HENDERSON, Nev., Aug 24, 2011 — Fortune Oil and Gas, Inc. (FOGC; http://www.fortuneoilandgascorp.com) subsidiary Alta Mining advised on the potential of the silver claims in BC, Canada, currently pursued by Alta Mining (The shared numbers may contain not comply with 43-101 technical information, are strictly theoretically structured, and for informational purposes only).
Area of the claim offers good road infrastructure, an operating mill located less than 50 km from the property and access to experienced labor. All these conveniences would lower operational costs and allow Alta Mining to extend seasonal mining operations to about 200 days/year.
Company based the following calculation on a sober and a very rough estimate of producing only 5 ounces of silver per metric ton (reported showings of silver in the area of the Alta Mining claim show up to 80 ounces of silver per metric ton).
Estimated 5oz/ton would set the daily silver production at about 1,000 oz/day, and with the current price of silver this property can potentially produce $50,000 in daily revenues, and approximately $10 million in total annual revenues (these calculations are based on production predictions totalling around 200 tons of ore daily, and with secondary production of zinc and lead usually sufficient to cover the whole silver mining production expenses).
The company advises that these are just rough estimates based on the location’s historical productions, while the actual surveys are yet to be executed. 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 building a significant position in the region and provide benefits for their shareholders.
More updates on both subsidiaries to follow shortly.