Doug Ashbury
Northern News Services

NNSL (Jun 15/98) - The latest Fortune Minerals Ltd. estimates point to a resource diverse enough to weather stormy mineral prices, company president Robin Goad said.

Fortune is currently in the advanced exploration stage at its 128.6 million tonne, $9.3 billion NICO deposit, part of the Bowl Zone, 160 kilometres northwest of Yellowknife. In the North, Fortune is also exploring the Sue-Dianne deposits.

The deposit contains an estimated 89.3 million kilograms of cobalt, 2.2 million ounces of gold, 99.5 million kilograms of bismuth and 66.3 million kilograms of copper.

The "in-the-ground" value of the resource is estimated at $9.3 billion.

The cobalt, at $11.25 a kilogram, is worth almost $5 billion.

"With gold below $300 (US an ounce), metal fluctuations are an issue," Goad said.

Cobalt and bismuth are currently trading at healthy values while gold and copper are at 10-year lows, he said.

"The new resource estimates therefore demonstrate that the Bowl Zone can be mined in progressively smaller, higher grade deposits," he said.

"This, with enrichment in several minerals, makes the deposit less sensitive to fluctuations in individual metal prices."

In a June 9 release, the company outlined high grade resources of 41.6 million tonnes grading 1.025 grams per tonne gold, .124 per cent cobalt, .133 per cent bismuth and .053 per cent copper at a cutoff value of $40 a tonne.

That 41.6 million tonnes includes 33.4 million tonnes grading 1.167 grams per tonne gold, .140 per cent cobalt, .154 bismuth and .052 per cent copper at a cutoff value of $50 a tonne.

The 33.4 million tonnes includes 9.1 million tonnes grading 4.074 grams per tonne gold, .086 per cent cobalt, .094 per cent bismuth and .023 per cent copper using a minimum value of one gram per tonne gold and a cutoff of $25 per tonne.

As well as mineral diversity, the resource has infrastructure nearby which makes it an attractive deposit, Goad also said.

The NICO property is just 22 kilometres from the Snare hydroelectric complex and 55 kilometres from the Mackenzie River.

London, Ontario-based Fortune was listed on the Toronto Stock Exchange Oct. 31, 1997.

The NICO property is 80-per-cent owned by Fortune. Private corporation Maple Leaf Terminals Ltd. owns the remaining 20 per cent.

Fortune chairman George Doumet is also president of Maple Leaf Terminals.

Fortune, with two camps, Dianne and Lou, anticipates it will continue resource delineation and definition in a few days. Environmental studies are also scheduled for this summer.

It is anticipated Fortune will name an engineering firm associated with pre-feasibility work soon.