NICO deposit contains 12% of global bismuth
reserves
Issued Capital: 150,526,976
LONDON, ON, May 1, 2014 /PRNewswire/ - Fortune
Minerals Limited (TSX: FT) (OTCQX: FTMDF) ("Fortune" or the
"Company") (www.fortuneminerals.com) reports that the U.S.
government's recently implemented Reduction of Lead in Drinking
Water Act and similar global initiatives, such as the
European Union's REACH Regulation and Restriction of Hazardous
Substances Directive, are contributing to increased demand for
bismuth as an environmentally safe replacement for lead. Bismuth is
scientifically recognized as non-toxic and is used in medicines
such as Pepto-Bismol®, medical devices and cosmetics. Demand for
bismuth is increasing in a variety of new products as a result of
legislation and also growing environmental awareness by
manufacturers that wish to eliminate the use of toxic metals. These
products include plumbing and electronic solders, plumbing
fixtures, free-machining steel, aluminum and brass, paint pigments,
automobile anti-corrosion coatings, hot-dip galvanizing alloys,
glass, ammunition and fishing equipment. Bismuth also has
traditional use in low melting temperature alloys, flame retardants
and products designed to take advantage of its unique dimensional
stability characteristics that are required in castings, sprinkler
systems, and automobile windshield frits.
Fortune's NICO gold-cobalt-bismuth-copper project contains 12%
of global bismuth reserves and is positioned to become a reliable
North American source of bismuth in a market with supply concerns
and China's dominant 80% of mine
production position. NICO is a proposed vertically integrated
project comprising a mine and mill in Canada's Northwest
Territories ("NT") that will produce a bulk concentrate and
a refinery in Saskatchewan to
which the concentrate will be shipped for processing to high value
products. Proposed products include bismuth metal and oxide, cobalt
chemicals needed to manufacture rechargeable batteries, gold, and
by-product copper.
Mike Romaniuk, Fortune's Vice
President Operations and Chief Operating Officer, commented, "The
world is entering an era of supply-chain transparency, where
manufacturers wish to demonstrate association with sustainable
sources of raw materials and a reduced environmental footprint. Our
NICO project is positioned to become an important North American
source of cobalt and bismuth products that meet these
requirements."
The Reduction of Lead in Drinking Water Act came into
effect nationally in the U.S. on January 4,
2014, and is intended to reduce the adverse health effects
associated with lead exposure from drinking water by minimizing
lead in wetted surfaces of pipes and plumbing fixtures that provide
water for human consumption. Lead can enter drinking water from
commonly used household plumbing materials and water service lines
and cause a variety of adverse health effects. The Act allows a
three-year timeframe for affected parties to transition to the new
lead-free requirements: no more than 0.2% lead in solder and flux;
and not more than a weighted average of 0.25% lead when used in the
wetted surfaces of pipes, pipe fittings, plumbing fittings, and
fixtures.
The REACH Regulation (Registration, Evaluation,
Authorization, and Restriction of Chemicals)
is a regulation of the European Union as of December 2006 and is intended to improve the
protection of human health and the environment from the risks that
can be posed by certain chemicals. This regulation is intended to
allow authorities to restrict the use of substances where risks
cannot be managed and encourage the substitution of the most
hazardous substances with less dangerous alternatives. REACH came
into force on June 1, 2007 and
includes restrictions on lead used in paint, jewellery and other
consumer products. Certain lead compounds are also included in the
"list of substances of very high concern" that triggers legal
obligations for importers, producers and suppliers of products
containing these compounds. REACH is among the strictest laws to
date and affects industries worldwide. Any company importing to the
European Union is potentially impacted.
The European Union's Restriction of Hazardous Substances
Directive ("RoHS") is often referred to as the "lead free
directive" and restricts the use of six hazardous substances,
including lead, found in electrical and electronic products. RoHS
came into effect in 2006 and covers several categories of
electrical and electronic equipment including household appliances
and IT and consumer equipment. In 2011 it was expanded to include a
much wider range of products and covers all electronic equipment,
cables and spare parts. The electronics industry had traditionally
relied on a tin-lead solder formulation, but with the maximum lead
concentration by weight restricted to 0.1%, solder formulation has
had to be reconfigured with alternatives like bismuth. RoHS is
linked to the Waste Electrical and Electronic Equipment Directive
that is focused on promoting the collection and recycling of
electrical goods to solve the toxic e-waste problem.
Notably, South Korean steel producer POSCO is now producing
free-machining steel with bismuth instead of lead in response to
increasing regulations and environmental awareness. Free-cutting
steel is used for heavily machined components found in car engine
parts and electronics to improve processability and extend tool
life. POSCO is selling bismuth free-machining steel to LG
Electronics for its television products and proposes to also supply
the product to Samsung.
In addition to gold, NICO is well positioned to be a reliable
vertically integrated North American source of supply of cobalt and
bismuth products in a market where the dominant producers are in
countries where there are supply concerns. The Democratic Republic of the Congo is a
politically unstable country and is responsible for 60% of cobalt
mine production. China is
responsible for 80% of bismuth production and mines that do not
meet current environmental and safety regulations have been shut
down. Both cobalt and bismuth are also on a list identified by the
European Union of metals with supply concerns. The location of
Fortune's Saskatchewan Metals Processing Plant ("SMPP") near
Saskatoon provides proximity to
the North American market and trade advantages from NAFTA as well
as with the European Union.
Fortune has already received its environmental assessment
approvals for the NICO mine and concentrator in the NT as well as
the SMPP. The Company is currently awaiting receipt of its Land Use
Permit and Class A Water License from the Wek'èezhìi Land and Water
Board, which is expected this summer. Fortune also recently
announced the results of an updated Feasibility Study for the
project by Micon International Limited (see Fortune news release,
dated April 2, 2014) that is being
used to advance negotiations currently in progress with potential
strategic partners and their banks.
The disclosure of scientific and technical information contained
in this press release has been approved by Robin Goad, M.Sc., P.Geo., President and Chief
Executive Officer of the Company, who is a "qualified person" under
National Instrument 43-101.
About Fortune Minerals
Fortune is a diversified resource company with several mineral
deposits and a number of exploration projects, all located in
Canada. The Company is focused on
the development of the Arctos Anthracite Project in British Columbia and the vertically integrated
NICO gold-cobalt-bismuth-copper project that is comprised of a mine
and mill in the NT that will produce a bulk concentrate for
shipment to a refinery for processing to high value metal products.
In addition, the Company owns the Sue-Dianne copper-silver-gold
deposit and other exploration projects in the NT. Fortune is
focused on outstanding performance and growth of shareholder value
through assembly and development of high quality mineral resource
projects.
This press release contains forward-looking information. This
forward-looking information includes statements with respect to,
among other things, the proposed development of the NICO project
and the SMPP, the permitting process for the NICO project and the
SMPP, the anticipated production from the SMPP and the anticipated
use of bismuth to replace lead in various products. 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 arrange necessary financing for the NICO project and the SMPP,
obtain all necessary permits for the NICO project and the SMPP and
assumptions regarding the production from the SMPP and the
anticipated use of bismuth to replace lead). 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 inherent
risks involved in the exploration and development of mineral
properties, the risk that the Company may not be able to arrange
the necessary financing to construct and operate the NICO mine or
the SMPP, uncertainties with respect to the receipt or timing of
required permits for the development of the NICO project or the
SMPP, the possibility of delays in the commencement of production
from the NICO project or construction of the SMPP, the risk that
manufacturers may not use bismuth to the extent anticipated and
other factors. 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.
SOURCE Fortune Minerals Limited