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Last updated on April 20, 2014 at 19:30 EDT

Fortune Minerals initiates 2013 EA program for Arctos

July 16, 2013

Drilling program and Environmental Assessment Field work underway

Issued Capital: 121,276,976

LONDON, ON, July 16, 2013 /CNW/ – Fortune Minerals Limited (TSX: FT) (OTCQX: FTMDF) (“Fortune” or the “Company”) (www.fortuneminerals.com) and POSCO Canada Ltd. (“POSCAN”) are pleased to announce that their
Arctos Anthracite Joint Venture (“AAJV”) summer field program has
commenced in support of the environmental assessment (“EA”) to permit
the mine, wash plant and railway extension. A 30-person field camp was
opened at the site on July 2(nd) to support the collection of environmental baseline information for the
EA process. The Canadian Environmental Assessment Office recently
granted substitution of the Arctos EA to British Columbia (“BC”),
enabling provincial and federal jurisdictions to work closely together
to incorporate all aspects of environmental safeguards and Aboriginal
consultation under a ‘one project, one assessment’ approach. The data
collected will augment environmental studies already completed by
Fortune in prior years and contribute to the completion of the final EA
report that is expected to be filed in 2014 to initiate the review
process.

Most of the environmental baseline information for the mine site has
already been collected under the EA process for a previous development
plan. The 2013 program is focused on additional environmental baseline
studies for the proposed railway extension and to address gaps and
update the mine baseline data to support permitting and detailed
engineering designs.

Plans for the 2013 baseline programs were submitted to the working group
established by the British Columbia Environmental Assessment Office
(“BCEAO”) and is comprised of First Nations and various government
agencies. This group advises the BCEAO about issues related to the
assessment of the project and will help assess the adequacy of any
proposed mitigation measures.

Field work underway includes:

        --  A drilling program to support geochemical, hydrogeological and
            geotechnical studies
        --  Baseline data acquisition at both the proposed mine location
            and rail line
        --  Archaeological studies

Members of the Tahltan and Gitxsan First Nations have been hired for
various archaeological, drilling and hydrology roles and contribute to
the knowledge of the EA process and consultation. The archaeological
team includes two members of the Tahltan Heritage Resources
Environmental Assessment Team – a technical working group comprised of
community and technical experts that reports to the Tahltan Nation
through the Tahltan Central Council.

Overseeing site activity is Mine Manager, Dave Hayward. Dave was
recently hired by the AAJV for his extensive international experience
running mining camps in remote locations. Further supporting the EA
work is Dianna Stoopnikoff, who joined Fortune in the role of
Environmental Relationships Manager. Dianna’s initial focus will be
communicating environmental aspects of the Arctos project to Aboriginal
groups and stakeholders. Her BC based experience in various
environmental and health and safety roles, makes her a valuable
addition to the team, given the current development stage of the Arctos
project.

Project overview:

The Arctos Anthracite Project is one of the world’s premier
metallurgical coal projects consisting of 16,411 hectares of contiguous
coal licenses 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. Substantial engineering, feasibility and environmental work
have already been completed for the proposed development of the Arctos
project, with expenditures to date totalling approximately $100
million.

The Arctos project is located 330 km northeast of the Port of Prince
Rupert and straddles the existing BC Railway right-of-way. The roadbed
for this railway was constructed in the 1970′s by the BC Government,
but was not completed to the Arctos site from the current terminus of
track, 150 km south of the proposed mine.  The railway right-of-way
provides a simple brownfield access corridor to the Canadian National
Railway at Minaret, and from there, to the Ridley Coal Terminal in
Prince Rupert for export of metallurgical coal products to overseas
steel manufacturers and metal processors. Based on the 2012 updated
feasibility study for the Arctos project by Marston & Marston Inc., a
division of Golder Associates Inc., the Proven and Probable Run-of-Mine
Product Reserves will support a 25-year mine life (see Fortune News
Release dated October 15, 2012). The project is 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 also good potential to extend the mine
life from the very large mineral resource base currently recognized on
the Arctos licenses.

Location clarification:

Fortune wishes to clarify certain misinformation about the Arctos
project that has been communicated by environmental groups. The
proposed mine is not located in Nass or Skeena Watersheds and is
approximately 8 km from the closest point to the Nass River’s watershed
and is even farther away from the Nass River. The mine site is
approximately 12 km from the closest point to the Skeena River’s
watershed and even farther away from the Skeena River. Only the
proposed railway extension along the existing disturbed rail bed is
within the Skeena River’s watershed.

The proposed Arctos mine site is located within the Stikine River
watershed but is approximately 30 km from the Stikine River itself. The
AAJV will take appropriate measures to protect the creeks and rivers
near the mine that ultimately flow into the Stikine River.

Anthracite coal:

Anthracite is the highest quality metallurgical coal, measured by carbon
and energy content, and represents just 1% of world coal reserves. It
is also the most versatile coal, suitable for use in a broad range of
steel making and metallurgical processes and as a raw material to
manufacture synthetic products.  The natural high carbon and very low
volatile (gas) content of anthracite makes it ideal for use as a
premium ultra-low volatile pulverized coal injection (“PCI”) product
that is injected into the blast furnace to reduce the amount of coke
used in crude steel production. High carbon and low volatiles also
allows anthracite to be used as a direct coke replacement and as a
blend coal to make metallurgical coke that is typically made from hard
coking coal. Anthracite is the only coal that can be used as sinter
feed. Anthracite reductants are used in electric arc / direct reduction
steel manufacturing and for the processing of ferroalloys and other
metals. Carbon filters for water purification are made with anthracite
coal as well as some carbon composite materials. The high carbon
content of anthracite makes it the preferred coal for gasification and
liquefaction technologies to make urea fertilizers, plastics and high
quality synthetic fuels, particularly in Asia where natural gas
supplies are scarce.

The disclosure of scientific and technical information contained in this
press release has been approved by Robin Goad, M.Sc., P.Geo., President
and Chief Executive Officer 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 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, the impact of the data collected from the
summer field camp, the timing of the issuance of a final EA report, the
proposed development of the Arctos project, the anticipated economic
impact of the Arctos project (including employment levels as well as
anticipated revenues and taxes therefrom), the potential extension of
the mine life and production from the Arctos project. Forward-looking
information is based on the opinions and estimates of management as
well as certain assumptions 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
ability to generate sufficient funds and obtain approvals and/or
permits as required, anticipated production from the Arctos project and
the extension of the railway as well as the parameters and assumptions
contained in the 2012 updated feasibility study). However, such
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 the risk that the
Company may not be able to arrange the necessary financing to construct
and operate the Arctos mine and/or the railway link, the risk that the
AAJV may be terminated in accordance with its terms, the risk that the
Company may not be able to conclude necessary arrangements for the
transportation of coal from the Arctos site, the possibility of delays
in the commencement of production from the Arctos project, the inherent
risks involved in the exploration and development of mineral
properties, the risk that actual capital and operating costs for the
Arctos project may differ from those anticipated, uncertainties with
respect to the receipt or timing of required permits and regulatory
approvals, the uncertainties involved in interpreting drilling results
and other geological data, fluctuating metal prices 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 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
.

SOURCE Fortune Minerals Limited

Image with caption: “Arctos Anthracite Project 2013 field camp. The Arctos project is an international collaboration between Fortune Minerals (80%) and POSCAN (20%), the Canadian subsidiary of South Korea’s POSCO, one of the world’s largest steel producers. (CNW Group/Fortune Minerals Limited)”. Image available at: http://photos.newswire.ca/images/download/20130716_C7683_PHOTO_EN_29037.jpg


Source: PR Newswire