Project Name: NICO
Resource: gold, cobalt, bismuth
Location: 160 km. northwest of Yellowknife, Northwest Territories, Canada
Discovered by Fortune in 1996, NICO has had more than $65 million of work carried out and is now in the environmental assessment process to permit a combined open pit and underground mine and process plant. Notably, most of the pre-production development for the underground part of the mine has already been completed as part of two $10 million test mining programs conducted in 2006 and 2007. The mining conditions, geometry and grade of the deposit were verified and a composite sample of ore collected for a $5 million pilot plant test that was recently completed at SGS Lakefield Research Limited in Ontario. This pilot plant proved the process flow sheet and production of high quality metal products, and also improved the recoveries for metals from earlier estimates that were used in the Company's definitive feasibility study prepared by Micon International Limited in 2007. Fortune Minerals is in discussions with financial institutions for a senior debt facility to finance construction of the mine and ancillary facilities.