Fortune Minerals acquires silver mine in Colorado

London-based Fortune Minerals has acquired the historic Revenue Silver Mine in Ouray, CO.

Fortune Minerals is getting ready to open the NICO project – a new gold-cobalt-bismuth and copper mine in the Northwest Territories and is also developing an anthracite coal operation in British Columbia, the London Free Press reported.

The Revenue Mine is expected to produce about 1.78 million oz/year of silver as well as lead and zinc. The acquisition is the first of an existing mine for Fortune Minerals.

Fortune Minerals CEO Robin Goad said the Revenue Silver Mine will bring cash flow to the company and make it more attractive to investors.

“This is no way a distraction from getting NICO developed. This acquisition delivers cash-flow and the status of being a producer,” he said.

One of the Star Mine owners, Jim Williams Jr, will become a Fortune Minerals shareholder and a member of the board of directors.

The mine employs about 90 people and is located near the town of Ouray which once boasted 30 mines in the late 1800s but is now a tourist town.

The Revenue Silver Mine operated in the late 1800s and early 1900s and produced about 14 million ounces before the mill burned in 1912 and the mine closed.

The vein of silver ore in the Revenue mine is quite narrow -only about a meter in width.

Last November the mine was the site of a tragedy when two miners were killed by carbon monoxide gas following an explosion.

Goad said the accident happened when some miners burned some explosives in a horizontal tunnel.

Gold said Star Mine continue to hold liability for the accident after the sale.

“We are buying assets, not the company,” said Goad.

Williams said Fortune said safety measures have been put in place to avoid future accidents.

The Revenue Silver Mine will operate independently with its own management team with technical, engineering and administration support from Fortune's London head office.