April 28, 2011
Formation Metals' Mexican Subsidiary Acquires Central Core Land Position on El Milagro Silver Project
Vancouver, B.C., April 28, 2011 Formation Metals Inc. (FCO-TSX)
(“Formation”) is pleased to announce that its 100% owned Mexican
subsidiary, Minera Terranova, S.A. de C.V. (the “Company”) has recently
acquired a central core land package that is surrounded by its 100%
owned Mexican silver / lead / zinc El Milagro Project. The Company has
been working towards gaining control of the entire land package for over
five years and its acquisition is fortuitous considering current silver
prices. Initial stages of review are now in progress and existing data
is being compiled to develop a systematic surface sampling and mapping
program which will delineate future potential drill targets.
The El Milagro Project is located 60 kilometers northwest of the city of
Tampico, in the southeast portion of the state of Tamaulipas, Mexico.
The project is located within the southernmost portion of the Chihuahua
Trough, where alkaline dikes and sills along the caldera ring fracture
of the Trough carry semi-massive sulphide stockwork zones in altered
The primary target defined within the Milagro property is the Santa
Maria Vein, a 1-4 meter wide tabular subvertical NNE trending breccia
vein that has been mapped over a strike length of 450 meters, with a
lead-rich polymetallic assemblage that carries silver grades often in
excess of 1,500 grams per tonne (43.8 ounces per ton) and combined
lead-zinc grades that often exceed 10%. This target remains open along
both strike directions. The new claims are considered a strategic
acquisition as they cover a portion of both the northern and southern
strike extensions of the Santa Maria Vein.
Previous work by an independent consultant working for the Company
returned silver values across the host dike in the Santa Maria workings
that vary from 800 to 3,800 grams per tonne (23.4 - 111.0 ounces per
ton) over 4 metres. The Santa Maria vein was a relatively recent
discovery and as such it is considered probable that other silver-rich
veins and replacement zones exist within the area covered by the El
Milagro property. Accompanying base metal values include lead assays
ranging from 10.3% to 12.3% and zinc assays from 2.8% to 6.8%.
Anomalous copper values are also associated with the mineralization.
Mineralization is very low in arsenic, mercury and cadmium and only
slightly elevated in antimony.
Mr. Eric (Rick) Honsinger, P.Geo., of Formation Metals Inc., is the
Qualified Person who has reviewed and approved the content of this news
release which is based on historical information.
Formation Metals Inc. is dedicated to the principles of environmentally
sound mining and refining practices, and believes that environmental
stewardship and mining can co-exist. Formation trades on the Toronto
Stock Exchange under the symbol FCO.
FORMATION METALS INC.
This press release contains “forward-looking statements” within
the meaning of applicable Canadian securities legislation. Generally,
forward-looking statements can be identified by the use of forward-
looking terminology. Forward-looking statements 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. 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. 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. Further information on the Company is available at www.sedar.com.
For further information please contact:
E.R. (Rick) Honsinger, P.Geo., V.P. Corporate Communications
Formation Metals Inc., 1730 — 999 West Hastings Street, Vancouver, BC, V6C 2W2
Tel: 604-682-6229 - Email: email@example.com
- Web: formationmetals.com
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 the parties 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
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