HENDERSON, NEVADA--(Marketwire -08/23/11)- Fortune Oil and Gas, Inc. (PINK SHEETS: FOGC) (http://www.fortuneoilandgascorp.com) subsidiary Alta Mining advises its followers on the potential of the silver claims in BC, Canada, which the company currently pursues.
Company management decided to share some sober numbers wishing to explain a full potential of the silver mining possibilities at the company claims. These numbers may contain non 43-101 compliant technical information and are strictly theoretically structured for informational purposes only, which the company followers should appreciate:
The project area guarantees a lower cost of exploration and production, as it has a very good road infrastructure with good round-the-year accessibility. Further, due to past and present mining activities in the region company has access to conveniently located and experienced labor. On the top off it all, operating mill is conveniently located less than 50 km away from the property. This fact significantly lowers operational costs, not burning FOGC's finances on logistics necessary to conduct its mining projects, making company's operations cheaper and faster.
The reported showings of silver in the area of the Alta Mining claim in BC, Canada, show up to 80 ounces of silver per metric ton. Company based the following calculation on a sober and a very rough estimate of producing only 5 ounces of silver per metric ton.
The property location and the nearby mill offer the opportunity to process couple hundred metric tons of silver ore per day. Estimate of 5oz/ton (history shows that the Slocan area has high grade ore bodies giving far more than 5oz/ton) would set the daily silver production at about 1,000 oz/day at minimum. With the current price of silver, this property has a very feasible potential to comfortably produce $50,000/day in revenues. The convenience of the location would allow Alta Mining to extend seasonal mining operations and produce silver at the location for about 200 days/year, allowing the company to produce some $10 million in total annual revenues. Calculations are based on production predictions totalling around 200 tons of ore daily. Along the main production of silver, mines also produce zinc and lead as a secondary product. The revenues from production of these secondary metals are usually sufficient to cover the whole of silver mining production expenses.
The company advises that these are just rough estimates based on the location's historical productions, and not on the actual property surveys that are yet to be executed, however, the management believes that geological and structural features of the previously explored areas seemed to indicate that the mineralized zones could be much more extensive over already known silver bearing systems. The company plans to continue to work on gaining a prominent position in the area and provide benefits for their shareholders.
More updates on both subsidiaries to follow shortly.
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