YELLOWKNIFE - Fortune Minerals has moved one step closer to having its NICO project become a reality.

The company released a positive bankable feasibility study last week for the NICO gold-cobalt-bismuth project. The study shows the property has proven and probable resources of 21.8 million tonnes.

Robin Goad, president of Fortune Minerals: The company released a bankable feasibility study last week indicating the gold-cobalt-bismuth mine would have a minimum 15-year life span. - David Ryan/NNSL photo

The study also indicates the mine would have a minimum 15-year life span with the capital cost of the project estimated to be $215 million.

From an economic viewpoint the study looks positive, said Greg Taylor, spokesperson for Fortune Minerals.

"The number one factor in building is capital costs versus return," he said.

Based on current prices, the study estimates the proposed mine would generate cash flows of almost $84 million a year.

The feasibility study also provided metal production estimates for gold, bismuth and cobalt.

It would yield about 69,000 ounces of gold per year in the first two years of production and 24,000 ounces annually after that.

But the proposed mine's true treasures - cobalt and bismuth - are pegged at almost 1.5 million kilograms each annually.

Development of the site still hinges on commodity prices staying strong, said Taylor.

"So much depends on the commodity prices and the cost," he said.

Fortune Minerals plans to process the bulk of the metals on site. The company would move the recently purchased Golden Giant Mill to the property, located 160 km northeast of Yellowknife, from northern Ontario.

The company's next step is to proceed with applications for an environmental assessment and permits for the mine, while also focusing on financing.

Fortune will continue to do additional underground bulk sampling in 2007 at NICO, Taylor said.

One company that has benefitted from the NICO project is the Kete Whii/Pro Con joint-venture.

The firm has done extended underground exploration work at the property, said Pro Con president Ed Yurkowski.

Kete Whii/Pro Con has had 20-25 workers employed at Fortune Minerals' site and has signed a new contract for underground exploration work for this year, he said.

"We have a lot of respect for Fortune Minerals," he added.