Formation Metals Responds to BCSC Clarification Request

 Formation Metals (TSX:FCO) announced that following a request by the British Columbia Securities Commission, the company was looking to clarify several disclosure issues. The clarifications and updates are being made following the company’s 2008 technical report for the Idaho Cobalt Project. Since the report was completed, Formation has completed substantial work and optimization studies on the project. Given the improving financial markets, and the increased attention on the cobalt sector, the company has decided to pursue several opportunities resulting from the increase in the long term demand for cobalt in regards to rechargeable batteries. As such, Formation will be filing a new NI 43-101 compliant technical report before the end of February 2015.

According to the press release, the following changes to note are:

• The completion of the 2010 mine plan optimization drilling program;
• Work in progress to update the resources, mine plan and production schedule;
• Flowsheet changes to reflect several shifts in focus in metals recoveries and producing final products:
• At the concentrator, the addition of a flotation circuit to produce Copper concentrate to be sold;
• At the Cobalt Production Facility (the “CPF”), addition of Copper Sulfate production to be sold;
• At the CPF, addition of Cobalt Sulfate production (battery grade cobalt); and
• At the CPF, addition of Gold circuit.
• Relocation of the CPF; a new location has not been determined yet;
• Cobalt prices have varied dramatically since 2008; ranging from a high of US$50.00/lb. to a low of US$12.00/lb. The Technical Report utilized a base price of US$22.52/lb. Current cobalt pricing ranges between US$14.00-$16.00/lb.;
• Capital cost of equipment, both mine and process;
• Operating cost estimates, both mine and process;
• Construction cost estimates; and
• The new requirement to provide post tax economic analysis.

Click here to read the Formation Metals Inc. (TSX:FCO) press release
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