Fortune Minerals updates the Golden Giant Mine dismantling & relocation to Nico



    Issued Capital: 49,546,407

    TORONTO, Nov. 5 /CNW Telbec/ - Fortune Minerals Limited (TSX-FT)
("Fortune") is pleased to present an update of its activities for relocation
of the Golden Giant Mine buildings, equipment and spare parts inventory at
Hemlo, Ontario previously owned by Newmont Canada Ltd. (see news release,
dated August 31, 2006). Fortune acquired these assets in 2006 for $3.3 million
for installation at the Company's wholly-owned NICO cobalt-gold-bismuth
development project in the Northwest Territories, materially reducing
projected capital costs for this project. Importantly, Fortune is not
responsible for environmental liabilities at the Hemlo site other than to
remove the assets to their foundations by August 2009.
    Fortune has submitted its "Notice of Project" to the Ontario Ministry of
Labour, which allows the Company to commence the salvage, dismantling, and
demolition of equipment and buildings from the Golden Giant Mine site. Fortune
has hired an eight-man team to begin this work, which is being supplemented by
casual labourers and contractors. The current priority is the salvage of high
value process, electrical and technical equipment for relocation to a staging
site for reconditioning and transport to NICO after receipt of applicable
permits. Fortune is also assembling the surplus equipment that is not required
at NICO and has begun selling it on the used equipment market through Mindecom
Industrial Constructors Limited ("Mindecom"). Fortune has also identified
significant amounts of recoverable gold, silver and other valuable metals that
are contained in ores and residues within certain equipment at the mine and is
working with Mindecom and a company that specializes in recovering these
metals from decommissioned process plants for sale. Fortune is further
reducing its net cost of dismantling the Golden Giant mine facilities through
the planned collection of other high value materials, including stainless and
structural steels, aluminium, copper and other metals, which the Company
expects to sell for scrap.
    Fortune has retained a consultant to help prepare a "Request for
Proposal" to seek tender bids for the major dismantling, demolition, and
sorting work to be carried out in 2008. A number of companies have expressed
significant interest in conducting this work and the contract is expected to
be awarded in January 2008, with work commencing shortly thereafter.
    Fortune has also retained Aker Kvaerner E&C, a division of Aker Kvaerner
Canada Inc. (Aker Kvaerner) to prepare an execution plan including a logistics
study for the Engineering Procurement Construction Management (EPCM) phase of
the NICO development. This will include evaluating potential transportation
corridors and facilities that could receive used equipment and materials from
Hemlo in addition to new equipment from Canadian and international suppliers,
rehabilitation of the used equipment, and completion of modular fabrication
and installation to offset on-site construction costs at NICO. As part of this
process, Aker Kvaerner is examining ways to help take advantage of the high
Canadian dollar by looking at U.S. suppliers and sites where significant
components of this work might be conducted to reduce the transportation and
construction components of the project's capital costs. Various methods of
transporting equipment and modular components to the Northwest Territories,
including the use of railway infrastructure between Ontario, the north-central
U.S., western Canadian provinces; and the terminus of rail at Hay River,
Northwest Territories are being evaluated as part of this process.
Transportation of equipment and materials by rail presents a significant
opportunity to control costs for NICO.
    "The dismantling and relocation of the Golden Giant mill and equipment
for NICO is a major logistical challenge that will mark an important milestone
for Fortune as we remain on target to bring the project into production in
less than three years," said Robin Goad, the Company's President and CEO. "And
in this time of constantly rising costs, we are particularly pleased to see
the savings and other benefits from our original decision to acquire the
Golden Giant assets clearly demonstrated at each step of the process."

    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 timing of the dismantling and relocation of the Golden
Giant Mine assets, the sale of spare parts and equipment and the recovery and
sale of gold from the Golden Giant Mine site. 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
receipt of required regulatory approvals, timing of the process for granting a
contract for the dismantling of the subject assets, the Company's ability to
recover gold from the Golden Giant Mine site, availability of required labour,
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. 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


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890