- Final High Purity Cobalt Salts Metallurgical Report Received;
- Initial Product Specification Sheets Developed;
- Request for Proposals for Definitive Feasibility Study Requested
VANCOUVER, March 3, 2016 /PRNewswire/ - Formation Metals Inc. (FCO-TSX) (the "Company" or "Formation") announces that it has received the final metallurgical test work report on bench test production of cobalt sulfate heptahydrate crystals suitable for the rechargeable battery sector produced from ore samples from Formation's Idaho Cobalt Project ("ICP").
Results from this report have allowed management, in conjunction with its team of engineers and metallurgists, to develop initial specification sheets for two of its anticipated end products, specifically cobalt sulfate heptahydrate crystals for use in the rechargeable battery sector and a scalped copper concentrate suitable for established smelters to process. With this information, Formation intends to pursue potential offtake arrangements to assist in the development of the ICP.
Samuel Engineering Inc. ("SE") of Denver, C0, is the Company's lead engineer coordinating the metallurgical test work. SE previously reported that based on the extensive metallurgical testwork results to date, successful modifications to the Mill & Cobalt Production Facility flowsheets and the recent results and commitments from critical technology and equipment suppliers, the final end product is expected to meet the quality standards for high purity cobalt sulfate chemicals. These chemicals are required for the emerging rechargeable battery, stationary storage and electric vehicle sectors. The development of the initial specification sheet supports this initial assessment (see Company News Release dated December 8, 2015).
The development of the modified flow sheets outlines a critical path forward for the Company. SE has previously recommended that the project development activities be advanced to support and produce a Definitive Feasibility Study ("DFS"). The finalization of the modified flow sheets allows for such advancement.
To that end, Requests for Proposals ("RFP") to commission a DFS were sent to numerous qualified engineering firms earlier this month, several of which had previously indicated their interest in assisting Formation with their DFS. The solicitation of bids for this definitive engineering work is critical to defining a clear path forward for the development, engineering, procurement and construction of the ICP.
Paul Farquharson, Formation's President and CEO commented "Having the spec sheets and flow sheets defined facilitates our moving forward with pursuing offtake and other potential means to assist in the future development of the ICP", he continued, "These developments coincide with an improved outlook for the cobalt markets with deficits expected this year and increasing significantly into 2018 – previous deficit situations in the cobalt market resulted in significant rises in the commodity price."
About Formation Metals Inc.
Formation Metals Inc.'s primary asset, the Idaho Cobalt Project, remains the sole, near term, fully environmentally permitted, primary cobalt deposit in the United States and offers a unique potential for North American consumers to secure an ethically sourced, environmentally sound supply of battery grade cobalt chemicals, mined safely and responsibly in the United States. www.formationmetals.com
E.R. (Rick) Honsinger, P.Geo., Vice President of the Company, is the Qualified Person as defined by National Instrument 43-101 who has supervised the preparation of this news release and has approved its contents.
Formation Metals Inc.
"J. Paul Farquharson"
J. Paul Farquharson
President & C.E.O.
The Company cautions that the results from the metallurgical testwork discussed in this news release is preliminary in nature, and is based on technical and economic assumptions which will be evaluated in further studies. The Preliminary Economic Assessment ("PEA") report filed on SEDAR on May 8, 2015 is based on the current (as at March 10, 2015) ICP estimated resource model, which consists of material in both the measured/indicated and inferred classifications. Inferred mineral resources are considered too speculative geologically to have technical and economic considerations applied to them outside the scope of a PEA. The current basis of project information is not sufficient to convert the mineral resources to mineral reserves, and mineral resources that are not mineral reserves do not have demonstrated economic viability. Accordingly, there can be no certainty that the results estimated in the PEA will be realized.
In addition, this news release contains "forward-looking statements" within the meaning of applicable Canadian securities legislation. Statements in this news release pertaining to projected revenues and cash flows, quantity and grade of mineralized materials, estimated mineral prices and the continued expansion of the market for battery grade cobalt chemicals are forward-looking statements. These forward-looking statements are based on assumptions and address future events and conditions and are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements. Many of the assumptions respecting projected revenue, cash flow and quantity of mineralized materials have been set out in detail in the PEA. Such projections are and will inevitably always be dependent on assumptions about future mineral prices and development costs which will be subject to fluctuation due to global and local economic conditions. This news release also contains forward-looking statements respecting the growing demand for battery grade cobalt chemicals, which demand may or may not continue to grow depending on consumer habits and technological developments. Further information regarding risks and uncertainties which may cause results to differ from those contained in forward-looking statements is included in filings by the Company with securities regulatory authorities and is available at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Although the Company has disclosed that it has successfully produced cobalt sulfate heptahydrate crystals on a bench scale level, from cobalt solvent extraction strip solution from the Company's ICP, there is no guarantee that the Company will attain commercial production of such crystals for use in the rechargeable battery sector. Accordingly, readers should not place undue reliance on forward-looking statements. The Company does not undertake to update any forward-looking statements that are contained herein, except in accordance with applicable securities laws.
The statements contained in this news release in regard to Formation Metals Inc. that are not purely historical are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including Formation Metals Inc.'s beliefs, expectations, hopes or intentions regarding the future. All forward-looking statements are made as of the date hereof and are based on information available to Formation Metals Inc. as of such date. It is important to note that actual outcome and the actual results could differ from those in such forward-looking statements. Factors that could cause actual results to differ materially include risks and uncertainties such as technological, legislative, corporate, commodity price and marketplace changes.
SOURCE Formation Metals Inc.