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1. Emerging Strategic Metal & CoalFortune Minerals Limited
Producer P d Investor Presentation March 2012 TSX-FT
2. FORWARD-LOOKING INFORMATIONThis document contains certain
forward-looking information. This forward-looking information
includes, ormay be based upon, estimates, forecasts, and statements
as to managements expectations with respect to,among other things,
the size and quality of the Companys mineral resources, progress in
development ofmineral properties, timing and cost for placing the
Companys mineral projects into production, costs ofproduction,
amount and quality of metal products recoverable from the Companys
mineral resources,demand and market outlook for metals and coal and
future metal and coal prices. Forward-lookinginformation is based
on the opinions and estimates of management at the date the
information is given and given,is subject to a variety of risks and
uncertainties and other factors that could cause actual events or
results todiffer materially from those projected in the
forward-looking information. These factors include the
inherentrisks involved in the exploration and development of
mineral properties, uncertainties with respect to thereceipt or
timing of required permits and regulatory approvals, the
uncertainties involved in interpretingdrilling results and other
geological data, fluctuating metal and coal prices, the possibility
of project costoverruns or unanticipated costs and expenses,
uncertainties relating to the availability and costs of
financingneeded in the future, uncertainties related to metal
recoveries and other factors. Mineral resources that arenot mineral
reserves do not have demonstrated economic viability. Inferred
mineral resources areconsidered too speculative geologically to
have economic considerations applied to them that would enablethem
to be categorized as mineral reserves. There is no certainty that
mineral resources will be convertedinto mineral reserves. Readers
are cautioned to not place undue reliance on forward-looking
informationbecause it is possible that predictions, forecasts,
projections and other forms of forward-looking informationwill not
be achieved by the Company. The forward-looking information
contained herein is made as of thedate hereof and the Company
assumes no responsibility to update them or revise it to reflect
new events orcircumstances, except as required by law. 2
3. Listing: TSX-FT Share Price: $ 1.02 Issued Shares: 117.1 117
1 millionCorporateC t Fully Diluted: 123.4 millionInformation
Market Cap: $ 119.4 million Working Capital: $ 26.0 million (Q3-
2011) ($ 3.9 million warrants exercised Dec.) Total Assets: $ 151.2
million (Q3-2011) China Mining Resources Group Ltd. ~13%Ownership
Manulife Global Management US ~ 10% Officer & Director Holdings
~21% (includes China Mining) Killian Charles, Industrial Alliance
Securities ($3.30 Target 01/31/12)Analyst Reports David Davidson,
Paradigm Capital ($2.85 Target 07/15/11) Michael Fowler, Loewen
Ondaatje McCutcheon ($2.65 Target 12/16/11)SharePerformanceP fAs of
February 24, 2012All values in C$ unless otherwise noted 3
5. EMERGING PRODUCER OF GOLD, MET. COAL & SPECIALTY
METALSKEY ASSETS Mount Kl M t Klappan A th it C l P j t B iti h C l
bi (BC) Anthracite Coal Project, British Columbia One of the worlds
premier metallurgical coal development projects JV partnership with
South Korean steel producer POSCO Collaboration with CN Rail to
extend railway infrastructure Accelerated development strategy with
f funding to construction in place NICO Gold-Cobalt-Bismuth-Copper
Project, Northwest Territories (NWT) & Saskatchewan 4 million
equivalent gold ozs (1) - Significant gold & cobalt - Largest
deposit of bismuth in world Mine & Concentrator planned in NWT
Vertically integrated metals processing plant planned near
Saskatoon, Saskatchewan Potential future mill feed from Sue-Dianne
Copper-Silver-Gold satellite deposit Two development projects -
Both: Positive definitive feasibility studies >$ 1.3 billion
combined base case NPV Successfully test mined & pilot plant
processed In permitting Deloitte & Touche engaged to secure
strategic partners New reserves & economics pendingp g
EXPERIENCED BOARD & MANAGEMENT TEAM Proven records in
permitting construction & mine operations (1) Using Metal Price
Assumptions: US$ 900/oz Au, US$ 20/lb Co, US$ 10/lb Bi, US$ 2.75/
lb Cu 5
6. MOUNT KLAPPAN ANTHRACITE COAL PROJECTOne of worlds largest
undeveloped metallurgical coal depositsAdvanced project with $ 87
million of work completedDefinitive Feasibility Study with robust
economicsRailway development strategy to port of Prince Rupert -
Allows for scalable expansionWorld-class JV partner secured with
POSCO - One of the worlds largest steel producersSupply shortages
of metallurgical coals with growing world consumption Railway
sub-grade links mine site with CN mainline & Ridley Terminals
6
7. JOINT VENTURE WITH POSCOPOSCO Canada (POSCAN) has acquired
20% interest in Mount Klappan. Highlights: Anticipated total
payments & cash contributions of $ 181 million based on current
capital cost estimates $ 30 million paid to Fortune, $20 million
contributed directly to the JV 20% of total development &
capital costs - $154 million under current estimates ft t ld l t it
l t illi d t ti t $ 17.2 million in additional payments at
production 20% of operating costs for 20% of production in-kind for
their own use Fortune is Project Manager & is compensated for
providing operational, technical & administrative support over
life of mineSecures world-class investor & strategic
partnerValidates Mount Klappan as one of world s premier
metallurgical coal development projects - worldsKey future supplier
to global steel industryAccelerates project development - Upfront
payment anticipated to provide 100% of funding tocomplete detailed
engineering, permitting & stakeholder consultations for
constructionMaintains significant upside for Fortune shareholders
$601 million post-transaction levered after-tax NPV (8%) for
Fortunes 80% interest at $175 per tonne for PCI based on current
reserves 7
8. ABOUT POSCOWorlds 3rd largest steel producer by crude steel
productionCrude steel production of 35.4 million tonnes in 2010 -
Sales for 12 months endedSeptember 30, 2011, totalled US$ 67.0
billionGwangyang Works - Largest steel mill in world, 22 million
tonnes capacityGlobal expansion p p plans towards g goal of 50
million tonnes total crude steel p productionLeading innovator in
steel production FinexHeadquartered in Seoul, South KoreaListed on
Korea (KRX), New York, London & Tokyo Stock Exchanges 8
9. STRATEGIC LOCATION & INFRASTRUCTURELarge license area in
northwest BC (15 866 Ha) (15,866Close proximity to deep water
shipping ports Stewart Port (150km) Ridley Terminals i P i Ridl T i
l in Prince R Rupert (330k ) t (330km)Mine site straddles railway
right-of-way Track (CN) installed to 150km south of mine Railway
road b d l R il d bed largely complete to mine l l i Road access
from railway subgrade Support of CN Rail for railway expansionBC
Government extending electrical grid to areaProject in Tahltan and
Gitxsan Territories BC Government sharing revenues with First
Nations 9
10. MOUNT KLAPPAN RESOURCES & RESERVES Significant
potential to upgrade & increase resources & new reserves
(expected Q2 2012) Lost Fox deposit remains open for possible
expansion Additional coal seams identified below 300 meters &
on adjacent lands Mount Klappan Resources (million tonnes)(1) Area
Measured Indicated Demonstrated Inferred Lost Fox 107.9 109.5 217.4
91.5 Hobbit-Broatch - 13.5 13.5 258.4 Summit - - - 9.6 Nass - - - -
Total 107.9 123.0 230.9 359.5 Historical resources included 2.2
billion tonnes in the speculative class, however, speculative
resources are no longer considered NI 43-101 compliant and such
resources should not be considered current. (2) Lost F M t ll L t
Fox Metallurgical Coal Reserves (million tonnes)(1) i lC lR ( illi
t ) Run Of Mine Coal Reserves 10% Ash Product Reserves Measured
Indicated Total In Situ Proven Probable Total Product 89.5 16.8
106.3 51.6 9.2 60.8(1) Richard Marston, PE is the Qualified Person
as defined by NI 43-101(2) 2.8 billion tonne resource in all
classes estimates by Marston & Marston Inc. as of February 2007
10
11. ANTHRACITE PRODUCTS Highest quality coal with very high
carbon & energy content Anthracite only 1% of world coal
reserves Metallurgical coal with diverse applications Filter Media
US$ ~ 1000 / tonne Metallurgical Reductants / charge carbon US$ ~
300 / tonne Ultra-Low Vol. PCI US$ ~ 175-200 / tonne Sinter US$ ~
150-175 / tonne Power Generation US$ ~ 125/ tonne Other products:
Blend coal with coking coal for making metallurgical coke Direct
coke replacement Urea fertilizers Heating & cooking briquettes
PelletizingSource: Company Information. 11
12. GROWING PCI DEMAND FROM STEEL PRODUCERS Use of Pulverized
Coal Injection (PCI) reduces th amount of coke d the t f k required
in steel production Steelmakers around the world are expanding PCI
use to reduce costs Low-vol PCI typically priced at 70% to 80% of
high quality hard coking coal Mount Klappan PCI will achieve a
higher price given its ultra-low volatile contentSource: Macarthur
Coal 12
13. EMERGENCE OF CHINA AS NET COAL IMPORTERWorld 2009
anthracite production: ~ 565 million tonnes China: 483 million
tonnes China became a net coal importer of anthracite in 2004,
coking coal in 2007, all coals in 2009 Vietnam: 43 million tonnes
Reduced exports to utilize production domestically Few new
high-quality deposits in mining friendly j g q y p g y
jurisdictions Coal & Anthracite Net Imports by China In million
mt 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 350.0 $300
$291 300.0 Coal Total 250.0 Anthracite Met Coal Price (US$/t) $215
200.0 167.7 $129 145.8 150.0 $125 $115 $98 103.4 100.0 $58 $47 $45
50.0 31.1 31.9 17.5 23.2 22.2 7.1 13.3 1.4 - (3.9) (4.0) (2.1)
(4.9) (25.4) (50.0) (46.1) (72.7) (68.3) (100.0) (83.6) Source:
China Coal Resource Website, Bloomberg 13
14. SIGNIFICANT FUTURE MET COAL DEMAND GROWTH Global Met Coal
Demand Increasing demand for good quality1,600 Million mt
metallurgical coals 1,4401,400 Chinas growth ~10% per yr >500
million mt demand increase over the next decade 1,185 Japan &
South Korea are1,200 with limited new production potential t ti l
increasing anthracite imports g p New steel technologies -
Lower1,000 920 emissions 800 Emerging economies are driving forces
for future metallurgical coal demand 600 Indias growth ~8% per yr
& - 400 Crude steel production expected to increase from 72.8
million tonnes to 124 million tonnes by 200 2012 & 293 million
tonnes by 2020 - 2010 2015 2020 Brazilian crude steel production
expected to increase from 26.5 Source: Peabody Global Energy
Analytics million tonnes to 103 million tonnes by 2030 Insufficient
supply of metallurgical coals to meet forecast global demand
14
15. RAILWAY UPGRADE & EXPANSIONRailway transportation of
coal provides lower operational risk over trucking Allows
forscalable expansion of production to take advantage of large
resource baseCN Rail operates between Prince George & port of
Prince Rupert & on Dease Lake Line toMinaret, 150 km south of
Mount KlappanRailway road bed largely constructed to mine site
Brownfield extension from MinaretSurvey & engineering of
railway extension - $ 317 8 million capital cost i l d d i 2010
DFSS i i f il t i 317.8 illi it l t included inCN collaborating on
railway upgrade & extension to Mount Klappan Existing railway
right-of-way & road bed 15
16. PORT OF PRINCE RUPERTIce-free, deepwater port 36 hours
closer to Asia than port of VancouverRidley coal terminal a
world-class coal & bulk materials handling facility Capable of
handling full Capesize vessels that reduces ocean freight Currently
handling ~70% of 16 Mtpa design capacity Expansion to 24 Mtpa in
progress Potential to expand to 50 Mtpa Opportunities for shared
cargos & blending of coals with other metallurgical coal
producers 16
17. 2010 DEFINITIVE FEASIBILITY STUDY November 2010 update to
2005 & 2008 DFS Based on railway transport of coal to Ridley
Coal Terminal in Prince Rupert Initial 3 Mtpa production from Lost
Fox deposit open pit mine, wash plant & site infrastructure
60.8 60 8 Mt of product coal reserves 20+ yrs production (only 3 6%
of global resource) 3.6% Premium ultra-low volatile PCI product Can
diversify product mix to produce premium products (charge carbon)
& sinter Life of mine average Free On Board (FOB) vessel cash
cost US$104 79/tonne (C$110 30/tonne) US$104.79/tonne
(C$110.30/tonne) Pre-Tax NPV (8%) In billions BASE CASE $4.5
Ultra-Low Volatile PCI $3.8 $4.0 US$175 / tonne (C$1 = US$ 0.95)
$3.3 $3.5 $3.0 $2.7 PRE-TAX AFTER TAX $2.5 $2.2 $2.0 $1.6IRR 25.4%
20.7% $1.5 $1.0NPV (8%) C$ 1,027.8 Million C$ 667.4 Million $1.0
$0.5 $0.5Capital (Years 1-4) C$ 768.4 Million $- (includes railway
capital) $150 / t $175 / t $200 / t $225 / t $250 / t $275 / t $300
/ t 17
18. SIGNIFICANT UPSIDE POTENTIALRail transportation allows for
higher annual production than 3 MtpaDFS reserves only represents
3.6% of total resource New reserves in preparation Updated reserves
in preparation for Lost Fox deposit that can support higher
production rates. Production can be expanded from adjacent Hobbit
Broatch deposit Current resource only identified to 300 meters
Additional coal seams identified at depth Budget in place for
additional drilling3rd Party contribution to railway capital costs
increases NPVBC Government extending electrical grid &
connection lowers power costs & enables use oflower cost mining
equipmentLease-to-purchase of mobile equipment fleet lowers upfront
capital costs & increases IRR One of worlds largest undeveloped
deposits - Railway extension to mine site allows for large,
scalable project that can be expanded large 18
19. ACCELERATED DEVELOPMENT STRATEGYJV partner now secured
& accelerated development program underwayNext steps include:
Update reserve estimate Complete updated feasibility study on the
Lost Fox Mine Complete engineering on railway transportation with
CN Rail Continue community & stakeholder engagement Complete
environmental permitting process C l t i t l itti Conduct
additional expansion drillingDeloitte engaged to secure 2nd stage
strategic partner Minority Mi i equity i i investor at the project
l h j level l Provision of debt & equity tied to off-take
Expertise in coal end market with strong financial position
Objective of announcing fully financed, permitted project at
conclusion of currently planned programs 19
20. NICO GOLD-COBALT-BISMUTH-COPPER PROJECT 100% Ownership No
3rd party royalties Open pit & underground mine & mill i N
th O it d d i ill in Northwest T it i (NT) t Territories
Saskatchewan Metals Processing Plant (SMPP) Vertically integrated
hydrometallurgical facility to produce gold dor, cobalt sulphate or
cathode, bismuth ingot & copper metal $ 100 million work
completed to date, includes: $ 20 million test mining $ 12 million
metallurgy & process pilot plants 2007 positive f iti
feasibility study & 2008 update ibilit t d d t 32.3% Pre-tax
IRR Pre-tax $ 361 million 8% NPV Significant recent improvements
not included g p 31 Million tonne reserve 4 Million eq gold ozs*
Golden Giant (Hemlo) buildings & equipment purchased &
dismantled to reduce capital costs Environmental A E i t l
Assessments advanced f mine & SMPP permitting t d d for i itti
* Using Metal Price Assumptions: US$ 900/oz Au, US$ 20/lb Co, US$
10/lb Bi, US$ 2.75/ lb CuTest mining 2006/2007 20
21. MINE LOCATION & INFRASTRUCTURE 5,140 5 140 Ha lease in
southern NT Winter access roads All-weather road planned by
governments to Hwy (135 km) $18 million in place for stage 1
realignment, bridges & roadbed Engineering & environmental
work underway y 450 km from railway at Hay River for transport of
concentrates to SMPP 160 km from City of Yellowknife 50 km from
Town of Whati 22 km from Snare Hydro Tlicho First Nation Settled
land claim Co-operative Relationship Agreement with Tlicho
Government 21
22. SASKATCHEWAN METAL PROCESSING PLANT (SMPP) High
concentration ratio of ore using simple flotation 4,650 tonnes of
ore per day reduced to only 180 tonnes of concentrate (3.8%
sulphide fraction) Allows concentrate to be shipped to Saskatchewan
for lower cost processing Hydrometallurgical plant to produce gold
dor, cobalt sulphate or cathode, bismuth ingot & copper metal
Agreement to purchase lands near Saskatoon Located on CN Rail line
- Close to Hwy Inexpensive power (5.7 cents/kWh) Close to natural
gas & reagent sources Skilled worker / engineer pool 85
employees 5 year tax holiday SMPP capital cost ~ $200 million NICO
SaskatoonCN Rail Canadian Route Map 22
23. DIVERSIFIED EXPOSURE TO GOLD & SPECIALTY METALS Value
by Metal at Spot PricesGold the most valuable component by value
CopperFront end gold recovery - largest source of 2%revenue in
first year of operation y p GoldBismuth is second largest by value
Largest Bismuth 35%bismuth deposit world-wide 33%High purity cobalt
metal (99.8%) or sulphatecommands premium price. Cobalt 30% Gold
907,000 oz @ $1651/oz Cobalt 82 Mlbs @ $16.00/lb Bismuth 109 Mlbs @
$13.25/lb Copper 27 Mlbs @ $3.35/lb Prices as at Oct 24, 2011
23
24. GOLD COUNTER CYCLICAL HEDGE Historical & Forecast Gold
Price$2,000 Gold price increased consistently in past $1,900 9
years, especially after recent economic$1,800 downturn
$1,591$1,600$1 600 While mine supply remains relatively flat,$1,400
$1,211 future demand continues to grow:$1,200 Growing physical
demand from$1,000 $873 $873 Asia & Central banks $800 $697 $604
Growing investment demand based $600 $410 $445 on currency
protection & safe $363 $400 $310 haven status $200 Provides a
flexible financing opportunity $- Source: Bloomberg; Energy &
Metals Consensus Forecasts, Oct 2012 24
25. COBALT ROBUST MARKET WITH INCREASING DEMAND World cobalt
production (in tonnes) Wide application of industrial usage60% 4%
Batteries (27%) 51% 5%50% Superalloy (19%) 6% 27% Hard Materials
(13%)40% 7% Colours (10%)30% Catalysts (9%) 9%20% Magnets (7%) 12%
7% 7% Hardfacing & Other Alloys (6%)10% 5% 5% 4% 10% 19% 3% 2%
2% 2% Tyre Adhesives, Soaps, Driers (5%)0% 13% Feedstuffs (4%) Vast
majority of cobalt sourced from regions that are 76,500 t market
with demand growing by approximately politically unstable or prone
to export restrictions 10% per year Wide metallurgical &
chemical market applications in: Congo currently accounts for 51%
of global supply batteries, high strength alloys, cutting tools,
catalysts, etc. China has the largest refining capacity (43% in
2010) Largest growth is in lithium ion & nickel metal hydride
but limited mine supply batteries for electronic devices &
hybrid/electric vehicles LME initiated futures market trading for
cobalt in High purity cobalt (99.8%) used in aerospace applications
(99 8%) 2010, resulting in a more liquid market Sulphate used for
batteries Source: USGS Industry Survey Source: Cobalt Development
Institute 25
26. BISMUTH ENVIRONMENTAL FRIENDLY WITH GROWTH POTENTIAL
Growing number of applications World reserves (in tonnes) Bismuth
prices continue to increase Alloys, solders and 300,000 others, 8%
250,000 240,000 Metallurgical 200,000additives, 27% 150,000 100,000
48,661 50,000 39,000 11,000 10,000 10,000 5,000 5,000 Chemicals and
pharmaceuticals, - 65% Traditionally used in fusible alloys,
cosmetics, chemicals etc. World market ~ 20,000 tonnes per year
Bismuth prices have risen, supported by steady demand &
constrained New markets focus on super China is the principal
source of bismuth supply conductors, CDs & auto anti-corrosion
& has total reserves of 240Kt, materials accounting for 80% of
world reserves Environmentally safe replacement for China has
closed 20% of its production lead in plumbing & electronic
solders, due to environmental concerns brass, ceramic glazes, free
cutting steel, NICO contains over 48Kt of bismuth, hot dip
galvanizing & paint pigments equivalent to 15% of world
reserves & Global framework to eliminate lead could the worlds
largest deposit increase bismuth consumption by 25% European
legislation to eliminate lead in electronics Source: USGS Industry
Survey Source: USGS Industry Survey 2010 Source: Asian Metal, Metal
Bulletin 26
27. NICO MINERAL RESERVES (TO BE UPDATED SHORTLY)Underground
Mineral Reserves Tonnes Au (g/t) Co (%) Bi (%) Cu (%) Proven
1,403,000 2.23 0.16 0.22 0.04 Probable 767,000 2.92 0.17 0.19 0.03
Total 2,170,000 2.47 0.16 0.21 0.03Open Pit Mineral Reserves Tonnes
Au (g/t) Co (%) Bi (%) Cu (%) Proven 15,019,000 0.85 0.12 0.16 0.04
Probable P b bl 13,797,000 13 797 000 0.71 0 71 0.12 0 12 0.15 0 15
0.03 0 03 Total 28,816,000 0.79 0.12 0.15 0.04Combined Mineral
Reserves Tonnes Au (g/t) Co (%) Bi (%) Cu (%) Proven 16,422,000
0.97 0.12 0.16 0.04 Probable 14,564,000 0.83 0.12 0.15 0.03 Total
30,986,000 0.91 0.12 0.16 0.04 Contained Metal 907,000 82 million
109 million 27 million ounces pounds pounds poundsReserve estimate
by P&E Mining Consultants Inc., Eugene Puritch, P.Eng. &
Fred Brown, CPG PrSciNat, Qualified Persons as defined by NI-43-101
27
28. 2010 DRILL PROGRAM38 holes drilled in 2010Drilling
successfully expanded deposit &intersected high-grade gold
intervals 51.3m averaging 2.2 g Au & 0.11% Co, g g g/t % ,
including 3m averaging 15.59 g/t Au, 0.46% Co, 0.05% Bi & 0.20%
Cu 8.00m averaging 4.74 g/t Au & 0.16% Bi, including 1m grading
35 g/t Au 3.38m averaging 11.59 g/t Au, 0.37% Co, 0.16% Bi &
0.14% Cu, including 1.67m averaging 20.04 g/t Au, 0.36% Co, 0.24%
Co 0 24% Bi & 0 13% Cu 0.13% 5.00m averaging 4.84 g/t Au,
including 2.5m averaging 9.21 g/t Au 20.1m averaging 0.38% Co &
0.37% BiNew Mineral Reserve estimates pending 28
29. UNDERGROUND TEST MINING & PILOT PLANTS Mining
conditions geometry & grades for conditions, deposit confirmed
Environmental impacts assessed Portal, decline ramp & 2 mine
levels established with ventilation raise t surface t bli h d ith
til ti i to f ~$ 20 million pre-production development completed
Large sample collected for $ 8 million pilot plant tests Proved
process flow sheet Verified production of high value metal products
Increase in metal recoveries over feasibility study Tangible
demonstration of successful p j g project to governments &
communities Reduced project risk 29
30. GOLDEN GIANT MINE (HEMLO) MILL, ONTARIOBuildings, equ p e
& spa e pa s acqu ed from Newmont Ca ada u d gs, equipment
spare parts acquired o e o CanadaRelocation to NICO for significant
reduction in capital costs & project riskNo environmental
liability for Hemlo siteDismantling & removal completed for net
cash cost of ~$ 19 millionDDemonstration of project execution on b
d t & schedule t ti f j t ti budget h d l 30
31. 2008 DEFINITIVE FEASIBILITY STUDYMicon, Met Chem, Golder,
SGS Lakefield & metallurgical & engineering experts
Met-Chem,Results: Pre-tax IRR 32.3% Pre-tax C$361 million 8% NPV
Pre-production Pre production capital cost C$213 million Cash Cost
US$1.41/lb Co (1)(2) Cash Cost US $259/oz Au equivalent (2) April
2008 metal price sensitivity increases IRR to 97.2% & NPV (8%)
to $1.5 billion(3)Study t f d tSt d out of date N New reserves
& operational i ti l improvements not i l d d C it l costs will
t t included Capital t illbe higher(1) Net of credits for gold and
bismuth sales(2) Base Case metal prices of US$750/oz Au, US$20/lb
Co, US$10/lb Bi and US$/C$ 0.97(3) April 2008 metal prices of
US$900/oz Au, US$50/lb Co, US$16/lb Bi and US$/C$ 0.97 31
32. POST-DEFINITIVE FEASIBILITY STUDY IMPROVEMENTS43% increase
in reserves to 31 Mt 18 Yr mine life - Excludes results of 2010
drilling16% production rate increase to 4,650 tpdMore efficient
mine plan - Eliminated underground backfillingIdentification of low
strip starter pit Eliminates pre-strippingCo-disposalCo disposal of
waste rock & tails Reduces dam structures & reclamation
costsCommodity price assumptions higher:Improved recoveries from
pilot plant: Gold 56-85%, Averages 76% , g Cobalt 84% Bismuth 73%
Copper 58% - Not previously includedHigher value metal products:
Bismuth 99.9% ingot Feasibility study assumed concentrate Copper
Copper metal Not included in feasibility studyHydrometallurgical
process plant relocated to Saskatoon Lower OPEX (~$7 million per
yr) Mitigates capital cost increase (~$30 million) ( $7 ( $30
32
33. RESULTS OF NICO PROJECT IMPROVEMENTSHigher forecast annual
metal production Gold yrs 1 & 2 of mine life ~70,000 ozs, yrs
3-18 ~35,000 ozs Cobalt ~ 3.4 million lbs (1,550 tonnes) Bismuth ~
3.65 million lbs ( (1,650 tonnes) ) Copper ~ 770,000 lbs (350
tonnes)Approximate cost per tonne $ 60 per tonne, $ 102 million per
yrApproximate revenue $ 110 per tonne, was $ 190 million per
yrCapital costs expected to be $400 millionUpdated economics p p
pending receipt of Front End Engineering & Design ( g p g g g
(FEED) Study by ) y yJacobs Engineering & other engineering
Co.s 33
34. DEVELOPMENT STRATEGYNew reserve estimates pending Focus on
expansion of goldFront End Engineering & Design Studies nearly
complete Currently reviewing draft Revised capital & operating
costs & financial modelEnvironmental Assessments advanced for
mine & SMPP permitting Developers Assessment Report submitted -
No deficiencies Saskatchewan Environmental Impact statement
submitted for SMPPExpanding management teamE diProduction targeted
in 2014Deloitte engaged to secure strategic partner - Ideal
partner: Minority equity investor at the project level Ability to
arrange & guarantee project finance facility Expertise in
cobalt or specialty metal end markets/off-take partner Committed to
an accelerated development plan 34
35. 2012 TARGETED MILESTONESMount Klappan pp Revised Project
Description submission to BC EAO (Q2) New reserves (Q2) Revised
economics (Q2) MOU with CN Rail (Q2) MOU with Gitxsan BC First
Nation (Q2) Second stage strategic partner(s) and project
financingNICO New reserve estimates (Q1) Revised economics (Q1)
Initiate Tlicho Participation Agreement (PA) Negotiations (Q4) SMPP
permits (Q4) Initiate discussions with the Wekezhi Land and Water
Board to advance EA process (Q4) Closure of Public Registry in the
DAR Review process (Q4) Strategic partner(s) and project financing
35
36. DirectorsMahendra Naik, B Comm, CA Chairman, Director CFO
Fundeco - Founding director & former CFO, IAMGOLDGeorge Doumet,
MSc, MBA Honorary Chairman, Director Chemical Engineer President
& CEO, Federal White CementRobin Goad, MSc, PGeo President
& CEO, Director Geologist - 30 yrs mining & exploration
experienceDavid Knight, BA, LLB Secretary, Director Partner, Norton
Rose specializing in securities & mining lawJames Excell, BASc
Director Metallurgical Engineer 35 yrs mining experience
BHP-BillitonWilliam BWilli Breukelman, BAS MBA PE k l BASc, MBA,
PEng Director Di t Chemical Engineer Ch i Ch i l E i Chairman, G d
GedexJames Currie, BSc (Hons), PEng Director Mining Engineer COO,
Kimber ResourcesThe Honorable Carl L. Clouter Director Commercial
pilot - former owner of charter airline in NWTShou Wu (Grant) Chen,
MSc, MBA Director Geologist Deputy Chairman & CEO, China Mining
Resources GroupManagementJulian Kemp, BBA, CA VP Finance & CFO
Chartered Accountant 20+ yrs mining financial experienceThomas
Rinaldi, BSc VP Operations Mining Engineer 30 yrs engineering &
operations experienceMichael De Carlo, BSc, BBA Project Manager
Mining Engineer 40+ yrs engineering & managerial experienceBill
Shepard Logistics Manager 15 yrs experience in procurement and
logisticsDr. Richard Schryer, PhD Director Regulatory & Aquatic
Scientist 20+ yrs experience in mine permitting & environmental
Environmental Affairs assessmentsAdam Jean, HBA, CA Controller
Chartered Accountant previously with Ernst & YoungJames
Mucklow, MESc, PEng Manager Env.& Community Geological Engineer
20+ yrs geological & environmental experienceKeith Lee, BSc
Senior Process Engineer 25 yrs operations, engineering &
mineral processing experienceCarl Kottmeier, MBA, PEng Project
Manager Mining Engineer 24 yrs engineering & operations
experience 36
37. NOTES 37
38. NOTES 38
39. NOTES 39
40. For further information, please contact: Emerging
StrategicTroy Nazarewicz, Investor Relations Manager 140 Fullarton
Street, Suite 1902 Metal & Coal London, Ontario, Canada
Producer P d N6A 5P2 Tel. (519) 858-8188 Fax. (519) 858-8155
E-mail. t E il tnazarewicz @f t i @fortuneminerals.com i l Website.
www.fortuneminerals.com TSX-FT