Business
Fortune Minerals announces significant increase in NICO project mineral reserves
Fortune Minerals announces significant increase in NICO project mineral reserves
About this update from Fortune Minerals Limited
[{"type":"text","content":"\n\n\n\nJan. 14, 2010 (Canada NewsWire Group) -- LONDON, ON, Jan. 14 /CNW/ -- Fortune Minerals Limited (TSX-FT) (\"Fortune Minerals\" or the \"Company\") is pleased to announce a new mine plan and a 43% increase in the mineral reserves for its 100% owned NICO gold-cobalt-bismuth-copper project in the Northwest Territories, Canada. The update, prepared by P&E Mining Consultants Inc. (\"P&E\"), has increased the proven and probable mineral reserves for NICO to 31 million tonnes from the 21.8 million tonnes established previously in the 2007 definitive feasibility study for the project (updated in 2008) by Micon International Limited (\"Micon\") (see Fortune Minerals news releases, dated January 16, 2007 and May 8, 2008). The new mine plan and larger mineral reserves will extend the operating life of the NICO mine and process plant from 15 to 18 years at a higher, 4,650 tonnes per day production rate, and positively impact project economics.Highlights of the Updated NICO Mine Plan and Mineral Reserves:- 43% increase in Proven and Probable Mineral Reserves to 31 milliontonnes;- Increase in contained metals:- Gold content increased by 147,000 ounces to 907,000 ounces;- Cobalt content increased by 21 million pounds to 82 millionpounds;- Bismuth content increased by 32 million pounds to 109 millionpounds;- Copper now included in reserves and totals 27 million pounds;- Gold is now the largest projected source of revenue for the projectduring the first two years of operations at current metal prices;- Reserves contain 4.9 million ounces gold equivalent at metal priceassumptions used in study;- Mine life increased from 15 to 18 years;- Identification of 6.5 million tonnes of additional marginalsub-economic mineralized material to be stockpiled for potentialfuture processing;- New open pit mine plan reduces initial capital by eliminating10 million tonnes of waste pre-stripping;- New underground mine plan lowers mining costs with greatly reducedbackfill requirements;- Includes higher metal recoveries verified from pilot plant:- Gold recovery is 56% to 84%, averaging 72%, depending on headgrade;- Cobalt recovery of 83%;- Bismuth recovery of 70%;- Copper recovery of 52%;- 16% increase in mill throughput to 4,650 tonnes per day;- Operating costs reflect processing of concentrates to metals inSaskatchewan.NICO is a proposed vertically integrate...