Government upholds validity of fieldwork permits and appoints mediator
Issued Capital: 150,526,976
LONDON, ON, Sept. 19, 2013 /CNW/ - Fortune Minerals Limited (TSX: FT) (OTCQX: FTMDF) ("Fortune" or the "Company") (www.fortuneminerals.com) welcomes the September 17, 2013 statement from the British Columbia
("BC") Government that it supports the legal right of companies to
safely perform permitted work, and the related appointment of mediator
Geoff Freer. (http://www2.news.gov.bc.ca/news_releases_2013-2017/2013ARR0044-001414.htm)
Fortune is currently assessing all available options to enable safe
completion of the 2013 environmental fieldwork program at the Arctos
Anthracite Project ("Arctos Project") in northwestern BC. Protestors
have been and are currently hindering the Company's work program by
encroaching on drill sites and other working areas, raising safety
concerns for both workers and protestors themselves.
Fortune's activities are duly authorized through permits issued under
the BC Mines Act, various coal tenures and other provincial laws. The
permits authorize a limited amount of geotechnical drilling to gather
information that will be used in the environmental assessment ("EA")
process. The EA process will result in an informed decision on the
merits and impacts of the project, and will consider environmental,
social, health, heritage and economic impacts, as well as traditional
knowledge. The EA process provides First Nations and other interested
parties with extensive opportunities to participate in decision-making
about a project.
The Arctos Project is also consistent with the stated objectives of the
2000 Cassiar Iskut-Stikine Land Resource Management Plan, which was
developed with many interested parties including Tahltan
representatives. (http://archive.ilmb.gov.bc.ca/slrp/lrmp/smithers/cassiar/plan/files/CIS-LRMP-November-2006.pdf)
Fortune respects the right to peaceful protest but it does not support
illegal actions and will take all appropriate actions to protect its
legal rights. It believes the appropriate forum to discuss interests
and concerns is through the EA process where all opinions are heard and
issues are examined in detail. It welcomes opportunities to engage,
share information and receive advice and feedback through that process.
Fortune looks forward to working with governments, First Nations and
local communities to develop a project that is a model of cooperation
and environmental sustainability.
About the Arctos Project
The Arctos Project is one of the world's premier metallurgical coal
projects with very large resources and reserves of high rank anthracite
coal in northwest BC. Anthracite is the highest quality coal and is
used in steel making, metals processing and other specialized products
such as carbon filters for water purification. 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. Substantial work totalling more than $100 million has
already been completed on the project to conduct resource delineation,
engineering, feasibility and environmental studies as well as test
mining and processing at the site for trial cargos of products to
potential customers in North America, Asia and Europe.
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.
This study indicates a 25-year mine life (see Fortune News Release
dated October 15, 2012), expected to contribute 500 direct jobs and
1000 jobs in supporting activities and generate more than $10 billion
in revenues and $900 million in combined federal and provincial taxes.
There is good potential to extend the mine life from the very large
mineral resource base currently recognized on the Arctos licenses.
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 Project; 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 regarding the
Company's business and the viability of the Arctos Project). 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 Arctos
Project; uncertainties with respect to the receipt or timing of all
applicable permits for the development of the Arctos Project; the
possibility of delays in the commencement of production from the Arctos
Project; 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
