Chibougamau Copper-Gold Project, Canada

Two diamond drill rigs about to arrive on site as part of strategy to grow the resource and test brownfield exploration targets

HIGHLIGHTS:

• Cygnus has secured additional ground next to its Chibougamau Copper-Gold Project, increasing its total land holding to 282km ²

• The newly staked areas add to a highly prospective land position which has seen limited modern exploration in the past 20 years
• Chibougamau Copper-Gold Project has a Measured and Indicated Mineral Resource of 3.6Mt at 3.0% CuEq and an Inferred Mineral Resource of 7.2Mt at 3.8% CuEq ¹
• The Chibougamau district is a world-class mineral terrane with strong potential for additional discovery; Historical production totals more than 945,000t of copper and 3.5Moz of gold across 16 former producing mines ²
• Two diamond drill rigs are set to start this week, targeting both resource growth and priority brownfield exploration targets, underpinning strong news flow
• The Chibougamau Copper-Gold Project includes a 900,000tpa processing facility – the only milling infrastructure within a 250km radius
• The district also has excellent infrastructure with a local mining town, a modern mining workforce training centre, sealed highway, airport, regional rail infrastructure and 25kV hydro power to the processing site

Cygnus Executive Chairman, David Southam said   : ‘Our immediate strategy is to create value through exploration at Chibougamau and we are wasting no time executing this aspect of our plan.

‘Expanding our ground position increases the upside at the project and reflects our strong belief in the immense exploration and resource growth potential.

‘All of this newly staked land is adjacent to the high-grade Chibougamau mining camp which has an incredible production record dating back over 65 years, producing almost 1 million tonnes of copper and 3.5 million ounces of gold’.

TORONTO, Jan. 08, 2025 (GLOBE NEWSWIRE) — Cygnus Metals Limited (ASX: CY5; TSXV: CYG) (‘Cygnus’ or the ‘Company’) is pleased to announce that it has expanded its land holding by 50 per cent at the Chibougamau Copper-Gold Project in Quebec, Canada and is about to start drilling.

Cygnus recently completed its transformative merger with Doré Copper Mining Corporation, creating a new leading player in the critical minerals sector with a strategic focus on high-grade copper and lithium assets in Quebec, Canada. A key motivation behind the merger was to advance the Chibougamau Copper-Gold Project which has established high-grade mineral resources of:

Measured and Indicated Mineral Resources of 3.6Mt at 3.0% CuEq and Inferred Mineral Resources of 7.2Mt at 3.8% CuEq (refer to Appendix A) ¹

The multi-pronged value creation strategy has a strong focus on resource growth and brownfield exploration with significant potential for additional discovery in the region. Part of that strategy was to bolster the ground position and provide additional exploration opportunity in a world-class mineral terrane that has historically produced nearly 1Mt of copper and 3.5Moz of gold over a 65 year history. ² This large and well-endowed mineral system is driven by the central Chibougamau Pluton with the recently acquired ground adding more of this highly prospective geology to the combined project.

The new claims have been acquired at minimal cost to Cygnus, being newly staked and open ground immediately surrounding the existing project, and are principally in the anorthosite band that surrounds the Chibougamau Pluton, which typically host mineral deposits in the Chibougamau mining camp. In total, 174 claims have been staked for 97km ² taking the combined Chibougamau Copper-Gold Project to 282km ² . This provides an excellent platform to drive growth through exploration in a highly prospective district.

In line with the Company’s resource growth strategy, drilling is about to start with two diamond drill rigs. This initial program will focus on resource growth opportunities surrounding some of the existing deposits aiming to build upon the existing high-grade resources. The Company looks forward to a high volume of news flow during 2025 with ongoing drilling updates and results.

Figure 1: Newly staked ground over the highly prospective Chibougamau Pluton and surrounding anorthositic host rock.

About the Chibougamau Copper-Gold Project

The Project is located in central Quebec, Canada approximately 480km due north of Montreal. The province of Quebec has been recognised as a top ten global mining investment jurisdiction in the 2023 Fraser Institute Annual Survey of Mining Companies. The Project has excellent infrastructure with a local mining town, sealed highway, airport, regional rail infrastructure and access to hydro power via installed powerlines.

The Project is centred on the Chibougamau Pluton with historic production in the Chibougamau mining district of 53.5Mt @ 3.4% CuEq ² from periodic mining between the early 1900s and 2008. Over this long mining history, the district has produced nearly 1Mt of copper and 3.5Moz of gold from 16 former producing mines. ²

The Project has high-grade resources including Measured and Indicated Mineral Resources of 3.6Mt at 3.0% CuEq and Inferred Mineral Resources of 7.2Mt at 3.8% CuEq with significant potential to grow (refer to Appendix A). ¹

The Company has a clear strategy to:

• Grow the current resource through brownfield exploration and investment in drilling, modern geophysics and other exploration activities
• Advance the project towards development through study work and utilising existing infrastructure

The Company sees substantial opportunity to create shareholder value by an established high-grade resource with opportunity for growth, excellent infrastructure, 900ktpa processing facility and clear pathway to production, all within a quality endowed mineral terrane that has seen minimal modern exploration.

Figure 2: Location of the Chibougamau Project relative to other major deposits and processing facilities. ³

This announcement has been authorised for release by the Board of Directors of Cygnus.

About Cygnus Metals

Cygnus Metals Limited (ASX: CY5, TSXV: CYG) is a diversified critical minerals exploration and development company with projects in Quebec, Canada and Western Australia. The Company is dedicated to advancing its Chibougamau Copper-Gold Project in Quebec with an aggressive exploration program to drive resource growth and develop a hub-and-spoke operation model with its centralised processing facility. In addition, Cygnus has quality lithium assets with significant exploration upside in the world-class James Bay district in Quebec, and REE and base metal projects in Western Australia. The Cygnus team has a proven track record of turning exploration success into production enterprises and creating shareholder value.

Forward Looking Statements

This document contains ‘forward-looking information’ and ‘forward-looking statements’ which are based on the assumptions, estimates, analysis and opinions of management made in light of its experience and its perception of trends, current conditions and expected developments, as well as other factors that management of Cygnus believes to be relevant and reasonable in the circumstances at the date that such statements are made, but which may prove to be incorrect. Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, or include words such as ‘expects’, ‘anticipates’, ‘plans’, ‘believes’, ‘estimates’, ‘seeks’, ‘intends’, ‘targets’, ‘projects’, ‘forecasts’, or negative versions thereof and other similar expressions, or future or conditional verbs such as ‘may’, ‘will’, ‘should’, ‘would’ and ‘could’. Although Cygnus and its management believe that the assumptions and expectations represented by such information are reasonable, there can be no assurance that the forward-looking information will prove to be accurate. Forward-looking information involves known and unknown risks, uncertainties, and other factors which may cause the actual results, performance or achievements of Cygnus to be materially different from any anticipated future results, performance or achievements expressed or implied by such forward-looking information. Such factors include, among others, the actual results of current or future exploration, changes in project parameters as plans continue to be evaluated, changes in laws, regulations and practices, the geopolitical, economic, permitting and legal climate that Cygnus operates in, as well as those factors disclosed in Cygnus’ publicly filed documents. No representation or warranty is made as to the accuracy, completeness or reliability of the information, and readers should not place undue reliance on forward-looking information or rely on this document as a recommendation or forecast by Cygnus. Cygnus does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

End Notes

1. The Mineral Resource estimate at the Chibougamau Project is a foreign estimate prepared in accordance with CIM Standards. A competent person has not done sufficient work to classify the foreign estimate as a mineral resource in accordance with the JORC Code, and it is uncertain whether further evaluation and exploration will result in an estimate reportable under the JORC Code. Refer to Appendix A for a breakdwon of the Mineral Resource Estimate and a summary of the assumptions.
2. Sources for historic production figures: Economic Geology, v. 107, pp. 963–989 – Structural and Stratigraphic Controls on Magmatic, Volcanogenic, and Shear Zone-Hosted Mineralization in the Chapais-Chibougamau Mining Camp, Northeastern Abitibi, Canada by François Leclerc et al. (Lac Dore/Chibougamau mining camp).
3. For regional resources in Quebec: (a) at Monster Lake and Nelligan, refer to IAMGOLD Corporations’ news release dated 15 February 2024; (b) at Windfall, refer to Osisko Mining’s NI 43-101 Technical Report filed with SEDAR on 10 January 2023; (c) at Canadian Malartic, refer to Agnico Eagle’s 2023 Annual Information Form; (d) at Opemiska, refer to XXIX’s news release dated 8 January 2024; (e) at Roger, refer to the SOQUEM and Enforcer Gold Corp’s NI 43-101 Technical Report dated 9 October 2018; and (f) at Chevrier, refer to Northern Superior Resources’s NI 43-101 Technical Report filed with SEDAR on 7 October 2022.

Qualified Persons and Compliance Statements

The scientific and technical information in this news release has been reviewed and approved by Ms Laurence Huss, the Quebec In-Country Manager of Cygnus, a ‘qualified person’ as defined in National Instrument 43-101 – Standards of Disclosure for Mineral Projects.

The Company first announced the foreign estimate of mineralisation for the Chibougamau Project on 15 October 2024. The Company confirms that the supporting information included in the announcement of 15 October 2024 continues to apply and has not materially changed. Cygnus confirms that it is not aware of any new information or data that materially affects the information included in the original announcement and that all material assumptions and technical parameters underpinning the estimates in the original announcement continue to apply and have not materially changed. Cygnus confirms that its is not in possession of any new information or data that materially impacts on the reliability of the estimates or Cygnus’ ability to verify the foreign estimates as mineral resources in accordance with the JORC Code. The Company confirms that the form and context in which the Competent Persons’ findings are presented have not been materially modified from the original market announcement.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

APPENDIX A – Chibougamau Copper-Gold Project – Foreign Estimate Disclosures as at 30 March 2022

Notes:

1. Cygnus Metals Ltd cautions that Mineral Resources for the Chibougamau Copper Project, incorporating Corner Bay, Devlin, Cedar Bay and Joe Mann, are reported in accordance with the requirements applying to foreign estimates in the ASX Listing Rules and, as such, are not reported in accordance with the JORC Code (2012 Edition). A Competent Person has not yet completed sufficient work to classify the resources as Mineral Resources that satisfy the guidelines provided in the JORC Code (2012 Edition). It is uncertain that following evaluation and/or further exploration work that the Mineral Resources will be able to be reported as Mineral Resources in accordance with the JORC Code (2012 Edition).
2. All resources have been prepared in accordance with CIM Standards. Please refer to Cygnus’ announcement on 15 October 2024 for additional technical information relating to the foreign estimate.
3. The Mineral Resource estimates include Inferred Mineral Resources that are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorised as Mineral Reserves. There is also no certainty that Inferred Mineral Resources will be converted to Measured and Indicated categories through further drilling, or into Mineral Reserves once economic considerations are applied.
4. Numbers may not reconcile precisely due to rounding.

¹ The Mineral Resource estimate at the Chibougamau Project is a foreign estimate prepared in accordance with CIM Standards. A competent person has not done sufficient work to classify the foreign estimate as a mineral resource in accordance with the JORC Code, and it is uncertain whether further evaluation and exploration will result in an estimate reportable under the JORC Code.

Photos accompanying this announcement are available at

https://www.globenewswire.com/NewsRoom/AttachmentNg/c232825e-b414-4476-bfbb-922828189faa

https://www.globenewswire.com/NewsRoom/AttachmentNg/8c5a2c23-3e19-429c-9a31-064227e84b29

Grande Portage Resources Ltd. (TSXV:GPG)(OTCQB:GPTRF)(FSE:GPB) (‘Grande Portage’ or the ‘Company’) is pleased to announce that it is initiating testwork for a sensor-based ore sorting system, utilizing samples from the New Amalga Mine Project located approximately 16 miles (25 km) northwest of the city of Juneau, Alaska

As previously announced, the Company’s Conceptual Mining Plan envisions the development of the New Amalga gold mine as a selective underground mining operation which would send ore off-site to be processed at a third-party facility, enabled by the project’s location near tidewater and less than 4 miles (6.5km) from existing paved highway (Fig 1). This results in a dramatically reduced mine site footprint due to the avoidance of chemical processing and tailings storage facilities. Processing options include potential use of third-party concentrator facilities around the Pacific Rim or direct shipment to smelters in East Asia.

Grande Portage has assembled a drill core composite which is reflective of the anticipated production from the Conceptual Mine Plan. The composite includes both ore and waste samples to reflect the expected dilution from wall rock (waste) which is inherent with underground blasting of narrow ore veins. This core is being subjected to a sensor-based ore sorting test process at the facilities of Steinert US Inc, a leading global manufacturer of ore-sorting equipment. The purpose of ore sorting is to quickly separate particles of waste dilution rock from the mined material, without the use of chemical reagents.

Sensor-based ore sorting utilizes a variety of measurements to determine whether a particle is ore or waste, including color, electromagnetic induction, and x-ray analysis to assess elemental composition. The crushed rock is placed on a conveyor belt and then dropped in front of the sensor, which rapidly analyzes the individual pieces of rock. When a piece of rock is identified as waste, a puff of compressed air redirects it to a ‘reject’ bin. The remaining pieces of rock are sent to the stockpile of accepted material. (Fig. 2)

The New Amalga deposit is considered a good candidate for use of ore sorting technology since the wall rock is often both visually and geochemically distinct from the quartz vein resource (Fig. 3).

Ian Klassen, President and CEO comments: ‘Sensor-based ore sorting is a well-established technology currently in use at many mines worldwide, and we are very excited to be working with Steinert to test its effectiveness on samples representative of the New Amalga conceptual mine plan.’

Mr. Klassen continued: ‘Integrating ore sorting into the production plan could significantly reduce the amount of mined rock requiring transportation and processing at a third-party facility, lowering per-ounce costs while also providing useful sorter-reject material for underground backfill as part of the mining cycle. This would further enhance the existing advantages of our proposed direct-ship mine configuration which utilizes offsite processing. It may also create opportunities for inclusion of thinner veins into the mine plan – areas of the deposit which otherwise may not have been considered viable.’

Fig. 1: Location of New Amalga Mine Project

Fig. 2: Simplified Conceptual Diagram of an Ore Sorting System

Fig. 3: Example of New Amalga Drill Core, Displaying Distinct Wall Rock vs Quartz Vein Intervals

The Company is also pleased to announce that it has entered into an advertising/e-marketing contract with 1000903966 Ontario Inc. to provide marketing services, including social media engagement through X (formerly Twitter), Facebook, YouTube and Reddit. The initial term of the agreement is 90 days, starting on January 6, 2025, and may be renewed with mutual written agreement. During the initial term, 1000903966 Ontario Inc., will be paid CAD$12,000.

Kyle Mehalek, P.E.., is the QP within the meaning of NI 43-101 and has reviewed and approved the technical disclosure in this release. Mr. Mehalek is independent of Grande Portage within the meaning of NI 43-101.

About Grande Portage:
Grande Portage Resources Ltd. is a publicly traded mineral exploration company focused on the New Amalga Gold Mine Project (formerly the Herbert Gold project) situated approximately 25 km north of Juneau, Alaska. The Company holds a 100% interest in the New Amalga property. The New Amalga Gold property system is open to length and depth and is host to at least six main composite vein-fault structures that contain ribbon structure quartz-sulfide veins. The project lies prominently within the 160km long Juneau Gold Belt, which has produced over seven million ounces of gold.

The Company’s updated NI#43-101 Mineral Resource estimate (filed in June 2024) reported at a base case mineral resources cut-off grade of 2.5 grams per tonne gold (g/t Au) and consists of: an Indicated Resource of 1,438,500 ounces of gold at an average grade of 9.47 g/t Au (4,726,000 tonnes); and an Inferred Resource of 515,700 ounces of gold at an average grade of 8.85 g/t Au (1,813,000 tonnes), as well as an Indicated Resource of 891,600 ounces of silver at an average grade of 5.86 g/t Ag (4,726,000 tonnes); and an Inferred Resource of 390,600 ounces of silver at an average grade of 7.33 g/t silver (1,813,000 tonnes).

ON BEHALF OF THE BOARD

‘Ian Klassen’
Ian M. Klassen
President & Chief Executive Officer
Tel: (604) 899-0106
Email: Ian@grandeportage.com

Cautionary Statement Regarding Forward-Looking Information
This news release includes certain ‘forward-looking statements’ under applicable Canadian securities legislation. Forward-looking statements include estimates and statements that describe the Company’s future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as ‘believes’, ‘anticipates’, ‘expects’, ‘estimates’, ‘may’, ‘could’, ‘would’, ‘will’, or ‘plan’. Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties as described in the Company’s filings with Canadian securities regulators. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.

Please note that under National Instrument 43-101, the Company is required to disclose that it has not based any production decision on NI 43-101-compliant reserve estimates, preliminary economic assessments, or feasibility studies, and historically production decisions made without such reports have increased uncertainty and higher technical and economic risks of failure. These risks include, among others, areas that are analyzed in more detail in a feasibility study or preliminary economic assessment, such as the application of economic analysis to mineral resources, more detailed metallurgical and other specialized studies in areas such as mining and recovery methods, market analysis, and environmental, social, and community impacts. Any decision to place the New Amalga Mine into operation at levels intended by management, expand a mine, make other production-related decisions, or otherwise carry out mining and processing operations would be largely based on internal non-public Company data, and on reports based on exploration and mining work by the Company and by geologists and engineers engaged by the Company.

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICE PROVIDER (AS THAT TERM IS DEFINED UNDER THE POLICIES OF THE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEWS RELEASE

SOURCE:Grande Portage Resources Limited

View the original press release on accesswire.com

The Company is advancing the NICO Project toward a construction decision with U.S. & Canadian Government financial support from critical minerals supply chain security programs

Fortune Minerals Limited (TSX: FT) (OTCQB: FTMDF) (‘ Fortune ‘ or the ‘ Company ‘) ( www.fortuneminerals.com ) is pleased to provide an update of ongoing work on the vertically integrated NICO cobalt-gold-bismuth-copper critical minerals project in Canada (‘ NICO Project ‘). The NICO Project is comprised of a planned mine and concentrator in the Northwest Territories (‘ NWT ‘) and a hydrometallurgical processing facility in Lamont County, Alberta where concentrates from the mine, and other feed sources, will be processed to value-added products needed for the energy transition, new technologies and defense. Fortune has been awarded ~C$17 million of non-dilutive contribution funding from the U.S. Department of Defense (‘ DoD ‘), Natural Resources Canada (‘ NRCan ‘), and Alberta Innovates to help finance the work needed to bring the NICO Project to a project finance and construction decision (see news releases dated, December 5, 2023, and May 16, 2024). Development of the NICO Project would provide a reliable North American supply of cobalt sulphate, gold doré, bismuth ingots, and copper precipitate enhancing domestic supply chains for three metals identified on the Canadian and U.S. Government critical minerals lists and a highly liquid and countercyclical gold co-product to mitigate metal price volatility.

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Highlights

• New comminution & flotation circuit designs to reduce capital & operating costs
• Concentrator modifications to improve gold, bismuth & cobalt recoveries
• Smaller hydrometallurgical bismuth circuit with lower capital costs & higher recoveries
• Successful leaching & cementation of blended Rio Tinto & Fortune bismuth streams

Feasibility Study Update

Fortune retained Worley Canada Services Ltd. (‘ Worley ‘) to lead the engineering for an updated Feasibility Study assessing the economics of the NICO Project at current costs and commodity prices. Worley is also assisting Fortune with permitting for the brownfield site in Lamont County, Alberta where the Company plans to construct its hydrometallurgical facility. The NICO Project was previously assessed in a positive Feasibility Study by Micon International Limited (‘ Micon ‘) in 2014 but is now out of date. Micon, P&E Mining Consultants Inc. (‘ P&E ‘) and WSP Golder, who participated in the 2014 study, are also engaged to assist Worley with preparation of the updated study and NI 43-101 Technical Report. The Feasibility Study is being supported with funding from the U.S. DoD and NRCan’s Global Partnerships Initiative (‘ GPI ‘) contribution funding.

The updated Feasibility Study will incorporate a number of improvements to the NICO Project identified by Fortune and Worley to deliver a more financially robust development. These include: the superior brownfield Alberta hydrometallurgical facility site with existing buildings; the new Tlicho Highway to Whati, NWT; a new geological block model with more constrained ore zone boundaries to reduce modelling dilution and better differentiate high-grade resource blocks for earlier processing; a new mine plan and production schedule with a stockpiling strategy to accelerate the processing of higher margin ores and reduce near-surface waste rock stripping; better equipment choices; and process optimizations from recent test work.

Worley has completed value enhancement studies improving the grinding and comminution, and flotation circuits for the planned concentrator in the NWT. A High-Pressure Grinding Rolls (‘ HPGR ‘) and vertical mills will replace parts of the previously designed circuit and ball mill with an anticipated ~C$7 million reduction in capital costs and ~C$1.3 million reduction in annual operating costs from a smaller plant footprint utilizing more energy efficient equipment. HPGR variability tests are in progress at SGS Canada Inc. (‘ SGS ‘) in Lakefield, Ontario to provide additional data for the detailed design.

Worley has also reviewed the Company’s historical flotation test work and piloting information and has identified opportunities using Jameson flotation cells to recover additional fine, 5- to 20-micron sized gold and bismuth particles contained in NICO deposit ores. Jameson cell tests were completed at SGS at a finer (minus 44-micron) grind size and the Company is pleased to report that these tests have confirmed an improvement in gold, bismuth and cobalt recoveries for the concentrator. A carbon column is also being designed into the secondary flotation circuit to capture the ~5% of contained gold that previously would have been dissolved and lost in the process water during bismuth and cobalt separation. Fortune is also investigating other options to reduce potential gold losses during the processing of high-grade, gold-rich ores.

Worley has also completed a minor realignment of the NICO access road design to reduce construction costs and has also completed the process flow diagrams, piping and instrumentation diagrams, and mass balance for the NWT concentrator. As part of the ongoing Feasibility Study improvements, Worley is also working on updated concentrator and hydrometallurgical facility designs to advance the vertically integrated development.

Test Work Update

Fortune collected between 15 and 16 metric tonnes of ores from its earlier test mining stockpiles at the NICO mine site and shipped this material to SGS for metallurgical test work and piloting. The test work is being financially supported with contribution funding from NRCan’s GPI and a $715,000 award in 2023 from the Critical Minerals Research Development and Demonstration (‘ CMRDD ‘), with additional financial support coming from Alberta Innovates’ Clean Resources Continuous Intake Program and the U.S. DoD. Phase 2 of the program, consisting of crushing, grinding and bulk and secondary flotation was successfully completed in Q3, 2024, producing gold-bearing cobalt and bismuth concentrates for hydrometallurgical testing.

The Phase 3 hydrometallurgical work is in progress and the results achieved to date are exceeding the Company’s expectations. Ferric chloride leaching of bismuth concentrate followed by cementation and purification test work achieved 97% bismuth recoveries, producing a cement grading up to 95% bismuth, and averaging about 0.2% iron as the main impurity. The data was used to support the bismuth circuit process design criteria on the basis of a 66% reduction of the leaching residence time, from three hours to one hour. Overall, the design criteria are predictive of a significant material reduction in the size, capital and operating costs for the bismuth circuit for the hydrometallurgical plant. The results are also predictive of about a 2% higher bismuth recovery than initially estimated for the bismuth leaching and cementation circuits. Fortune has retained XPS Industry Relevant Solutions to conduct the smelting and refining parts of the bismuth test work and complete the design of the bismuth pyrometallurgical circuit.

A preliminary pressure oxidation (‘ POX ‘) test on the cobalt concentrate was recently completed, but more comprehensive cobalt processing tests will be carried out in the first quarter of 2025. The cobalt test work will also include a value enhancement optimization of sequential gypsum precipitation to validate the production of a gypsum by-product from the autoclave effluent. If successful, a saleable gypsum by-product would provide a material improvement to the hydrometallurgical facility overall revenues and reduce waste disposal costs for the process residue.

Rio Tinto Process Collaboration

Fortune has a process collaboration agreement with Rio Tinto investigating the feasibility of recovering additional cobalt and bismuth at the Alberta hydrometallurgical facility by processing precipitates produced from Kennecott smelter wastes in Utah. Rio Tinto successfully generated a high-grade bismuth oxychloride intermediate from its Utah process streams and shipped samples of this material to SGS for testing using Fortune’s process criteria as well as blending with NICO bismuth concentrates. Leaching and cementation tests carried out on the Rio Tinto material blended with NICO bismuth concentrate were very successful, validating no material change in bismuth recoveries or metallurgical performance relative to treating unblended NICO bismuth concentrate. The feasibility of processing Rio Tinto material at the Alberta Hydrometallurgical facility has therefore been confirmed and additional work is planned by both companies to advance the collaboration. These blending validation studies are financially supported by NRCan’s GPI contribution funding and the U.S. DoD.

About the NICO Project

Fortune has expended approximately C$140 million to advance the NICO Project from an in-house mineral discovery to a near construction-ready development. The Company has secured the environmental assessment approval and the major mine permits for the facilities in the NWT and the municipal planning approvals for the Alberta hydrometallurgical facility. Additional permitting is required at both sites and is in progress with partial funding support from the U.S. DoD.

The NICO deposit and planned mine is situated in Tlicho Territory, approximately 160 km northwest of the City of Yellowknife and 50 km north of the community of Whati where the new Tlicho Highway currently terminates. A spur road from Whati is planned as part of the development to enable trucking concentrates to the railhead at Enterprise, NWT for delivery to Alberta and downstream processing.

The NICO deposit contains open pit and underground Proven and Probable Mineral Reserves totaling 33.1 million tonnes containing 1.11 million ounces of gold, 82.3 million pounds of cobalt, 102.1 million pounds of bismuth, and 27.2 million pounds of copper to support a ~20-year mine life. Fortune also owns the Sue-Dianne satellite copper deposit located 25 km north of the NICO deposit and is a potential future source of incremental mill feed for the Company’s planned concentrator. NICO and Sue-Dianne are iron oxide copper-gold (‘ IOCG ‘)-type mineral deposits with world class global analogues that support the exploration potential of the area and Fortune’s properties.

Ores from the NICO deposit will be mined primarily by open pit methods with a low waste to ore strip ratio. Portions of the higher-grade Mineral Reserves would be mined by underground open stoping methods to accelerate cash flows during early years of the mine life using the existing ramp and underground workings for access and ore haulage.

NICO ores will be processed in a concentrator constructed at the mine site with a 4,650 metric tonnes per day mill throughput rate and a low (4%) mass pull during bulk flotation that captures the recoverable metals in only 180 tonnes of bulk concentrate per day. A very efficient secondary flotation process separates the ore minerals into gold-bearing cobalt and bismuth concentrates for low-cost transportation by truck and rail to Alberta.

The hydrometallurgical facility is planned to be constructed in Lamont County in Alberta’s Industrial Heartland, approximately 50 km northeast of Edmonton. Cobalt concentrate will be processed by POX in an autoclave to dissolve the contained metals, followed by sequential neutralization, copper cementation, and solvent extraction purification and crystallization of cobalt sulphate heptahydrate. The bismuth concentrate will be processed by ferric chloride leaching, followed by cementation, and smelting to 99.995% bismuth ingots. Gold will be recovered by leaching the combined autoclave residue, followed by carbon elution and smelting to doré bars.

Development of the NICO Project would provide a reliable, vertically integrated domestic supply of cobalt, gold, bismuth and copper with supply chain transparency and custody control of the metals from ores through to the production of value-added products. Fortune’s cobalt production is targeting the lithium-ion rechargeable battery industry for use in electric vehicles, portable electronics and stationary energy storage cells. The NICO deposit contains 12% of global bismuth reserves and the ingots produced by Fortune will be marketed for automotive glass and steel coatings, low melting temperature and dimensionally stable alloys, and an environmentally safe and non-toxic replacement for lead in brass, solder, steel, aluminum and galvanizing alloys, paint, radiation shielding, ceramic glazes, ammunition and fishing weights. New applications also include environmentally safe plugs to properly seal decommissioned oil and gas wells, magnets for EV powertrains, and alloys used in the nuclear and defense industries. Notably, gold, bismuth and copper prices have all been increasing and compensate for the short-term weakness in the cobalt price.

For more detailed information about the NICO Mineral Reserves and certain technical information in this news release, please refer to the Technical Report on the NICO Project, entitled ‘Technical Report on the Feasibility Study for the NICO-Gold-Cobalt-Bismuth-Copper Project, Northwest Territories, Canada’, dated April 2, 2014 and prepared by Micon International Limited which has been filed on SEDAR and is available under the Company’s profile at www.sedar.com .

The disclosure of scientific and technical information contained in this news release have been approved by Robin Goad, M.Sc., P.Geo., President and Chief Executive Officer of Fortune and Alex Mezei, M.Sc., P.Eng. Fortune’s Chief Metallurgist, who are ‘Qualified Persons’ under National Instrument 43-101.

About Fortune Minerals

Fortune is a Canadian mining company focused on developing the NICO cobalt-gold-bismuth-copper project in the Northwest Territories and Alberta. Fortune also owns the satellite Sue-Dianne copper-silver-gold deposit located 25 km north of the NICO deposit and is a potential future source of incremental mill feed to extend the life of the NICO concentrator.

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This press release contains forward-looking information and forward-looking statements within the meaning of applicable securities legislation. This forward-looking information includes statements with respect to, among other things, the exercise of the option by the Company and the purchase of the JFSL site, the construction of the proposed Hydrometallurgical Facility at the JFSL site, the potential for expansion of the NICO Deposit and the Company’s plans to develop the NICO Project. Forward-looking information is based on the opinions and estimates of management as well as certain assumptions at the date the information is given (including, in respect of the forward-looking information contained in this press release, assumptions regarding: the successful completion of the Company’s due diligence investigations on the JFSL site, the Company’s ability to secure the necessary financing to fund the exercise of the option and complete the purchase of the JFSL site, the Company’s ability to complete construction of a NICO Project Hydrometallurgical Facility; the Company’s ability to arrange the necessary financing to continue operations and develop the NICO Project; the receipt of all necessary regulatory approvals for the construction and operation of the NICO Project and the related Hydrometallurgical Facility and the timing thereof; growth in the demand for cobalt; the time required to construct the NICO Project; and the economic environment in which the Company will operate in the future, including the price of gold, cobalt and other by-product metals, anticipated costs and the volumes of metals to be produced at the NICO Project). However, such forward-looking information 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 risks that the 2021 drill program may not result in a meaningful expansion of the NICO Deposit, the Company may not be able to complete the purchase of the JFSL site and secure a site for the construction of a Hydrometallurgical Facility, the Company may not be able to finance and develop NICO on favourable terms or at all, uncertainties with respect to the receipt or timing of required permits, approvals and agreements for the development of the NICO Project, including the related Hydrometallurgical Facility, the construction of the NICO Project may take longer than anticipated, the Company may not be able to secure offtake agreements for the metals to be produced at the NICO Project, the Sue-Dianne Property may not be developed to the point where it can provide mill feed to the NICO Project, the inherent risks involved in the exploration and development of mineral properties and in the mining industry in general, the market for products that use cobalt or bismuth may not grow to the extent anticipated, the future supply of cobalt and bismuth may not be as limited as anticipated, the risk of decreases in the market prices of cobalt, bismuth and other metals to be produced by the NICO Project, discrepancies between actual and estimated Mineral Resources or between actual and estimated metallurgical recoveries, uncertainties associated with estimating Mineral Resources and Reserves and the risk that even if such Mineral Resources prove accurate the risk that such Mineral Resources may not be converted into Mineral Reserves once economic conditions are applied, the Company’s production of cobalt, bismuth and other metals may be less than anticipated and other operational and development risks, market risks and regulatory risks. 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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Fortune Minerals Limited  
Troy Nazarewicz
Investor Relations Manager
info@fortuneminerals.com
Tel: (519) 858-8188
www.fortuneminerals.com