The Company's flagship property, the Idaho Cobalt Project, is 100% owned by Formation Capital Corporation, U.S., a wholly owned subsidiary of Formation Metals Inc.. It is a unique, high-grade, primary cobalt deposit metallurgically favourable for the production of high purity cobalt metal suitable for rechargeable batteries used in hybrid and electric vehicles and for critical applications in the super-alloy sector such as jet turbine engines.
The Idaho Cobalt Project is located just outside of the town of Salmon, Idaho. It has received a positive Bankable Feasibility Study, a final Environmental Impact Statement and positive Records of Decision from both the U.S. Department of Agriculture National Forest Service and the U.S. Environmental Protection Agency. Stage 1 Construction was completed in 2010 and Stage 2 Construction is now underway with production estimates for Q3 2012, pending the succesful conclusion of mine financing.
The mine is forecast to produce approximately 3.3 million pounds of super-alloy grade cobalt (equivalent to 5.0 - 8.0 million pounds of value added cobalt chemicals per year, representing close to 4% of world cobalt production). The U.S.A. is the largest world consumer of this environmental and strategic metal but currently has no primary cobalt production and is dependent on imported sources.
Another of Formation Metals Inc.'s wholly owned subsidiaries, Essential Metals Corporation®, purchased the Big Creek Hydrometallurgical Complex in 2002. The Complex is located in the world famous Silver valley of Idaho. The Sunshine Silver Refinery section of the facility, operational since the summer of 2004, is currently producing high purity precious metal bullion for its clients and continues to attract new customers. The Company plans retro-fit the remainder of the Complex to accept Idaho Cobalt Project concentrate to produce high purity cobalt, by-product copper cathode and gold. In addition, the Company is currently evaluating the economic feasibility of producing rare earth elements which are know to occur within the cobalt mineralized horizons of the deposit.
