Issued Capital: 64,890,857
LONDON, ON, Aug. 5 /CNW/ - Fortune Minerals Limited (TSX-FT) ("Fortune Minerals" or the "Company") is pleased to provide an update about the road initiative in the Tlicho (aboriginal) region northwest of Yellowknife, Northwest Territories where the Company's NICO mine development is located. The existing winter road extending north from the town of Behchoko on Highway 3 between Yellowknife and Edmonton, Alberta to the communities of Whati and Gameti is the subject of a government plan for realignment to an overland route in order to reduce the cost of living in the Tlicho region, mitigate the impacts of climate change on community resupply, and promote economic activity. This road is also currently used to access the NICO Gold-Cobalt-Bismuth-Copper deposit, which Fortune Minerals is permitting to develop a mine, mill and process plant, which requires all-season road access for mine supply and to transport metal concentrates south for processing to high value metal products.
The initiative to upgrade the Tlicho winter road is being managed by the government of the Northwest Territories (GNWT) - Department of Transportation (DOT), working together with the Tlicho Government, and with financial support from the federal government. Preliminary engineering, route analysis, environmental scoping studies and consultation with local communities have already been undertaken to establish the feasibility of this road upgrade and its desirability from the perspective of the Tlicho people. Fortune Minerals has also contributed its own detailed engineering and environmental studies for a 50 km portion of the road as its initial contribution toward the project and is part of a working group for future planning. An approximate 136 km portion of the Tlicho road will be used for the NICO mine. Approximately 25 km of all-season road has already been built by the community of Whati and is being extended this road this summer by the community. Fortune Minerals is in discussions with the GNWT, federal and Tlicho Governments with respect to joint financing the upgrade of other segments of the route to an all-weather standard so that it can be used for mine operations.
The GNWT and the federal government have committed $18 million of additional resources toward completing the next phase of the Tlicho road initiative, which includes additional engineering and environmental work, community consultation, re-alignment of the road to an all-land route, construction of permanent bridged water crossings and the laying of road bed on portions of the route. The next phase of this road initiative received significant support from Tlicho citizens during the consultation process and the Tlicho Government has approved the engineering and environmental studies now being tendered by the DOT. The final route and other details of the road construction and operation will still require the approval of the Tlicho Government.
Fortune Minerals is very pleased to be working cooperatively with the Tlicho Government and GNWT towards completion of this important infrastructure initiative to improve the transportation and reduce the cost of living in Tlicho communities as well as provide the foundation for additional economic opportunities on Tlicho lands, including the NICO mine development for the benefit of all stakeholders.
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 gold-cobalt-bismuth-copper deposit, the Sue-Dianne copper-silver deposit and other base and precious metals exploration projects in the Northwest Territories. Fortune Minerals also owns the buildings and equipment from the Golden Giant Mine at Hemlo, Ontario, which have been dismantled for relocation to NICO. Fortune Minerals 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 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.