FORMCAP FINALIZES ENVIRONMENTAL STUDY PRIOR TO COBALT MINING
Filing of Plan of Operation Initiates NEPA Process On High Grade Cobalt Deposit
Vancouver, BC
Formation Capital Corporation (FCO-TSE) announced today that it has filed a Plan of Operation for mining high grade cobalt from the Company's 100% owned Idaho Cobalt Project, a unique primary cobalt deposit with copper and gold credits, located in east central Idaho. The document was submitted to the USDA Salmon National Forest. Submittal of the Plan of Operation is a milestone in the development of the Idaho Cobalt Project, as this action will initiate the National Environmental Policy Act (NEPA) process leading to mine permitting.
Prior to filing the Plan of Operation a number of metallurgical and environmental studies were undertaken. The environmental studies included ground and surface water resources studies, water quality studies, a sensitive plant species survey; wetland delineation; the initiation of waste rock and tailings characterization programs and the installation of a meteorological station. These studies have assisted in the development of the Plan of Operation, which the company believes will protect the environment while allowing for the extraction of cobalt ore.
Within the Plan of Operation are detailed descriptions of the proposed waste rock and tailings disposal methods, the processing plant, water management strategies and the underground mine. The processing plant, tailings disposal area and water management reservoir will be located on a high plateau. This location is ideal due to the flat topography, high elevation relative to surrounding landforms, the avoidance of wetlands and sensitive plant species, as well as its distance from active drainages and streams.
Also included in the Plan of Operation are detailed strategies for environmental protection. For example, the use of a closed water-system will eliminate the need to discharge water. In addition, concurrent reclamation practices, continued monitoring of ground and surface water, stockpiling of soils and the collection of local flora seeds are all designed to protect the environment during the mining process. As well, once the deposits have been depleted, the Plan of Operation outlines procedures for mine closure and reclamation designed to return the land to its pre-mining state.
Following their review of the Plan of Operation, the Forest Service will initiate the NEPA process by filing a Notice of Intent (NOI) in the federal registrar. The NEPA process includes public scoping, preparation of environmental reports, alternative analysis and an Environmental Impact Statement (EIS). The completion of the EIS is a major step in the process leading to the issuance of a Record of Decision (ROD) by the Forest Service. During the NEPA process, the Company will be applying for a number of other permits with various federal and state agencies. Upon receipt of a ROD and other permits the project will be cleared for mine construction.
Cobalt is a strategic and industrial metal with a diverse range of critical and important uses. The largest single use is in super-alloys for air and land-based gas turbine engines. The fastest growing usage is in the battery industry for cell phones, pagers, portable computers and gasoline-electric hybrid powered automobiles. Cobalt is used in computer hard disk drives, semiconductors, magnetic data storage and solar collectors. It is an important metal in the effort to reduce air pollution as it is a catalyst for removing sulphur from oil to provide for clean burning fuels. Its medical uses include prosthetic implants, surgical steels, dental applications and it is utilized in the treatment of certain cancers. Cobalt is the central component of Vitamin B12, vital for the survival of humans. Research and development projects are evaluating new applications of cobalt around the world which may open up entire new critical applications in the future.
The Idaho Cobalt Project is forecast to produce 1,500 tonnes of cobalt per year, representing approximately five percent of world production with a current minimum nine year mine life. The mineralization remains open along strike and to depth. The mine will offer an alternative, reliable domestic source of this strategic metal for the United States, which consumes over forty percent of the world supply yet has no current production. Presently the U.S. depends on overseas countries such as Zambia, DRC (Zaire) and Russia for much of its cobalt needs.
Formation Capital Corporation is dedicated to the principle of environmentally sound mining practices and believes that mining and the protection of the environment can co-exist. As such, Management is extremely pleased with the results of the metallurgical and environmental studies, as well as with the development of the Plan of Operation that will safeguard the environment. Management looks forward to working with the Forest Service and other federal and state agencies in the effort to ensure the integrity of the environment is maintained and local socio-economic needs are met while ensuring that the Idaho Cobalt Project moves forward.
FORMATION CAPITAL CORPORATION
``Mari-Ann Green'' Mari-Ann Green C.E.O.
For further information please contact: Formation Capital Corporation 720 - 789 West Pender Street, Vancouver, BC, V6C 1H2 Head Office: 604-682-6229 Email: inform@formcap.com - Or visit our Web site at: formcap.com
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yesinternational.com
1-800-631-8127
SOURCE: Formation Capital Corporation |
