Fortune Minerals Limited · TSX:FT
Fortune Minerals — Investor Presentation (February 2011)
49 slides from Fortune Minerals's investor presentation, Feb 8, 2011
Slide 1: Fortune Minerals Limited – Saskatchewan Metal Processing Plant
Emerging Strategic Metal & Coal Fortune Minerals Limited Producer SASKATCHEWAN METAL PROCESSING PLANT February 2011
Slide 2: Forward-Looking Information
FORWARD-LOOKING INFORMATION This document contains certain forward-looking information. This forward-looking information includes, or may be based upon, estimates, forecasts, and statements as to management’s expectations with respect to, among other things, the size and quality of the Company’s min
Slide 3: Corporate Information Ownership
London, Ontario based mineral development company in transition to mid-tier producer Listing: TSX-FT Corporate Share Price: $ 1.66 (February 04 ,2011) Information Issued Shares: 107 million Fully Diluted: 127 million Market Cap: $ 187 million Total Assets: $ 127.6 million (Q3-2010) C
Slide 4: Who Is Fortune Minerals?
Who Is Fortune Minerals? Small junior mining company Experienced directors & management team 14 full time employees Two large advanced stage projects Mount Klappan in BC (anthracite coal) NICO Project which includes the mine in the NWT and the Saskatchewan Metals Processing Plant (SMPP)
Slide 5: Masì Cho – Thank You: The NICO Project
MASÌ CHO – THANK YOU The NICO Project consists of: - Mine & mill in Tłįchǫ Territory - Metal refinery near Saskatoon, Saskatchewan 5
Slide 6: NICO Mine
Emerging Strategic Metal & Coal Producer NICO MINE
Slide 7: Location & Infrastructure
LOCATION & INFRASTRUCTURE City of Yellowknife (160 km SE) 5,140 Ha mining lease Current access by winter road New road planned to Behchokǫ & Hwy 3 135 km all-season road required for concentrate transport & mine supply Fortune contributing to road Railway terminus at Hay River - 500 km
Slide 8: NICO Gold-Cobalt-Bismuth-Copper Project Summary
NICO GOLD-COBALT-BISMUTH-COPPER PROJECT SUMMARY 100% Ownership Mine & Concentrator in NWT $78 million work completed to date, includes: $20 million test mining $6.5 million process pilot plants 2007 positive feasibility study & 2008 update Golden Giant (Hemlo) buildings & equipment pur
Slide 9: NICO Mine & Concentrator - NWT
NICO MINE & CONCENTRATOR - NWT 18 yr mine life at 4,650 tpd Reserves: 31 million tonnes (Mt) Additional 6.5 Mt low grade to be stockpiled for future processing Primarily open pit mining Underground mining also in yrs 1&2 Early access to high grade improves economics Co-mingled waste ro
Slide 10: Concentrate Shipping
CONCENTRATE SHIPPING Refinery in Saskatchewan will process NICO concentrates 65,000 tonnes of concentrate per year (5 trucks/day) will be trucked from NICO to Hay River in bags Concentrate bags will be shipped from Hay River to Saskatchewan on CN Railway 10
Slide 11: Saskatchewan Metal Processing Plant (SMPP)
Emerging Strategic Metal & Coal Producer SASKATCHEWAN METAL PROCESSING PLANT (SMPP)
Slide 12: Saskatchewan Metals Processing Plant (SMPP)
SASKATCHEWAN METALS PROCESSING PLANT (SMPP) Hydrometallurgical process plant will process NICO concentrates Agreement to purchase lands 3 km from Langham Located on CN Rail line Close to Trans-Canada Hwy NICO Inexpensive power compared to NWT Close to natural gas, water and reagent Saska
Slide 13: Location of the SMPP Project Area
anes oe ie ELEVATION (masi) High | 1386 EE A Low : 206) Legend PROVINCE SCALE: 16,000,000 —— RAILWAY MAJOR HIGHWAY (J pur at municipatimies SITE LOCATION (1 wean municiPatiTies: LOCATION OF THE SMPP PROJECT AREA orn horas a [esorer[asrocces | CORPORATION OF SASKATCHEWAN (SC) AND ARE APPROXIMATE, 3.
Slide 14: Air Photo of Project Area
Pe a a Se Legend (CD Tl property eounpaay NOTE: 1.2008 AIR PHOTO OBTAINED FROM INFORMATION SERVICES CORPORATION OF SASKATCHEWAN (ISC). 2, LOT PARCEL BOUNDARIES OBTAINED FROM INFORMATION SERVICES CORPORATION OF ‘SASKATCHEWAN (ISG) AND ARE NOT TO BE CONSIDERED SURVEYED BOUNDARIES. 3, LOT PARCELS ARE L
Slide 15: SMPP Site Layout
ELECTRICAL SUBSTATION ‘COBALT COPPER ELECTROVINNING Legend I PROPOSED INJECTION WELL PROPOSED PRODUCTION WELL. FR EXISTING PRODUCTION WELL PROPOSED SITE LAYOUT + RAILIAY iL TlProvect sounoary 175 METER BUFFER 5 mneutones CONTAINMENT CELLS. owe: {PROPOSED SITE LAYOUT PLAN PROVIDED BY “ee FORTUNE MINE
Slide 16: Fortune Minerals Limited
FORTUNE MINERALS LIMITED www.fortuneminerals.com
Slide 17: Fortune Minerals Limited
FORTUNE MINERALS LIMITED www.fortuneminerals.com = S ~, oavehiealh be) ee HOM PES p pyar? ie
Slide 18: SMPP Site Layout – South Side
SMPP SITE LAYOUT – SOUTH SIDE Service Complex IX Reagents Precipitation Solid/Liquid Separation Autoclave Flotation 18
Slide 19: SMPP Site Layout – North Side
SMPP SITE LAYOUT – NORTH SIDE Oxygen Plant Cu SX/EW Co EW Process Water, RO Cyanidation Bismuth Building Warming Shed Cooling Pond 19
Slide 20: SMPP Processing
SMPP PROCESSING 1. Bulk concentrate processed by secondary flotation to produce 1 separate gold-bearing cobalt & bismuth concentrates 2. Bismuth concentrate processed 4 by ferric chloride leach - then electro-winning to 99.5% cathode 5 2 3. Cyanidation of Bismuth residue for gold recovery 4. Pressur
Slide 21: Diversified Exposure to Gold & Specialty Metals: Bismuth and Copper
DIVERSIFIED EXPOSURE TO GOLD & SPECIALTY METALS Bismuth: Largest deposit in world – China principal source – supply concerns World consumption: ~15,000T Traditional markets – fusible alloys, cosmetics, chemicals, ointments, medicines, lubricants, electronics & flame retardants New markets –
Slide 22: Diversified Exposure to Gold & Specialty Metals: Gold and Cobalt
DIVERSIFIED EXPOSURE TO GOLD & SPECIALTY METALS Gold: Largest source of revenue in first yr of operation – Counter cyclical hedge Cobalt: Significant demand growth - Principal sources in politically unstable countries World consumption: ~70,000T ~ 6% annual growth Metallurgical markets: high
Slide 23: Process Water Requirements
Process Water Requirements Process Water Overall process water requirement is 50 cubic metres(m3)/hour (183 GPM) Would require 80 m3/hour (293 GPM) at start-ups Water will be drawn from the Dalmeny aquifer from two wells with a third in reserve Alternative Water Source Investigation Stud
Slide 24: Deep Well Injection of Chlorides
Deep Well Injection of Chlorides Fortune will be able to re-cycle process water within the facility Chlorides will build up in the process water to a point where they will need to be discharged or the chlorides in the water will harm the equipment TDS of solution will be 47,600 mg/L Fortune
Slide 25: Engineering Studies
Emerging Strategic Metal & Coal ENGINEERING STUDIES Producer
Slide 26: Geotechnical Investigations
Geotechnical Investigations Test Pit Excavation Excavated test pits to describe the soils encountered Geotechnical field and laboratory tests. Geotechnical Investigation for Foundations Analysis Objective was to determine engineering design criteria for the design and construction of site
Slide 27: Geotechnical Investigation Site Map
j Morz3s snsess-orr ‘Bo 1 oes, ies 2112-26 a Sc W2112-04n" 2112-0488 nan2.13 - nani2-12 Nao Maa hwzni2-18 Mens —4 S212.25 ONRAILIMay 2112-27 Matt2-08 ne1129 e Mani2.14 2112-32 ole hy Tse es28 SS 228) | Seige MEE 3 ns wari210 PNEIIDOSS _ PROPOSED, RAILWAY SPUR | @ vani25 M2n12.23 Mais2.22 nen221% Nes
Slide 28: Hydrogeological (Groundwater) Field Studies
Hydrogeological (Groundwater) Field Studies The groundwater studies provided information on the following: Shallow hydrogeology (groundwater); Baseline conditions for the major aquifers beneath the proposed site; and, Other hydrogeological baseline information in support of the design of the S
Slide 29: Groundwater Investigations
Groundwater Investigations 26 boreholes were drilled at 21 locations; including 5 piezometer stack locations (2 at each location); 5 deep boreholes were drilled to provide stratigraphic information; 21 shallow auger holes were drilled for both geotechnical and hydrogeological purposes; 5 p
Slide 30: Fortune Minerals Limited
tle Ta S> (1 \\ mi DW) FORTUNE MINERALS LIMITED www.fortuneminerals.com CaN
Slide 31: Process Residue Storage Facility (Storage)
Process Residue Storage Facility (Storage) Approximately 158,000 tonnes/year of process residue; Cells 1-8 will provide 18 years of residue storage capacity; Each cell will hold between 2 and 2.5 years of residue; The design allows for an additional 7 years of storage capacity if Fortune sho
Slide 32: Process Residue Storage Facility (Design)
Process Residue Storage Facility (Design) A ‘dry tomb’ approach will provide long-term storage of the residue Each cell will: be constructed above the groundwater table and be capped with a ‘store and release’ engineered cover system when full; consist of a 4.65 m deep excavation and 2 m hig
Slide 33: Environmental Studies and Impact Assessments
Emerging Strategic Metal & Coal ENVIRONMENTAL Producer STUDIES AND IMPACT ASSESSMENTS
Slide 34: Environmental Impact Statement
Environmental Impact Statement Fortune is currently compiling the Environmental Impact Statement (EIS) for submission to Saskatchewan Ministry of Environment (SE): Draft Project Specific Guidelines (PSG’s) have been issued for public comment and are available at the following website: www.enviro
Slide 35: Environmental Studies
Environmental Studies Baseline environmental studies of the site and surrounding area were completed in the spring, summer, and fall of 2010 and included: Water quality (surface and groundwater); Air quality (dust fall collection); Hydrology; Noise (baseline noise levels); Soils characte
Slide 36: Water Quality Sampling
Water Quality Sampling Water quality samples were taken from both surface water and groundwater sources Routine water chemistry (total alkalinity, bicarbonate, hydroxide, carbonate, chloride, pH, conductivity, nitrate-N, nitrite-N, ion balance, total dissolved solids (TDS), hardness, calcium, po
Slide 37: Sampling Locations Map
Legend 1Ma112-034 j Mati2.038 2112-28 ONRATEWay 2112-048" 2112-048 i ---—------—----_-, Cl Meuzse, M2112-29 Non2-12 Seat = - wai12-27 rare 2112-18 woun2-22 buzri216 Al 212-20 menos) ae Ha hee ee Was oe sn St mene28) | 3 J S22.25 eaten Me M2112-10 — PROPOSED Manes 2112-19 e buati2ts e RaTTSROSN YP sz
Slide 38: Third Party Water Well Baseline Study
Third Party Water Well Baseline Study Objective was to collect baseline background chemistry from existing users within a 3.2 km radius around the site; Fortune staff visited and interviewed 31 3rd party well owners in April and June 2010; Water samples from each well were submitted to an Accr
Slide 39: SMPP Water Withdrawal From Aquifer
SMPP Water Withdrawal From Aquifer Pump test showed a long-term production rate of 121 GPM To meet SMPP water demand of 183 GPM, a well array will be used (2 actives wells and 1 back-up) A conservative 3D groundwater flow model was used to determine the short and long-term impact of SMPP aquif
Slide 40: Simulated Drawdown Year 2011
Legend =, SELECTED OBSERVATION WELLS © FOR NUMERICAL MODEL ‘© PROPOSED PRODUCTION WELL © PRODUCTION WELL, HIGHWAY + RAILWAY SIMULATED ORAWDOWN CONTOUR (0.5 METER INTERVAL) (221 FORTUNE MINERALS LIMITED SITE (Ta mopeLie0 AREA (INTERPRETED AREAL LMTs (OF THE UPPER FLORAL AQUIFER, ( simutaTeD UNCONFINE
Slide 41: Simulated Drawdown Year 2029
Legend ‘SELECTED OBSERVATION WELLS © FORNUMERICAL MODEL ‘© PROPOSED PRODUCTION WELL © PRODUCTION WELL Highway —— Raiway SIMULATED DRAVIDOWN, ‘CONTOUR (0.5 METER INTERVAL) T 1 FORTUNE MINERALS UMITED SITE (777 MODELLED AREA [INTERPRETED AREAL LiMiTs (OF THE UPPER FLORAL AQUIFER [=] smutaten uNconFINe
Slide 42: Simulated Drawdown Year 2049
Legend ‘SELECTED OBSERVATION WELLS © FOR NUMERICAL MODEL PROPOSED PRODUCTION WELL PRODUCTION WELL Highway —— RaLway _— SIMULATED HYDRAULIC HEAD CONTOUR (1 METER INTERVAL) 1.2 21 FORTUNE MINERALS LIMITED SITE (27 MODELLED AREA [INTERPRETED AREAL LMITS (OF THE UPPER FLORAL AQUIFER [ smutateo UNcoNFINE
Slide 43: Air Quality Modeling Results
Air Quality Modeling Results The estimated concentrations of PM2.5 and all metals including Cobalt beyond the property boundary are lower than the regulatory ambient air objectives; Dominant Green House Gases (GHG) from the proposed facility include CO2, water vapour, and NOX; The GHG emission
Slide 44: Noise Modeling Results
Noise Modeling Results The results of the noise modeling indicate that the Permissible Sound Level is slightly exceeded at two of the receptor locations (R2 and R4); However, further noise monitoring will not be completed at this time, since actual noise levels are expected to be lower than thos
Slide 45: Process Residue Storage Facility (Closure)
Process Residue Storage Facility (Closure) Cells will be capped with an engineered cover once filled; The cover over the cells will greatly reduce dust generation; A vegetated store and release cover with a capillary barrier should greatly reduce the amount of water and oxygen entering the sto
Slide 46: 46
46
Slide 47: Employment
Employment Approximately 85 people will be employed in the following areas: Processing Plant Metallurgists Foreman Operators Analytical Group Chemists Technicians Power and Maintenance Services Superintendent Engineers Various trades (e.g. welder, millwright, pipefitter, carpen
Slide 48: Future Opportunities for SMPP
FUTURE OPPORTUNITIES FOR SMPP Expanded production from NICO (Sue-Dianne deposit) Custom processing of ores & concentrates from other projects Central location with rail access for receiving concentrates & delivery of products Sophisticated hydrometallurgical process plant for processing uniq
Slide 49: Emerging Strategic Metal & Coal Producer
Emerging Strategic Metal & Coal Producer For further information, please contact: Pat Moloney, Manager Human Resources 140 Fullarton Street, Suite 1902 London, Ontario, Canada N6A 5P2 Tel. (519) 858-8188 Fax. (519) 858-8155 E-mail. info@fortuneminerals.com Website. www.fortuneminerals.com TSX-FT
Fortune Minerals — Investor Presentation (February 2011) on 6ix