Name and Location
Nico gold/cobalt/bismuth/copper mine project, Northwest Territories, Canada.

Client
Fortune Minerals.

Project Description
The proposed Nico mine is located 50 km north of the Tlicho community of Whati and 160 km north-west of the Yellowknife, in Canada’s Northwest Territories.

Proposed is a vertically integrated project comprising an openpit and underground mine and mill in the Northwest Territories, as well as a refinery in Saskatchewan, where concentrates from the mill will be processed to high-value metal products.

With 33-million tons of proven and probable mineral reserves, containing an estimated 1.1-million ounces of gold, 82-million pounds of cobalt, 102-million pounds of bismuth and 27-million pounds of copper, the Nico mine will be able to sustain operations for 20 years at the planned production rate of 4 650 t/d of ore. The high concentration ratio of ores at the deposit allows this daily throughput to be reduced to only 180 t of concentrate containing the valuable metals. The concentrate will be trucked to the rail head at Hay River for delivery by rail to the Saskatoon metals processing plant for further processing to high-value metal products.

Value
The overall capital cost of the project is estimated at C$441-million.

Duration
According to the National Instrument 43-101 technical report completed on the project in July 2012, the mine production schedule assumes that openpit waste stripping will begin in July 2015, openpit ore production in September 2015, underground dewatering and rehabilitation of existing workings in May 2016, underground ore and waste development in June 2016 and underground stoping in July 2016. Underground ore production will end in January 2017, while openpit ore production will end in 2035.

Latest Developments
The Mackenzie Valley review board has concluded its environmental assessment of the Nico project and has recommended approval of the proposed project in the Northwest Territories. The review board concluded that a full environmental review was not necessary and that it should proceed to the regulatory phase for approvals, subject to the measures set out in its report. The report and recommendation have been submitted to the Minister of Aboriginal Affairs and Northern Development Canada for his approval, and to the Tlicho government. Upon acceptance of the report by the Minister and the Tlicho government, the Nico project can progress to the licensing and permitting phase.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Fortune Minerals investor relations manager Troy Nazarewicz, tel +1 519 858 8188, fax +1 519 858 8155 or email info@fortuneminerals.com.