Formation Capital sees Idaho Cobalt drilling successes

Vancouver – Ongoing drilling at Formation Capital’s (FCO-T) wholly owned Idaho Cobalt project, located in east-central Idaho, is delivering good grades of the metal which will positively impact resource figures for the deposit.

The company reports being about half-way through its 7,500-metre drill program on the primary cobalt project. This year’s drill program is aimed at enhancing the resource at the deposit as well as increasing its understanding.

Diamond drilling on the Idaho Cobalt project continues to test along strike and down-dip on the Ram deposit, expanding the reserves and resource. Additionally, the holes are testing the hanging-wall mineralization.Significant results from the drill program include:

• Hole R04-05 This hole on the Ram deposit intersected multiple horizons of mineralization, a 0.6 metre intercept (from 292 metres) cut 0.57% cobalt and was followed by a 2.2 metre section from 294 metres) grading 0.41% cobalt; the main zone was encountered further downhole returning 2.5 metres (from 371 metres) of 0.32% cobalt and 0.64% copper, then 3.9 metres (from 379 metres) of 0.77% cobalt and 1.26% copper, and then 2 metres (from 386 metres) of 1.41% cobalt and 0.33% copper; beneath the main zone, a 1.25 metre intercept of 0.57% cobalt and 0.29% copper was encountered;
• Hole R04-07 An intersection of 1.5 metres (from 86 metres) graded 0.55% cobalt;
• Hole R04-08 Again, multiple mineralized horizons were encountered, 0.6 metres (from 203 metres) intersected 4.00% cobalt and 1.3 grams gold per tonne, followed by a 1 metre section (from 215 metres) of 0.85% cobalt and 0.37% copper, then 1.2 metres (at 319 metres) grading 1.05% cobalt, followed by 1.2 metres (from 384 metres) grading 0.39% cobalt and 0.68% copper; further downhole, the main zone saw intercepts of 1.3 metres (from 394 metres) averaging 0.37% cobalt and 0.57% copper, then 2.1 metres (from 414 metres) of 1.17% cobalt and 0.84% copper, followed by a section of 3.4 metres (at 424 metres) of 0.38% cobalt and 0.52% copper.

This latest drilling program has thus far extended the mineralization down dip, in the Ram deposit, along some 120 metres along strike and remaining open.

Idaho Cobalt is presently in the feasibility-advanced permitting stage. A pre-feasibility study has outlined diluted proven and probable reserves of 1.14 million tonnes grading 0.641% cobalt, 0.49% copper and 0.6 grams gold per tonne. Diluted inferred resources stand at 1.72 million tonnes of 0.57% cobalt, 0.42% copper and 0.7 grams gold.

The proposed development will see an underground operation targeting the thin, high-grade cobalt horizons.Projected output from Formation Capital’s Idaho Cobalt Project is 1,500 tonnes per year, and will equate to about 4% of global cobalt supply and it is estimated it will be able to feed 10% of domestic cobalt demand in the U.S.

Cobalt prices have seen a rise to the US$25 per pound range due to supply shortfalls and concerns from unstable countries, particularly in Africa, and also due to recent increased demand in battery technology.