Friday, March 11, 2016

Formation Metals Inc - FCO.t

Formation Metals Inc - FCO.t is focused on the flagship Idaho Cobalt Project which is comprised of the mine and mill near Salmon, Idaho and the proposed Cobalt Production Facility for refining mine concentrate.

On March 3, 2016 the company released News

Formation Metals Inc. (FCO-TSX) announces that it has received the final metallurgical test work report on bench test production of cobalt sulfate heptahydrate crystals suitable for the rechargeable battery sector produced from ore samples from Formation's Idaho Cobalt Project ("ICP").Results from this report have allowed management, in conjunction with its team of engineers and metallurgists, to develop initial specification sheets for two of its anticipated end products, specifically cobalt sulfate heptahydrate crystals for use in the rechargeable battery sector and a scalped copper concentrate suitable for established smelters to process. With this information, Formation intends to pursue potential offtake arrangements to assist in the development of the ICP.
Samuel Engineering Inc. ("SE") of Denver, C0, is the Company's lead engineer coordinating the metallurgical test work. SE previously reported that based on the extensive metallurgical testwork results to date, successful modifications to the Mill & Cobalt Production Facility flowsheets and the recent results and commitments from critical technology and equipment suppliers, the final end product is expected to meet the quality standards for high purity cobalt sulfate chemicals. These chemicals are required for the emerging rechargeable battery, stationary storage and electric vehicle sectors. The development of the initial specification sheet supports this initial assessment (see Company News Release dated December 8, 2015).
The development of the modified flow sheets outlines a critical path forward for the Company. SE has previously recommended that the project development activities be advanced to support and produce a Definitive Feasibility Study ("DFS"). The finalization of the modified flow sheets allows for such advancement.
To that end, Requests for Proposals ("RFP") to commission a DFS were sent to numerous qualified engineering firms earlier this month, several of which had previously indicated their interest in assisting Formation with their DFS. The solicitation of bids for this definitive engineering work is critical to defining a clear path forward for the development, engineering, procurement and construction of the ICP.
Paul Farquharson, Formation's President and CEO commented "Having the spec sheets and flow sheets defined facilitates our moving forward with pursuing offtake and other potential means to assist in the future development of the ICP", he continued, "These developments coincide with an improved outlook for the cobalt markets with deficits expected this year and increasing significantly into 2018 -- previous deficit situations in the cobalt market resulted in significant rises in the commodity price."
About Formation Metals Inc. Formation Metals Inc.'s primary asset, the Idaho Cobalt Project, remains the sole, near term, fully environmentally permitted, primary cobalt deposit in the United States and offers a unique potential for North American consumers to secure an ethically sourced, environmentally sound supply of battery grade cobalt chemicals, mined safely and responsibly in the United States.