FORTUNE MINERALS ANNOUNCES NEW DISCOVERY AT NICO New zone lies on the periphery of the coincident Peanut Lake magnetic, gravity and magnetotelluric geophysical anomalies
July 18, 2019 Issued Capital: 347,303,220
NEWS RELEASE
FORTUNE MINERALS ANNOUNCES NEW DISCOVERY AT NICO
New zone lies on the periphery of the coincident Peanut Lake magnetic, gravity and
magnetotelluric geophysical anomalies
LONDON, ONTARIO, Fortune Minerals Limited (TSX: FT) (OTCQX: FTMDF) (“Fortune” or the
“Company”) (www.fortuneminerals.com) is pleased to report the discovery of a new zone of copper
mineralization at its 100% owned NICO cobalt -gold-bismuth-copper project (“NICO Project”), located
160 km northwest of Yellowknife , Northwest Territories , Canada . The new zone was identified in
bedrock exposed in a pit excavated last spring to provide aggregate for road work and is located 1.6
km southeast along the projection of strike from the main NICO deposit. The new zone is located on
the periphery of previously identified coincident magnetic, gravity and electrical resistivity geophysical
anomalies at Peanut Lake that are similar to the ones associated with the mai n NICO deposit. Three
of four representative grab samples collected from the pit returned grades of 1.6 6%, 1.5 5% and
0.78% copper from analyses carried out at ALS Canada Ltd. in North Vancouver.
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Fortune’s NICO Project is one of the few cobalt development assets outside of the Democratic
Republic of Congo to service demand growth in lithium-ion batteries used to power portable electronic
devices, electric vehicles and energy stationary s torage to make electricity use more efficient.
Fortune’s NICO Project and its nearby Sue -Dianne copper -silver-gold deposit are the only known
Canadian examples of the Iron Oxide Copper Gold (IOCG) mineral deposit class, also commonly
referred to as Olympic Dam-type, after the ‘super giant ’ deposit located in South Australia. IOCG
deposits in Queensland and South Australia, Carajas, Brazil and Candelaria, Chile are typically
associated with large magnetic, gravity and electrical resistivity geophysical anomalies.
Coincident magnetic, gravity and magnetotelluric geophysical anomalies approximately 1 km in
diameter were previously identified west of Peanut Lake in the vicinity of the new copper showing in
surveys carried out for Fortune and the Geological Sur vey of Canada. T he magnetic anomaly
identified in a 1995 helicopter survey for Fortune has peak amplitude of 10,000 nanoteslas (“nT”) and
is the strongest magnetic anomaly recog nized on the NICO property . Ground gravity survey s
conducted for Fortune in 199 5 and 1996 also identified a coincident Bouguer anomaly with peak
amplitude of 2 milligals (“mGal”). The magnetic and gravity anomalies associated with the NICO
deposit have peak amplitudes of 6,000 nT and 3 mGal, respectively. A magnetotelluric survey carried
out by the Geological Survey of Canada in 2010 identified a coincident electrical resistivity low
indicative of a potential sulphide conductive source.
The Geological Survey of Canada also carried out three-dimensional (“3D”) inversion modelling of the
combined magnetic susceptibility, density, and electrical resistivity data from the combined earlier
geophysical surveys over the NICO Project property and was published in 2016 in Economic Geology.
This modelling de fines a near -surface 3D source for the Peanut Lake anomaly , which is largely
obscured by overburden and remains unexplained. The 3D modelling conducted over the main NICO
deposit was successful in delineating the known deposit. However, it also identified previously
FORTUNE MINERALS LIMITED
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unidentified coincident magnetic, density and electrical resistivity anomalies centered approximately
300 metres north of the NICO deposit and 500 metres below the surface near copper showings at
Chalco Lake . These unexplained anomalies are an order of magnitude larger and signifi cantly
stronger than the ones associated with the known NICO deposit.
Fortune is conducting additional geological investigations of the NICO Project this summer in the
vicinities of the Peanut Lake and Chalco Lake anomalies where small copper showings hav e also
been identified. Work is being done to explain the source of the large anomalies to determine if
additional ground based geophysical surveys are warranted and/or to provide better definition for
potential future drill testing.
An updated Technical Report for the NICO Project by Hatch Ltd., P&E Mining Consultants Inc. and
Micon International Limited to provide an update to the 2014 National Instrument 43-101 Technical
Report on the NICO Project Feasibility Study by Micon is expected to be completed in the near future.
The disclosure of scientific and technical information 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 NICO Project Feasibility Study referred to above, entitled
"Technical Report on the Feasibility Study for the NICO -Gold-Cobalt-Bismuth-Copper Project, Northwest
Territories, Canada", dated April 2, 2014 and prepared by Mi con has been extracted, 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 NICO C obalt-Gold-Bismuth-
Copper Project in the Northwes t Territories. The Company has an option to purchase lands in
Saskatchewan where it may build the hydrometallurgical plant to process NICO metal concentrates.
Fortune owns the Sue -Dianne Copper-Silver-Gold Deposit located 25 km north of the NICO Project,
which is a potential future source of incremental mill feed to 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 information and forward -looking statements within the meaning of
applicable securities legislation. This forward -looking information includes statements with respe ct to, among
other things, the Company’s plans to develop the NICO Project, the preparation of an updated technical report
for the NICO Project, the potential for discovery of additional economic mineralization at the NICO Project and
the potential for the Sue-Dianne property to provide incremental mill feed to 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 fo rward-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 receipt of all necessary regulatory approvals for the constr uction and operation of
the NICO Project and the related hydrometallurgical refinery and the timing thereof; the timing of the updated
technical report for the NICO Project and the results thereof; the timing of completion of the all -weather Tlicho
Road required for the construction and operation of the NICO Project ; 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, co balt 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 factors include the risks that the Company may not be able
to finance and develop NICO on favourable terms or at all, uncertainties with respect to the receipt or timing of
required permits, approvals and agreements for the development of the NICO Project, including the related
hydrometallurgical refinery, 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 updated
technical report for the NICO Project may take longer than anticipated and the results thereof may not be as
positive as anticipated, the Tlicho Road may not be completed in the anticipated time frame or at all, the new
zone of copper mineralization referred to in this press release may not result in the discovery of any economic
mineral deposit, the Sue-Dianne property may not be developed to the point where it can provide m ill feed to 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 exte nt 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 metals to be produced by the NICO Project, discrepancies
between actual and estimated mineral resources or betw een actual and estimated metallurgical recoveries,
uncertainties associated with estimating mineral resources and reserves 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 other 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 possible that predictions, forecasts, projections and
other forms of forward-looking information will not be achieved by the Company. The forward-looking information
contained herein is made as of the date hereof and the C ompany assumes no responsibility to update or revise
it to reflect new events or circumstances, except as required by law.