Issued Capital: 150,526,976
LONDON, ON, Oct. 8, 2013 /CNW/ - Fortune Minerals Limited
(TSX: FT) (OTCQX: FTMDF) ("Fortune" or the "Company")
(www.fortuneminerals.com) has concluded its 2013 summer field work
at the Company's Arctos
Anthracite metallurgical coal project site in northwestern
British
Columbia ("BC"). On September 23,
2013, following several weeks of
drilling and environmental surveys and monitoring, the Company
announced its withdrawal of drilling equipment and camp facilities
from
the area in order to support a new course of mediation between
the
Government of British Columbia and
the Tahltan Central Council (see
Fortune News Release dated September 23,
2013). This withdrawal is now
substantially complete, and only periodic helicopter-supported
environmental monitoring and maintenance will continue to take
place
during the mediation.
"Fortune Minerals is stepping back to allow the BC and Tahltan
Governments the space they need to engage in a constructive
mediation
process that peacefully resolves the issues that have impacted work
in
and around our Arctos project site," said Robin Goad, President and CEO
of Fortune Minerals. "We have taken this measure to allow the
two
parties to discuss land and resource management issues without
the
pressure of protests taking place on or near our site."
Fortune's work to date at the Arctos project site has involved a
limited
amount of drilling to gather geochemical and geotechnical
information
along with archeological exploration and wildlife surveys that will
be
used in the BC Government's Environmental Assessment ("EA") of
the
proposed project. All of Fortune's work has been duly authorized
by
permits issued by the BC Government.
"Right now, Fortune's goal is to do everything required to support
a
comprehensive, fair and open BC EA process. It will evaluate the
Arctos
Anthracite Project's merits and impacts, taking into account
environmental, social and other values, including Traditional
Knowledge," said Goad. "The EA process provides opportunities for
all
voices with an opinion about the proposed project to be
heard."
"We have worked closely with the province of BC in determining
this
course of action, which comes with cost and delay for our Company.
We
therefore look forward to the province and the Tahltan Central
Council
making the best of this opportunity," said Mr. Goad.
Arctos is a proposed mine that would produce anthracite, a unique
and
rare metallurgical coal used primarily for steel manufacturing,
metals
processing and other products such as filters for water
purification.
To date, over $100 million worth of
work has been completed to safely
advance the project, including funds dedicated to supporting
local
community involvement. The project has the potential to generate
$10
billion in revenues and $900
million in combined federal and provincial
taxes over the mine's expected 25-year lifespan, while creating
over
500 high-paying jobs and employment for a 1,000 more in
supporting
activities. The proposed rail transportation of coal products uses
an
existing railway roadbed to help minimize the environmental
impacts
from this project and provide important legacy infrastructure to
serve
the future needs of the region.
Development of the Arctos project is consistent with the 2000
Cassiar
Iskut-Stikine Land Resource Management Plan ("LRMP"). This LRMP
was
developed by the BC Government with extensive local input,
including
the Tahltan Tribal Council and, set aside 26% of 5.2 million
hectares
as 'Protected Area', while also identifying the "substantial
resources
of high grade metallurgical coal" at the Arctos Anthracite Project
area
as appropriate for mining.
About the Arctos Anthracite Project
The Arctos project is one of the world's premier metallurgical
coal
developments with very large resources and reserves of high
rank
anthracite coal in northwest BC. The project is an
international
collaboration between Fortune (80%) and POSCAN (20%), the
Canadian
subsidiary of South Korea's POSCO,
one of the world's largest steel
producers.
The Arctos Project is located 330 km northeast of the Port of
Prince
Rupert and straddles the existing BC Railway right-of-way
that was
constructed by the BC Government in the 1970's and was
substantially
completed to the site. This existing brownfield transportation
corridor
is planned to be completed with rail to the current terminus of
track,
150 km south of the proposed mine where the Canadian National
Railway
is operating. The railway provides a simple and scalable
transportation
solution to the Ridley Coal Terminal in Prince Rupert for export of
metallurgical coal products to overseas steel manufacturers and
metal
processors.
A positive feasibility study for the Arctos Project was completed
in
2012 by Marston & Marston Inc., a division of Golder Associates
Inc.
(see "Technical Report on the 2012 Update of the Arctos
Anthracite
Project Mine Feasibility Study", dated November 28, 2012, filed on
SEDAR on November 29, 2012 and
available at www.SEDAR.com (the "Arctos Technical Report").
The disclosure of scientific and technical information contained in
this
news release has been approved by Robin
Goad, M.Sc., P.Geo., President
and CEO of the Company, who is a "Qualified Person" under
National
Instrument 43-101.
About Fortune Minerals
Fortune is a diversified resource company with several mineral
deposits
and a number of exploration projects, all located in Canada. The
Company is focused on the development of the Arctos Anthracite
Project
in BC and the vertically integrated NICO
gold-cobalt-bismuth-copper
project that is comprised of a mine and mill in the Northwest
Territories ("NT") that will produce a bulk concentrate for
shipment to
a refinery for processing to high value metal products. In
addition,
the Company owns the Sue-Dianne copper-silver-gold deposit and
other
exploration projects in the NT. Fortune is focused on
outstanding
performance and growth of shareholder value through assembly
and
development of high quality mineral resource projects.
This news release contains forward-looking information. This
forward-looking information includes statements with respect to,
among
other things: the Company's expectations with respect to
the
anticipated development of the Arctos and NICO Projects (the
"Projects"); the anticipated revenues from and jobs and taxes to
be
generated from the Arctos Project; and the expected mine life at
the
Arctos Project. Forward-looking information contained in this
news
release is based on the opinions and estimates of management as
well as
certain assumptions considered by management to be reasonable and
which
are made as at the date the information is given (including, in
respect
of the forward-looking information contained in this press
release,
assumptions contained in the Arctos Technical Report and other
assumptions regarding the Company's business). Readers should
be
cautioned that forward-looking information is subject to a variety
of
risks and uncertainties and other factors that could cause
actual
events or results to differ materially from those projected in
the
forward-looking information. These factors include without
limitation:
the inherent risks involved in the exploration and development
of
mineral properties; the inherent volatility of metal prices; the
risk
that the Company may not be able to arrange the necessary
additional
financing to construct and operate the Projects; uncertainties
with
respect to the receipt or timing of all applicable permits for
the
development of the Projects; the possibility of delays in the
commencement of production from the Projects; uncertainties
relating to
the estimation of mineral reserves; and other factors. Readers
are
cautioned to not place undue reliance on forward-looking
information
because it is possible that predictions, forecasts, projections
and
other forms of forward-looking information will not be achieved by
the
Company. The forward-looking information contained herein is
made as
of the date hereof and the Company assumes no responsibility to
update
or revise it to reflect new events or circumstances, except as
required
by law.
SOURCE Fortune Minerals Limited