Fortune Minerals announces Slurry Pipeline Transportation Study for Mount Klappan Coal Project



    Updates Mount Klappan Development Progress

    Issued Capital: 49,546,407

    TORONTO, Oct. 26 /CNW/ - Fortune Minerals Limited (TSX-FT) ("Fortune") is
pleased to present an update of development activities for its wholly-owned
Mount Klappan anthracite coal project in northwest British Columbia, which
straddles the B.C. Railway right-of-way 150 km northeast of the port of
Stewart and 330 km northeast of the port of Prince Rupert. Mount Klappan has
already been assessed in a positive full feasibility study by Marston &
Marston Inc. (Marston) (see News Release, dated October 17, 2005) and the
project is currently in the environmental assessment process to develop an
export metallurgical coal mine producing ultra-low volatile pulverized coal
injection (PCI) products for the overseas steel industry.
    Fortune has commissioned a preliminary economic assessment for the
transportation of coal products from Mount Klappan using a buried slurry
pipeline as opposed to the rail and truck haulage options that were assessed
in the 2005 feasibility study. Fortune retained Marston to undertake this
latest study in order to assess alternative methods of conveying coal to the
port, mitigate the impacts of a stronger Canadian dollar and increasing fuel
costs, and reduce the environmental impacts with the use of existing
transportation corridors. The pipeline would also provide an alternative for
access to the port of Prince Rupert where there is an under-utilized, world
class coal handling facility that can accommodate large "Cape-size" bulk
vessels for delivery to international customers. The pipeline study is
assessing production rates of 1.5 and 3 million tonnes of clean coal per year
along three different route options:

    
    1)  west from the mine along the currently proposed truck haulage route
        to a load-out and dewatering facility to be built at the port of
        Stewart (~250 km);

    2)  south from the mine along the existing B.C. Rail right-of-way to a
        facility to be built at the current terminus of track at Minaret
        (~150 km) for rail haulage of product through Prince George to Prince
        Rupert; and,

    3)  south from the mine along the railway right-of-way to Minaret, and
        then southwest to New Hazelton (~350 km) to a facility to be built on
        the CN main rail line to Prince Rupert.
    

    In addition to the potential cost and operational benefits of slurry
transportation being considered in this study, Marston is also examining the
option of building a briquetting plant at the pipeline's terminus capable of
producing anthracite pellets for use in the global steel manufacturing
industry. Notably, low ash content briquettes of suitable size, strength and
quality are likely to command premium prices on the international market and
would also facilitate loading and handling at the railway, port and receiving
steel plant. It is expected that, in addition to any material economic impacts
it might have to transportation costs, a buried slurry pipeline of coal
products from Mount Klappan would also reduce environmental impacts of the
project. Fortune expects to receive this preliminary study before the year's
end. Richard Marston, P.E. is the Qualified Person responsible for the study
for the purposes of National Instrument 43-101.
    "Fortune has commissioned this study in support of our commitment to
aggressively manage the costs and profitability of developing our huge Mount
Klappan asset, at the same time we are determined to minimize the impact it
has on our environment," said Robin Goad, President and CEO of Fortune. "We
are confident that this independent engineering review will show us an option
that will meet all of these objectives so we are very much looking forward to
seeing Marston's report."

    ENVIRONMENTAL PROGRAMS

    Rescan Tahltan Environmental Consultants (RTEC), Fortune's environmental
consultants for the Mount Klappan coal project, are also conducting a pump
test at Mount Klappan to model the volumes and quality of water that would be
encountered in the proposed mine during operations. Results of this test,
together with additional ongoing fisheries, hydrology, wetlands, meteorology,
rock geochemistry and visual assessment studies, are being used to assess and
reduce environmental impacts and design mitigation strategies. All-North
Engineering is also completing the road engineering and an updated cost
estimate for the proposed haul road between the mine and Highway 37 at Bell 2.
    In addition to the slurry pipeline assessment and the ongoing engineering
and environmental studies, the Company is conducting discussions with
potential joint venture partners over the development of the Mount Klappan
coal project.

    About Fortune Minerals

    Fortune Minerals is a diversified natural resource company with six
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 future metal 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, the
uncertainties involved in interpreting drilling results and other geological
data, fluctuating metal 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.





For further information:

For further information: Fortune Minerals Limited, Robin Goad,
President, Tel.: (519) 858-8188, Fax: (519) 858-8155,
info@fortuneminerals.com, www.fortuneminerals.com; Greg Taylor, Investor &
Public Relations, Tel: (416) 605-5120, Fax: (905) 844-6532,
gtaylor@fortuneminerals.com


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