Wish I had this behind my shitter

Introduction

2005 Concept

Fortune's 100%-owned NICO project in the Northwest Territories is a significant near-surface deposit containing an estimated 760,000 ounces of gold, 61 million pounds of cobalt, and 77 million pounds of bismuth. NICO has recently been assessed in a full bankable feasibility study, which contemplates a combination of underground and open pit mining and a process plant to produce gold doré, cobalt cathode and bismuth concentrate. Also, the Company has completed a second $10 million underground bulk sampling program and is in the first phase of moving the Golden Giant Mine mill and surface facilities at Hemlo , Ontario to the NICO site, the purchase of which will reduce projected capital costs for mine development.


Location

Location & Infrastructure:

The NICO property consists of more than 5,140 hectares of contiguous mining leases, located 160 km northwest of the City of Yellowknife, Northwest Territories, and 80 km north of the Tlicho community of Bechoko on the Highway between Yellowknife and Edmonton, Alberta .

NICO is 22 km west of the Snare hydroelectric complex, operated by the Northwest Territories Power Corporation. The study assumes installation of a power transmission line from Snare to provide the 13 MVA electrical demand load required by the project.

NICO is currently accessed by a government winter road to the nearby communities of Gameti and Wha Ti. Fortune is working with the Tlicho First Nation and the governments of the Northwest Territories and Canada to engineer and construct an all weather road to these communities and NICO, and also to connect with the roads already servicing the Snare hydroelectric facilities.

Bankable Feasibility Study
In January 2007, the Company received the positive results of a full, bankable feasibility study (BFS) assessing the Company's now wholly-owned owned NICO gold-cobalt-bismuth project. As a comprehensive analysis of a project's economics (typically +/- 15% precision), a BFS would be used by financial institutions to assess the credit worthiness of the project for financing. The NICO project BFS shows attractive economics at base case metal price assumptions and very attractive economics at current prices, which are substantially higher than base case*. The Company is now proceeding with an Environmental Assessment and permitting for the mine.

The Company is targeting production from the NICO deposit in 2010.

HIGHLIGHTS OF THE BFS:

• Proven and Probable Reserves of 21.8 million tonnes, sufficient for a minimum 15- year mine life;
• Capital costs of C$215.2 million;
• Annual metal production of:
  • Gold: Averages 69,000 oz in first 2 years; 24,000 oz in Years 3-15;
  • Cobalt: 3.25 million lbs as 99.8% cobalt cathode;
  • Bismuth: 3.23 million lbs contained in concentrate, averaging 45% bismuth;
  • In-situ reserves of 3.32 million equivalent oz of gold at base case prices;
• Economic results using base case metal price assumptions:
  • Pre-tax Internal Rate of Return (IRR) of 15.3%;
  • 8% discounted Net Present Value (NPV) of C$91.8 million;
  • Average production cash costs of US$7.05/lb for cobalt (net of by-product credits) or US$321/oz of equivalent gold ounces;
• Economic results using current metal prices:
  • Pre-tax IRR of 41.5%;
  • 8% discounted NPV of $484.4 million;
  • Average production cash cost of US$3.01/lb for cobalt (net of by-product credits) or US$252/oz of equivalent gold ounces;
• Already completed significant underground development and pilot plant testing; additional work planned in 2007;
• Golden Giant Mine (Hemlo) processing facility purchased and ready for relocation to NICO.

The NICO BFS was led by Micon International Limited (Micon) and Met-Chem Canada Inc. (Met-Chem) with a number of additional engineering companies that were retained to work on specific parts of the project. The study was based on the assessment of a combined open pit and underground mine processing 4,000 tonnes of ore per day (1,460,000 tonnes per annum) in a plant constructed at the site to produce gold doré, cobalt cathode and a high-grade bismuth concentrate. The feasibility study uses the 2-year trailing average prices as base case* for the contained metals (*US$525/oz of gold, US$16.50/lb of cobalt & US$4.50/lb of bismuth) and an exchange rate of US$0.84:C$1.00.

BFS Team:
The NICO BFS team was led by Micon with Ian Ward, P.Eng., as the Project Manager and Met- Chem Canada Inc. conducting the site and plant engineering. The Mineral Reserve estimates were prepared by Micon and P&E in accordance with the CIM Definition Standards on Mineral Resources and Reserves prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council, December 11, 2005. Mr. Terrence Hennessey, P.Geo., and Mr. Eugene Puritch, P.Eng., are the Qualified Persons responsible for the reserve estimates in accordance with National Instrument 43-101. P&E also conducted the mine planning, production scheduling and equipment selection for both the pit and underground workings. Golder Associates Ltd. was responsible for the design of the tailings and effluent treatment facilities, and also conducted the mine and site geotechnical engineering and environmental baseline studies. KVK Consulting Associates Inc. was retained to supervise the flotation metallurgy and assist with the process plant design and Hemlo plant purchase. EHA Engineering Ltd. supervised the hydrometallurgy engineering and assisted with the process plant design. EBA Engineering Consultants Ltd. carried out engineering and geotechnical services for the access road and tailings structures. A National Instrument 43-101 compliant summary of the BFS is available on the Sedar website (www.sedar.com).

TECHNICAL & MARKET REVIEW

Mineral Reserves:

Cross Section - 20+50W

The Mineral Reserves for the NICO deposit were estimated by Micon and P&E Mining Consultants Inc. (P&E) in 2006 based on net smelter return (NSR) cut-off values. Mr. Terrence Hennessey, P.Geo. and Mr. Eugene Puritch, P.Eng. as the Qualified Persons in accordance with National Instrument 43-101.

Open Pit Mineral Reserves (Cut-off C$32.21/t NSR)

Classification	Tonnes	Au (g/t)	Bi (%)	Co (%)
Proven Mineral Reserve	7,058,000	1.14	0.16	0.11
Probable Mineral Reserve	13,555,000	0.7	0.16	0.13
Total Open Pit Reserve	20,613,000	0.85	0.16	0.13

Underground Mineral Reserves (Cut-off C$77.13/t NSR)

Classification	Tonnes	Au (g/t)	Bi (%)	Co (%)
Proven Mineral Reserve	231,000	5.32	0.13	0.13
Probable Mineral Reserve	973,000	5.01	0.2	0.15
	1,204,000	5.07	0.19	0.14

Total Mineral Reserves

Classification	Tonnes	Au (g/t)	Bi (%)	Co (%)
Proven Mineral Reserve	7,289,000	1.27	0.16	0.12
Probable Mineral Reserve	14,528,000	0.99	0.16	0.13
Total Mineral Reserve	21,817,000	1.08	0.16	0.13

Total Reserve In-Situ Metal

	Gold (oz)	Bismuth (lbs)	Cobalt (lbs)
Total	759,700	76,956,000	60,603,000

The total of in-situ metals contained in the NICO reserves represents 3.32 million equivalent ounces of gold at base case metal price assumptions and 4.17 million equivalent ounces at current metal prices (US$625/oz Au, US $25/lb Co & US$8.00/lb Bi). The Proven and Probable Mining Reserves for the NICO deposit are sufficient to support a 15-year mine life at the 4,000 tonnes per day (1,460,000 tonnes per annum) production rate assessed in the study.


Pre-Production & Mine Plan:

1000m Concept View PDF

Development of the NICO deposit would incorporate a pre-production period of two years, which includes construction of a camp to accommodate the 185 person workforce, and the process plant and related site infrastructure. A total of 10 million tonnes of waste rock pre-stripping is also required prior to commencing production, which will supply aggregate to build the plant site, roads and tailings dam structures. Lower grade ores also mined during the pre-strip will be processed during a 6-month ramp-up period to commission the mill and downstream processing facilities.

Mining at NICO will concurrently involve both underground and open pit mining methods in the first two years of operations. This approach will enable Fortune to augment lower grade reserves in the upper parts of the pit with higher grade ores sourced from deeper in the deposit and accelerate the payback.

The pit would utilize conventional truck and shovel mining methods using a 10 cubic metre diesel hydraulic shovel and 91 tonne haul trucks. The waste to ore strip ratio for the open pit averages 3.9:1 over the life of the mine. Average open pit mining costs are estimated to be C$2.59 per tonne of rock moved.

In the underground workings, trackless mining will be used to provide 1,650 tonnes per day of high-grade ore to supplement the daily mill throughput. Access to the underground mine is by a 5 metre by 5 metre ramp driven at a minus 15% gradient, much of which has already been constructed as part of a bulk sampling program in 2006, and which is continuing in 2007. A combination of longitudinal and transverse retreat mining methods will be used with the ore blasted from stopes into draw points for extraction using 10 cubic yard (7.6 cubic metre) scoop trams and then loaded into 40 tonne haul trucks for transport to the crushing plant on surface. Backfilling will be done with cemented and unconsolidated rock fill. Fortune will own and operate the production loading and hauling fleet for the underground mine, while a contractor would provide mine development services. Total underground operating costs are estimated to be C$34.02 per tonne of ore mined.

Operating Costs:
Total average life of mine (LOM) operating costs for the major components of the NICO project are shown in the following table:

Item	Cost C$/t Ore
Underground Mining (2 Years Only)	34.02
Open Pit Mining	11.49
Processing	15.36
Power and Heat	6.91
Effluent Treatment	0.31
General and Administration	3.2
Metal and Concentrates Shipment	0.94
Total Average Cost LOM	39.4
Cobalt Cash Cost/lb Net of Base Case By-Product Prices	US$7.05
Gold Cash Cost / Equivalent oz at Base Case Prices	US$321
Cobalt Cash Cost/lb Net of Current By-Product Prices	US$3.01
Gold Cash Cost / Equivalent oz at Current Prices	US$252

Capital Costs:
The total direct and indirect capital costs to build the NICO mine are estimated to be C$215.2 million. It should be noted that most of the open pit mining equipment is assumed to be acquired under a lease purchase agreement with the supplier and is therefore accounted for in the operating costs and not the capital costs

Capital Item	C$M
Pre Production Development	16.3
Open Pit Mining Equipment	5.3
Underground Mining Equipment	3.4
Camp facilities	8.4
Plant & Surface	118.3
Tailings & Effluent Treatment Plant	7.3
Total Direct Costs	159.1
EPCM*, Contingency, Owners Costs	48.3
Working Capital	7.8
Total Indirect Costs	56.1
TOTAL	215.2

*EPCM = Engineering, Procurement and Construction Management


Process Plant:

Hemlo Mill

The NICO process plant will be constructed primarily using buildings and equipment already purchased in 2006 from the Golden Giant mine at Hemlo Ontario . New equipment will also be purchased to augment equipment that the Company does not presently own.

The process plant will have a conventional crushing and grinding circuit consisting of a primary jaw crusher, secondary cone crushers and ball mills. Simple flotation produces a bulk rougher sulphide concentrate that is approximately 5% by weight of the ore. The rougher concentrate is then re-ground to liberate fine bismuth from the cobalt minerals before being subjected to a secondary flotation process to produce cobalt and bismuth concentrates, both of which are gold bearing.

The bismuth concentrate averages 45% bismuth and, after it has been leached with cyanide to recover the contained gold, will be sold to a significant bismuth consumer under an off-take agreement.

The cobalt concentrate will undergo further processing at the site consisting of acid pressure leaching in an autoclave (optimized at 180º C), followed by ion exchange purification and electro-winning to produce a 99.8% cobalt cathode (metal) product.

In addition to the gold recovered from the bismuth concentrate, gold is also recovered by cyanidation of the autoclave residue and flotation cleaner tailings followed by carbon-in-pulp processing and production of gold doré.

Fortune has already completed preliminary pilot plant testing to verify the process flow sheet and predict recoveries and grades for the plant. A more comprehensive pilot plant program is planned in 2007 using ores mined during the underground bulk sampling program. The average total recovery for each of cobalt, bismuth and gold are 81%, 63%, and 59%, respectively.

Metallurgical Testwork- Bismuth product

In May 2007, Fortune announced the successful completion of metallurgical testwork at SGS Lakefield Research Limited (Lakefield), which produced an upgraded bismuth bullion (metal) product from concentrate at the NICO project. Production of bismuth metal at the NICO site would significantly reduce transportation and treatment charges from a third-party bismuth smelter and may materially improve the economics for the NICO development.

Lakefield conducted this metallurgical testwork on samples of bismuth concentrate produced from NICO ores in the mini-pilot plant that was completed in 2006. Two process methods were evaluated during the current program and the one using ferric chloride leaching and iron cementation hydrometallurgical processing proved to be the most effective with bismuth grades and recoveries sharply exceeding the Company's expectations.

The previously announced positive BFS assessing NICO envisioned a process plant producing 99.8% cobalt cathode, gold bullion and bismuth concentrate averaging 45% bismuth. This latest metallurgical testwork indicates preliminary results that a 94% bismuth metal product can now be produced at the site with recoveries in excess of 95% of the bismuth contained in concentrate.

Fortune now plans to prove the production of bismuth bullion in the larger scale pilot plant test scheduled to be carried out at Lakefield later this year. If warranted, the results of this pilot plant test may be incorporated into an addendum to the feasibility study while the project is being permitted for development.

The current testwork was conducted under the supervision of Al Hayden, P.Eng., a metallurgist specializing in hydrometallurgical processing, who was also part of the NICO feasibility team. He is a Qualified Person for the purposes of National Instrument 43-101.

METALS MARKETS

Average Gold Prices Chart

NICO contains significant amounts of gold and cobalt and is one of the world's largest bismuth deposits. The metal prices used in the NICO feasibility study are their respective 2-year trailing averages and are considered conservative relative to their current prices, which are all appreciably higher.

(Note: Current and projected metal prices are stronger than what were used for previous engineering work)

	Gold		~ US $700/oz
Cobalt	~ US $16.00/lb
Bismuth	~ US $4.50 /lb

Cobalt is a high strength, magnetic metal in increasing demand for a variety of chemical and metallurgical applications.