IDAHO – Vancouver-based Formation Metals has filed what it calls a "positive" preliminary economic assessment of its Idaho cobalt-copper-gold project 50 km west of Salmon. Over a mine life of 12.5 years, the project would produce 35.4 million lb of cobalt, 57.4 million lb of copper, and 46,850 oz of gold.
The Idaho cobalt project has an initial capital cost of $147 million (all US dollars), generating a pre-tax net present value (8.5%) of $148 million and an internal rate of return of 27.7%. Post-tax, the NPV drops to $113 million and IRR to 24.7%. Formation believes that over the life of the mine it will generate $983 million in gross revenue and $248 million in total net after tax cash flow. Cash cobalt cost is projected to be $4.94 per lb (net of gold, copper and magnesium credits).
Measured and indicated resources, using a 0.20$ Co cut-off, are 3.16 million tonnes averaging 0.55% Cu, 0.75% Cu and 0.58 g/t Au. The inferred resource is 1.52 million tonnes at 0.47% Co, 0.71% Cu and 0.45 g/t Au.
Additional information is available at FormationMetals.com.
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