Significant improvement in sale value of
cobalt and bismuth concentrates to third party processors and
anticipated material reduction in capital and operating costs for
development
Issued Capital: 338,603,220
LONDON, ON, Sept. 17, 2018 /CNW/ - Fortune Minerals
Limited (TSX: FT) (OTCQX: FTMDF) ("Fortune" or
the "Company") (www.fortuneminerals.com) is pleased to
announce that it has received successful results of metallurgical
test work verifying that it can produce an upgraded and essentially
arsenic-free cobalt concentrate for the NICO
Cobalt-Gold-Bismuth-Copper development in Canada ("NICO Project"). Gold can also
be recovered by Fortune from its metal concentrates at the mine
site allowing the Company to control the gold revenue stream, while
producing separate cobalt and bismuth concentrates for sale to
third party processors after arsenic that is typically penalized is
removed. The 100% owned NICO Project is a development stage primary
cobalt asset with significant gold and bismuth by-products. Fortune
has already received environmental assessment ("EA")
approval and the major permits for the mine and concentrator in the
Northwest Territories as well as
EA approval for a refinery in Saskatchewan.
Fortune engaged Dundee Sustainable Technologies Inc.
("DST") to conduct a metallurgical test work program to
assess the application of its "Pyrolysis Roast" and "Arsenic
Stabilization" processes on metal concentrates produced from the
NICO Project. The objective of this work was to demonstrate that
Fortune can remove the arsenic and create metal concentrates that
are more attractive to the market and can be processed in existing
metal recovery circuits operating around the world. The test work
was initiated after several mining and refining companies contacted
Fortune expressing interest in purchasing metal concentrates
directly from the mine (see News Release, dated June 14, 2018). The DST processes have already
been proven in pilot scale tests conducted for other gold and base
metal projects as well as a development stage cobalt project with
similar cobalt concentrate composition. A commercial plant
utilizing DST's arsenic stabilization by vitrification process has
also been constructed for a metal processing facility that will be
commissioned later this year.
Key Results of DST Test Work:
- Successful removal of 99% of the arsenic in NICO bulk
concentrate to lower than 0.2%
- Metal grades in the concentrate increased by 20-30% due to
mass reduction from selective removal of arsenic and sulphur during
pyrolysis
- No cobalt, gold, or copper losses from pyrolysis
- Gold can be successfully recovered by cyanidation of the
bulk concentrate
- Recovery of bismuth has already been proven with secondary
flotation
- Recovery of bismuth oxide by pyrolysis has now also been
demonstrated as an option
- Successful separation and capture of arsenic from sulphur
liberated during pyrolysis
- Arsenic removed from the concentrate was successfully
stabilized using vitrification
- Fused arsenic glass passes TCLP tests for safe
disposal
The DST technology utililizes proven fluidized bed pyrolysis
technology to roast metal concentrates in an oxygen deprived
environment for selective removal and capture of arsenic and much
of the sulphur from the contained sulphide minerals. Arsenic is
then stabilized by vitrification in a fused iron silicate glass
that passes U.S. Environmental Protection Agency Procedure TCLP
Method 1311 tests for environmentally safe disposal in a landfill.
Gold would be recovered by cyanidation of the bulk concentrate
prior to secondary flotation to produce separate cobalt and bismuth
concentrates. The pyrolysis roast would be applied to the cobalt
concentrate to remove the arsenic and enable its sale to third
party processors without excessive arsenic penalties.
Additional work is in progress at DST to optimize roast
conditions and gold recovery, after completion of which, Fortune
may complete a pilot plant from ores it has stockpiled to produce
feasibility level economic analysis of the process. Negotiations
are also progressing with third-party refineries to obtain
indicative prices for the sale of upgraded cobalt and bismuth
concentrates with Fortune to remain in control of the gold process
stream and revenues.
The DST process technology is anticipated to have materially
lower capital and operating costs for the NICO development in
comparison to building and operating a fully vertically integrated
hydrometallurgical plant producing cobalt sulphate, gold, bismuth
ingot and copper cement. However, revenues would be comparatively
lower for the sale of metal concentrates and there would be greater
dependence on third party processors. The engineering for the
facilities in the Northwest
Territories is essentially complete for the updated
Technical Report to produce metal concentrates. A small gold
recovery circuit may now be required in the mill if pryrolysis
process technology is pursued for the project. Fortune is
evaluating the merits and conducting cost-benefit analysis of
building a lower capital cost project that would produce
concentrates vs. a higher capital cost project that would produce
value added cobalt chemicals in a purpose built refinery. The
Company will evaluate the best development option in consultation
with potential strategic partners and in consideration of their
downstream product and commercial objectives. A technical report
will be prepared to document the most commercially attractive
project. Fortune has more than 35 confidentiality agreements with
companies interested in strategic partnerships to build and operate
the NICO Project.
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, who is a "Qualified Person" under
National Instrument 43-101.
About Fortune Minerals
Fortune is a Canadian mining company focused on developing the
vertically integrated NICO cobalt-gold-bismuth-copper project in
the Northwest Territories and a
related refinery the Company plans to construct in Saskatchewan. Fortune also owns the Sue-Dianne
copper-silver-gold deposit located 25 km north of the NICO Project
and a potential future source of incremental mill feed to
potentially 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 Company's plans
to develop the NICO Project, the Company's plans to complete a
pilot plant to assess the impact of the application of DST's
processing technology to the Nico Project and the economic impact
of utilizing such technology . 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
the necessary financing to continue operations and develop the NICO
Project; the construction of the Tlicho All-Season Road (the
"TASR") that would allow all-season access to the NICO Project and
the timing of its completion; the receipt of all necessary
regulatory approvals and the timing thereof; the completion of a
pilot plant to assess the impact of the application of DST's
processing technology and the results thereof; the rezoning of the
Saskatchewan refinery lands 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 Company may not be able to finance and
develop NICO on favourable terms or at all, the completion of a
pilot plant to assess the impact of the application of DST's
processing technology may take longer than anticipated and the
economic impact of such technology on the NICO Project may be less
favourable than anticipated, uncertainties with respect to the
receipt or timing of required permits, approvals and agreements for
the development of the Nico Project, the TASR may not be
constructed in a timely fashion or at all, 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 inherent risks involved in the exploration
and development of mineral properties and in the mining industry in
general, the market for rechargeable batteries and the use of
stationary storage cells may not grow to the extent anticipated,
the future supply of cobalt may not be as limited as anticipated,
the risk of decreases in the market prices of cobalt 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 the risk that even if such
resources prove accurate the risk that such resources may not be
converted into mineral reserves, once economic conditions are
applied, the Company's production of cobalt 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.
SOURCE Fortune Minerals Limited