BRITISH COLUMBIA FORTUNE MINERALS of London, Ontario, has completed an updated feasibility study for one of the four deposits at its 100%-owned Mount Klappan anthracite project 150 km northeast of the port of Stewart. The company says the evaluation of the Lost Fox deposit is very attractive, even at prices well below current metallurgical coal prices.
The report considered only the initial Lost Fox pit and plant. Production would be 3.0 million tonnes of PCI coal annually over 20 years. Capital costs are estimated at $612.2 million over the first three years, and the project would have an IRR of 28.9%. Operating costs might be US$175/t for the first five years and drop to US$150/t for the reminder of the mine life.
The Lost Fox deposit contains proven and probable in-situ reserves of 101.7 million tonnes.
Fortune has included much more detailed information in its news release of Aug. 7, 2008, available on its website at www.FortuneMinerals.com.