Fortune Minerals Limited · TSX:FT

Fortune Minerals — Investor Presentation (March 2010)

28 slides from Fortune Minerals's investor presentation, March 2010

  1. Slide 1: Emerging Strategic Metal & Coal Producer – Investor Presentation

    Emerging Strategic Metal & Coal P d Producer Investor Presentation March 2010 TSX-FT

  2. Slide 2: Forward-Looking Information

    FORWARD-LOOKING INFORMATION Some of the statements contained in the following material are forward-looking statements and not statements of fact. Such statements are based on the current beliefs of management, g , as well as assumptions p based on management g information currently available. Forwar

  3. Slide 3: Fortune Minerals Corporate Highlights

    FORTUNE MINERALS CORPORATE HIGHLIGHTS „ 2 development stage projects in permitting stage: „ NICO Gold-Cobalt-Bismuth-Copper Project, Northwest Territories & Saskatchewan „ Mount Klappan Anthracite Coal Project, British Columbia „ Both development projects: „ Positive P iti ffeasibility ibilit studie

  4. Slide 4: Corporate Information and Ownership

    „ Listing: TSX-FT „ Share Price: $ 0.76(52 week high/low : $ 1.04 / $ 0.38) „ Issued Shares: 94.78 million „ Fully Diluted: 121 36 million, 121.36 million which includes: Corporate „ 23.3 million warrants exercisable at $ 0.65- $ 3.00 Information „ 3.3 million options exercisable at $ 0.60 - $ 4.95

  5. Slide 5: Experienced Board & Management Team

    EXPERIENCED BOARD & MANAGEMENT TEAM Directors George Doumet Doumet, MSc, MSc MBA Chairman Director Chairman, Chemical Engineer – President & CEO of Federal White Cement Robin Goad, MSc, PGeo President & CEO, Director Geologist with 28 yrs of mining & exploration experience David Knight, BA, LLB Secr

  6. Slide 6: Property Interests

    PROPERTYINTERESTS PROPERTY INTERESTS CanadaFocus Canada Focus- Operating - Operatingininmining miningfriendly friendlyjurisdictions jurisdictions 6

  7. Slide 7: NICO Gold-Cobalt-Bismuth-Copper Project, NWT & SK

    NICO GOLD-COBALT-BISMUTH-COPPER PROJECT, NWT & SK „ 100% Ownership – No 3rd party royalties „ $77 million work completed to date, including: „ $20 million test mining „ $5 million process pilot plant „ Aboriginal participation in all site programs „ 2007 positive feasibility study & 2008 update „ 32

  8. Slide 8: Location & Infrastructure

    LOCATION & INFRASTRUCTURE „ 5,140 140 H Ha mining i i llease iin south h part of NWT near existing infrastructure „ Winter access roads „ New all all-weather weather road planned by governments to Hwy 80 km south „ $18 million in place for stage 1 – realignment, bridges & roadbed „ Engineering & env

  9. Slide 9: Diversified Exposure to Gold & Specialty Metals

    DIVERSIFIED EXPOSURE TO GOLD & SPECIALTY METALS „ Gold: Largest source of revenue in early yrs of operation – counter cyclical hedge „ production d ti off ~80,000 80 000 oz iin each h off fifirstt 2 yrs off mine i lif life „ Cobalt: World consumption ~65,000T at 8% annual growth „ Metallurgical mark

  10. Slide 10: Diversified Exposure to Gold & Specialty Metals (Bismuth)

    DIVERSIFIED EXPOSURE TO GOLD & SPECIALTY METALS „ Bismuth: Consumption ~12,000-15,000T at ~10% annual growth „ Traditional markets – fusible alloys, cosmetics, chemicals, ointments, medicines, lubricants, electronics & flame retardants „ New markets – super conductors, CD’S & environmentally safe re

  11. Slide 11: Forecast NICO Cobalt and Bismuth Production vs. Major Producers

    Average Forecast NICO Cobalt Average Forecast NICO Production vs. Major 2008 Bismuth Production vs. 2008 R Recycling, li IntI t Producers World Production ermediate & Kazakhstan, Small Bolivia, Othe Producers r 20% 3% OMG Xstrata China 14% Teck 6% 68% Cominco, Ca Sherritt nada China 5% 1% 28% Umicor

  12. Slide 12: Definitive Feasibility Study (2007) Updated (2008)

    DEFINITIVE FEASIBILITY STUDY (2007) UPDATED (2008) „ Study by Micon International, Met-Chem Met Chem Canada, Golder Associates & others „ Production: 4,000 tpd over 15 yrs „ Primarily open pit mine with underground mining also in yrs 1 & 2 „ Maximize gold recovery & high grades during initial produc

  13. Slide 13: Underground Test Mining & Pilot Plant

    UNDERGROUND TEST MINING & PILOT PLANT „ Mining conditions, conditions geometry & grades for deposit confirmed „ Environmental impacts assessed „ Portal, decline ramp & 2 mine levels established with ventilation raise to surface „ ~$20 million pre-production development completed „ Large sample colle

  14. Slide 14: Purchase of Golden Giant Mine (Hemlo) Mill

    PURCHASE OF GOLDEN GIANT MINE (HEMLO) MILL „ Acquired for $3.3 million from Newmont Canada Limited „ I l d surface Includes f facilities, f iliti b buildings, ildi equipment i t & $2 million illi iin spare parts t „ Relocation to NICO for significant reduction in CAPEX & project risk „ No environmen

  15. Slide 15: Golden Giant Equipment to Be Relocated to NICO

    GOLDEN GIANT EQUIPMENT TO BE RELOCATED TO NICO Equipment & buildings salvaged for NICO valued at C$40 million 15

  16. Slide 16: NICO Mineral Reserves Updated in 2010 – 43% Increase

    NICO MINERAL RESERVES UPDATED IN 2010 – 43% INCREASE Underground Mineral Reserves Tonnes Au (g/t) Co (%) Bi (%) Cu (%) Proven 1 403 000 1,403,000 2 23 2.23 0 16 0.16 0 22 0.22 0 04 0.04 Probable 767,000 2.92 0.17 0.19 0.03 Total 2,170,000 2.47 0.16 0.21 0.03 Open Pit Mineral Reserves Tonnes Au (g/t)

  17. Slide 17: Post-Definitive Feasibility Study (DFS) Improvements

    POST-DEFINITIVE FEASIBILITY STUDY (DFS) IMPROVEMENTS „ 43% increase in reserves to 31 Mt „ 4 Million equivalent ozs Au „ Mine life extended to 18+ yrs „ New, more efficient mine plan : „ Eliminated underground backfilling – lowers mining costs „ Increased contribution of high grade underground ores

  18. Slide 18: Post-DFS Improvements: Recoveries and Metal Production

    POST-DEFINITIVE FEASIBILITY STUDY (DFS) IMPROVEMENTS „ Improved recoveries from pilot plant: „ Gold 56-84%, 56 84% averages 72% „ Cobalt 83% „ Bismuth 70% „ Copper 52% „ Production of high value metal products: „ Gold doré „ 99.8% cobalt cathode „ 99.5% bismuth cathode (new higher value product vs c

  19. Slide 19: Saskatchewan Metals Processing Plant (SMPP)

    SASKATCHEWAN (SK) METALS PROCESSING PLANT (SMPP) „ NICO concentrates will be processed to metals at a hydrometallurgical plant to be built near Saskatoon „ Flotation at NICO reduces 4,650 tpd of ore to 180 tpd of bulk concentrate for delivery to SMPP by rail „ Concentrate transportation to refinery

  20. Slide 20: Sue Dianne Copper-Silver-Gold Deposit, NWT

    SUE DIANNE COPPER-SILVER-GOLD DEPOSIT, NWT „ 100% interest – subject to royalties „ Low strip open pit „ Highest grades close to surface „ Only 25 km north of NICO with attractive synergies „ Resources at 0 0.4% 4% Cu cut-off Classification Tonnes Cu (%) Ag (g/t) Au (g/t) Indicated 8,444,000 0.80 3.

  21. Slide 21: Mount Klappan Coal Project, British Columbia

    MOUNT KLAPPAN COAL PROJECT, BRITISH COLUMBIA Test mining 1985-86 Railway sub-grade „ Seeking a joint venture partner to help develop Mount Klappan „ Largest undeveloped deposit in North America – one of world world’ss largest „ 100% ownership – $1/tonne royalty to ConocoPhillips „ Positive feasibili

  22. Slide 22: Location & Infrastructure

    LOCATION & INFRASTRUCTURE „ 15,866 Ha licenses in northwest B.C. „ Proximity to deep water shipping ports „ Stewart (150km) – Truck access „ Prince Rupert (330km) – Rail access „ Leases straddle railway y right-of-way g y „ Track installed 150km south of mine „ Road access from railway subgrade „ Go

  23. Slide 23: World Anthracite Markets

    WORLD ANTHRACITE MARKETS Filter Media US$ 300 / tonne Metallurgical Reductants / charge carbon US$ 300 / tonne Ultra-Low Vol. PCI US$ 150 / tonne Sinter US$ 125 / tonne Power Generation US$ 100 / tonne „ Highest quality coal with very high carbon & energy content „ Represents only 1% of world coal r

  24. Slide 24: Mount Klappan Resources and Reserves

    MOUNT KLAPPAN RESOURCES AND RESERVES „ Mount Klappan Resources (million tonnes)(1) Area Measured Indicated Demonstrated Inferred Speculative Lost Fox 107.9 109.5 217.4 91.5 749.6 Hobbit-Broatch - 13.5 13.5 258.4 753.0 Summit - - - 9.6 508.9 Nass - - - - 201.5 Total 107.9 123.0 230.9 359.5 2,213.0 „

  25. Slide 25: Definitive Feasibility Study (2008 Update)

    DEFINITIVE FEASIBILITY STUDY (2008 UPDATE) „ Lost L Fox F Deposit D i study d by b Marston M & Marston M Inc. I „ Open pit mine, wash plant & site infrastructure „ Rail & truck transport options from mine to ports „ Production of 3 mtpa p clean coal „ 60.8 Mt of product coal reserves – sufficient fo

  26. Slide 26: Strategy to Increase Shareholder Value

    STRATEGY TO INCREASE SHAREHOLDER VALUE „ Market Capitalization p (~$ ( $ 71 Million)) undervalues 2 major j projects p j with feasibility y (1) NPV’s collectively > $1 Billion, ~$20 million cash & ~$40 million in Hemlo equipment(1) „ Independent development of NICO „ Fortune has engaged BNP Paribas

  27. Slide 27: Objectives for 2010

    OBJECTIVES FOR 2010 „ NICO Objectives „ Complete NICO debt facility with BNP Paribas „ Complete environmental assessment & permitting „ Complete purchase of site for Saskatchewan Metals Processing Plant „ Complete agreements with Tlicho Government „ Complete front-end engineering & commence equipmen

  28. Slide 28: Contact Information

    Emerging Strategic For further information, please contact: Metal & Coal Robin Goad,, President & Chief Executive Officer Lindsay Simmons, Investor Relations Coordinator P d Producer 140 Fullarton Street, Suite 1902 London, Ontario, Canada N6A 5P2 Tel. (519) 858-8188 Fax. (519) 858-8155 E-mail. info

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