lbs Cobalt, 102.1M lbs Bismuth, 27.2M lbs Copper.
  • Mine Life: 20 years.
  • Base Case Prices: $1,350/oz Gold, $16/lb Cobalt (cathode), $10/lb Bismuth, $2.38/lb Copper.
  • Exchange Rate: $1 CAD = $0.88 USD.
• Current Market Context (as stated in release):
  • Approximate Prices: $4,000/oz Gold, $22/lb Cobalt, $17/lb Bismuth, $5/lb Copper.
  • Exchange Rate: $1 CAD = $0.71 USD.
• Strategic Positioning:
  • Nico is the world's largest bismuth deposit (12% of global reserves).
  • Project aims to reduce dependence on foreign entities, specifically addressing supply chain risks from China (which controls 80% of global mine production and 90% of refined supply).
  • Includes Sue-Dianne satellite deposit (100% interest, 25km north of Nico) with 10 million tonnes of in-pit resources averaging 0.8% copper, intended as future incremental feed.
• Regulatory/Technical: Disclosure approved by Robin Goad (CEO) and Alex Mezei (Chief Metallurgist), qualified persons under NI 43-101.

Notable Quotes

• "The new mineral reserves and project economics are expected to materially benefit from higher metal prices, particularly gold and bismuth."
• "Current commodity prices and the lower Canadian dollar will support significantly higher revenues to mitigate capital cost escalation."