Fortune Minerals looking to slurry pipeline for Anthracite resource

In a just sent email news release, Fortune Minerals describes how they are completing the initial look into building an underground pipeline to move anthracite coal, in a slurry, from their Mt. Klappan project in northwestern British Columbia to the deep water port in Prince Rupert.

Fortune Minerals Limited (TSX-FT) (“Fortune”) is pleased to announce a summary of results from its preliminary economic assessment of the viability of transporting coal using a slurry pipeline from its proposed Mount Klappan anthracite coal mine in northwest British Columbia to the ports of Stewart and Prince Rupert. This preliminary scoping study, conducted by Marston Canada Ltd. (Marston) indicates that a slurry pipeline could materially reduce transportation costs to the ports as compared to the truck or rail transportation options evaluated in the Company’s positive full feasibility study (2005 FS) completed by Marston in 2005 (see News Release, dated October 17, 2005). According to the scoping study report, such a pipeline may reduce operating costs by as much as 34%.

The news release goes on to describe how transportation costs to the port could be as low as CDN $15.75 per tonne. It further notes that when the slurry reaches the port, it would be dewatered and pressed into briquette form for shipping.

Although the text of the news release is not up on the website yet, information on the Mt. Klappan project and contact information for Fortune Minerals is available on their website.

16. January 2008 by
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