RE: Fortune's Goldfrom the press release
New reserve estimates are being prepared by P&E Mining Consultants Inc. ("P&E"), based on updated, higher commodity prices from those used in the Company's definitive feasibility study and update. The new reserves will also incorporate the planned operational improvements for the project that have been developed over the past year, which include: a new more efficient mine plan, a higher 4,650 tonne per day production rate, and the higher metal recoveries and the production of additional metal cathode products that were proved in the Company's pilot plant (see Fortune Minerals News Release, dated February 24, 2009). By-product copper cathode is now also planned to be produced from NICO and consequently, copper will be included in the new reserve estimates in preparation. Fortune Minerals expects to release the new reserve estimates later this year.
from their presentation
NICO Gold-Cobalt-Bismuth-Copper deposit, Northwest Territories
Cobalt –Feasibility Base Case US$ 16.50 / lb -Today ~US$ 18 / lbGold –Feasibility Base Case US$ 525 / oz -Today ~US$ 900 / oz
Bismuth –Feasibility Base Case US$ 4.50 / lb -Today ~US$ 8 / lbCopper & nickel by-productpp yp
FEASIBILTY STUDY RESULTS
Proven & Probable Reserves21.8 million tonnes -1.08 g/t Au, 0.13% Co, 0.16% Bi
15-year mine life (feasibility study) -13 years with production increaseCobalt: 60,603,000 lbs (27,950 tonnes)
Gold: 759,700 ozsBismuth: 76,956,000 lbs (34,916 tonnes)
Larger 57 million tonne resource -Scaleable
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How much of the resource base can be converted into mineable ore given the new pricing structure is the question.. is there a chance to move much closer to 1 million ozs of recoverable gold? That is the question the new reserve update will answer. The timing of the upgrade to reserves is opportune for the shareholders... that is for sure...