Proactive steps taken to preserve working
capital while the Company advances NICO Project optimizations with
in-house personnel and resources
Fortune Minerals Limited (TSX:FT) (OTCQB:FTMDF)
(“Fortune” or the “Company”)
(www.fortuneminerals.com) is providing an update of cost saving
measures it has taken to preserve working capital during the market
uncertainty caused by the Coronavirus pandemic. Fortune continues
to make progress with a number of NICO Cobalt-Gold-Bismuth-Copper
Project (“NICO Project”) optimizations completed using
internal resources to enhance project economics at prevailing metal
prices. The Company is also pleased to report that construction of
the Tlicho All-Season Road for the Government of the Northwest
Territories has resumed.
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The NICO Project is an advanced development asset comprised of a
planned mine and concentrator in the Northwest Territories and a
related refinery in southern Canada where metal concentrates would
be processed to cobalt sulphate, gold doré, bismuth ingots and
oxide, and copper precipitate. The cobalt and bismuth contained in
the NICO Project Mineral Reserves are identified on the United
States and European Union Critical Mineral Lists based on their
essential use in important manufacturing and defense industries,
the fact that they cannot be easily substituted with other
minerals, and the vulnerability of their supply chains to
geographic concentration of production and geopolitical risks. The
Mineral Reserves also contain more than one million ounces of gold,
providing a liquid, countercyclical co-product to mitigate
technology metal price volatility. The NICO Project has already
been assessed in a positive Feasibility Study by Micon
International Limited in 2014 (“2014 Feasibility Study”)
(see Fortune news release, dated April 2, 2014).
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.sedar.com.
Earlier this year, Fortune implemented preliminary cost saving
measures of reducing expenditures to outside consultants and
preserving working capital to advance optimizations to the NICO
Project. Consulting expenses to some senior executives were also
reduced. Due to the ongoing impact of the Covid-19 pandemic,
effective May 20, Mr. Glen Koropchuk stepped down from his position
as Vice President and Chief Operating Officer, but will continue to
serve on the Company’s Board of Directors. Also, effective June 1,
Mr. Dave Massola transitioned from his previous part-time position
of Vice President of Finance and Chief Financial Officer to an
advisory role, assisting Fortune with its project finance
activities. Fortune gratefully acknowledges the contributions of
Mr. Koropchuk and Mr. Massola in their previous positions and looks
forward to their continued association with the Company. The
compensation for Mr. Robin Goad, President and Chief Executive
Officer, has also been reduced to reflect current market
conditions. Fortune has otherwise been able to take advantage of
various government programs to mitigate the financial impact from
the Covid-19 pandemic on its salaried employees and avoid any
reduction of non-executive personnel.
Fortune is pleased to announce that Ms. Patricia Penney, B.Comm
(Hon. Accounting), C.P.A., C.A., previously Fortune’s Controller,
has been appointed Interim Chief Financial Officer. Ms. Penney has
been primarily responsible for the financial reporting for the
Company over the past several years, and Mr. Massola and Fortune’s
Chairman, Mahendra Naik, will be available to support her in this
role and assist with project finance activities.
Fortune’s President Robin Goad stated, “Glen Koropchuk and Dave
Massola will continue to be associated with the Company to provide
their expertise. The changes announced today will position the
Company financially to continue advancing development of our
vertically integrated NICO Project. I would also like to personally
congratulate Patricia Penney on her appointment to her new position
and am confident that she will continue to provide excellent
results in this role.”
Fortune recently provided an update of the work being done to
optimize NICO Project economics, including completion of an updated
Mineral Resource model, and preparation of a new optimized open pit
shell and preliminary underground stope designs. The Company is
pursuing a development strategy that is similar to the one used in
the 2014 Feasibility Study, based on a mill throughput rate of
4,650 tonnes of ore per day and combined open pit and underground
mining during early years of the mine life (see News Release, dated
May 7, 2020). Fortune is pleased to report that a new Mine Plan and
schedule has been developed that will incorporate grade control,
selective mining and a stockpiling strategy to defer processing of
lower grade ores.
Work continues on the review and analysis of capital and
operating costs for the NICO Project, including reconciliation of
recent estimates from Hatch Ltd. for the contemplated expansion
study in 2019 against estimates obtained from the Company’s earlier
2012 Front-End Engineering and Design study by Aker Solutions, the
2014 Feasibility Study, and quotes recently obtained directly from
suppliers. This work is still in progress; however, the Company has
identified several opportunities to reduce capital and operating
costs, based on new information from suppliers and market trends.
Fortune is also continuing its review of various downstream
refinery sites with a focus on permitted brownfield options with
existing facilities that could materially reduce capital costs for
the planned development.
The Government of the Northwest Territories and North Star
Infrastructure recently announced that construction of the
97-kilometre Tlicho All-Season Road from Highway 3 to the community
of Whati resumed in mid-May. The NICO Project includes construction
of a 50-kilometre spur road from Whati to the mine to enable truck
haulage of metal concentrates to the railway at Hay River and
delivery to the refinery for processing during operations.
The disclosure of scientific and technical information contained
in this news release has been approved by Robin Goad, M.Sc.,
P.Geo., President and Chief Executive Officer of Fortune, and
Dustin Reinders, B.Sc., P.Eng., Project Engineer, 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. The Company has an option to purchase lands in
Saskatchewan where it may build the hydrometallurgical plant to
process NICO metal concentrates. Fortune also owns the Sue-Dianne
Copper-Silver-Gold Deposit located 25 km north of the NICO Project,
which is a potential future source of incremental mill feed to
extend the life of the NICO Project mill.
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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 Tlicho All-Season Road, the Company’s plans to develop the NICO
Project, the preparation of an updated Technical Report for the
NICO Project and the potential for the Sue-Dianne property to
provide incremental mill feed to 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 timing of
completion of the Tlicho All-Season Road; the timing of the updated
Technical Report for the NICO Project and the results thereof; the
Company’s ability to secure a site in southern Canada for the
construction of a NICO Project refinery; 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 refinery and the timing thereof; growth
in the demand for cobalt; 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 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 that
the Tlicho All-Season Road may not be completed in the anticipated
time frame, the updated Technical Report for the NICO Project may
take longer than anticipated and the results thereof may not be as
positive as anticipated, the NICO Project may not receive the
benefit of any financing under the published initiatives of the
United States and European Union with respect to critical minerals
or any other benefits therefrom, the Company may not be able to
secure a site for the construction of a refinery, 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
refinery, 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. 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20200608005291/en/
Fortune Minerals Limited Troy Nazarewicz Investor
Relations Manager info@fortuneminerals.com Tel.: (519) 858-8188
www.fortuneminerals.com
Fortune Minerals (TSX:FT)
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から 12 2023 まで 12 2024
