|April 30, 2010|
Formation Metals Concludes Stage I Construction on Idaho Cobalt Mine
|Vancouver, BC, April 30, 2010, Formation Metals Inc. (FCO-TSX) (the "Company") is pleased to announce the successful conclusion of Stage I Construction on its 100% owned Idaho Cobalt Mine. Stage I consisted primarily of clearing timber from the site in preparation for laying the foundations to be used for the mine site structures, tailings waste site facility (TWSF) and for road building.|
"We were fortunate to have the weather on our side during this winter stage of construction", commented Bill Scales, President of Formation Capital Corporation, U.S., the company that owns the Idaho Cobalt Mine and is a 100% owned subsidiary of the Company. He continued, "In this case the extended cold weather worked in our favour by keeping the ground conditions frozen allowing us to extend the tree clearing operation by close to six weeks. Approximately 113 acres of the site was prepared for Stage II construction."
Pending mine finance, Stage II Construction is planned for the second quarter of 2010, and will begin with the building of the site access roads, the earthworks preparation for the mill site, TWSF and ponds and the portal bench for the underground mine.
"Seeing the project move through Stage I is quite rewarding", stated Mari-Ann Green, CEO of Formation Metals Inc. She continued, "This progress, and the fact that prices for high purity cobalt have been firming up recently is good news for our current financing efforts".
High purity cobalt metal, (>99.8% cobalt) is currently trading at just above US$24/lb. This aerospace material sells at a premium over the 99.3% purity cobalt metal. The 99.3% material commenced trading on the London Metals Exchange on February 22, 2010 with spot three and fifteen month contracts. The Idaho Cobalt Mine will be capable of producing >99.8% high purity cobalt metal with specifications suitable for critical applications in the aerospace sector used in the manufacture of jet aircraft engines, and in next generation lithium-cobalt-ion re-chargeable batteries used in electric and hybrid-electric vehicles.
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 Metals Inc. 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, V6C 2W2
Tel: 604-682-6229 - Email: inform@FormationMetals.com - Web: formationmetals.com