🕐29.08.11 - 14:27 Uhr
FORMATION METALS SIGNS AGREEMENT FOR UNDERGROUND MINING OPERATIONS AND PROVIDES
CONSTRUCTION UPDATE ON IDAHO COBALT PROJECT
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Re: News - Monday, August 29, 2011
Formation Metals Signs Agreement for Underground Mining
Operations and Provides Construction Update on Idaho Cobalt
Project
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Vancouver, B.C., August 29, 2011 Formation Metals Inc.
(FCO-TSX)
("Formation") announced today that its 100% owned subsidiary, Formation
Capital Corporation, U.S., (the "Company") has now signed an agreement
for underground mining operations at its 100% owned Idaho Cobalt
Project ("ICP") with Small Mine Development, L.L.C.
(SMD) and has also
been provided an update on the construction progress by JDS Energy &
Mining (JDS).
Construction photos provided by JDS can be found in the "Construction
Photo Gallery" located on the home pages of both
www.formationmetals.com and www.idahocobalt.com.
JDS, the Companys project and construction manager, advises that
construction is advancing as planned.
Construction Progress - Mine-site and Mill, Salmon, Idaho:
Road Work:
- Upgrading on access roads complete
- Rough grading on site roads and portal bench underway
- Rock crushing for overall construction purposes is on-going
Crusher and Concentrator:
- Located at the top of the mountain in an area called the Big Flat,
the ore will be delivered here via the tram and crushed and milled
into concentrate
- Crusher and concentrator pads are under construction and nearing
completion
- Concrete installation is planned to start in September
- Fabrication of both the concentrator and crusher buildings to
follow
Tram:
- The approximately 2,500 foot long aerial tram will hoist the ore
1,000 feet in a 6 cubic yard tram bucket from the mine portal to
the crusher and concentrator on the Big Flat
- Construction of tram tower will commence after competitive bids
analysed
Powerline:
- Idaho Power Corporation completed work on switch-yard upgrades
- ICP power transmission line construction commencing next week
Portal Bench:
- A level pad is being constructed at the 7,060 foot elevation
(mine entrance) which will serve as the platform for a shop,
power transformer, facilities for the aerial tram
- Excavation is now in progress
- A mechanically stabilized earth (MSE) wall to support the portal
bench is now under construction by Hilfiker Retaining Walls
- MSE wall materials expected to be delivered first week September
Additional Site Earthworks:
- Excavation of wetland mitigation pond on-going
- Tailing and waste rock storage facility (TWSF) construction
advancing
Construction Progress - Cobalt Production Facility, Kellogg, Idaho:
Concrete Work:
- Letter of Intent has been signed with Contractors Northwest Inc.
(CNI) of Coeur dAlene, Idaho
- CNI intends to set up mobile work structures and move equipment
to the Kellogg site next week
Building Construction:
- Garco Building Systems, out of Spokane, Washington has been selected
as the building contractor and the contract negotiations are now in
final stages
Contract for Underground Mining Operations:
Small Mine Development, L.L.C., founded in 1982 by Ron Guill, former
Marine Corp Officer and Mine Engineer and operating out of Boise,
Idaho, are leaders in mechanized underground mining innovation.
They
pioneered the use of cemented backfill in underhand cut and fill mining
which is now widely utilized for underground projects in Nevada and
will also be used in the Idaho Cobalt Mine.
SMD will be responsible
for setting up and operating a dedicated team of mine workers and
providing the materials and equipment necessary for safe, productive
and cost effective mining operations at the Idaho Cobalt Mine.
Bill
Scales, President, Formation Capital Corporation, U.S.
adds, "SMD has a
reputation for safe and efficient mining and we are very pleased to
have them join our team".
Formation Metals Inc.
is a well established, mineral exploration,
development and refining company that is dedicated to the principles of
environmentally sound mining and refining practices, and believes that
environmental stewardship and mining can co-exist.
Formation trades on
the Toronto Stock Exchange under the symbol FCO.
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: -- Web:
formationmetals.com
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.
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.
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Copyright (c) 2011 FORMATION METALS INC.
(FCO) All rights reserved.
For more information visit our website at
http://www.formationmetals.com/ or send
mailto:
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