October 14, 2005
Virgin River Uranium Project Update
Vancouver, B.C., October 14, 2005, Formation Capital Corporation (Formation, FCO-TSX)
(the “Company”), is pleased to provide an update based on information
provided by its project operator, Cameco Corporation, from its Virgin
River uranium project located within the south-central portion of the
Athabasca Basin in northern Saskatchewan. The project is a joint
venture formed in 1998 between Formation Capital Corporation’s wholly
owned Canadian subsidiary, Coronation Mines Limited and UEM, jointly
owned 50% by Cameco Corporation and 50% by Areva subsidiary Cogema
Resources Inc. Coronation Mines Limited owns 2% of the project with the
right to acquire up to 10% of the project under certain circumstances
and is carried on the project through to $10 million worth of
exploration and development. Approximately $6.4 million has been spent
on the project to date.
This year’s program, originally budgeted for $1.5 million and
subsequently increased to $1.94 million, was recently completed. Drill
core samples have been submitted for assay, with results expected within
four weeks of the date of this news release. The 2005 program was
designed to follow-up on the exploration program on the Virgin River
project that included two diamond drill holes from 2004; DDH VR-17 and
VR-18. According to Cameco, the uranium intersections obtained in DDH
VR-18 are the most significant ever encountered along the entire
Dufferin / Virgin River Trend in more than 25 years of exploration.
Preliminary radiometric data from the 2005 program is considered very
encouraging and the Company is looking forward to releasing final assay
data as it is made available.
The following excerpt from Formation’s February 7, 2005 news release
serves to summarize the 2004 uranium intersections in the mineralized
drill hole: “[DDH VR-18] was completed to test a prominent
electromagnetic anomaly in the footwall of the Dufferin Lake fault and
encountered three separate zones of uranium mineralization…this hole
also intersected a zone of high - grade “unconformity-hosted”
mineralization in a third interval, which occurs in close proximity to
the Athabasca Group - Virgin River Domain unconformity at 791.1 m.
Assays from this lowermost intersection include 5.83% U3O8 over 6.4 m
from 789.1 to 795.5 m with 13.86% U3O8 over 2.5 m from 792.0 to 794.5 m.
Check assays on the high-grade mineralization, using the delayed
neutron activation (DNC) method, returned slightly higher grades than
the inductively coupled plasma (ICP) method. The DNC assay results were
6.49% U3O8 over 5.9 m from 789.6 to 795.5 m which includes 14.29% U3O8
over 2.5 m from 792.0 to 794.5 m.”
The 2005 program consisted of grid establishment work, geochemical
sampling, geological mapping, ground based VLF-EM and magnetic surveys
as well as airborne gravity and radiometric geophysical surveys. In
addition, diamond drilling commenced in June consisting of three diamond
drill wedge holes, two of which, DDH VR-18W1 & W2, began down-hole
in the mineralized 2004 drill hole DDH VR-18. Three additional 2005
pilot diamond drill holes (DDH-VR-19, 20 & 21) were drilled to test
the potential strike extension of the mineralization discovered in DDH
VR-18. The third wedge hole, DDH VR-21W1, was completed from DDH-VR-21.
The Saskatchewan Research Council (SRC) of Saskatoon, Saskatchewan is
carrying out all uranium assays. All ICP assay analysis are being
conducted on HQ size split core sampled at a nominal 0.5 m length. Mr.
Dan Jiricka, P.Geo., P.Eng. of Cameco Corporation, is the Senior
Geologist and Qualified Person working on the project. Major drilling
of Winnipeg, Manitoba was contracted to conduct the diamond drilling.
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
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.
View the Previous
News Release:October 5th, 2005, Sunshine Precious Metals Refinery Update
View the main News Releases
View the Next
News Release:October 17th, 2005, Cobalt Project Drilling Update