Completion Of Golden Giant Mine Project For Relocation

LONDON, ON - Fortune Minerals Limited reported that it has completed the salvage of buildings and equipment from the Golden Giant Mine at Hemlo, Ontario.The Golden Giant Mine facilities were purchased, dismantled and removed from the Hemlo site at an approximate net cash cost of $18 million in order to reclaim valuable assets for their relocation and use at the Company's proposed NICO gold-cobalt-bismuth-copper mine and concentrator in the Northwest Territories and refinery in Saskatchewan. The Golden Giant Mine project demonstrates Fortune Minerals' ability to plan and execute a significant project on budget and on schedule.
Fortune Minerals acquired the Golden Giant Mine buildings, equipment and an inventory of spare parts from Newmont Canada Limited and Mindecom Industrial Constructors Limited in 2006 and 2008 after the mine had closed.
Dismantling and demolition of the mine site facilities was undertaken to reclaim valuable equipment for re-use at NICO and includes certain buildings, grinding mills, the crushing plant, flotation cells, compressors, boilers, generators, conveyors, pumps, motors, overhead cranes, transformers, assay laboratory, electrical switch gear and other equipment.
These assets have now been moved to strategic locations in Manitoba and Ontario in preparation for refurbishment and mobilization to NICO and Saskatoon. The net cash cost of this project includes significant proceeds from the sale of surplus equipment, scrap metals, and gold recovered from the equipment.
Fortune Minerals reported completion of the Golden Giant Mine project five months ahead of the April 1st 2011 deadline and the Company has now fulfilled all of its responsibilities pursuant to the purchase agreement to the satisfaction of Newmont.
Notably, the final phase of work was conducted at a significant reduction to the budget, and in accordance with all environmental requirements and safety protocols. "We thank our employees, many from the surrounding communities and First Nations, as well as local businesses that helped us to make this project a success", said Fortune Minerals' President Robin Goad.
The Golden Giant Mine assets are anticipated to have a material impact on managing the capital costs for the NICO development. Fortune Minerals is well positioned to efficiently begin construction of the mine, concentrator and refinery upon receipt of the requisite permits.
The company's address is 40 Fullarton St., Suite 1902, London, ON N6A 5P2, (519) 858-8188.