RSS UpdatesCompany Information for Formation Metals Inc.
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 TSX; FCO
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Company Statement
Statement by the Chairman & CEO: Mari-Ann Green
Formation Metals Inc. (FCO.TSX) is an established, well financed Toronto Stock Exchange listed mining exploration and development company lead by a highly qualified technical team of mining engineers, geologists, metallurgists, administrative personnel and environmental and permitting specialists. With the development of its 100% owned Idaho Cobalt Project and the ownership of a unique hydrometallurgical refining complex that includes the fully operational Sunshine Precious Metals Refinery, the Company is poised to become the Western Hemisphere's sole integrated cobalt miner and refiner capable of producing super alloy grade, high purity cobalt metal.
The company's flagship property, the 100% owned Idaho Cobalt Project (ICP), received a positive bankable feasibility study in July of 2007 and a Record of Decision from the USDA National Forest Service in January 2009. Upon final signoff by the Forest service on the Mine Plan of Operations, successful completion of mine financing and posting of the reclamation bond, mine construction may begin. Production is estimated for Q1/Q2 of 2011.
The Company also owns the Big Creek Hydrometallurgical Complex, (the "Complex") located some 200 miles north of the Idaho Cobalt Project, near Kellogg, Idaho. Essential Metals, Inc., a wholly owned subsidiary of Formation Capital Corporation, U.S., purchased the Complex at a significant discount to its estimated US$70 million replacement cost. The fully permitted 36,000 square foot Complex collectively refers to the integrated facilities of the hydrometallurgical plant, precious metals refinery, SX-EW circuits, storage structures and the surrounding land. The 100% owned Sunshine Precious Metals Refinery continues to produce 999.5 minimum fineness silver and gold bullion for its expanding client base.
Through three wholly owned subsidiaries - Formation Capital Corporation U.S., Minera Terranova S.A. de C.V. and Coronation Mines Ltd. - Formation Metals Inc. holds additional interests in gold, silver and uranium projects in Idaho, Mexico, and Canada.
Company Diagram
Silver bars are shipped from the unique 100% owned Big Creek Hydrometallurgical Complex, which includes the Sunshine Precious Metals Refinery located a few miles East of Kellogg, Idaho, near the famous Sunshine Mine in Idaho’s Silver Valley.
Current Operations
The Company's Idaho Cobalt Project, located in a pro-mining district in the heart of the USA, received a positive Record of Decision in 2009 and is working towards completion of the mine financing and posting of the reclamation bond. Using the economic model developed for the feasibility study, with $22.52/lb cobalt, the NPV discounted 7.5% would be US$87 million with an IRR of 23.3%.
The project encompasses a series of unique high-grade, primary cobalt deposits that are metallurgically favourable for the production of a high purity cobalt product suitable for critical application, super-alloy grade production. The project is forecast to produce approximately 1,500 tonnes of high purity super alloy grade cobalt metal per year, representing about 20% of the world’s output of super alloy grade cobalt metal. This would offer the United States, estimated to consume 60% of critical application super alloy grade cobalt, an alternative, reliable domestic source of this strategic metal. The United States has no current domestic supply of cobalt and largely depends on overseas countries such as Zambia, Democratic Republic of Congo and Russia for most of their cobalt needs.
On the Virgin River uranium project in the Athabasca Basin of northern Saskatchewan, over $19 million has been spent to date in the exploration for a large unconformity-type uranium deposit by joint venture partners Cameco & Areva. Very significant drill intercepts have returned 0.1% grade cut-off results of 8.73% U308 over 33.9m for GT 295.9 (metres multiplied by %U3O8). Cameco considers this discovery, known as the "Centennial Zone", the most significant uranium discovery ever encountered along the entire Dufferin/Virgin River Trend in more than 25 years of exploration and is currently undergoing a conceptual study. Exploration expenditures are continuing with $5 million budgeted for 2010.
Geographical Spread
United States
- Idaho Cobalt Project (Co/Cu/Au)
- Black Pine (Cu/Co/Au)
- Morning Glory (Au)
- Queen of the Hills (Au)
- Badger Basin (Cu/Co/Au)
- Tinkers Pride (Au/Co/Cu)
- Bonanza Copper (Cu/Co/Au)
Canada
- Virgin River (U)
- Kernaghan Lake (U)
- Compass Lake (Au)
Mexico
- Milagro (Ag/Zn/Pb)
Board of Directors and Key Management
| Mari-Ann Green | Director - Chairman & C.E.O. |
| J. Scott Bending | Director - President |
| W.G. (Bill) Scales | Director - Executive V.P. |
| Robert Metka | Director |
| James B. Engdahl | Director |
| Robert J. Quinn | Director |
| Cecil D. Andrus | Director |
| J. Paul Farquharson | Senior V.P. / C.F.O. |
Company AddressSuite 1730 - 999 West Hastings Street
|
Additional Address/Key ContactIdaho Exploration Office |
Capital34.5 million shares issued and outstanding |
Annual General MeetingJune, Vancouver, B.C | Year EndFebruary 28 |
Broker/Analyst Reports
11/12/09 - Jennings Capital Inc.
11/11/09 - Jennings Capital Inc.
10/11/09 - Jennings Capital Inc.
28/09/09 - Jennings Capital Inc.
15/09/09 - Jennings Capital Inc.
11/05/09 - Jennings Capital Inc.
Major Shareholders
| Management & Insiders: ~8% |
| Institutions: ~75% |
| Retail: ~17% |
Related News
17/11/09 - Formation Metals Is Now At Last On The Way To Raising Development Funding for Its Idaho Cobalt Project22/07/09 - Formation Capital Gets Ever Closer To Production At The Idaho Cobalt Project, In Spite Of The Actions Of Xstrata
20/11/08 - Formation Capital Has Kept The Lawyers At Bay And Now Awaits A New Environmental Decision On Development Of The Idaho Cobalt Project
23/07/08 - Formation Capital Focuses On Getting Approval
21/02/08 - Construction Set to Begin at Formation Capital’s Cobalt Mine In Idaho
Most Recent Statement
04/03/10 - Formation Metals Receives First Term Sheet for Project Finance Bank Debt Facility25/02/10 - Formation Metals Begins Construction of Idaho Cobalt Project
06/01/10 - Formation Metals' Uranium Project 2009 Drilling Expands Mineralization of Centennial Deposit
09/12/09 - Formation Metals Inc. Receives Approval from Forest Service to Begin Construction on Idaho Cobalt Mine
09/11/09 - Formation Capital Corporation Announces Name Change and Share Consolidation
06/11/09 - Critical Path to Finalize Formation's Idaho Cobalt Project Mine Plan Established