IDAHO - Vancouver's FORMATION CAPITAL CORP. says the results of a feasibility study into its 100%-owned Idaho cobalt project are positive. Total capital costs of developing an underground mine and building a 725-t/d mill are estimated at US$75.0 million. Constructing a hydrometallurgical plant to produce superalloy grade cobalt would add another US$63.7 million to the capital outlay.
The feasibility study was prepared using only the resources of the Ram deposit. Proven and probable reserves total 2.6 million tonnes grading 0.56% Co, 0.60% Cu and 4.80 g/t Au. Inferred resources were not included in the study, nor was mineralization in the Sunshine deposit. Construction would take 14 months and mine life would be 10 years. Annual cobalt production would be approximately 1,200 tonnes.
The deposit is located in east-central Idaho, 35 km southwest of the town of Salmon. The Big Creek hydrometallurgical plant would be located in the northern part of the state, at Kellogg. See www.FormCap.com for details.
Formation Capital said it is proceeding with detailed engineering work for the Idaho cobalt project "at risk", meaning the U.S. Forest Service has not yet given approval for the project. The Forest Service ruling is expected in late September or early October 2007.
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