Issued Capital: 117,076,976
Elimination of duplicate gold circuit & increased recoveries for gold &
cobalt
LONDON, ON, Jan. 12, 2012 /CNW/ - Fortune Minerals Limited (TSX-FT)
("Fortune" or "the Company") is pleased to announce positive results of
a mini-pilot plant test that was conducted on ore from the Company's
NICO gold-cobalt-bismuth-copper project in the Northwest Territories
("NT") at SGS Lakefield Research Ltd. ("SGS Lakefield") in Ontario.
This latest test in 2011 further optimizes the NICO process metallurgy
flow sheet by verifying that bismuth process residue can be blended
with cobalt concentrate prior to acid pressure leach in the autoclave.
This eliminates one of two gold circuits at the Company's proposed
Saskatchewan Metals Processing Plant ("SMPP") near Saskatoon to reduce
project capital and also results in improved recoveries for both gold
and cobalt from what had been previously projected.
Highlights of Mini-Pilot Plant Results:
-
Simplified process flow sheet with only one cyanide circuit for gold
recovery;
-
Project capital and operating costs for gold processing are reduced;
-
Average life of mine gold recovery increases from 73% to 76%;
-
Cobalt recovery increases from 83% to 84%;
-
Pressure acid leach processing prior to gold recovery mitigates risk of
recovery losses from ores containing gold-bismuth-tellurium alloys that
can otherwise be refractory.
Approximately 6 tonnes of ore collected from the underground test mining
program at NICO in 2006 and 2007 was processed at SGS Lakefield in a
mini-pilot plant test. This test simulated most of the NICO process
flow sheet, except that after recovery of bismuth from the bismuth
concentrate by oxidative hydrochloric acid leach, the bismuth leach
residue was blended with the cobalt concentrate for processing in the
autoclave by pressure acid leach. The combined feed to the autoclave
recovers cobalt and copper from the cobalt concentrate, and also
recovers the minor amounts of cobalt and copper contained in the
bismuth leach residue. The combined leach residue from the autoclave is
then leached with cyanide to recover gold from both the cobalt and
bismuth process streams instead of using duplicate cyanide circuits.
Autoclave processing results in higher gold recoveries and has the
added benefit of mitigating potential gold recovery losses from
gold-bismuth-tellurium alloys that can be refractory. The new higher
recoveries for gold and cobalt are being incorporated into the Front
End Engineering and Design Study for the NICO project by Jacobs
Minerals Canada Inc. and other engineering companies, as well as an
updated economic model.
The 2011 mini-pilot plant test was conducted under the supervision of
Alex Mezei, M.Sc. P.Eng., Director of Engineering Technology Services
at SGS Lakefield Metallurgical Operations and is the Qualified Person
for the purposes of National Instrument 43-101. The test was also
supervised by Keith Lee, B.Sc. who is Fortune's Senior Process
Engineer.
About the NICO Cobalt-Gold-Bismuth Project:
The NICO Project is located 160 km northwest of the City of Yellowknife,
NT and 50 km north of the Tlicho community of Whati. The 31 million
tonne deposit will be developed using a combination of open pit and
underground mining methods with ores projected to be processed at the
rate of 4,650 tonnes per day in a mill at the site over an 18-year mine
life. Other facilities that are planned at the site include a camp to
accommodate employees working on a rotation basis, ancillary buildings
and a 27 km all-season access road that will join the site to the
proposed Tlicho Road connecting nearby communities with the highway to
Yellowknife. The mill is expected to produce approximately 180 tonnes
of bulk concentrate per day for shipment south to the Company's
proposed SMPP refinery near Saskatoon for further processing to high
value metal products. Fortune plans to be a significant, reliable
North American-based supplier of high purity cobalt cathode and/or
sulphate and bismuth ingot, together with gold doré and by-product
copper and nickel precipitates.
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 Mount Klappan anthracite
metallurgical coal deposits in BC and the NICO
gold-cobalt-bismuth-copper deposit in the Northwest Territories
("NT"). As part of the development of the NICO deposit, Fortune is
developing a hydrometallurgical plant in Saskatchewan to process NICO
concentrates to high value metal products. The Company has also
acquired the buildings and equipment from the Golden Giant Mine at
Hemlo, Ontario, which have been dismantled, moved, and stored for
relocation to NICO. 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, the
proposed production therefrom 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, the risk that
production and recovery of metals from the NICO project may be less
than 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.