Formation Metals Inc : Drilling on Formation Metals' Uranium Project to Continue in 2012
January 12, 2012 at 08:39 am
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January 12, 2012
Drilling on Formation Metals' Uranium Project
to Continue in 2012
Vancouver, B.C. January 12, 2012 - Formation
Metals Inc. (the "Company", FCO-TSX)
has been advised by the Virgin River Uranium
Project operator, Cameco Corporation, that the
2011 drill program has successfully concluded and
that plans and budget for the 2012 drill program
have been approved. The Virgin River Project is
located within the south-central portion of the
Athabasca Basin in northern Saskatchewan,
approximately 130 km northwest of Cameco's
Key Lake mill. The project is a joint venture
between the Company's wholly owned Canadian
subsidiary, Coronation Mines Ltd., Cameco
Corporation and AREVA Resources Canada Inc.
The 2011 diamond drill program on the Virgin
River project was completed on October 15th, with
a total of 7,746.2 metres drilled in 6 pilot
holes and 7 off-cuts. All final uranium ICP assay
results from the program are pending. The program
concentrated on testing for the presence of cross
structures and strike extensions to both the
north and south of the Centennial Deposit. The
Centennial Deposit has previously been traced
over 650 metres of strike length with a minimum
across strike width ranging from 10.0 metres to
52.5 metres. To date, approximately $29.9 million
has been spent on the Virgin River project.
The program has provided data and additional
drill targets for further follow-up in 2012. A
budget of $2.15 million for the 2012 diamond
drilling and geophysical exploration program on
the Virgin River Project has been approved by the
joint venture. The 2012 program is expected to
consist of 5 -- 6 diamond drill holes and 2 -- 3
wedge off-cut diamond drill holes.
Drilling along section L3+74N in DDH VR-047
assessed the potential for mineralization along
strike to the south by locating and following the
faulted quartzite. Although only elevated
radioactivity was encountered in the lower
sandstone, the alteration and structure is
comparable to the Centennial Deposit located
approximately 225 m to the north.
Evaluation for the presence of potential cross
structures completed on L8+00N and L10+50N was
successful in confirming the presence of east --
west striking cross structures. The
mineralization intersected 250 m east of the
deposit, in the DDH VR-042 and -049 series drill
holes, appears to be controlled by an east --
west striking cross structure which intersects
the Centennial deposit. The mineralization
present on L10+50N, DDH VR-046,
VR-046W1 and VR-046W2, continues to suggest that
potential remains immediately to the west of the
deposit for additional mineralization both
parallel to and cross-cutting the deposit.
The final pilot hole of the 2011 program, DDH
VR-051, located approximately 1.4 km from the
current northern extension of the Centennial
Deposit, intersected a broad zone of elevated
radioactivity and weak mineralization within the
lower sandstone, with the most significant
present associated with a faulted quartzite unit
immediately below the unconformity. The
preliminary results of DDH VR-051 are extremely
encouraging considering mineralization is
associated in a similar off-conductor geological
setting to that encountered on the Centennial
Deposit 1.4 km to the south. The model suggests
that this target demonstrates the potential for
increased grades existing both to the east and
west across strike as well as both north and
south along strike of this intercept.
The 2012 drill program will concentrate on the
evaluation of the off-conductor mineralization
intersected in drill hole DDH VR-051 mentioned
above. In addition, a number of tests will also
evaluate the conductor responses from a proposed
geophysical survey between L21N and L33N located
to the north of the deposit. Several tests will
also be dedicated to upgrading mineralization on
the Centennial Deposit by assessing the cross
structural influence on uranium mineralization
within the deposit.
High grade U3O8 intersections of up to 298 GT
have been intersected within the Centennial
Deposit (33.9 metres grading 8.78% U3O8 -- see
Company News release dated May 30, 2011). GT is
defined as % grade U3O8 multiplied by thickness
in metres. Assay results returned from diamond
drill programs from 2004 to 2010 on the
Centennial Zone have resulted in 35 significant
primary uranium intersections returning results
greater than 10.0 GT.
The Company is pleased with the continued success
of the program and is looking forward to the
results of the ongoing program.
The Virgin River project joint venture was formed
in 1998 between the Company's subsidiary,
Coronation Mines Ltd. (2%), Cameco Corporation
(49%) and AREVA Resources Canada Inc. (49%).
Coronation Mines Ltd. has the right of first
offer to increase its ownership of the project up
to 10%.
All uranium geochemical assays are being carried
out utilizing Inductively Coupled Plasma -
Optical Emission Spectroscopy analysis by the
Saskatchewan Research Council of Saskatoon,
Saskatchewan. Mr. Eric (Rick) Honsinger, P.Geo.,
of Formation Metals Inc., is the Qualified Person
who has reviewed and approved the content of this
news release based on an examination of the data
submitted to the Company by the project operator
Cameco Corporation.
Formation Metals Inc.
"Mari-Ann Green"
Mari-Ann Green,
C.E.O.
For further information please contact:
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
________________________________________
The statements contained in this news release
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.
This press release 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 www.sedar.com.
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eCobalt Solutions Inc, formerly Formation Metals Inc, is a Canada-based mineral exploration and mine development company. The Company's primary project is Idaho Cobalt Project (ICP), which is located in the mining state of Idaho. The Company's segments include Exploration and ICP development, and Corporate. It holds mineral exploration properties in Canada, the United States and Mexico. ICP property covers an area of approximately 4,080 acres and includes over 170 mining claims. ICP consists of the mine, mill and concentrator, referred to as the Mine & Mill (M&M) located in Lemhi County outside of the town of Salmon, Idaho, and a hydrometallurgical plant. Its property also includes Wallace Creek, in which the Company has interest in certain mineral claims located in Lemhi County. Its properties in Saskatchewan, Canada include Kernaghan Lake/Bell, which consists of over 10 mineral claims, and Virgin River, which is located in the Athabasca Basin of northern Saskatchewan.