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Thursday, October 21, 2010
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Formation
Drills Cobalt Project to Optimize Mine Design
Vancouver,
B.C., October 21, 2010 Formation Metals Inc. (FCO-TSX)
("Formation")Z is pleased to announce that its 100% owned
subsidiary, Formation Capital Corporation, U.S., (the
"Company") has reported the successful conclusion of its
diamond drill program with favourable initial assay results from its 100%
owned Idaho Cobalt Project, located in Lemhi County, Idaho.
The diamond drill program was conducted in a previously untested area on
the project along the southern extension of the Ram deposit. A total of
5,727.5 feet were drilled in six drill holes between Sections 12+00 South
and 16+00 South. The results from DDH-R10-01, tabulated below,
demonstrates the continuity of economic cobalt mineralization 200 feet
down dip and 100 feet along strike from previous drilling at the southern
extension of the Ram deposit. Core logging results from the remaining
five drill holes indicates favourable cobalt mineralization was
intersected for an additional 400 feet along strike to the south. This
drilling has extended the previously defined strike length of the Ram
deposit an additional 14% from 2,800 to 3,200 feet.
In addition, the drill program has provided material for initial
metallurgical test work to determine the economic viability of extracting
the Rare Earth Elements ("REE's") that are known to occur on
the property. Values of total rare earth oxides from previous Formation
core drilling on the property are reported as high as 1.92%, (noting that
the average value reported is 0.10%) while values for light rare earth
oxides and heavy rare earth oxides have been reported up to 1.63% and
0.52% respectively. Once all final data is returned from the laboratory,
more REE values will be compiled and reported by the Company.
Initial indications suggest the REE's are closely associated with the
cobalt mineralized horizons, and as such, provisions for these horizons
to be mined, milled and concentrated are already included in the existing
approved mine plan. Thus, any potential future REE production would be
considered by-product production.
Table 1: Ram 2010 drill results to date:
click to enlarge
As expected, this verification drilling program is providing information
needed to optimize mine design and production plans with the primary goal
of maximizing ore production as early in mine life as possible. Results
from the program are expected to have a positive impact on the overall
economics of the project.
Mr. George King, B.Sc., P.Geo., is the Qualified Person working directly
on the project and has reviewed the contents of this release. Cut drill
core samples were sent to ALS Chemex Labs Ltd in North Vancouver, B.C.
for assaying. The Company will announce further results of the program
when available.
The 100% owned Idaho Cobalt Project is a unique, fully environmentally
permitted primary cobalt deposit that will be capable of producing high
purity cobalt metal. Cobalt is used in a wide variety of environmental
and high-tech applications that include the re-chargeable battery and
aerospace sectors.
Formation Metals Inc. is dedicated to the principles of environmentally
sound mining and refining practices, and believes that environmental
stewardship and mining can co-exist. Formation trades on the Toronto
Stock Exchange under the symbol FCO.
FORMATION METALS INC.
"Mari-Ann Green"
Mari-Ann Green,
C.E.O.
For
further information please contact:
E.R. (Rick) Honsinger, P.Geo., V.P. Corporate Communications
Formation Metals Inc., 1730 -- 999 West Hastings Street, Vancouver, BC,
V6C 2W2
Tel: 604-682-6229 - Email: inform@formationmetals.com -- Web:
formationmetals.com
________________________________________
This press release contains
"forward-looking statements" within the meaning of applicable
Canadian securities legislation. Generally, forward-looking statements
can be identified by the use of forward- looking terminology. Forward-looking
statements are subject to known and unknown risks, uncertainties and
other factors that may cause the actual results, performance or
achievements of the Company to be materially different from those
expressed or implied by such forward-looking statements. Although the
Company has attempted to identify important factors that could cause
actual results to differ materially from those contained in
forward-looking statements, there may be other factors that cause results
not to be as anticipated, estimated or intended. There can be no
assurance that such statements will prove to be accurate, as actual
results and future events could differ materially from those anticipated
in such statements. Accordingly, readers should not place undue reliance
on forward-looking statements. The Company does not undertake to update
any forward-looking statements that are contained herein, except in
accordance with applicable securities laws. Further information on the
Company is available at www.sedar.com.
The
statements contained in this news release in regard to Formation Metals
Inc. that are not purely historical are forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995,
including Formation Metals Inc.'s beliefs, expectations, hopes or
intentions regarding the future. All forward-looking statements are made
as of the date hereof and are based on information available to the
parties as of such date. It is important to note that actual outcome and
the actual results could differ from those in such forward-looking
statements. Factors that could cause actual results to differ materially
include risks and uncertainties such as technological, legislative,
corporate, commodity price and marketplace changes.
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