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Fortune Minerals Ltd T.FT

Alternate Symbol(s):  FTMDF

Fortune Minerals Limited is a mining company. It is engaged in the exploration and development of mineral properties in Canada. It is focused on developing the NICO Cobalt-Gold-Bismuth-Copper Project in the Northwest Territories and Alberta that produces a bulk concentrate for shipment to a refinery that it plans to construct in southern Canada. It also owns the satellite Sue-Dianne copper-silver-gold deposit located 25 kilometers (km) north of the NICO Deposit and is a potential future source of incremental mill feed to extend the life of the NICO mill and concentrator. It also maintains the right to repurchase the Arctos anthracite coal deposits in northwest British Columbia. It also has a 100% interest in these 116 hectares of property south of Great Slave Lake with copper, silver, gold, lead and zinc showings. It has a 1% net smelter royalty covering 78 hectares of land positioned in a former silver mining district, located south of the Eldorado mining district at Great Bear Lake.


TSX:FT - Post by User

Comment by MoneyMan123456on Aug 05, 2022 3:36pm
103 Views
Post# 34875054

RE:RE:Drill / ok experts

RE:RE:Drill / ok experts

There is a little more nuance to exploration and classification of resources (proven / probable) and reserves (indicated / measured) then you've described, but in general I agree with your comment that FT can't really afford to delineate more proven resources at the moment. 

I don't think however that the FS and related geotechnical studies / permits would be necessarily invalidated merely by the addition of additional drill holes.  All of these were built and modelled by the drilling done to define the proven resource, and as long as the project hadn't materially changed, would remain valid.   I doubt they would bother drilling in areas where the proven resource has already been defined.

My point in this is that it would be very advantagous for FT to continue exploration drilling and provide some expectation that the resource can be materially increased in size.  They don't necessarily have to increase the proven reserves, just have some high-value hits that strongly indicate the resource can  be increased in size with more drilling.  A pit redesign is a relatively straightforward process from a permitting perspective anyways and unlikely to trigger EA.

There is no doubt that the FS needs to be updated anyways.

In my opinion, the NICO project appears to be only marginally profitable under a best case scenario.  They need to increase the size of the project to make the economics make sense and take advantage of economies of scale.
 

JMHO

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