Metals Extends Cobalt Deposit Strike by 14%
Formation Metals Inc. announced today that its 100%
owned subsidiary, Formation Capital Corporation, U.S., (the
"Company") has reported final assay results from its 2010 mine
plan optimization drill program on its 100% owned Idaho Cobalt Project,
located in Lemhi County, Idaho. These assays have confirmed economic ore
grade mineralization an additional 390 feet along strike to the south and
200 feet down dip, representing a 14% increase in the known strike
extension of the Ram deposit to 3,200 feet. These results are expected to
increase the reserve / resource base and mine life of the project. A
total of 5,727.5 feet were drilled in six holes in a previously untested
area along the southern extension of the Ram deposit.
This program also reported the highest grade gold intercepts ever
recorded from drilling on the Ram Deposit, with DDH-R10-05 returning 5.4
feet grading 1.267% cobalt, 3.57% copper and 0.289 oz/ton gold (9.0 grams
per tonne). The high gold assays returned from
this interval appear to be the result of a shear zone intersecting
biotitic and siliceous ore of the main mineralized horizon. Gold revenues
were not considered in the economic model of the Company's original
Feasibility Study. The Ram Deposit remains open along strike to the north
and south and down dip.
Results from the drill program are providing data for mine plan
optimization studies. The purpose of these studies are to demonstrate the
viability of optimizing ore production as early in mine life as possible
to maximize revenues while minimizing mining costs, that would result in
an overall positive impact on the economics of the cobalt project. In
addition, the drill program has provided additional samples for initial
in-house Rare Earth Element ("REE") metallurgical test work.
Final results from the drill holes are tabulated below.
Table1: Ram 2010 final drill results:
click to enlarge
Metallurgical test work is required to determine the economic viability
of extracting and separating the rare earths elements from the cobalt
mineralized horizons to be mined from the deposit. Although the REE
concentrations are generally low grade, the Company is pursuing the
possibility of potential future REE production from these horizons as
they would be considered by-product production with provisions for
mining, milling and concentrating already included in the existing
approved mine plan.
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
interpretive 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
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.
E.R. (Rick) Honsinger,
P.Geo., V.P. Corporate Communications
Formation Metals Inc., 1730 -- 999 West Hastings Street, Vancouver, BC,
Tel: 604-682-6229 - Email: firstname.lastname@example.org -- Web:
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.
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
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corporate, commodity price and marketplace changes.