Fortune Minerals Limited (TSX: FT) (OTCQB: FTMDF) (“Fortune” or the “Company”) (www.fortuneminerals.com) is pleased to announce that it has retained Worley Canada Services Ltd. (“Worley”) to conduct additional engineering and lead the preparation of an updated Feasibility Study for the NICO Cobalt-Gold-Bismuth-Copper Project in Canada (“NICO Project”). The NICO Project is an advanced Critical Minerals development comprised of a planned mine and concentrator in the Northwest Territories (“NWT”) and a hydrometallurgical recovery plant in Lamont County, Alberta (“Hydrometallurgical Facility”) where concentrates from the mine, and other feed sources, will be processed to value-added products for the energy transition and new technologies. Worley has also been retained to assist with permitting for the Hydrometallurgical Facility, which is planned to be constructed at a brownfield site held under a purchase option arrangement from JFSL Field Services LLC (“JFSL”) (see news release dated, August 19, 2024). Development of the vertically integrated NICO Project would provide a reliable North American supply of cobalt sulphate, gold doré, bismuth ingots, and copper cement produced with supply chain transparency, Canadian Environmental-Social-Governance (“ESG”) standards, and compliance with the U.S. Inflation Reduction Act (“IRA”).
Fortune was recently awarded ~C$17 million of non-dilutive grants and contribution funding from the U.S. Department of Defense (“DoD”), Natural Resources Canada (“NRCan”) and Alberta Innovates to help finance the work needed to advance the NICO Project to a project finance and construction decision (see news releases dated, May 16, 2024, and December 5, 2023). The funds are supporting metallurgical test work at SGS Canada Inc. (“SGS”) to validate recent process optimizations and flow sheet modifications, update the Feasibility and Front-End Engineering and Design studies for the planned development, permit the Hydrometallurgical Facility, and secure the remaining authorizations, management plans, and satisfy the environmental assessment measures and water license conditions required to construct and operate the NICO mine and concentrator.
The NICO Project was assessed in a positive Feasibility Study in 2014 by Micon International Limited (“Micon”) but is now out of date. Micon, and P&E Mining Consultants Inc. (“P&E”) who also contributed to the 2014 study, will assist Worley with preparation of the NI 43-101 Technical Report, and the updated Mineral Reserve estimates and Mine Plan for the new Feasibility Study, respectively. Worley’s discipline experts have reviewed historical technical data for the NICO Project and have visited the NWT and Alberta sites. The updated Feasibility Study will assess the NICO Project economics at current costs, commodity prices, and currency exchange rates, while also incorporating recent improvements and project optimizations that include:
- Completion of the Tlicho Highway in the NWT, eliminating capital cost redundancies and reducing the construction schedule for the mine and concentrator;
- Incorporation of the new brownfield Alberta site for the Hydrometallurgical Facility and re-purposing of the 42,000 square feet of serviced buildings on 77 acres of lands adjacent to the Canadian National Railway;
- Proximity of the Hydrometallurgical Facility site to services and reagents available in Alberta’s Industrial Heartland, such as process and potable water, natural gas, low-cost power, sulphuric acid, oxygen, lime, and a commutable pool of skilled engineers and chemical plant workers;
- Enhanced transportation logistics and reduced concentrate haulage distances between the NWT and Alberta sites;
- A new waste residue disposal strategy for the Hydrometallurgical Facility, including potential sequential precipitation of a saleable gypsum by-product to reduce process residue transportation and disposal costs;
- Incorporation of recent process optimizations to reduce capital and operating costs and assessing the potential for improved metallurgical recoveries from the test work programs in progress at SGS;
- A new Resource Model with more constrained wireframe boundaries to reduce internal and external modelling dilution and providing better differentiation of higher-grade Mineral Resource blocks for earlier processing;
- A new Mine Plan focused on earlier mining and processing of higher margin ores to accelerate cash flows, together with a stockpiling strategy to defer processing lower margin ores;
- Sensitivity analyses for processing other feed sources in the Hydrometallurgical Facility, including intermediate products from the Kennecott Smelter waste streams pursuant to the process collaboration between Fortune and Rio Tinto.
