Formation Metals' Idaho Cobalt Project Minesite and Refinery Update
Published : December 12, 2012
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VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 12, 2012) - Formation Metals Inc. (News - Market indicators) (the "Company") is providing an update on the progress of construction on its 100% owned Idaho Cobalt Project ("ICP"), managed by JDS Energy & Mining ("JDS"). The ICP is comprised of the development of a mine and construction of a concentrator at a primary cobalt deposit in Lemhi County near the town of Salmon, Idaho, and the retrofit and construction of an electrowinning cobalt production facility in Shoshone County, near Kellogg, Idaho, U.S.A. 

The following information outlines progress made on the ICP since our last update provided on October 4, 2012 and reflects the use of proceeds from our US$5.0 million debenture announced on October 17, 2012. Construction at the mine site concentrated on time critical construction tasks to prepare the project for underground development and winterization of the construction site. These tasks included access road upgrades, portal bench construction and the preparation of the Tailings Waste Storage Facility ("TWSF") to accept waste rock from underground development. Underground excavation to the ore face will commence once the time critical construction tasks are completed and additional mine finance is secured. The building of the required processing facilities such as the mill, concentrator and water treatment plant are expected to begin concurrently with underground development. Initial production is expected to begin between 9 and 14 months from the commencement of underground development.

Idaho Cobalt Project Mine and Concentrator Site, near Salmon, Idaho:

Specific tasks accomplished over the past several weeks include:

  • Excavation and sub-grade preparation and installation of the foundation-drain piping of the south half of the TWSF

  • Installation of a portion of the liners in the south half the TWSF

  • Excavation and sub-grade preparation of the Water Management Pond ("WMP")

  • Septic system drain field excavation

  • Installation of pipeline from Portal Bench to Big Deer Creek for treated water discharge, including the in-stream diffuser, air release valves and reclamation seeding and mulching of the completed right of way

  • Work completed on the portal access road, TWSF haul road, soil stockpile road and the WMP access road

  • Repaired the 7900 level surface water diversion ditch

  • Completed drilling of all monitoring and capture wells

  • Security gate installed at the property boundary on the Big Flat area

The mine site has been winterized and construction efforts will continue upon the successful conclusion of mine financing.

Big Creek Hydrometallurgical Refining Complex, outside of Kellogg, Idaho:

Engineering and construction efforts at the refinery focused on the development of the Piping and Instrumentation Diagrams ("P&ID's") and General Arrangement ("GA") drawings at the Cobalt Production Facility ("CPF"). In addition, modifications of the silver refinery progressed to accommodate the requisite modifications for third party copper/silver concentrates as well as cobalt concentrates from the ICP. P&IDs show the connectivity of equipment, sensors, and valves in a control system. P&ID's also provide the basis for the conceptual layout of the CPF. 

Activities related to these engineering efforts include the following:

  • Initiated Process Hazard Assessment of CPF designs

  • Prepared and reviewed budget support documentation and project execution strategy as part of ICP finance due diligence

  • Placed cobalt electrowinning cells on the CPF foundation beams and covered them for winter

  • Prepared an engineering schedule for completion of P&ID review and GA drawings for completion in January, 2013

  • Review of P&ID & Control Philosophy by the Company and JDS is underway. Over half of P&ID's and their related sections of control philosophy were finalized.

  • Revised CPF layout for expansion and optimization.

Several photos have been posted on the Company's website documenting the above work and can be viewed at In addition, video updates dated October 2012 of construction progress at both the mine site and at the refinery have been posted on the Company's website at

Mine Finance:

Management continues to work with potential financiers on securing mine financing. As disclosed in the Company's update to shareholders dated October 4, 2012, financing efforts include securing a credit facility for issued tax exempt industrial bonds, securing a high yield debt facility and / or an off-take arrangement with an end user. Also deemed reasonable by management is an alliance with capable strategic partners with interests in Formation Metals' corporate growth. 

"Securing the final mine finance continues to be our top priority," stated Mari-Ann Green, CEO of Formation Metals Inc. She continued, "The [US] $5 million raised in October has allowed us to initiate time critical construction activities to prepare the site for underground development. The decision to begin processing third party copper/silver concentrates at the refinery has required some engineering design modifications, and this in turn has required additional reviews from potential lenders' engineering teams, which of course, all takes time. Although construction activities have been curtailed for the winter, engineering activities and equipment preparation continue."

Formation Metals Inc. is a well-established, mineral exploration, development and refining company that 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, C.E.O.

This information update 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

The statements contained in this information update 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.

Formation Metals Inc.
E.R. (Rick) Honsinger, P.Geo.
V.P. Corporate Communications

Formation Metals Inc.

ISIN : CA34637V1013
CUSIP : 34637L
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Formation Metals is a cobalt development stage company based in Canada.

Formation Metals develops cobalt, copper and gold in USA, and holds various exploration projects in Canada.


Formation Metals is listed in Canada, in Germany and in United States of America. Its market capitalisation is CA$ 60.3 millions as of today (US$ 46.3 millions, € 41.5 millions).

Its stock quote reached its highest recent level on June 05, 1998 at CA$ 9.94, and its lowest recent point on June 14, 2013 at CA$ 0.06.

Formation Metals has 105 702 405 shares outstanding.

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Corporate Presentations of Formation Metals Inc.
11/17/2007Research Report on Formation Capital
Financings of Formation Metals Inc.
4/13/2011Proposes to Extend Warrants
3/10/2011Completes $80 Million Equity Financing
3/3/2011Prices up to $80 Million Equity Offering
2/24/2011on $80,000,000 equity offering
12/20/2007Flow Through Financing Completed for Formation's Saskatchewa...
Nominations of Formation Metals Inc.
6/13/2013Leading Independent Proxy Advisory Firms Recommend Formation...
1/8/2008(Idaho Cobalt Project) Hires General Manager for Idaho Cobalt Project
Project news of Formation Metals Inc.
5/2/2013(Idaho Cobalt Project)' Defers Underground Development Decision for Idaho Cobalt P...
12/12/2012(Idaho Cobalt Project)' Idaho Cobalt Project Minesite and Refinery Update
7/12/2012(Idaho Cobalt Project)' Idaho Cobalt Project and Hydrometallurgical Plant Update
3/29/2012(Idaho Cobalt Project)' Idaho Cobalt Project Construction Update
12/21/2011(Idaho Cobalt Project)' Idaho Cobalt Project Geotechnical Drilling Complete
12/6/2011(Idaho Cobalt Project)' Idaho Cobalt Project Construction Update
10/6/2011(Idaho Cobalt Project)' Bond Issuers Extend Date for Idaho Cobalt Project Credit F...
9/14/2011(Idaho Cobalt Project)' Idaho Cobalt Project Construction Crew Resume Operations
9/8/2011(Idaho Cobalt Project)Provides Construction Update on Idaho Cobalt Project
7/26/2011(Idaho Cobalt Project)Begins Earthworks Construction at Idaho Cobalt Project Mine ...
5/31/2011(Virgin River)Drilling on Formation Metals' Uranium Project To Commence in...
5/13/2011(Idaho Cobalt Project)Idaho Cobalt Mine Construction on Track for Q2, 2011
4/28/2011(El Milagro)' Mexican Subsidiary Acquires Central Core Land Position on ...
4/7/2011(Idaho Cobalt Project)Cobalt Mine Commencement of Construction Targeted for Q2, 20...
1/21/2011(Idaho Cobalt Project)Extends Cobalt Deposit Strike by 14%
1/6/2011(Idaho Cobalt Project)Signs EPCM Letter of Intent with JDS for Idaho Cobalt Projec...
12/31/2010(Idaho Cobalt Project)Closes $77.7 Million Bond Issue for Idaho Cobalt Project
11/30/2010(Idaho Cobalt Project)Mandates BNP Paribas to Arrange Idaho Cobalt Project Debt
10/21/2010(Idaho Cobalt Project)Drills Cobalt Project to Optimize Mine Design
9/27/2010Engages Auramet for Cobalt Mine Finance
7/28/2010(Idaho Cobalt Project)Drills to Optimize Mine Design and Assess Rare Earth Element...
11/6/2009(Idaho Cobalt Project)Critical Path to Finalize Formation's Idaho Cobalt Project M...
9/15/2009(Idaho Cobalt Project)Permanent Access Across Blackbird Mine Site Authorized for F...
6/30/2009(Virgin River)Conceptual Studies Commence on Formation Capital's Virgin Ri...
2/11/2009(Idaho Cobalt Project)Receives NPDES Permit and 401 Certification for Idaho Cobalt...
2/3/2009(Idaho Cobalt Project)Record of Decision Describes Conditions Approving Formation'...
1/21/2009(Idaho Cobalt Project)Forest Service Issues Revised Positive Record of Decision fo...
11/28/2008(Idaho Cobalt Project)Expects Idaho Cobalt Project new Record of Decision in mid J...
11/17/2008(Idaho Cobalt Project)Resolves Appeals with Environmental Groups on Idaho Cobalt P...
9/8/2008(Idaho Cobalt Project)Idaho Cobalt Project 78% Complete on Engineering and Procure...
8/26/2008(Idaho Cobalt Project)Idaho Cobalt Project Appeal Resolution Process Underway
8/7/2008(Idaho Cobalt Project)Completes Modified Mine Plan of Operations on Idaho Cobalt P...
7/25/2008(Idaho Cobalt Project)Idaho Cobalt Project's Record of Decision Outlines Measures ...
6/27/2008(Virgin River)In-Fill Drilling on Virgin River Uranium Project Confirms Co...
5/29/2008(Idaho Cobalt Project)Biological Opinions Grant Endangered Species Act; Exemption ...
5/1/2008(Idaho Cobalt Project)Detailed Design and Procurement of Idaho Cobalt Project Mine...
3/13/2008(Idaho Cobalt Project)Receives Water Right Permit for Idaho Cobalt Project
3/7/2008(Virgin River)Highest Grade Uranium Mineralization to date Encountered on ...
1/9/2008(Idaho Cobalt Project)Completed Biological Assessment Significantly Advances Permi...
12/14/2007(Virgin River)Highest Grade Uranium Mineralization Encountered to Date on ...
11/15/2007(Idaho Cobalt Project)Engineering & Procurement Progressing Well on Formation's Id...
10/30/2007(Idaho Cobalt Project) Drops Water Right Notice of Protest on Formation's Cobalt P...
10/27/2007(Idaho Cobalt Project) Announces Court Ruling in Arizona is not Expected to Delay ...
Corporate news of Formation Metals Inc.
7/7/2016Formation Appoints Red Cloud as Capital Markets Advisor
6/21/2016Feasibility Study on Formation's Idaho Cobalt Project Awarde...
6/1/2016Formation Metals Completes Oversubscribed $4.4M Private Plac...
5/10/2016Private Placement Amendment: Granting Of Up-size Option To A...
5/4/2016Formation Metals Announces $3 Million Private Placement
12/8/2015Formation Metals Successfully Produces High Purity Cobalt Sa...
5/11/2015Formation Metals Announces SEDAR filing of a Positive Prelim...
5/11/2015Formation Metals Announces SEDAR filing of a Positive Prelim...
4/23/2015/R E P E A T -- Formation Metals Announces Positive Results ...
4/22/2015Formation Metals Announces Positive Results from a Prelimina...
10/11/2013Secures Proceeds of US$12 Million From Sale of Refinery
9/16/2013to Sell Refinery for US$12 Million
7/5/2013Executes Mutual Release with Waterton
7/5/2013Executes Mutual Release with Waterton
6/6/2013Enters Binding Letter Agreement to Sell Refinery for US$9.0 ...
5/28/2013Welcomes New Board Member Gregory Hahn
5/13/2013Redeems US$43.6 in Bond Debt
10/17/2012Issues US$5 Million Convertible Note as Part of Larger Plann...
5/14/2012Capital Corporation, U.S. and Idaho Conservation League Anno...
5/2/2012Begins Processing Silver & Gold Concentrates
4/4/2012Drilling on Formation Metals' Uranium Project Continues to R...
3/22/2012' Cobalt Project Finance Update
2/29/2012Commences Trading on the OTCQX Market
2/7/2012Union Bank Takes Over as Lead Arranger for Formation Metals'...
1/12/2012Drilling on Formation Metals' Uranium Project to Continue in...
8/29/2011Signs Agreement for Underground Mining Operations and Provid...
7/29/2011(Idaho Cobalt Project)Receives Commitment for Financing of Idaho Cobalt Project
6/16/2011' Earthworks Contractor Mobilizing Equipment for Idaho Cobal...
12/16/2010Stimulus Act Recovery Zone Bond Allocation Increased to US $...
9/16/2010Receives Stimulus Act Recovery Zone Facility Bond Allocation...
5/12/2010Grandich Client Update - Formation Metals
3/26/2010Peter Grandich Client Update on Formation Metals
11/10/2009Announces Name Change and Share Consolidation
2/27/2009Endorses Lemhi County Commissioners Establishment of Industr...
2/19/2009U.S. and Idaho Conservation League Announce Grantees of Cons...
2/5/2009Boom in battery sector anticipated
12/30/2008Closes Financing for Saskatchewan Uranium Projects
12/17/2008Receives Air Permit Pre-Construction Authorization
12/15/2008Receives Platinum Award for Corporate Excellence
9/15/2008No Material Reason for Share Price Decline
9/9/2008Courts Grant Formation Capital Access Across Blackbird Mine ...
8/18/2008and Idaho Conservation League Release Details of Conservatio...
8/14/2008and Idaho Conservation League Reach Agreement on Environment...
7/16/2008Clarifying News Release - Continuous Disclosure Review
7/10/2008Hires Key Personnel to Help Expedite Cobalt Project Engineer...
6/16/2008Forest Service Record of Decision Signals Green Light for Id...
4/2/2008 Receives Annexation Approval for Staging Property
1/15/2008Cobalt price soars as stockpiles run low
12/19/2007Former Idaho Governor & Secretary of the Interior Elected to...
11/27/2007Cobalt nears record $35 per lb
4/4/2007Sullivan Deeps SD3 Drilling Update; Top of the Lower Aldridg...
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