March 20, 2006
Successful Drilling Concludes on Cobalt Project
Vancouver, B.C., March 20, 2006, Formation Capital Corporation (Formation, FCO-TSX) (the “Company”)
announced today the completion of the 2005 / 2006 core drilling program
on its 100% owned Idaho Cobalt Project. The 2005 / 2006 drill program,
as recommended by Mine Development Associates, was successful in
gaining additional geotechnical data to optimize mine stope design for
the purpose of reducing mining costs and in obtaining additional
mineralized samples for confirmation of metallurgical test work. The
results of the program are also expected to increase mine life through
the augmentation of reserves and resources. The analysis of this data
is ongoing and will be incorporated into the Definitive Feasibility
Study currently in progress. The Definitive Feasibility Study is a
comprehensive engineering document designed to evaluate, among other
things, the economic parameters of the deposit to the satisfaction of
financiers for the purpose of securing funds for mine development.
The program consisted of 9,834.5 feet of core drilling in 13 holes.
This program was very successful in demonstrating that the permissive
sequence for cobaltiferous mineralization in the Ram deposit remains
open at both the north and south ends along strike and continues to
remain open down dip. This represents a currently defined strike length
of approximately 2,800 feet, with ore grade cobalt mineralization
having been documented over 2,600 feet of strike length.
The table below outlines the weighted average grades for the ore zone in drill holes R06-01, R06-02, R06-03 and R06-04.
Click to Enlarge
R06-01 was drilled on Section 8+00S and targeted the horizon equidistant
between the horizons in R04-13 and R05-08. Results indicate strong
mineralization persisting down-dip from the intercept in R04-13.
R06-02 was drilled obliquely to intersect the main mineralized horizon
200 feet down dip from the intercept in R05-09 on Section 10+00 S. This
hole has demonstrated that the mineralized horizon remains open down
dip on this section.
R06-03 was drilled to intersect the Main Mineralized Horizon 200 feet
down dip from the intercept that was intersected in R04-27. The horizon
intersected in this hole displayed somewhat weaker ore grade material
that was dominated by chalcopyrite and pyrite-bearing stringer
mineralization and is similar in nature to that encountered in R05-08.
Of significance is the presence of an additional strong ore grade
mineralized horizon outside of the Main Mineralized Horizon from an
extensively traceable exhalite-bearing package in the hanging wall at
745.7-749.2 feet. This sequence has been traced over 2,600 feet of
strike length and has now shown ore grade values over 2,000 feet of the
strike length with some minor discontinuity. The intercept in R06-03 is
the southernmost occurrence of ore grade cobalt mineralization
encountered to date in this hanging wall horizon.
R06-04 was drilled to intercept the horizon 200 feet down dip from the
intercept obtained in R06-03. This hole returned a strong mineralized
intercept. The mineralization encountered here indicates that
significant mineralization remains open at depth in the Ram deposit.
Click to Enlarge
Mr. George King, B.Sc., P.Geo., is the Qualified Person working directly
on the project and has reviewed the contents of this release. Quality
control was maintained through adherence to strict sampling procedures
and the submission of blanks, duplicates and standards to the assay
laboratory. Split drill core samples were sent to ALS Chemex Labs in
Vancouver, B.C. for assay. A current list of drill holes, intersections
and location map is available from the Company directly.
Formation Capital Corporation is dedicated to the principles of
environmentally sound mining and refining practices, and believes that
environmental stewardship and mining can co-exist. The Company trades
on the Toronto Stock Exchange under the symbol FCO.
Formation Capital Corporation
For further information please contact:
Formation Capital Corporation
1510 — 999 West Hastings Street, Vancouver, BC, V6C 2W2
Head Office: 604-682-6229
Investor Relations: Contact Encompass Communications toll free 877-566-6592
- Or visit our Web site at: formcap.com
The statements contained in this news release in regard to Formation
Capital Corporation that are not purely historical are forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995, including Formation Capital Corporation’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 marketplace changes.
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