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
Fortune Minerals has chosen consulting engineering firm Hatch to conduct the detailed engineering and design of the Nico gold/cobalt/bismuth/copper mine and concentrator.

In July Fortune received the Tlicho and Canadian governments’ approval for the mine and mill, after authorities accepted the Mackenzie Valley Review Board's environmental assessment and reasons-for-decision report, and recommended approval. This allowed the $441-million project to proceed to the regulatory-approvals phase with the Wek'èezhìi Land and Water Board and other parties to develop the water licence and land use permits.

Hatch will provide detailed design engineering services for the Nico project, including the overall coordination of engineering for the openpit mine, the underground mine, ore handling and storage, the processing plant and facilities, concentrate production, storage and loading, the tailings storage, site support structures, water and power supply, camp facilities and all civil road and drainage designs needed to start construction.

Further, Fortune continues to work with Deloitte Corporate Finance to complete project financing agreements for the project.

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.