COAL STUDY: Mount Klappan mine to produce 3M t/y

BRITISH COLUMBIA - Fortune Minerals of London, ON, has updated the definitive feasibility study for its Mount Klappan anthracite mine. The project has "very attractive economics" using a railway to transport coal to the port of Prince Rupert, BC, 330 km southwest of the mine site.

The Mount Klappan project contains 101.7 million tonnes of proven and probable reserves in the Lost Fox pit outline. That amount is sufficient for at least a 20-year mine life at a production rate of 3.0 million t/y PCI coal. Reserves are contained within measured resources of 107.9 million tonnes. There are also indicated resources of 123.0 million tonnes, inferred resources of 359.5 million tonnes, and what the company calls "speculative resources" of 2.2 billion tonnes.

Fortune estimates that it will spend $768.4 million to develop the project. Costs are broken down into $222.4 million for the mine and conventional open pit equipment, $164.8 million for the wash plant and facilities, $317.8 million for off-site transportation, and $63.4 million for on-site infrastructure. Total direct operating costs are estimated at $59.74/tonne and cash costs should be $110.30/tonne FOB Port Rupert.

Additional details of the feasibility study are posted in the news release of Nov. 4, 2010, at www.FortuneMinerals.com.