Fortune Minerals Completes Cobalt Sulphate Test Work Results demonstrate higher metal recoveries from a simplified metallurgical flow sheet
Fortune Minerals Completes Cobalt Sulphate Test Work
Results demonstrate higher metal recoveries from a simplified metallurgical flow sheet
LONDON, Ontario--(BUSINESS WIRE)--January 21, 2026--Fortune Minerals Limited (TSX:
FT) (OTCQB: FTMDF) (“Fortune” or the “Company”) (www.fortuneminerals.com) is
pleased to announce that it has successfully concluded the validation test work for an optimized
hydrometallurgical flowsheet to produce battery grade cobalt sulphate heptahydrate for the
NICO cobalt-gold-bismuth-copper project (“NICO Project”) in Canada. The results verified that
a high-quality cobalt sulphate heptahydrate product can be generated with very good metal
recoveries from a simplified process flow sheet to help mitigate capital and operating costs
escalation for the NICO Project. The test work was supported by contribution funding from
Natural Resources Canada (“NRCan”)’s Global Partnerships Initiative (“GPI”) program, a U.S.
Defense Production Act Title III award and contributions from Alberta Innovates’ Clean
Resource Intake program.
The NICO Project is an advanced development asset comprised of a planned open pit and
underground mine and concentrator in the Northwest Territories (“NWT”) and a dedicated
hydrometallurgical facility in Alberta (“Alberta Refinery”) where concentrates from the mine,
and other feed sources, will be processed to value-added critical mineral products. The NICO
Project will provide a reliable North American supply of battery grade cobalt sulphate, bismuth
ingots (12% of global reserves), and copper cement - with more than one million ounces of in-
situ gold as a highly liquid and countercyclical co-product.
“Our new government is working with Canada’s world-class minerals industry to build resilient,
secure, sustainable – and most importantly, made-in-Canada – critical mineral supply chains.
This milestone from Fortune Minerals is not only an important step forward, but a perfect
example of how Canada can deliver the world-class products, from batteries to magnets and
beyond, that our domestic and international manufacturers and partners need. As demand grows,
we are stepping up to meet that demand in a way that promotes Canada, attracts investment, and
creates local jobs,” said The Honourable Tim Hodgson, Minister of Energy and Natural
Resources.
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The objective of the recent test work was to validate improvements to the hydrometallurgical
process Fortune will use to produce a high-purity cobalt sulphate heptahydrate product for the
lithium-ion rechargeable battery industry. The work was carried out at SGS Canada Inc. (“SGS”)
at its world class Lakefield, Ontario metallurgical facilities. Fortune previously announced
partial results for this work confirming the pressure oxidation conditions for autoclave
processing NICO Project cobalt concentrate that had previously been determined in a 2008 pilot
plant. The current work verified process optimizations at two different concentrate grades and
achieved extractions of 97% for cobalt and 74% for copper at the design feed grade versus 95%
for cobalt and 70% for copper in the 2008 pilot plant. Extractions using an off-specification low-
grade cobalt feed were 95% for cobalt and 79% for copper, confirming the earlier pilot plant
metal recoveries (see July 7, 2025, news release). The recent tests also confirmed these
recoveries after blending the cobalt concentrate with residues from the bismuth leach circuit
prior to autoclave processing in order to capture all of the recoverable gold in one process
stream, while also recovering additional cobalt and copper that had deported to the bismuth
circuit. Gold recoveries in the recent tests were between 97% and 98% compared to 95% in the
earlier 2008 pilot plant work.
The recent test work also indicates that a direct pre-neutralization sequence of the autoclave
discharge would be beneficial at bench scale, removing about 99% of the contained arsenic
without oxygenation or heating, and without incurring any cobalt losses. This improvement to
the process flowsheet indicates the equipment sizes can likely be reduced to lower the capital and
operating costs for the Alberta Refinery. The recently completed test work also focused on
verification of the downstream solution purification - consisting of manganese removal, solvent
extraction purification, and evaporation and crystallization of a battery grade cobalt sulphate
heptahydrate product. The purity of the cobalt sulphate met the 99.99% (20.959% cobalt in
sulphate) specification received from lithium-ion battery manufacturers and the heavy metal
impurities also met the specified limits.
NICO Project Cobalt Specifications
Element Assay Battery Grade Cobalt Sulphate
Specifications
NICO Project Cobalt Sulphate Product
Specification unit
Ni g/t <10–50 <6
Fe g/t <5–20 <1
Cu g/t <5–10 1
Mn g/t <10–50 25
*Zn g/t <5–10 <7
Ca g/t <10–20 4
*Mg g/t <5–10 n/a
Na g/t <20–50 <10
K g/t <10–20 <10
As g/t <5 (in heavy metals) <1
Cd g/t <5 (in heavy metals) <1
Pb g/t <5–10 (in heavy metals) <1
As+Cd+Pb g/t <5–10 <3
*SO₄ (excess) g/t <100 53
Si g/t <5–10 <5
*Insol's % wt. <0.01 <0.01
*Co % wt. >20.958 20.959
CoSO4•7H2O % wt. >99.990 99.995
*Mg - engineering optimization work in progress.
Fortune is now conducting tests at SGS to validate the production of a cobalt mixed hydroxide
product (CoMHP) as a lower capital and operating cost start-up option for the Alberta Refinery.
Preliminary tests were successful in producing CoMHP with attractive cobalt, nickel and copper
contents and additional tests are being carried out at SGS to support an economic sensitivity
analysis for the NICO Project Feasibility Study currently in progress by Worley Canada Services
Ltd. Currently, cobalt hydroxide prices compare favourably to cobalt sulphate and metal
products due to the shortage of hydroxide from export restrictions by the Democratic Republic of
the Congo. Making a CoMHP product would be a lower cost alternative that might support a
compelling economic alternative at start-up.
For more detailed information about the NICO Mineral Reserves and certain technical
information in this news release, please refer to the Technical Report on the NICO Project,
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 Micon
International Limited which has been filed on SEDAR and is available under the Company's
profile at www.sedarplus.ca.
The disclosure of scientific and technical information contained in this news release have been
approved by Robin Goad, M.Sc., P.Geo., President and Chief Executive Officer of Fortune and
Alex Mezei, M.Sc., P.Eng. Fortune’s Chief Metallurgist, who are "Qualified Persons" under
National Instrument 43-101.
About Fortune Minerals
Fortune is a Canadian mining company focused on developing the NICO cobalt-gold-bismuth-
copper project in the Northwest Territories and Alberta. Fortune also owns the satellite Sue-
Dianne copper-silver-gold deposit located 25 km north of the NICO deposit and is a potential
future source of incremental feed to extend the life of the NICO concentrator.
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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 respect to, among other things, the construction of the proposed mine and
concentrator in the Northwest Territories and the hydrometallurgical facility in Alberta, and the
Company’s plans to develop 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 complete construction of a NICO Project
hydrometallurgical facility; 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 construction and operation of the NICO Project and the related
hydrometallurgical facility and the timing thereof; 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, bismuth 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 related to the new Mineral Reserves, Mine Plan and
production schedule for the NICO Project, 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 facility, 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 Sue-Dianne Property may not be developed to the point
where it can provide mill 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
products that use cobalt or bismuth may not grow to the extent anticipated, the future supply of
cobalt and bismuth may not be as limited as anticipated, the risk of decreases in the market
prices of cobalt, bismuth and other metals to be produced by the NICO Project, discrepancies
between actual and estimated Mineral Resources or between actual and estimated metallurgical
recoveries, uncertainties associated with estimating Mineral Resources and Reserves and the
risk that even if such Mineral Resources prove accurate the risk that such Mineral Resources
may not be converted into Mineral Reserves once economic conditions are applied, the
Company’s production of cobalt, bismuth and other metals may be less than anticipated and
other operational and development risks, market risks and regulatory risks, cobalt sulphate
specifications may not be achieved, the simplified flow sheet may not mitigate capital and
operating costs . 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 Company assumes no
responsibility to update or revise it to reflect new events or circumstances, except as required by
law.
Contacts
For further information please contact:
Fortune Minerals Limited
Troy Nazarewicz
Investor Relations Manager
Tel: (519) 858-8188
www.fortuneminerals.com