FORMATION CAPITAL CORPORATION Fco-TSE
This company has reported the richest Cobalt finds in the US
Received assay results from five additional drill holes
on the Ram zone of the Company's Sunshine project in Lemhi County, Idaho. The
company has completed sixteen diamond drill holes which have traced multiple
mineralized horizons for over 800 feet of strike length and down dip to depths
of over 450 feet. The Ram zone remains open along strike in both directions
and to depth. The southernmost drill hole, R-97-12 intersected three separate
horizons of ore grade mineralization over significant widths. R-97-13, drilled
below R-97-12, also intersected multiple horizons of cobalt mineralization.
(1)previously released
Based on current metals prices 0.720% cobalt is equivalent to 1.0 oz/ton
gold
>>
Drill hole R-97-08 was lost prior to target depth. Results from R-97-10,
R-97-11 and R-97-13 through R-97-16 are pending. All drill intersections to
date are coincident with an open ended cobalt-in-soil geochemistry anomaly
over 2,600 feet long and averaging 800 feet wide. The presence of multiple
mineralized horizons is believed to be a prime contributor to the width of the
cobalt-in-soil anomaly.
The mineralization demonstrates strong continuity between drill holes
which should allow for a reserve/resource calculation upon the completion of
the drill program. The current proven, probable and possible reserves on the
Sunshine property stand at 295,404 tons grading 0.683% cobalt, 1.03% copper
and 0.024 oz/ton gold. At current metal prices of cobalt US$23/lb, copper
US$0.93/lb and gold US$330/oz the reserves have an insitu value of $341 per
ton. The current combined reserve and geological resource calculated on only
two of twenty five target areas stands at 2,826,670 tons. If similar grades
are realized for the geologic resource portion, the Sunshine Lode and East
Sunshine zones alone have an insitu value of US$964 million. Management
views the results to date as very encouraging given the Ram zone has multiple
ore grade horizons including wider drill intercepts of higher grade
mineralization over a longer strike length than the Company's East Sunshine
Lode (proven, probable and possible reserves of 146,593 tons grading 0.428%
cobalt, 1.53% copper and 0.025 oz/ton gold and a geological resource of
1,883,344 tons). Further results will be released when available.
ON BEHALF OF THE BOARD
Mari-Ann Green, C.E.O. |
