Business
Fortune Minerals announces updated Definitive Feasibility Study for Arctos Anthracite Metallurgical Coal Project
Robust economics confirmed with expanded coal reserves Issued Capital: 117,076,9...
About this update from Fortune Minerals Limited
[{"type":"text","content":"\n\n\n\n\n\nRobust economics confirmed with expanded coal reserves \n\n\nIssued Capital: 117,076,976\n\n\nLONDON, ON, Oct. 15, 2012 /CNW/ - Fortune Minerals Limited (TSX-FT) (OTCQX-FTMDF) (\"Fortune\" or the\n \"Company\") (www.fortuneminerals.com) and POSCO Canada Ltd. (\"POSCAN\") are pleased to announce the results of\n an updated Definitive Feasibility Study (\"DFS\") for the Arctos\n Anthracite Project (\"Arctos\") in northwestern British Columbia (\"BC\"), Canada.  Arctos, formerly known\n as the Mount Klappan project, is a collaborative international\n development project by the Arctos Anthracite Joint Venture (\"AAJV\")\n between Fortune (80%) and POSCAN (20%), the Canadian subsidiary of\n Korea's POSCO, one of the world's largest steel producers. The updated\n DFS was prepared by Marston, a Golder Associates Company\n (\"Golder-Marston\") and incorporates the results of additional drilling\n and survey data for the Lost Fox deposit area, which together with\n updated operating and capital costs, confirms an increase in reserves\n and robust economics for the Arctos project.  Because of a more rapid\n planned project start-up, initial capital costs to achieve commercial\n production has increased only 2.6% over the initial capital in the\n previous 2010 DFS.  The updated FOBT cash cost of C$ 127.61 / tonne\n would place Arctos among the lowest cost Canadian metallurgical coal\n producers.   Innovation in the global steel industry continues to drive\n the increased use of anthracite in the manufacture of steel and in\n metal processing, while scarcity of high quality deposits and declining\n exports from the traditional suppliers highlights the importance of\n having a new reliable Canadian source of supply.\n\n\nHIGHLIGHTS OF THE UPDATED DEFINITIVE FEASIBILITY STUDY:\n\n\n17.5% increase in Run of Mine (\"ROM\") Coal Reserves to 124.9 million\n tonnes (\"Mt\") and 13.8% increase in 10% Ash Product Reserves to 69.2 Mt\n in the Lost Fox deposit area;\n\n\nExtension of mine life from 20 to 25 years;\n\n\nProduction of premium pulverized coal injection (\"PCI\") coal used to\n manufacture steel;\n\n\nAbility to diversify production to other metallurgical coal products\n that are short of supply;\n\n\nInitial capital (first 3 years) of C$ 788.6 million for the mine,\n surface facilities and railway;\n\n\nCa...