Formation Metals Inc. (TSX:FCO) reported the filing on SEDAR of its technical report containing results of its Preliminary Economic Assessment for the Idaho Cobalt Project in Lemhi County, Idaho. Together with the SEDAR filing, Formation Metals has also commissioned metallurgical test work in January 2015.
The Preliminary Economic Assessment stated a post-tax NPV of $113 million, an IRR of 24.07 percent and initial capital costs of $147 million.
As quoted in the press release:
Concurrent with the finalization and SEDAR filing of the Technical Report, management commissioned metallurgical test work in January 2015 suitable for a feasibility study on samples from the project to characterize the final end products Formation plans on producing. When completed, this information combined with the data from the PEA will further assist management in defining a clear path moving forward with a feasibility level technical report. Requests for quotes are being prepared to advance the project towards feasibility and marketing campaigns to increase awareness of Formation and the ICP are being scheduled.
The PEA is based on an underground mine with a target production rate of 800 tons per day with a weighted average annual production of 2,771,000 lbs of cobalt, 4,533,000 lbs of copper and 3,600 oz of gold over a 12.5 year mine life with an estimated pre-production period of 21 months utilizing a 0.25% cobalt cut-off used to define stope outlines.