Issued Capital: 103,716,213
FORTUNE MINERALS ANNOUNCES COMPLETION OF GOLDEN GIANT
MINE PROJECT FOR RELOCATION OF EQUIPMENT TO NICO
Dismantling and demolition of buildings successfully completed � Equipment and
structures moved to staging points for reconditioning and mobilization
London, ON - October 14, 2010 - Fortune Minerals Limited (TSX-FT) (�Fortune Minerals� or the �Company�) is pleased to announce that it has completed the salvage of buildings and equipment from the Golden Giant Mine at Hemlo, Ontario. The Golden Giant Mine facilities were purchased, dismantled and removed from the Hemlo site at an approximate net cash cost of $18 million in order to reclaim valuable assets for their relocation and use at the Company�s proposed NICO gold-cobalt-bismuth-copper mine and concentrator in the Northwest Territories and refinery in Saskatchewan. The Golden Giant Mine project demonstrates Fortune Minerals� ability to plan and execute a significant project on budget and on schedule.
Fortune Minerals acquired the Golden Giant Mine buildings, equipment and an inventory of spare parts from Newmont Canada Limited (�Newmont�) and Mindecom Industrial Constructors Limited in 2006 and 2008 after the mine had closed. Dismantling and demolition of the mine site facilities was undertaken to reclaim valuable equipment for re-use at NICO and includes certain buildings, grinding mills, the crushing plant, flotation cells, compressors, boilers, generators, conveyors, pumps, motors, overhead cranes, transformers, assay laboratory, electrical switch gear and other equipment. These assets have now been moved to strategic locations in Manitoba and Ontario in preparation for refurbishment and mobilization to NICO and Saskatoon. The net cash cost of this project includes significant proceeds from the sale of surplus equipment, scrap metals, and gold recovered from the equipment.
Fortune Minerals is pleased to report completion of the Golden Giant Mine project five months ahead of the April 1st 2011 deadline and the Company has now fulfilled all of its responsibilities pursuant to the purchase agreement to the satisfaction of Newmont. Notably, the final phase of work was conducted at a significant reduction to the budget, and in accordance with all environmental requirements and safety protocols. �We thank our employees, many from the surrounding communities and First Nations, as well as local businesses that helped us to make this project a success�, said Fortune Minerals� President Robin Goad. The Golden Giant Mine assets are anticipated to have a material impact on managing the capital costs for the NICO development. Fortune Miner als is well positioned to efficiently begin construction of the mine, concentrator and refinery upon receipt of the requisite permits.
The NICO deposit is located in the south part of the Northwest Territories, 160 km northwest of the City of Yellowknife and 50 km north of the community of Whati. The deposit will be mined using a combination of open pit and underground mining methods at a daily production rate of 4,650 tonnes of ore per day. Simple flotation produces approximately 180 tonnes of bulk concentrate per day for delivery by truck and rail to the Company�s proposed hydrometallurgical process plant near Saskatoon, Saskatchewan. At this refinery, NICO concentrates will be processed to gold dor�, 99.8% cobalt cathode, 99.99% copper cathode and 99.9% bismuth ingot or 99.5% cathode. Both sites are currently in the environmental assessment process for permitting. NICO has already been assessed in a positive definitive feasibility study by Micon International Limited that was updated in 2008 and shows an attractive rate of return for the development (see Fortune news release, dated May 8, 2008).
About Fortune Minerals:
Fortune Minerals Limited 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 its NICO gold-cobalt-bismuth-copper deposit in the Northwest Territories and its metals processing plant in Saskatchewan. Fortune Minerals owns the buildings and equipment from the Golden Giant Mine at Hemlo, Ontario, which have been dismantled for relocation to NICO. Fortune Minerals also owns the Mount Klappan anthracite coal deposits in British Columbia, the Sue-Dianne copper-silver deposit and other exploration projects in the Northwest Territories. Fortune Minerals is focused on outstanding performance and growth of shareholder value throug h assembly and development of high quality mineral resource projects.
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Forward Looking Information
This press release contains forward-looking information. This forward-looking information includes, or may be based upon, estimates, forecasts, and statements as to management�s expectations with respect to, among other things, proposed development of the NICO project and the proposed development of the hydrometallurgical processing plant in Saskatchewan (the �SMPP�). Forward-looking information is based on the opinions and estimates of management at the date the information is given, and 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 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 nece ssary financing to construct and operate the NICO mine and the SMPP, uncertainties with respect to the receipt or timing of required permits for the development of the NICO project and the SMPP, the possibility of delays in the commencement of production from the NICO project and construction of the SMPP and other factors.. The forward-looking information contained herein is given as of the date hereof and the Company assumes no responsibility to update or revise such information to reflect new events or circumstances, except as required by law. |
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