Issued Capital: 55,550,107
LONDON, ON, Jan. 8 /CNW/ - Fortune Minerals Limited (TSX-FT) ("Fortune Minerals" or the "Company") refers to the press release issued earlier today with respect to an updated assessment of the economics for the Lost Fox deposit at its 100% owned Mount Klappan anthracite coal project in northwest British Columbia. The Company has noted that the pre- and post-tax net present value (NPV) figures included in the table reflecting the updated economics at various coal price sensitivities inadvertently contained incorrect units of measurement as a result of misplacement of the decimal point. The corrected table is set forth below.
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UPDATED ECONOMICS AT COAL PRICE SENSITIVITIES
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FOBT PRE-TAX PRE-TAX NPV AFTER-TAX AFTER-TAX NPV CASH COST/
PRICE IRR (8%) DISCOUNT IRR (8%) DISCOUNT TONNE
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US$ 110 7.8% (C$8.2 M) 4.2% ($118.6 M) US$ 84.77
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US$ 120 14.8% C$280.3 M 10.5% $83.4 M US$ 85.17
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US$ 130 20.6% C$536.0 M 15.3% $256.1 M US$ 87.14
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US$ 140 26.0% C$789.9 M 19.9% $427.9 M US$ 88.72
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US$ 150 31.3% C$1,052.1 M 24.2% $599.3 M US$ 90.00
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US$ 175 43.6% C$1,690.0 M 33.9% $1,012.9 M US$ 93.55
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US$ 200 55.9% C$2,345.8 M 43.2% $1,436.0 M US$ 96.63
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US$ 225 67.8% C$2,990.7 M 52.1% $1,851.9 M US$ 99.94
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US$ 250 79.3% C$3,636.1 M 60.8% $2,268.2 M US$ 103.22
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US$ 275 90.7% C$4,281.1 M 69.1% $2,683.9 M US$ 106.50
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US$ 300 101.9% C$4,920.7 M 76.9% $3,095.5 M US$ 109.90
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Note: The cash cost per tonne of coal includes government production
royalties, which escalate with higher revenues resulting from increased
coal price sensitivity.
About Fortune Minerals
Fortune Minerals is a diversified natural resource company with several mineral deposits and a number of exploration projects, all located in Canada. They include the Mount Klappan anthracite coal deposits in British Columbia, and the NICO cobalt-gold-bismuth deposit, the Sue-Dianne copper-silver deposit and other base and precious metals exploration projects in the Northwest Territories. Fortune Minerals is focussed 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 size and quality of the Company's mineral resources, progress in development of mineral properties, demand and market outlook for metals and coal and future metal and coal prices. 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, 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 and coal prices, the possibility of project cost overruns or unanticipated costs and expenses, uncertainties relating to the availability and costs of financing needed in the future and other factors. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Inferred mineral resources are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that mineral resources will be converted into mineral reserves. 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.