FORTUNE MINERALS ADVANCES NICO PROJECT ENVIRONMENTAL WORK AND REZONING REQUIRED FOR CONSTRUCTION Canadian primary cobalt asset positioned for near-term development
July 11, 2018 Issued Capital: 338,603,220
NEWS RELEASE
FORTUNE MINERALS ADVANCES NICO PROJECT ENVIRONMENTAL
WORK AND REZONING REQUIRED FOR CONSTRUCTION
Canadian primary cobalt asset positioned for near-term development
LONDON, ONTARIO, Fortune Minerals Limited (TSX: FT) (OTCQX: FTMDF) (“Fortune” or the
“Company”) (www.fortuneminerals.com) is pleased to provide an update on the progress of
environmental work and rezoning efforts needed to support construction of the NICO Cobalt-Gold-
Bismuth-Copper Project in Canada (“ NICO Project ”). The 100% owned NICO Project is a
development stage primary cobalt asset consisting of a planned mine, mill and concentrator in the
Northwest Territories (“ NWT”) and hydrometallurgical refinery in Saskatchewan to process
concentrates from the mine to cobalt sulphate, gold, bismuth and copper. Environmental work to
support the water license issued by the Wek’èezhìi Land and Water Board (“WLWB”) is being carried
out for the NWT site. The Company is also advancing the rezoning of lands it owns near Langham,
Saskatchewan to enable construction of the hydrometallurgical refinery. Fortune has already received
its Environmental Assessment (“ EA”) approvals for both the NWT and Saskatchewan sites and is
working to secure Project Financing.
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Mine Site Northwest Territories:
The Wek’èezhìi Land and Water Board issued a Land Use Permit and approved the Type A Water
License required to construct and operate the NICO Project mine and concentrator in 2014.
In 2017, with the assistance of Tlicho residents from the community of Whati, Fortune completed the
study design outlined in the Supplemental Baseline Moni toring Plan that is a requirement of the water
license. This work included additional studies on hydr ology, water quality, benthic invertebrates,
sediment chemistry, fish population and fish flesh chemistry in the Marian River and lakes near the
NICO Project mine site in the NWT. The data collected has since been analyzed and compiled into
the Aquatic Baseline Summary Report which was submitted to the WLWB on June 19, 2018. This
report will be an integral part of the Aquatic Effects Monitoring Plan for operations and requires
approval from the WLWB prior to construction.
Fortune is now modelling the quality of the seepage water expected to be generated from the Co-
Disposal Facility (“ CDF”) that the Company intends to build at the NICO Project mine site to
permanently store waste rock and tailings generated from the mine. The results of this source term
modelling will be used in the design of the CDF Management Plan, the CDF Final Design Report, and
in the Constructed Wetland Treatment System pilot studies that are also required to be completed
prior to construction. Fortune intends to collect cattails from the NICO Project mine site this summer
for use in the wetland treatment study.
Pursuant to the requirements of the water license, Fortune is also in the process of completing the
Geochemical Characterization and Management Plan. The Company will conduct a borrow source
survey at the mine site this summer to determine the characteristics and quantities of soil, gravel, and
sand near the proposed CDF location to determine the best options for cover material to be placed at
closure. This information will also be used to develop the Interim Closure and Reclamation Plan.
FORTUNE MINERALS LIMITED
148 Fullarton Street, Suite 1600, London, Ontario, Canada N6A 5P3
Tel. 519-858-8188 ~ Fax. 519-858-8155
Both the CDF Final Design Report and the Aquatic Effects Monitoring Plan require the input of
separate expert panelists. Three expert panel members are to be appointed by Fortune, the WLWB
and the Tlicho Government. The Company is in the process of organizing these expert panels.
Fortune has engaged Tetra Tech Inc. to conduct additional geotechnical work in August for the NICO
Project access road from the community of Whati to the mine site and for the proposed airstrip. This
work is being completed to provide more detailed information on the amount of fill and civil works
required to construct these facilities and enable construction companies participating in the
Company’s (“RFP”) process to provide more detailed quotes.
Refinery Lands Rezoning in Saskatchewan:
Earlier this year Fortune submitted its Comprehens ive Development Report to rezone the lands it
owns in Saskatchewan to Industrial. The rezoning is required to construct and operate the NICO
Project hydrometallurgical refinery. The lands purchased in Saskatchewan were identified in
consultation with the Saskatchewan Ministry of Economy and the Saskatoon Regional Economic
Development Authority to encourage Fortune to locate the facility in Saskatchewan. Fortune held an
information session in the community of Langham on July 5, 2018 as part of the rezoning process that
is expected to be completed later this year. Government officials, Fortune representatives, and teams
from SNC-Lavalin and Associated Engineering were present to answer questions on the proposed
refinery and the re-zoning process.
Provided Fortune receives the requisite financing for the NICO Project and the remaining regulatory
approvals in 2018, construction of the mine facilities could begin in 2019 and is expected to take
approximately two years depending on ice-road logistics, which are required for construction. The all-
season road is expected to be available for th e commencement of production and transportation of
metal concentrates during operations. The refinery requires about 18 months for construction unless it
is deferred if the Company decides to initially sell metal concentrates. This construction timeline would
allow the NICO Project to be in commercial production in the early 2020’s, at time when the global
automotive industry is expected to increase electric vehicle production.
The cobalt market has had approximately 6% compounded annual growth (“CAGR”) for more than 20
years, primarily due to the increasing use of cobal t in rechargeable batteries in portable electronic
devices. At current prices for metal, the value of the cobalt market has risen to greater than US$10
billion. Accelerated double digit CAGR is projected by auto OEM’s and cobalt industry analysts in the
2020’s, primarily from the demand in the cathodes of lithium-ion batteries used to power electric
vehicles and stationary storage cells to improve the efficiency of the electrical grid.
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. The Technical Report on the Feasibility Study referred to above, entitled "Technical
Report on the Feasibility Study for the NICO-Gold-Cobalt-Bismuth-Copper Project, Northwes t Territories,
Canada", dated April 2, 2014 and prepared by Micon International Limited (the “Technical Report”), from which
certain information in this press release has been ex tracted, has been filed on SEDAR and is available under
the Company's profile at www.sedar.com.
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 timing and results of the necessary reports,
surveys and management plans, the Company’s plans to se cure project financing and regulatory approvals for
the NICO Project, the commencement of construction of the NICO Project and the timing thereof, the rezoning
of the Saskatchewan refinery lands and the timing thereo f, anticipated growth in the demand for cobalt and the
estimated timing for construction of 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
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”) and the timing of its completion; the receipt of all
necessary regulatory approvals and the timing thereof, the results of the updated Technical Report; the rezoning
of the Saskatchewan refinery lands and the timing thereo f; growth in the demand for cobalt; the time required to
construct the NICO Project; and the economic environm ent 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 di ffer materially from those projected
in the forward-looking information. These factors include the risks that the Company may not be able to finance
and develop NICO on favourable terms or at all, the updated Technical Report may take longer than anticipated,
uncertainties with respect to the receipt or timing of required permits, approvals and agreements for the
development of the Nico Project, the Technical Report may not generate improved economics for the NICO
Project to the extent anticipated, the TASR may not be constructed in a timely fashion or at all, the construction
of the NICO Project may take l onger than anticipated, t he 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 indus try in general, the market for rechargeable batteries
and the use of stationary storage cells may not grow to the extent ant icipated, the future supply of cobalt may
not be as limited as anticipated, the ri sk of decreases in the market prices of cobalt and other metals to be
produced by the NICO project, discrepancies between ac tual and estimated mineral resources or between
actual and estimated metallurgical recoveries, uncerta inties associated with estimating mineral resources and
the risk that even if such resources prove accurate the risk that such resource s may not be converted into
mineral reserves, once economic conditions are applied, the Company’s production of cobalt and other metals
may be less than anticipated and other operational and deve lopment risks, market ri sks and regulat ory risks.
Readers are cautioned to not place undue reliance on forwar d-looking information because it is possible that
predictions, forecasts, projections and other forms of fo rward-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 refl ect new events or circumstances, except as required by
law.