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Company Information for Formation Capital Corp
Company stock charts - 6 Month chart
 TSX; FCO
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Company Statement
Statement by the CEO: Mari-Ann Green
Formation Capital Corporation (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 high purity super alloy grade cobalt metal.
The Company's flagship property, the 100% owned Idaho Cobalt Project (ICP), received a positive bankable feasibility study in July of 2007, a Final Environmental Impact statement in June 2008 and a Record of Decision from The USDA National Forest in January 2009.
With cobalt shortages looming, most recent estimates are for a per annum deficit of between 7-9 thousand tons between 2005-2010, most industry experts are anticipating upward pressures on the commodity price.
The Company 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, 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, part of the Big Creek Complex, continues to produce 999.5 minimum fineness silver bullion for its expanding client base.
When the cobalt mine is in production, slated for Q2 of 2010, and is sending cobalt/copper/gold concentrate to the retro-fitted complex, the Company will become a fully integrated cobalt mine-to-market operation unique to North America.
Through three wholly owned subsidiaries - Formation Capital Corporation, U.S., Minera Terranova S.A. de C.V. and Coronation Mines Ltd. - Formation holds has additional interests in gold, silver and uranium projects in Idaho, Mexico, and Canada.
Company Diagram
Formation Capital already ships silver bars 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 Idaho Cobalt Project, located in east central Idaho, is a unique 100% owned primary cobalt deposit with production estimates of 1,525 tons annually of high purity super-alloy grade cobalt metal over a minimum ten year mine life. The project's output will be equivalent to 3.3% of the entire global cobalt supply and it will be able to feed 14.9% of North American demand for cobalt.
Reserves and Resources
Diluted, Proven and Probable Reserves of the project currently stand at 2.636 million tons @ 0.559% cobalt, 0.596% copper and 0.014 ounces per ton gold utilizing a 0.2% cobalt cut-off for a ten year mine life. In addition, there are inferred resources of 1.122 million tons grading 0.585% cobalt, 0.794% copper and 0.017 ounces per ton gold (after MDA, 2006) outlined on the project. This represents contained metals of 42.6 million pounds of cobalt, 49.1 million pounds of copper and 56 thousand ounces of gold.
The project encompasses a series of unique high-grade, primary cobalt deposits that are metallurgically favourable for the production of a high purity super alloy grade cobalt product suitable for critical application, super-alloy grade production. The project is forecast to produce approximately 1,600 tonnes of high purity cobalt 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.
Idaho Cobalt Project Status
The project has a completed National Instrument 43-101 compliant bankable feasibility study and is in the final permitting stage. The Bankable Feasibility Study was completed in July of 2007, a Final Environmental Impact Statement was received in June 2008 and a Record Of Decision from the USDA National Forest was received in January 2009. Strong political support includes members of the US Congress and US Senate. Idaho's Governor stated "Clearly, your (Idaho Cobalt) project will better the lives of people in Idaho as well as across the country and the world".
Other Properties
Gold/Silver Projects
Morning Glory Project
Compass Lake Project
El Milagro Project
Queen of the Hills Project
Cobalt/Copper/Gold Projects
Idaho Cobalt Project
Black Pine Project
Uranium Projects
Kernaghan Lake Project
Virgin River Project
Other assets include the 100% owned El Milagro Project located in the central plain of Tamaulipas State in Mexico, where silver grades reach bonanza levels often in excess of 2 kilograms per tonne and combined lead-zinc grades usually exceed 10%.
On the Virgin River uranium project in the Athabasca Basin of northern Saskatchewan, over $18 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 included grades of 7.62% U308 over 17.8m, including 9.64% U308 over 10.1m. 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. Exploration expenditures are continuing with a budgeted $4.0 million diamond drill program planned for 2009.
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 & CEO |
| J. Scott Bending | Director - President |
| W.G. (Bill) Scales | Director - Executive VP |
| Robert Metka | Director |
| James B. Engdahl | Director |
| Robert J. Quinn | Director |
| Cecil D. Andrus | Director |
| David stone | Director |
| Jeffrey Fraser | Corporate Secretary |
| J. Paul Farquharson | Senior VP / CFO |
| E.R. (Rick) Honsinger | VP Corporate Communications |
| Alan D. Vichert | VP Risk Management |
Company AddressSuite 1730 - 999 West Hastings Street
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Additional Address/Key ContactMineral Exploration & Development Offices: |
CapitalShares as of November 30, 2008; 204.2 million shares issued and outstanding |
Annual General MeetingJune, Vancouver, BC | Year EndFebruary 28 |
Broker/Analyst Reports
21/01/09 - Jennings Capital Inc. Afternoon Comment
08/04/08 - Fundamental Research Report
31/03/08 - Grandich Letter
08/01/08 - Jennings Capital Inc - Analyst Report
Major Shareholders
| Management & Insiders: | ~8% |
| Institutions: | ~75% |
| Retail: | ~17% |
Related News
20/11/08 - Formation Capital Has Kept The Lawyers At Bay And Now Awaits A New Environmental Decision On Development Of The Idaho Cobalt Project23/07/08 - Formation Capital Focuses On Getting Approval
21/02/08 - Construction Set to Begin at Formation Capital’s Cobalt Mine In Idaho
Most Recent Statement
29/06/09 - Update on Formation Capital's Idaho Cobalt Project26/06/09 - Conceptual Studies Commence on Formation Capital's Virgin River Uranium Project
02/06/09 - Formation Capital Invites you to Visit us at the 2009 Vancouver World Resource Investment Conference
11/05/09 - Formation Receives Further Administrative Licenses and Approvals for Cobalt Project
29/04/09 - Formation Capital Closes Oversubscribed $8.56 Million Financing
24/04/09 - Record of Decision Affirmed for Formation Capital