Issued Capital: 97,314,407
TORONTO, Sept. 9 /CNW/ - Fortune Minerals Limited (TSX-FT) ("Fortune" or the "Company") is pleased to announce the results for the first 10 holes from the 38-hole summer drill program at its 100% owned NICO gold-cobalt-bismuth-copper deposit in the Northwest Territories. NICO already contains Mineral Reserves of 31 million tonnes, averaging 0.91 g/t gold, 0.12% cobalt, 0.16% bismuth and 0.04% copper, containing 907,000 ounces of gold, 82 million pounds of cobalt, 109 million pounds of bismuth and 27 million pounds of copper (see Fortune news release, dated January 14, 2010(1)). Additional drilling was conducted this summer to test for extensions to the known deposit where it remains locally open for expansion, particularly in the gold-rich parts of the deposit, and also to better define the deposit perimeter for detailed production scheduling. The results received from the first 10 drill holes were very successful, identifying additional high-grades, locally up to 38.4 g/t gold, 2.47% cobalt and 1.8% bismuth. The results include broad intersections with significantly higher grades than the deposit average, and include intersections outside the current limits of the deposit, and will therefore likely have a positive impact on the Mineral Reserves when they are updated after receipt of the remaining drill results.
Significant results from the first 10 holes include:
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- 51.3 metres, averaging 2.22 g/t gold & 0.11% cobalt, including 13.0
metres averaging 4.93 g/t gold and 0.16% cobalt, and 3.0 metres,
averaging 15.59 g/t gold, 0.46% cobalt, 0.05% bismuth & 0.20% copper
in NICO-10-300;
- 4.0 metres, averaging 4.68 g/t gold, including 2.0 metres averaging
10.6 g/t gold in NICO-10-299;
- 20.1 metres, averaging 0.31% cobalt & 0.54% bismuth in NICO-10-293; &
- 13.0 metres, averaging 0.38% cobalt & 0.37% bismuth in NICO-10-292.
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Notably, in the lower part of NICO-10-300, the high-grade gold and cobalt intersected proved the continuity of the high-grade gold zone on Section 24 West and its projection from adjacent sections of the deposit where there had been a gap between broadly spaced drill holes. This hole also included large intersections in both the Middle and Lower Zones that are higher grade relative to nearby holes in this part of the deposit. The gold-rich intersection identified in the lower part of NICO-10-299 successfully extended the gold zone on Section 19 West down the projection of dip where it remains open for potential future expansion at depth. Conversely, the high-grade cobalt and bismuth intersection from NICO-10-293 extended the NICO deposit up the projection of dip towards surface on Section 18+50 West, not only increasing the grade, but also reducing waste rock stripping in this area of the deposit. Holes NICO-10-291 and -292 have extended the ore zone to depth on Section 25+50 West on the western side of the NICO deposit. The remaining 5 (of the first 10 holes) intersected only narrow intervals of mineralization and this data will not have a significant impact on the size and grade of the NICO deposit. Additional drill results will be released as they become available.
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(1) For additional information on the NICO mineral reserves, please see
Fortune Minerals' News Release, dated January 14, 2010 and the
information posted for the Company on the SEDAR website at www.sedar.com.
Eugene Puritch, P.Eng. and Fred H. Brown, CPG PrSciNat, both of P&E
Mining Consultants Inc., are the Qualified Persons responsible for the
NICO mineral reserves under NI 43-101.
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In addition to the 38 exploration holes drilled into the NICO deposit, 33 short geotechnical holes were also drilled in the vicinity of the proposed mill and concentrator to assess bedrock quality for the design of building and equipment foundations. The geotechnical part of the program was supervised by EBA Engineering Ltd. A large diameter hole was also drilled to the bottom of the proposed pit for hydrogeological purposes, to measure rock permeability and install a multilevel monitoring well to assess ground water quality in the deepest part of the proposed mine. The installation of this well was conducted under the supervision of Golder Associates Ltd. and Slumberger Canada Ltd. in order to address a request by government regulators pursuant to the Environmental Assessment ("EA") process the NICO project is undergoing for mine permitting.
The NICO project consists of a proposed mine and concentrator in the Northwest Territories, located 160 km northwest of the City of Yellowknife, and hydrometallurgical process plant near Saskatoon, Saskatchewan where NICO concentrates will be processed to gold doré, 99.8% cobalt cathode, 99.99% copper cathode and 99.99% bismuth ingot or 99.5% cathode. Both sites are currently in the EA process for permitting. NICO has already been assessed in a positive definitive feasibility study by Micon International Limited that was updated in 2008 and shows an attractive rate of return for the development (see Fortune news release, dated May 8, 2008).
The NICO drill program is being conducted under the site supervision of Dr. Andrew Dalby, Ph.D., and Robin Goad, M.Sc., P.Geo. is the Qualified Person for the purposes of NI-43-101. Split core samples of typically 1 metre lengths are being assayed at ALS Canada Ltd. with a quality assurance program of standards and blanks to verify analytical accuracy. A table of results for all of the significant drill results for the first 10 holes of the 2010 NICO summer program is appended to this release below.
About Fortune Minerals:
Fortune Minerals 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 its NICO gold-cobalt-bismuth-copper deposit in the Northwest Territories and its metals processing plant in Saskatchewan. Fortune Minerals owns the buildings and equipment from the Golden Giant Mine at Hemlo, Ontario, which have been dismantled for relocation to NICO. Fortune Minerals also owns the Mount Klappan anthracite coal deposits in British Columbia, and the Sue-Dianne copper-silver deposit and other exploration projects in the Northwest Territories. Fortune Minerals 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, proposed development of the NICO project, the potential for increasing reserves at the NICO project, and the proposed development of the Saskatchewan Metals Processing Plant ("SMPP"). Forward-looking information is based on the opinions and estimates of management at the date the information is given, and 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 inherent volatility of metal prices, the risk that the Company may not be able to arrange the necessary financing to construct and operate the NICO mine and the SMPP, uncertainties with respect to the receipt or timing of required permits for the development of the NICO project and the SMPP, the possibility of delays in the commencement of production from the NICO project and construction of the SMPP 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.
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NICO DRILL HOLE LOCATIONS & RESULTS
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CORE TRUE
FROM TO LENGTH WIDTH GOLD BISMUTH COBALT COPPER
metres metres (metres) (metres) (g/t) (%) (%) (%)
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NICO 10-300 Line 24+00 West, 346 m North, 200 degrees azimuth,
-56 degrees dip, 169 m depth
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52.00 85.00 33.00 32.41 - 0.28 0.07 0.01
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*62.00 65.00 3.00 2.95 - 0.46 0.20 0.01
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*78.00 80.00 2.00 1.96 - 1.80 0.13 0.04
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111.71 163.00 51.29 50.37 2.22 0.04 0.11 0.08
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*121.00 148.00 27.00 26.51 3.99 0.04 0.12 0.08
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*122.00 124.00 2.00 1.96 7.51 0.14 0.15 0.25
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*129.00 131.00 2.00 1.96 7.36 0.05 0.08 0.01
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*135.00 148.00 13.00 12.77 4.93 0.03 0.16 0.06
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*136.00 139.00 3.00 2.95 15.59 0.05 0.46 0.11
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*137.00 138.00 1.00 0.98 38.40 0.13 1.17 0.20
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NICO 10-299 Line 19+00 West, 352 m North, 200 degrees azimuth,
-90 degrees dip, 319 m depth
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228.00 232.00 4.00 2.82 4.68 0.01 - -
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*228.00 230.00 2.00 1.41 10.60 0.02 - -
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NICO 10-298 Line 19+50 West, 343 m North, 200 degrees azimuth,
-90 degrees dip, 343.5 m depth
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32.82 33.82 1.00 0.71 0.12 - 0.12 -
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NICO 10-297 Line 18+00 West, 206 m North, 200 degrees azimuth,
-70 degrees dip, 220 m depth
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96.00 97.00 1.00 0.91 0.34 0.01 0.11 0.01
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100.00 101.00 1.00 0.91 0.12 0.01 0.11 0.01
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NICO 10-296 Line 17+00 West, 120 m North, 200 degrees azimuth,
-73 degrees dip, 184 m depth
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25.44 27.50 2.06 1.82 0.10 - 0.14 -
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32.55 33.55 1.00 0.88 0.89 - 0.29 -
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39.74 43.65 3.91 3.45 0.65 0.01 0.10 0.01
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NICO 10-295 Line 17+00 West, 208 m North, 200 degrees azimuth,
-65 degrees dip, 238 m depth
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98.09 99.10 1.01 0.95 0.23 - 0.12 0.01
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NICO 10-294 Line 17+50 West, 205 m North, 200 degrees azimuth,
-53 degrees dip, 219.5 m depth
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64.84 72.98 8.14 8.06 1.53 0.01 0.07 0.01
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*65.86 67.88 2.02 1.99 4.50 0.02 0.14 0.01
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*66.88 67.88 1.00 0.99 5.33 0.02 0.12 0.01
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117.43 118.43 1.00 0.99 0.50 - 0.69 0.03
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NICO 10-293 Line 18+50 West, 191 m North, 200 degrees azimuth,
-45 degrees dip, 172 m depth
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102.24 122.35 20.11 20.11 0.01 0.54 0.31 -
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*111.39 118.34 6.95 6.95 0.01 0.79 0.51 -
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*117.36 118.34 0.98 0.98 0.01 0.83 1.22 0.01
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NICO 10-292 Line 25+50 West, 358 m North, 200 degrees azimuth,
-45 degrees dip, 190 m depth
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67.00 71.00 4.00 4.00 0.01 0.34 0.06 0.01
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85.00 91.00 6.00 6.00 - 0.15 0.08 0.02
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95.00 108.00 13.00 13.00 0.01 0.37 0.38 0.01
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*98.00 103.00 5.00 5.00 0.02 0.70 0.85 0.01
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*100.00 101.00 1.00 1.00 0.01 0.43 2.47 -
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137.50 148.00 10.50 10.50 - 0.17 0.11 0.01
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NICO 10-291 Line 25+50 West, 358 m North, 200 degrees azimuth,
-70 degrees dip, 199 m depth
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160.18 168.20 8.02 8.02 0.03 0.12 0.04 0.01
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* Included in the larger interval
- No significant values
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