FORTUNE ANNOUNCES SUCCESSFUL TESTS TO PRODUCE UPGRADED AND CLEAN COBALT CONCENTRATE FROM THE NICO PROJECT Significant improvement in sale value of cobalt and bismuth concentrates to third party processors and anticipated material reduction in capital and operating costs for development
Spetember 17, 2018 Issued Capital: 338,603,220
NEWS RELEASE
FORTUNE ANNOUNCES SUCCESSFUL TESTS TO PRODUCE UPGRADED
AND CLEAN COBALT CONCENTRATE FROM THE NICO PROJECT
Significant improvement in sale value of cobalt and bismuth concentrates to third party
processors and anticipated material reduction in capital and operating costs for development
LONDON, ONTARIO, Fortune Minerals Limited (TSX: FT) (OTCQX: FTMDF) (“Fortune” or the
“Company”) (www.fortuneminerals.com) is pleased to announce that it has received successful
results of metallurgical test work verifying that it can produce an upgraded and essentially arsenic-free
cobalt concentrate for the NICO Cobalt-Gold-Bismuth-Copper development in Canada (“ NICO
Project”). Gold can also be recovered by Fortune from its metal concentrates at the mine site allowing
the Company to control the gold revenue stream, while producing separate cobalt and bismuth
concentrates for sale to third party processors after arsenic that is typically penalized is removed. The
100% owned NICO Project is a development stage primary cobalt asset with significant gold and
bismuth by-products. Fortune has already received environmental assessment (“ EA”) approval and
the major permits for the mine and concentrator in the Northwest Territories as well as EA approval
for a refinery in Saskatchewan.
Fortune engaged Dundee Sustainable Technologies Inc. (“ DST”) to conduct a metallurgical test work
program to assess the application of its “Pyrolysis Roast” and “Arsenic Stabilization” processes on
metal concentrates produced from the NICO Project. The objective of this work was to demonstrate
that Fortune can remove the arsenic and create metal concentrates that are more attractive to the
market and can be processed in existing metal recovery circuits operating around the world. The test
work was initiated after several mining and refining companies contacted Fortune expressing interest
in purchasing metal concentrates directly from the mine (see News Release, dated June 14, 2018).
The DST processes have already been proven in pilot scale tests conducted for other gold and base
metal projects as well as a development stage c obalt project with similar cobalt concentrate
composition. A commercial plant utilizing DST’s arsenic stabilization by vitrification process has also
been constructed for a metal processing facility that will be commissioned later this year.
Key Results of DST Test Work:
- Successful removal of 99% of the arsenic in NICO bulk concentrate to lower than 0.2%
- Metal grades in the concentrate increased by 20-30% due to mass reduction from
selective removal of arsenic and sulphur during pyrolysis
- No cobalt, gold, or copper losses from pyrolysis
- Gold can be successfully recovered by cyanidation of the bulk concentrate
- Recovery of bismuth has already been proven with secondary flotation
- Recovery of bismuth oxide by pyrolysis has now also been demonstrated as an option
- Successful separation and capture of arsenic from sulphur liberated during pyrolysis
- Arsenic removed from the concentrate was successfully stabilized using vitrification
- Fused arsenic glass passes TCLP tests for safe disposal
The DST technology utililizes proven fluidized bed pyro lysis technology to roast metal concentrates in
an oxygen deprived environment for selective removal and capture of arsenic and much of the sulphur
FORTUNE MINERALS LIMITED
148 Fullarton Street, Suite 1600, London, Ontario, Canada N6A 5P3
Tel. 519-858-8188 ~ Fax. 519-858-8155
from the contained sulphide minerals. Arsenic is then st abilized by vitrification in a fused iron silicate
glass that passes U.S. Environmental Protection Agency Procedure TCLP Method 1311 tests for
environmentally safe disposal in a landfill. Gold would be recovered by cyanidation of the bulk
concentrate prior to secondary flotation to produce separate cobalt and bismuth concentrates. The
pyrolysis roast would be applied to the cobalt concentrate to remove the arsenic and enable its sale to
third party processors without excessive arsenic penalties.
Additional work is in progress at DST to optimize roast conditions and gold recovery, after completion
of which, Fortune may complete a pilot plant from ores it has stockpiled to produce feasibility level
economic analysis of the process. Negotiations are also progressing with third-party refineries to
obtain indicative prices for the sale of upgraded cobalt and bismuth concentrates with Fortune to
remain in control of the gold process stream and revenues.
The DST process technology is anticipated to have materially lower capital and operating costs for the
NICO development in comparison to building and operating a fully vertically integrated
hydrometallurgical plant producing cobalt sulphate, gold, bismuth ingot and copper cement. However,
revenues would be comparatively lower for the sale of metal concentrates and there would be greater
dependence on third party processors. The engineering for the facilities in the Northwest Territories is
essentially complete for the updated Technical Report to produce metal concentrates. A small gold
recovery circuit may now be required in the mill if pryrolysis process technology is pursued for the
project. Fortune is evaluating the merits and conducting cost-benefit analysis of building a lower
capital cost project that would produce concentrates vs. a higher capital cost project that would
produce value added cobalt chemicals in a purpose bu ilt refinery. The Company will evaluate the best
development option in consultation with potential strategic partners and in consideration of their
downstream product and commercial objectives. A technical report will be prepared to document the
most commercially attractive project. Fortune has more than 35 confidentiality agreements with
companies interested in strategic partnerships to build and operate the NICO Project.
The disclosure of scientific and technical informatio n 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 vertically integrated NICO cobalt-
gold-bismuth-copper project in the Northwest Territories and a related refinery the Company plans to
construct in Saskatchewan. Fortune also owns the Sue-Dianne copper-silver-gold deposit located 25
km north of the NICO Project and a potential future source of incremental mill feed to potentially
extend the life of the NICO Project mill.
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For further information please contact:
Fortune Minerals Limited
Troy Nazarewicz
Investor Relations Manager
Tel.: (519) 858-8188
www.fortuneminerals.com
This press release contains forward-looking informat ion and forward-looking statements within the meaning of
applicable securities legislation. This forward-looking information includes statements with respect to, among
other things, the Company’s plans to develop the NICO Project, the Company’s plans to complete a pilot plant
to assess the impact of the application of DST’s proc essing technology to the Nico Project and the economic
impact of utilizing such technology . 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 rele ase, assumptions regarding: the Company’s ability to
arrange the necessary financing to continue operations and develop the NICO Project; the construction of the
Tlicho All-Season Road (the “TASR”) that would allow all-season access to the NICO Project and the timing of
its completion; the receipt of all necessary regulatory approvals and the timing thereof; the completion of a pilot
plant to assess the impact of the application of DST’s processing technology and the results thereof; the
rezoning of the Saskatchewan refinery lands and the ti ming 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 fa ctors include the risks that the Company may not be able
to finance and develop NICO on favourable terms or at all, the completion of a pilot plant to assess the impact of
the application of DST’s processing technology may ta ke longer than anticipated and the economic impact of
such technology on the NICO Project may be less favourabl e than anticipated, uncertainties with respect to the
receipt or timing of required permits, approvals and agree ments for the development of the Nico Project, the
TASR may not be constructed in a timely fashion or at a ll, 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 inherent risks involved in the exploration and development of mineral properties and in the
mining industry in general, the market for rechargeable batteries and the use of stationary storage cells may not
grow to the extent anticipated, the future supply of cobalt may not be as limited as anticipated, the risk of
decreases in the market prices of cobalt and other meta ls to be produced by the NICO project, discrepancies
between actual and estimated mineral resources or between actual and es timated metallurgical recoveries,
uncertainties associated with estimating mineral reso urces and the risk that even if such resources prove
accurate the risk that such resources may not be converted into mineral reserves, once economic conditions are
applied, the Company’s production of cobalt and ot her 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 po ssible that predictions, forecasts, projections and other
forms of forward-looking information will not be achiev ed 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.