Beiträge von PjFF

    DEIS: We hope to be able to put out news this week - we need an opportunity to review the contents of the DEIS and provide our shareholders with a general assessment of the document.


    Virgin River: Basically, it is a first right of offer, which means that if Cameco were to offer any percentage of the project to a third party, they must offer it to us first under no less favourable circumstances. This, in my opinion, is actually a likely scenario: If the project were to advance to the stage where a production decision were to be made, it is very feasible that Cameco would want to bring in a third party to help finance the project (as they have done in the past), in order to help mitigate risk (remember the flooding at Cigar Lake for example) as well as lessen any large cash outlay that would not be viewed as favourable on their financial statements. The third party would take on a percentage of the project in exchange for participating financially to help construct the mine. However, as we have a first right of offer, Cameco would be obliged to offer us an additional 8% before they offered an additional interest to a third party to help finance the project.


    NPDES ROD: Theoretically, I believe it is possible. yes, but the NPDES permit is being drafted to come out at the same time as the Final DEIS as it is dependent on the contents of the DEIS.


    Near future: Secure a mine permit, secure mine financing, and start mine construction on the Idaho Cobalt Project, as well as advance other projects that we have not been able to concentrate our resources on since the focus has been on the refinery and the Idaho Cobalt Project.

    Zitat

    Original von Tschonko
    Es geht voran.........


    PUBLIC NOTICE ISSUANCE DATE: February 8, 2007
    PUBLIC NOTICE EXPIRATION DATE: April 9, 2007


    Notice of Proposed Issuance of an NPDES Permit to Idaho Cobalt Project, near Salmon, Idaho; public comment period: February 8 -- April 9, 2007


    SUMMARY: The Director, Office of Water and Watersheds, EPA Region 10, is proposing to issue National Pollutant Discharge Elimination System (NPDES) permit No. ID-002832-1 to Formation Capital Corporation U.S. (Formation), pursuant to the provisions of the Clean Water Act, 33 U.S.C. § 1251 et seq. EPA invites public comment on the draft permit which will authorize the discharge of treated nondomestic wastewater from their proposed Idaho Cobalt Project (ICP), an underground cobalt mine, to Big Deer Creek, a tributary of the Salmon River.
    The NPDES permit is a new source, as defined in 40 CFR 122.29(b), and is subject to new source performance standards. EPA's issuance of a new source NPDES permit is considered a major federal action subject to the provisions of the National Environmental Policy Act (NEPA) at 40 CFR Parts 1500-1508, and EPA's NEPA implementing regulations at 40 CFR Part 6. Along with the Idaho Department of Environmental Quality (IDEQ), EPA is participating in the Environmental Impact Statement (EIS) process for the project as a cooperating agency, with the U.S. Forest Service as the lead federal agency. The Forest Service is public noticing the draft EIS for a 60 day period concurrent with this notice of the draft NPDES permit.


    The draft NPDES permit contains both technology-based and water quality-based effluent limitations for pollutants of concern, along with administrative and monitoring requirements, as well as other standard conditions, prohibitions and management practices. A fact sheet has been prepared which sets forth the principle factual, legal, policy, and scientific information considered in the development of the draft permit.


    AVAILABILITY: The draft NPDES permit and fact sheet can be reviewed or obtained by visiting or contacting EPA's Regional Office in Seattle at 1200 6th Avenue, OWW-130, Seattle, Washington 98101. The draft permit and fact sheet are also available from EPA's Idaho Operations Office at 1435 North Orchard St, Boise, Idaho, 83706; and from the IDEQ Idaho Falls office at 900 N. Skyline, Suite B, Idaho Falls, Idaho, 83402. Both documents can be downloaded from EPA's internet website at http://www.epa.gov/r10earth/waterpermits.htm, click on "Draft Permits", then "Idaho". The Administrative Record and other supporting documents are on file at EPA's Region 10 office in Seattle, WA.


    PUBLIC COMMENTS & MEETINGS: Interested persons may submit written comments on the draft NPDES permit and fact sheet within the 60-day public comment period to the attention of Robert Rau at the address or email identified above. Comments relating to EPA's NEPA compliance, and the sections of draft EIS relevant to this NPDES action, should be directed to Hanh Shaw at (206) 553-0171, or at shaw.hanh@epa.gov. All comments should include the name, address, and telephone number of the commenter, and a concise statement of the comment on the permit condition(s) and the relevant facts upon which the comment is based. Comments of either support or concern which are directed at specific, cited permit requirements are appreciated. Comments must be postmarked on or before the expiration date of the public notice.


    The Forest Service and EPA will host two public meetings to present information relevant to the ICP, to answer questions, and to receive verbal comments on the draft EIS and NPDES permit. The meetings are scheduled as follows:


    In Salmon, Idaho:
    Wednesday, March 14th, 2007, 7:00-9:00 PM
    City Center, 200 Main St.


    In Challis, Idaho:
    Thursday, March 15th, 2007, 7:00-9:00 PM
    Forest Service Challis-Yankee Fork District Office
    U.S. Highway 93 & Main St.


    After the expiration date on the Public Notice, the Director, Office of Water and Watersheds, EPA Region 10, will make a final determination with respect to issuance of the permit, and will document this determination in a Record of Decision (ROD). The tentative requirements contained in the draft permit will become final conditions if no significant comments are received during the public comment period.

    PUBLIC NOTICE ISSUANCE DATE: February 8, 2007
    PUBLIC NOTICE EXPIRATION DATE: April 9, 2007


    Notice of Proposed Issuance of an NPDES Permit to Idaho Cobalt Project, near Salmon, Idaho; public comment period: February 8 -- April 9, 2007


    SUMMARY: The Director, Office of Water and Watersheds, EPA Region 10, is proposing to issue National Pollutant Discharge Elimination System (NPDES) permit No. ID-002832-1 to Formation Capital Corporation U.S. (Formation), pursuant to the provisions of the Clean Water Act, 33 U.S.C. § 1251 et seq. EPA invites public comment on the draft permit which will authorize the discharge of treated nondomestic wastewater from their proposed Idaho Cobalt Project (ICP), an underground cobalt mine, to Big Deer Creek, a tributary of the Salmon River.
    The NPDES permit is a new source, as defined in 40 CFR 122.29(b), and is subject to new source performance standards. EPA's issuance of a new source NPDES permit is considered a major federal action subject to the provisions of the National Environmental Policy Act (NEPA) at 40 CFR Parts 1500-1508, and EPA's NEPA implementing regulations at 40 CFR Part 6. Along with the Idaho Department of Environmental Quality (IDEQ), EPA is participating in the Environmental Impact Statement (EIS) process for the project as a cooperating agency, with the U.S. Forest Service as the lead federal agency. The Forest Service is public noticing the draft EIS for a 60 day period concurrent with this notice of the draft NPDES permit.


    The draft NPDES permit contains both technology-based and water quality-based effluent limitations for pollutants of concern, along with administrative and monitoring requirements, as well as other standard conditions, prohibitions and management practices. A fact sheet has been prepared which sets forth the principle factual, legal, policy, and scientific information considered in the development of the draft permit.


    AVAILABILITY: The draft NPDES permit and fact sheet can be reviewed or obtained by visiting or contacting EPA's Regional Office in Seattle at 1200 6th Avenue, OWW-130, Seattle, Washington 98101. The draft permit and fact sheet are also available from EPA's Idaho Operations Office at 1435 North Orchard St, Boise, Idaho, 83706; and from the IDEQ Idaho Falls office at 900 N. Skyline, Suite B, Idaho Falls, Idaho, 83402. Both documents can be downloaded from EPA's internet website at http://www.epa.gov/r10earth/waterpermits.htm, click on "Draft Permits", then "Idaho". The Administrative Record and other supporting documents are on file at EPA's Region 10 office in Seattle, WA.


    PUBLIC COMMENTS & MEETINGS: Interested persons may submit written comments on the draft NPDES permit and fact sheet within the 60-day public comment period to the attention of Robert Rau at the address or email identified above. Comments relating to EPA's NEPA compliance, and the sections of draft EIS relevant to this NPDES action, should be directed to Hanh Shaw at (206) 553-0171, or at shaw.hanh@epa.gov. All comments should include the name, address, and telephone number of the commenter, and a concise statement of the comment on the permit condition(s) and the relevant facts upon which the comment is based. Comments of either support or concern which are directed at specific, cited permit requirements are appreciated. Comments must be postmarked on or before the expiration date of the public notice.


    The Forest Service and EPA will host two public meetings to present information relevant to the ICP, to answer questions, and to receive verbal comments on the draft EIS and NPDES permit. The meetings are scheduled as follows:


    In Salmon, Idaho:
    Wednesday, March 14th, 2007, 7:00-9:00 PM
    City Center, 200 Main St.


    In Challis, Idaho:
    Thursday, March 15th, 2007, 7:00-9:00 PM
    Forest Service Challis-Yankee Fork District Office
    U.S. Highway 93 & Main St.


    After the expiration date on the Public Notice, the Director, Office of Water and Watersheds, EPA Region 10, will make a final determination with respect to issuance of the permit, and will document this determination in a Record of Decision (ROD). The tentative requirements contained in the draft permit will become final conditions if no significant comments are received during the public comment period.

    http://dallasnews.stockgroup.com/snapsho...r=T.FCO&lang=EN


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    Formation Capital Corporation: 2006 Diamond Drilling on Virgin River Uranium Project Returns Highest Grade Thickness Product to Date
    Thursday January 25, 8:30 am ET


    VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 25, 2007) - Formation Capital Corporation (the "Company") (TSX:FCO - News) is pleased to provide results as reported to the Company by project operator, Cameco Corporation, from the summer 2006 diamond drilling program at the Centennial Zone of the 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 by Cameco Corporation and by AREVA Resources Canada Inc. (formerly COGEMA Resources Inc.). Coronation Mines Limited owns 2% of the project with a right of first offer to increase its ownership of the project up to 10% and is carried on the project through to $10 million worth of exploration and development. To date, more than $8.4 million has been spent exploring for a large unconformity-type deposit on the project, consequently resulting in the discovery of the Centennial Zone. The Joint Venture is very encouraged with the exploration results and has approved a budget of $3.3 million for 2007 to continue exploration of the project, an increase of 65% over last year's budget.


    The summer 2006 diamond drilling exploration program consisted of four wedge holes (VR020W1, VR022W1, VR-022W2 and VR023W1) and three pilot holes (VR022, 23 and 24) totaling 4,635.9 metres. The program focused on follow-up of the very significant diamond drilling uranium intersections previously reported in the Company's January 6, and September 19, 2006 news releases. These intersections comprise the "Centennial Zone", and according to Cameco, the uranium intersections obtained in the Centennial Zone are the most significant ever encountered along the entire Dufferin / Virgin River Trend in more than 25 years of exploration. Including the results of the 2006 program, the Centennial Zone now displays a minimum apparent strike length of 450 m (from L7+50N to L12+00N) and is open along strike to both the north-northeast and to the south-southwest. The Centennial Zone also displays a minimum across strike width of approximately 12 m on L8+00N and approximately 15 m on L8+50N. The zone contains significant uranium contents (up to 18.39% U308) over appreciable widths (up to 19.2 m) yielding grade-thickness products (GT) of up to 47.62. A maximum grade of up to 25.6% U308 over 0.5 m was obtained as portion of the intersection in DDH VR-18W2; thereby clearly demonstrating potential for high grade uranium mineralization. Table 1 is a summary of assay results from the 2006 diamond drilling program:




    Table 1: Summary of 2006 Virgin River Centennial Zone Diamond Drill Results


    --------------------------------------------------------------------------
    True
    Thick- Maximum Average
    Hole From To ness Grade Grade GT
    Number (m) (m) (m) (%U3O (%U3O (m x %)
    --------------------------------------------------------------------------
    DDH VR-022 778.7 794.2 15.5 2.81 0.706 10.94
    (includes) 778.7 782.9 4.2 2.81 1.078 4.53
    (includes) 779.6 781.9 2.3 2.81 1.852 4.26
    (includes) 784.5 785.0 0.5 2.13 2.130 1.07
    (includes) 788.3 789.6 1.3 2.63 1.449 1.88
    --------------------------------------------------------------------------


    --------------------------------------------------------------------------
    DDH VR-22W2 781.0 800.2 19.2 18.30 2.480 47.62
    (includes) 788.8 794.1 5.3 18.30 5.352 28.37
    (includes) 795.5 797.8 2.3 11.40 6.269 14.42
    --------------------------------------------------------------------------


    --------------------------------------------------------------------------
    DDH VR-023 811.0 814.8 3.9 3.18 0.782 3.05
    (includes) 812.5 813.2 0.8 3.18 2.989 2.39
    --------------------------------------------------------------------------


    --------------------------------------------------------------------------
    DDH VR-024 820.3 827.5 7.2 6.72 2.630 18.94
    (includes) 821.3 826.5 5.2 6.72 3.629 18.87
    784.5 785.8 1.3 0.32 0.183 0.24
    794.8 810.7 15.9 0.91 0.191 3.04
    --------------------------------------------------------------------------


    Note that the grade thickness (GT) product in DDH VR-022W2 (GT equals
    47.62) is the highest obtained to date in the Centennial Zone.



    The summer 2006 drilling program included the following;


    DDH VR-020W1, a wedge hole completed from DDH VR-020, was designed to test the eastern 'across-strike' extent of elevated radioactivity and weak mineralization intersected immediately above the unconformity in DDH VR-020. DDH VR-020W1 intersected favourable alteration and structure in both the Athabasca Group and Virgin River Domain but no significant radioactivity. Both DDH's VR-020 and VR-020W1 are believed to have undershot (to the west) the expected trace of the Centennial Zone.


    DDH's VR-022, VR-023 and VR-024, 'pilot' holes collared on L10+00N, L11+00N and L12+00N, respectively, at 185+00E, were designed to test the geophysical conductor system along strike at 100 m intervals to the grid north of previously known mineralization. All three drill holes intersected significant radioactivity (Table 1).


    DDH VR-022W2, designed to test across strike continuity of radioactivity encountered in DDH VR-022 also intersected zones of significant radioactivity (Table 1).


    DDH VR-022W1, a wedge hole completed from DDH VR-022, was designed to test the western across-strike extent of elevated radioactivity and weak Athabasca Group hosted mineralization intersected immediately above the unconformity in DDH VR-022. The hole intersected strongly bleached and hydrothermally altered lower Athabasca Group section, but unfortunately, the drill string became sanded above the bottom of the hole and the hole was lost.


    DDH VR-023W1 was drilled to test the across strike continuity of radioactivity encountered in DDH VR-023. This drill hole intersected favourable alteration and structure in both the Athabasca Group and Virgin River Domain but did not intersect significant radioactivity.


    All uranium assays were carried out by the Saskatchewan Research Council ( SRC) of Saskatoon, Saskatchewan. Mr. Dan Jiricka, P.Geo. P.Eng., Senior Geologist for Cameco Corporation is the Qualified Person working directly on the project.


    A location map of the project and drill hole location plan map is available on the Company's website at http://www.formcap.com. Formation Capital Corporation is very pleased with the progress of this program and looks forward to the 2007 drill program, which is expected to recommence before the end of January 2007.


    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. Formation Capital Corporation trades on the Toronto Stock Exchange under the symbol FCO.


    Formation Capital Corporation


    Mari-Ann Green, C.E.O.

    Formation Capital Corporation: 2006 Diamond Drilling on Virgin River Uranium Project Returns Highest Grade Thickness Product to Date
    Thursday January 25, 8:30 am ET


    VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 25, 2007) - Formation Capital Corporation (the "Company") (TSX:FCO - News) is pleased to provide results as reported to the Company by project operator, Cameco Corporation, from the summer 2006 diamond drilling program at the Centennial Zone of the 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 by Cameco Corporation and by AREVA Resources Canada Inc. (formerly COGEMA Resources Inc.). Coronation Mines Limited owns 2% of the project with a right of first offer to increase its ownership of the project up to 10% and is carried on the project through to $10 million worth of exploration and development. To date, more than $8.4 million has been spent exploring for a large unconformity-type deposit on the project, consequently resulting in the discovery of the Centennial Zone. The Joint Venture is very encouraged with the exploration results and has approved a budget of $3.3 million for 2007 to continue exploration of the project, an increase of 65% over last year's budget.


    The summer 2006 diamond drilling exploration program consisted of four wedge holes (VR020W1, VR022W1, VR-022W2 and VR023W1) and three pilot holes (VR022, 23 and 24) totaling 4,635.9 metres. The program focused on follow-up of the very significant diamond drilling uranium intersections previously reported in the Company's January 6, and September 19, 2006 news releases. These intersections comprise the "Centennial Zone", and according to Cameco, the uranium intersections obtained in the Centennial Zone are the most significant ever encountered along the entire Dufferin / Virgin River Trend in more than 25 years of exploration. Including the results of the 2006 program, the Centennial Zone now displays a minimum apparent strike length of 450 m (from L7+50N to L12+00N) and is open along strike to both the north-northeast and to the south-southwest. The Centennial Zone also displays a minimum across strike width of approximately 12 m on L8+00N and approximately 15 m on L8+50N. The zone contains significant uranium contents (up to 18.39% U308) over appreciable widths (up to 19.2 m) yielding grade-thickness products (GT) of up to 47.62. A maximum grade of up to 25.6% U308 over 0.5 m was obtained as portion of the intersection in DDH VR-18W2; thereby clearly demonstrating potential for high grade uranium mineralization. Table 1 is a summary of assay results from the 2006 diamond drilling program:




    Table 1: Summary of 2006 Virgin River Centennial Zone Diamond Drill Results


    --------------------------------------------------------------------------
    True
    Thick- Maximum Average
    Hole From To ness Grade Grade GT
    Number (m) (m) (m) (%U3O8) (%U3O8) (m x %)
    --------------------------------------------------------------------------
    DDH VR-022 778.7 794.2 15.5 2.81 0.706 10.94
    (includes) 778.7 782.9 4.2 2.81 1.078 4.53
    (includes) 779.6 781.9 2.3 2.81 1.852 4.26
    (includes) 784.5 785.0 0.5 2.13 2.130 1.07
    (includes) 788.3 789.6 1.3 2.63 1.449 1.88
    --------------------------------------------------------------------------


    --------------------------------------------------------------------------
    DDH VR-22W2 781.0 800.2 19.2 18.30 2.480 47.62
    (includes) 788.8 794.1 5.3 18.30 5.352 28.37
    (includes) 795.5 797.8 2.3 11.40 6.269 14.42
    --------------------------------------------------------------------------


    --------------------------------------------------------------------------
    DDH VR-023 811.0 814.8 3.9 3.18 0.782 3.05
    (includes) 812.5 813.2 0.8 3.18 2.989 2.39
    --------------------------------------------------------------------------


    --------------------------------------------------------------------------
    DDH VR-024 820.3 827.5 7.2 6.72 2.630 18.94
    (includes) 821.3 826.5 5.2 6.72 3.629 18.87
    784.5 785.8 1.3 0.32 0.183 0.24
    794.8 810.7 15.9 0.91 0.191 3.04
    --------------------------------------------------------------------------


    Note that the grade thickness (GT) product in DDH VR-022W2 (GT equals
    47.62) is the highest obtained to date in the Centennial Zone.



    The summer 2006 drilling program included the following;


    DDH VR-020W1, a wedge hole completed from DDH VR-020, was designed to test the eastern 'across-strike' extent of elevated radioactivity and weak mineralization intersected immediately above the unconformity in DDH VR-020. DDH VR-020W1 intersected favourable alteration and structure in both the Athabasca Group and Virgin River Domain but no significant radioactivity. Both DDH's VR-020 and VR-020W1 are believed to have undershot (to the west) the expected trace of the Centennial Zone.


    DDH's VR-022, VR-023 and VR-024, 'pilot' holes collared on L10+00N, L11+00N and L12+00N, respectively, at 185+00E, were designed to test the geophysical conductor system along strike at 100 m intervals to the grid north of previously known mineralization. All three drill holes intersected significant radioactivity (Table 1).


    DDH VR-022W2, designed to test across strike continuity of radioactivity encountered in DDH VR-022 also intersected zones of significant radioactivity (Table 1).


    DDH VR-022W1, a wedge hole completed from DDH VR-022, was designed to test the western across-strike extent of elevated radioactivity and weak Athabasca Group hosted mineralization intersected immediately above the unconformity in DDH VR-022. The hole intersected strongly bleached and hydrothermally altered lower Athabasca Group section, but unfortunately, the drill string became sanded above the bottom of the hole and the hole was lost.


    DDH VR-023W1 was drilled to test the across strike continuity of radioactivity encountered in DDH VR-023. This drill hole intersected favourable alteration and structure in both the Athabasca Group and Virgin River Domain but did not intersect significant radioactivity.


    All uranium assays were carried out by the Saskatchewan Research Council ( SRC) of Saskatoon, Saskatchewan. Mr. Dan Jiricka, P.Geo. P.Eng., Senior Geologist for Cameco Corporation is the Qualified Person working directly on the project.


    A location map of the project and drill hole location plan map is available on the Company's website at http://www.formcap.com. Formation Capital Corporation is very pleased with the progress of this program and looks forward to the 2007 drill program, which is expected to recommence before the end of January 2007.


    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. Formation Capital Corporation trades on the Toronto Stock Exchange under the symbol FCO.


    Formation Capital Corporation


    Mari-Ann Green, C.E.O.

    Formation Capital's Final Feasibility on Cobalt Project Nearing Completion


    08:30 EST Thursday, December 21, 2006


    VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Dec. 21, 2006) - Formation Capital Corporation (Formation) (TSX:FCO) is pleased to provide its shareholders and interested parties an update on the progress of its final feasibility study on its 100% owned Idaho Cobalt Project.


    In early December, 2006, Formation met with its feasibility study consultants in the Samuel Engineering, Inc. offices located in Denver, Colorado. The purpose of the meeting was to review the recently completed hydrometallurgical test work and process design of the hydrometallurgical facility located in northern Idaho, slated to process the Idaho Cobalt Project concentrate upon commencement of production. Final review of the feasibility study consultants' design packages for mine design, geotechnical design, mine backfill system, and waste water treatment was conducted as well as review of Samuel Engineering's progress to date on the concentrator and ancillary services design.


    Samuel Engineering's review of previous specialty consultants' work packages for environmental, geotechnical, mine design, mine backfill, waste water treatment, and tailings and waste storage found them to be progressing in a direction suitable for incorporation in the overall Feasibility Study without the need to commission additional studies. A value engineering analysis of the site and concentrator design and layout has resulted in a reduction of the overall footprint and reduction in the number of buildings required. The result is a more compact and cost efficient arrangement.


    Review of the recently revised mine production plan and the potential for extended production from high grade zones (open to the north, south and at depth) has resulted in the scale-up of refinery design production rates to 3.4 million pounds of cobalt and 5.0 million pounds of copper per annum.


    In addition, review of recently completed hydrometallurgical test work conducted at Mintek in South Africa under the direction of Grenvil Dunn of Hydromet (Pty), Ltd. and Formation with input from Samuel Engineering's process engineers, has resulted in a simplified process scheme for the refinery that is more efficient, easier to operate and less costly. Preparation of the detailed project schedule is currently underway. The Company expects the final feasibility study to be completed by the end of the first quarter of 2007.
    The Idaho Cobalt Project is a unique high-grade, primary cobalt deposit that is metallurgically favorable for the production of high purity cobalt metal. The U.S.A. is one of the largest world consumers of this environmental and strategic metal but currently has no primary cobalt production and is dependent on imported sources.


    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


    Mari-Ann Green, C.E.O.

    Formation Capital's Final Feasibility on Cobalt Project Nearing Completion


    08:30 EST Thursday, December 21, 2006


    VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Dec. 21, 2006) - Formation Capital Corporation (Formation) (TSX:FCO) is pleased to provide its shareholders and interested parties an update on the progress of its final feasibility study on its 100% owned Idaho Cobalt Project.


    In early December, 2006, Formation met with its feasibility study consultants in the Samuel Engineering, Inc. offices located in Denver, Colorado. The purpose of the meeting was to review the recently completed hydrometallurgical test work and process design of the hydrometallurgical facility located in northern Idaho, slated to process the Idaho Cobalt Project concentrate upon commencement of production. Final review of the feasibility study consultants' design packages for mine design, geotechnical design, mine backfill system, and waste water treatment was conducted as well as review of Samuel Engineering's progress to date on the concentrator and ancillary services design.


    Samuel Engineering's review of previous specialty consultants' work packages for environmental, geotechnical, mine design, mine backfill, waste water treatment, and tailings and waste storage found them to be progressing in a direction suitable for incorporation in the overall Feasibility Study without the need to commission additional studies. A value engineering analysis of the site and concentrator design and layout has resulted in a reduction of the overall footprint and reduction in the number of buildings required. The result is a more compact and cost efficient arrangement.


    Review of the recently revised mine production plan and the potential for extended production from high grade zones (open to the north, south and at depth) has resulted in the scale-up of refinery design production rates to 3.4 million pounds of cobalt and 5.0 million pounds of copper per annum.


    In addition, review of recently completed hydrometallurgical test work conducted at Mintek in South Africa under the direction of Grenvil Dunn of Hydromet (Pty), Ltd. and Formation with input from Samuel Engineering's process engineers, has resulted in a simplified process scheme for the refinery that is more efficient, easier to operate and less costly. Preparation of the detailed project schedule is currently underway. The Company expects the final feasibility study to be completed by the end of the first quarter of 2007.
    The Idaho Cobalt Project is a unique high-grade, primary cobalt deposit that is metallurgically favorable for the production of high purity cobalt metal. The U.S.A. is one of the largest world consumers of this environmental and strategic metal but currently has no primary cobalt production and is dependent on imported sources.


    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


    Mari-Ann Green, C.E.O.

    Formation Closes Financing for Saskatchewan Uranium Projects
    VANCOUVER, BRITISH COLUMBIA, Dec 20, 2006 (CCNMatthews via COMTEX News Network) --
    Formation Capital Corporation (TSX:FCO) (the Company) announces that, through its 100% owned Canadian subsidiary, Coronation Mines Limited (Coronation), it has closed a $150,000 flow-through private placement (the Offering) for the purpose of further developing its Virgin River and Kernaghan Lake northern Saskatchewan Athabasca Basin Uranium projects. These projects are joint ventured with Cameco & Areva, the details of which are more fully described below.


    The Company has completed the Offering of 375,000 Units of the Company at a price of $0.40 per Unit. Each Unit is comprised of one flow-through common share and one-half of one non-transferable common share purchase warrant, each whole common share purchase warrant entitling the purchase of one non-flow-through common share of the Company at a price of $0.40 per share for a period of eighteen months from the date of closing of the private placement. The Company has paid cash fees totaling $9,010 in relation to the Offering.


    The Virgin River Project totals over 29,000 hectares and lies in the Athabasca Basin of northern Saskatchewan approximately 60 km west of Cree Lake and is under a joint venture agreement with Coronation and UEM Inc., a corporation jointly owned by Cameco Corporation and Areva, formerly Cogema of France. The Athabasca Basin hosts several of the worlds' largest and richest uranium deposits. Coronation currently has a two percent interest in the Virgin River project with a right of first offer to increase its ownership to 10%. Coronation is carried by its J.V. Partners for the first $10 million in exploration expenditures. Cameco Corporation is the operator. More than $8.4 million has been spent to date, including diamond drilling, in the exploration for a large unconformity-type deposit with very significant results being returned to date. Cameco is very encouraged with the exploration results to date and has proposed a budget of $3.3 million for 2007 to continue exploration and development of the project that includes a diamond drill program. Results from the 2006 diamond drill program are expected early in the New Year.


    The Kernaghan Lake Project (20% Coronation, 80% UEM) lies west of Wollaston Lake in the north-eastern portion of the Athabasca Basin where Middle Proterozoic, large scale, high grade unconformity uranium deposits occur at the base of the clastic sedimentary sequence and can attain gross metal values in excess of ten billion dollars. The property, located approximately 400 km north of La Ronge, is also joint ventured with Coronation and UEM Inc. with Areva the operator. The target is a Key Lake type uranium deposit, which contained reported reserves of approximately 195 million pounds of uranium oxide. This project lies approximately 15 km northeast along trend of the La Rocque Lake discovery, part of the Dawn Lake Project belonging to Cameco, AREVA and JCU (Canada) Exploration Company Ltd., where a drill intercept of 0.7 m @ 31.9% U3O8 at a depth of 276 meters was reported by operator Cameco. UEM has been drilling the Kernaghan Lake Project and intends to continue drilling with a proposed budget of $430,000 for 2007.

    Formation Closes Financing for Saskatchewan Uranium Projects
    VANCOUVER, BRITISH COLUMBIA, Dec 20, 2006 (CCNMatthews via COMTEX News Network) --
    Formation Capital Corporation (TSX:FCO) (the Company) announces that, through its 100% owned Canadian subsidiary, Coronation Mines Limited (Coronation), it has closed a $150,000 flow-through private placement (the Offering) for the purpose of further developing its Virgin River and Kernaghan Lake northern Saskatchewan Athabasca Basin Uranium projects. These projects are joint ventured with Cameco & Areva, the details of which are more fully described below.


    The Company has completed the Offering of 375,000 Units of the Company at a price of $0.40 per Unit. Each Unit is comprised of one flow-through common share and one-half of one non-transferable common share purchase warrant, each whole common share purchase warrant entitling the purchase of one non-flow-through common share of the Company at a price of $0.40 per share for a period of eighteen months from the date of closing of the private placement. The Company has paid cash fees totaling $9,010 in relation to the Offering.


    The Virgin River Project totals over 29,000 hectares and lies in the Athabasca Basin of northern Saskatchewan approximately 60 km west of Cree Lake and is under a joint venture agreement with Coronation and UEM Inc., a corporation jointly owned by Cameco Corporation and Areva, formerly Cogema of France. The Athabasca Basin hosts several of the worlds' largest and richest uranium deposits. Coronation currently has a two percent interest in the Virgin River project with a right of first offer to increase its ownership to 10%. Coronation is carried by its J.V. Partners for the first $10 million in exploration expenditures. Cameco Corporation is the operator. More than $8.4 million has been spent to date, including diamond drilling, in the exploration for a large unconformity-type deposit with very significant results being returned to date. Cameco is very encouraged with the exploration results to date and has proposed a budget of $3.3 million for 2007 to continue exploration and development of the project that includes a diamond drill program. Results from the 2006 diamond drill program are expected early in the New Year.


    The Kernaghan Lake Project (20% Coronation, 80% UEM) lies west of Wollaston Lake in the north-eastern portion of the Athabasca Basin where Middle Proterozoic, large scale, high grade unconformity uranium deposits occur at the base of the clastic sedimentary sequence and can attain gross metal values in excess of ten billion dollars. The property, located approximately 400 km north of La Ronge, is also joint ventured with Coronation and UEM Inc. with Areva the operator. The target is a Key Lake type uranium deposit, which contained reported reserves of approximately 195 million pounds of uranium oxide. This project lies approximately 15 km northeast along trend of the La Rocque Lake discovery, part of the Dawn Lake Project belonging to Cameco, AREVA and JCU (Canada) Exploration Company Ltd., where a drill intercept of 0.7 m @ 31.9% U3O8 at a depth of 276 meters was reported by operator Cameco. UEM has been drilling the Kernaghan Lake Project and intends to continue drilling with a proposed budget of $430,000 for 2007.

    Formation Closes Financing for Saskatchewan Uranium Projects
    VANCOUVER, BRITISH COLUMBIA, Dec 20, 2006 (CCNMatthews via COMTEX News Network) --
    Formation Capital Corporation (TSX:FCO) (the Company) announces that, through its 100% owned Canadian subsidiary, Coronation Mines Limited (Coronation), it has closed a $150,000 flow-through private placement (the Offering) for the purpose of further developing its Virgin River and Kernaghan Lake northern Saskatchewan Athabasca Basin Uranium projects. These projects are joint ventured with Cameco & Areva, the details of which are more fully described below.


    The Company has completed the Offering of 375,000 Units of the Company at a price of $0.40 per Unit. Each Unit is comprised of one flow-through common share and one-half of one non-transferable common share purchase warrant, each whole common share purchase warrant entitling the purchase of one non-flow-through common share of the Company at a price of $0.40 per share for a period of eighteen months from the date of closing of the private placement. The Company has paid cash fees totaling $9,010 in relation to the Offering.


    The Virgin River Project totals over 29,000 hectares and lies in the Athabasca Basin of northern Saskatchewan approximately 60 km west of Cree Lake and is under a joint venture agreement with Coronation and UEM Inc., a corporation jointly owned by Cameco Corporation and Areva, formerly Cogema of France. The Athabasca Basin hosts several of the worlds' largest and richest uranium deposits. Coronation currently has a two percent interest in the Virgin River project with a right of first offer to increase its ownership to 10%. Coronation is carried by its J.V. Partners for the first $10 million in exploration expenditures. Cameco Corporation is the operator. More than $8.4 million has been spent to date, including diamond drilling, in the exploration for a large unconformity-type deposit with very significant results being returned to date. Cameco is very encouraged with the exploration results to date and has proposed a budget of $3.3 million for 2007 to continue exploration and development of the project that includes a diamond drill program. Results from the 2006 diamond drill program are expected early in the New Year.


    The Kernaghan Lake Project (20% Coronation, 80% UEM) lies west of Wollaston Lake in the north-eastern portion of the Athabasca Basin where Middle Proterozoic, large scale, high grade unconformity uranium deposits occur at the base of the clastic sedimentary sequence and can attain gross metal values in excess of ten billion dollars. The property, located approximately 400 km north of La Ronge, is also joint ventured with Coronation and UEM Inc. with Areva the operator. The target is a Key Lake type uranium deposit, which contained reported reserves of approximately 195 million pounds of uranium oxide. This project lies approximately 15 km northeast along trend of the La Rocque Lake discovery, part of the Dawn Lake Project belonging to Cameco, AREVA and JCU (Canada) Exploration Company Ltd., where a drill intercept of 0.7 m @ 31.9% U3O8 at a depth of 276 meters was reported by operator Cameco. UEM has been drilling the Kernaghan Lake Project and intends to continue drilling with a proposed budget of $430,000 for 2007.


    Formation Capital Corporation

    Sale Date Quantity Delivery Date Price (US$/lb) Location


    22 Nov 2006 5 MT Nov 2006 $25.00 Europe
    22 Nov 2006 5 MT Nov 2006 $21.00 Europe
    20 Nov 2006 5 MT Nov 2006 $20.00 Europe
    20 Nov 2006 5 MT Nov 2006 $19.00 Europe
    20 Nov 2006 5 MT Nov 2006 $18.50 Europe
    20 Nov 2006 5 MT Nov 2006 $18.25 Europe
    20 Nov 2006 5 MT Nov 2006 $18.00 Europe
    16 Nov 2006 5 MT Dec 2006 $17.75 North America
    16 Nov 2006 5 MT Dec 2006 $17.50 North America
    15 Nov 2006 5 MT Nov 2006 $17.00 Europe
    15 Nov 2006 10 MT Nov 2006 $16.50 Asia
    15 Nov 2006 10 MT Dec 2006 $16.30 North America
    14 Nov 2006 10 MT Dec 2006 $16.10 North America
    13 Nov 2006 10 MT Dec 2006 $15.80 North America
    13 Nov 2006 5 MT Dec 2006 $15.70 Europe
    13 Nov 2006 10 MT Dec 2006 $15.70 Europe
    10 Nov 2006 10 MT Dec 2006 $15.50 Europe
    10 Nov 2006 10 MT Nov 2006 $15.40 Europe
    9 Nov 2006 10 MT Nov 2006 $15.30 North America
    9 Nov 2006 10 MT Nov 2006 $15.30 North America
    9 Nov 2006 10 MT Nov 2006 $15.30 Europe
    7 Nov 2006 10 MT Dec 2006 $15.50 Europe
    7 Nov 2006 10 MT Nov 2006 $15.50 Europe
    1 Nov 2006 10 MT Nov 2006 $16.00 Europe

    Month Available Quantity Price
    (USD/lb) Delivery Terms
    Nov 2006 5 MT $21.00 CIF main Asian port,
    CIF main North American port,
    DDP - Europe




    Sale Date
    Quantity Delivery
    Date Price
    (US$/lb)
    Location
    20 Nov 2006 5 MT Nov 2006 $20.00 Europe
    20 Nov 2006 5 MT Nov 2006 $19.00 Europe
    20 Nov 2006 5 MT Nov 2006 $18.50 Europe
    20 Nov 2006 5 MT Nov 2006 $18.25 Europe
    20 Nov 2006 5 MT Nov 2006 $18.00 Europe
    16 Nov 2006 5 MT Dec 2006 $17.75 North America
    16 Nov 2006 5 MT Dec 2006 $17.50 North America
    15 Nov 2006 5 MT Nov 2006 $17.00 Europe
    15 Nov 2006 10 MT Nov 2006 $16.50 Asia
    15 Nov 2006 10 MT Dec 2006 $16.30 North America
    14 Nov 2006 10 MT Dec 2006 $16.10 North America
    13 Nov 2006 10 MT Dec 2006 $15.80 North America
    13 Nov 2006 5 MT Dec 2006 $15.70 Europe
    13 Nov 2006 10 MT Dec 2006 $15.70 Europe
    10 Nov 2006 10 MT Dec 2006 $15.50 Europe
    10 Nov 2006 10 MT Nov 2006 $15.40 Europe

    LONDON (Metal-Pages) 15-Nov-06. The cobalt market has rebounded, after drifting down to the bottom of its long-term range of $15-20/lb at the end of October. Western traders put 99.8% at between $16-18/lb today, with 993% at around $15.50-16.50.


    There are several factors in the market driving the price, not least rumours that Norilsk will link up with OMG next year. Speculation has been fuelled by reports that Norilsk has not started to offer metal for long-term contracts in 2007. Sources close to Norilsk confirmed that the Russian producer has yet to offer, with the sales team waiting for direction from Moscow on distribution and allocation of metal.


    The sources also confirmed good spot activity and said that the current website price of $15.20/lb could be revised towards the end of the week, when Norilsk had a “better picture of the market”. Certainly business was good last week, with the Norilsk website reporting 57 tonnes of sales at an average price of $14.80/lb. The site is currently selling at its offer price.
    There have also been reports of AIM-listed Nikanor buying Chambishi, the Zambian cobalt producer. Nikanor already has copper and cobalt assets in Zambia and the move would seem a logistical step for a company keen to become a prominent player in the region.


    Nikanor was unavailable for comment when Metal-Pages called today. However, John Leslie, Nikanor executive chairman, has gone on the record to say that the company is having exploratory talks about buying the 3,200 tpy Chambishi cobalt plant. Chambishi’s owners (who count among their number Israeli diamond merchant Beny Steinmetz who also has a stake in Nikanor), were considering an AIM-listing for Chambishi, so a takeover by Nikanor would achieve the listing via a different avenue.


    Whatever the outcome of the talks, the Chambishi owners stand to make a good profit, with the company’s former owners Anglovaal Mining (Avmin) selling off the company for just $6.5 million in 2003, writing off $90 million on the deal.


    Informed sources close to Chambishi said that any change of ownership was unlikely to impact the market or the distribution of the metal.


    The mooted Norilsk deal is more likely to have an impact and is already having one just on pure speculation. The sales on BHP-Billiton this week are also driving the market north, with the company moving up its offer price a further 50 cents today to $17.50, having just secured a 5 tonne sale into North America. The company has sold 40 tonnes to North America this week at ever-increasing prices.


    The bulls, of course, are delighted with the current rally, with one ebullient western trader once again rubbing the producers’ noses in it. “They always sell at the bottom of the market,” he complained, “When will they ever learn? We are entering the most phenomenal bull run ever. Demand hasn’t ever been so strong. We are just on the first rung of the ladder – not even at the first floor yet – and we have a building to climb.” Even the most pessimistic of observers now believe that this rally has a way to go yet, if not through the roof.


    LONDON (Metal-Pages) 15-Nov-06. The cobalt market may be set for an erratic jump higher after the OM Group (OMG) last week hinted it might sell its nickel business to reduce its exposure to price volatility, with Russian cobalt producer Norilsk heading potential suitors, industry sources told Metal-Pages today.


    Fluctuation has typified the cobalt market for many years – the hallmark of a market prone to manoeuvring – but that trend has weakened since producers such as Norilsk and BHP Billiton have listed sales on their respective public websites in recent years. The cobalt market has been relatively weak compared with the price rally in many world metals recently, partly because Norilsk has sold metal at discounted prices, sources said.


    If OMG sold its nickel division to Norilsk it might release the dampening effect of the Russian company’s sales on spot prices - if cobalt feed was part of the deal.


    Although Norilsk is not the only potential suitor, Canada’s LionOre Mining International is also being touted, the Russian company has much to gain in getting its hands on OMG’s assets, notably the Harjavalta refinery in Finland, sources said.


    Norilsk could make money if it bought Harjavalta and processed concentrates that have been delivered for toll processing to Ufaleynickel in Russia – some 2,500 tonnes a year -- while adding a potentially useful presence in the European stocks market. Harjavalta has capacity to make 60,000 tonnes a year of nickel and gets concentrates from suppliers such as Norilsk, BHP Billiton, and LionOre.


    However, Norilsk would need permission from the Russian government as the cobalt concentrates contain precious metals whose export is subject to strict controls.


    “Norilsk has yet to respond to their customers, many of whom submitted purchase offers weeks ago,” one dealer said. “Apart from a few spot sales, Norilsk isn’t offering any material beyond the New Year. The market is tightly balanced. Whatever happens in the long term, vacuum creates rumours and rumours create trade, expect to see higher prices in the next few weeks.”


    Another dealer said: “Market sentiment is shaky. Norilsk has cut its activity on the spot market in recent weeks and has yet to start negotiating long-term deliveries for next year. The market feeling is that Norilsk may have already sold most of its cobalt to OMG, which would leave spot supply much tighter and probably more expensive.”


    POTENTIAL SUITORS


    Norilsk declined to comment, although a company official did admit it has yet to start contract settlements for 2007.


    In return OMG could get a regular feed of cobalt from Norilsk, while avoiding volatile metals prices on the open market, something that hurt the company in recent years. In 2002 former OMG chief Jim Mooney blundered on over-estimating future cobalt prices, which cost the company more than $100 million to revalue its reserves and forced it to restate its earnings while its share price collapsed.


    Keen to put that event behind it, OMG has deemed the nickel sector too volatile, despite putting down a large proportion of its third-quarter net income of $88 million this year – from $3.4 million in the same quarter of 2005 — to higher average nickel sales prices and increased revenue from toll refining activities.


    “Despite our strong financial performance thus far in 2006, we remain undeterred in our commitment to forge a new business model for OM Group that will produce more predictable and sustainable performance,” said chairman and CEO Joe Scaminace in a statement last week. “We continue to examine various options that include the possible sale of our nickel business and/or strategic acquisitions.”


    For its part, LionOre, which missed out on buying the Nikkelwerk refinery in Finland from Falconbridge earlier this year, has nickel mines in Africa and buying a refinery would benefit their production process.


    LionOre’s agreement to buy Nikkelwerk as part of the proposed merger between Falconbridge and Inco ended when Xstrata bought Falconbridge.

    [[Page 64240]]


    The comment period on the draft environmental impact statement will
    be 45-days from the date the Environmental Protection Agency publishes
    the notice of availability in the Federal Register.
    The Forest Service believes, at this early stage, it is important
    to give reviewers notice of several court rulings related to public
    participation in the environmental review process. First, reviewers of
    draft environmental impact statements must structure their
    participation in the environmental review of the proposal so that it is
    meaningful and alerts an agency to the reviewer's position and
    contentions. Vermont Yankee Nuclear Power Corp. v. NRDC, 435 U.S. 519,
    553 (1978). Also, environmental objections that could be raised at the
    draft environmental impact statement stage but that are not raised
    until after completion of the final environmental impact statement may
    be waived or dismissed by the courts. City of Angoon v. Hodel, 803 F.2d
    1016, 1022 (9th Cir. 1986) and Wisconsin Heritages, Inc. v. Harris, 490
    F. Supp. 1334, 1338 (E.D. Wis. 1980). Because of these court rulings,
    it is very important that those interested in this proposed action
    participate by the close of comment period so that substantive comments
    and objections are made available to the Forest Service at a time when
    it can meaningfully consider them and respond to them in the final
    environmental impact statement.
    To assist the Forest Service in identifying and considering issues
    and concerns on the proposed action, comments on the draft
    environmental impact statement should be as specific as possible. It is
    also helpful if comments refer to specific pages or chapters of the
    draft statement. Comments may also address the adequacy of the draft
    environmental impact statement or the merits of the alternatives
    formulated and discussed in the statement. Reviewers may wish to refer
    to the Council on Environmental Quality Regulations for implementing
    the procedural provisions of the National Environmental Policy Act at
    40 CFR 1503.3 in addressing these points.
    Alternatives: The Forest Service will consider a range of
    alternatives in the EIS including a no action alternative and
    modifications to the proponent's Plan that would minimize risk of
    impacts to the environment, improve public safety and mitigate
    potential effects to water quality, wetlands, wildlife and other
    resources. Analysis of alternatives will evaluate alternative facility
    locations, facility design components, operational procedures and
    technologies. For example alternatives to the location for the tailings
    disposal facility, to operational and post closure water management and
    to water treatment technologies will be evaluated. Mitigation measures
    that would improve access road safety, increase monitoring requirements
    and modify reclamation methods will also be considered. The range of
    alternatives would result in surface disturbance of up to approximately
    328 acres.
    Responsible Official: I am the responsible official for this
    Environmental Impact Statement. My address is Salmon-Challis National
    Forest, 1206 S. Challis Street, Salmon, Idaho 83467.

    [Federal Register: November 1, 2006 (Volume 71, Number 211)]
    [Notices]
    [Page 64237-64240]
    From the Federal Register Online via GPO Access [wais.access.gpo.gov]
    [DOCID:fr01no06-38]
    -----------------------------------------------------------------------


    DEPARTMENT OF AGRICULTURE
    Forest Service


    Idaho Cobalt Project Plan of Operations, Salmon-Challis National
    Forest, Lemhi County, ID


    AGENCY: Forest Service, USDA.
    ACTION: Revised Notice of Intent to Prepare Environmental Impact Statement.


    -----------------------------------------------------------------------


    SUMMARY: The Forest Service, as the lead Federal agency, previously
    published in the Federal Register (66 FR 46992-46994, September 10,
    2001) a Notice of Intent to prepare an Environmental Impact Statement
    (EIS) to disclose the environmental effects of the Idaho Cobalt
    Project. The Idaho Cobalt Project is a proposed plan of operations to
    develop an underground cobalt-copper-gold mine on the Salmon/Cobalt
    Ranger District of the Salmon-Challis National Forest in Lemhi County,
    Idaho. The Forest Service Handbook 1909.15, Chapter 21.2, requires this
    revised notice in the Federal Register to inform the public of a major
    change to the applicant's plan and provide revised dates of when the
    draft and final EIS will be completed. The major plan change is
    described in the following paragraph. The revised dates of when the
    draft and final EIS will be available can be found in the DATES section
    of this notice.
    The project proponent, Formation Capital Corporation U.S.
    (Formation), submitted its proposed plan of operation (Plan) to the
    Forest Service in January 2001. That Plan described the major
    components of the project, including production adits and declines,
    waste rock disposal areas, processing plant, process water and tailings
    disposal methods, haul roads, and ancillary support facilities on
    National Forest System Lands. Since 2001, Formation has provided the
    Forest Service with a number of clarifications and minor revisions to
    their Plan, which, for the most part, did not alter the basic project
    description contained


    [[Page 64238]]


    in the initial Federal Register notice. However, one proposed revision
    to the Plan's handling of mine and process water constituted a major
    change, which necessitated publishing this revised notice. Instead of
    land-applying the water as originally proposed, Formation plans to
    install a water treatment system and discharge the mine/process water
    into Big Deer Creek under a National Pollutant Discharge Elimination
    System (NPDES) permit. This change would reduce the surface area
    affected by mining operations from 251 acres to 149 acres.
    Formation submitted an NPDES permit application to the U.S.
    Environmental Protection Agency (EPA) on May 25, 2006 to discharge
    treated water into Big Deer Creek. The permit is a new source subject
    to the requirements of 40 CFR Part 440. As described in 40 CFR Part
    122.29 and EPA's NEPA implementing regulations in 40 CFR Part 6, a new
    source is subject to compliance with NEPA prior to taking a final
    action on the NPDES permit.
    EPA entered into a Memorandum of Understanding (MOU) with the
    Forest Service on August 8, 2006 as a cooperating agency in the EIS
    process. The MOU describes the roles, responsibilities, and NEPA
    coordination amongst the two agencies.
    Given the public scoping that has already been conducted for this
    project, the extensive list of significant issues generated as a result
    of that scoping, and the impending completion of the Draft EIS, the
    Forest Service will not initiate additional public scoping for this
    notice. Public comments will be accepted and considered following
    publication of the Draft EIS.


    DATES: The Draft EIS is expected to be available for a 45-day public
    review and comment period the first quarter of 2007. EPA will inform
    the public of the start of the review and comment period by publishing
    a Notice of Availability of the Draft EIS in the Federal Register.
    Completion of the Final EIS is anticipated by July 31, 2007.


    FOR FURTHER INFORMATION CONTACT: Ray Henderson, Project Coordinator,
    Salmon-Challis National Forest, 1206 S. Challis Street, Salmon, Idaho
    83467, Phone (208) 756-5100. Questions on the NPDES permit should be
    directed to Rob Rau, EPA Region 10, 1200 6th Ave., Seattle, Washington
    98101, Phone (206) 553-6285.
    If you wish to be placed on the project mailing list or receive
    additional information, contact the Salmon-Challis National Forest
    Project Coordinator identified above.


    SUPPLEMENTARY INFORMATION:
    Project Description: Formation Capital Corporation U.S. (Formation)
    submitted a Plan of Operations for the proposed Idaho Cobalt Project to
    the Salmon-Challis National Forest in January 2001. The Plan, which has
    subsequently been modified by Formation on a number of occasions, most
    recently in a June 2006 revision, is summarized as follows:
    The proposed Idaho Cobalt Project would consist of developing an
    800-ton per day mine and mill complex. The project would involve mining
    cobalt-copper-gold reserves with an annual production rate of 280,000
    tons of ore at full production. Current reserves and resources would
    allow for a ten-year mine life. The ore would be mined from two
    deposits, the Ram and the Sunshine and conveyed to a mill situated on
    the nearby Big Flat plateau. Underground mining methods are proposed,
    and a flotation mill would be used to process ore from the mine. At
    full production, the mill would produce approximately 32 tons of
    concentrate and 768 tons of tailings per day. The concentrate would be
    shipped to an off-site hydrometallurgical facility for metal recovery.
    Ram and Sunshine ore would be hauled to the mill with trucks, where
    the ore would be stockpiled. The approximate haul distance to the
    proposed site of the mill from the Ram portal is 2.8 miles and 1.5
    miles from the Sunshine portal. In the latter years of the mine life an
    overhead tram from the Ram portal may be used to transport ore to the
    mill. The tram would consist of suspended car traveling on track
    cables, driven by a haul cable and suspended on towers. The tramcar
    would be loaded from a hopper at the Ram portal, and the car would
    discharge into a hopper at the mill crusher.
    The proposed tailings disposal facility and the water management
    reservoir are also located on the Big Flat, east of the mill. Disposal
    of tailings in this area via a dry stacking method was proposed by
    Formation to take advantage of relatively flat topography, avoidance of
    wetlands, suitable foundation soils, elimination of the need for a
    tailings dam, and distance from active drainages and streams.
    Approximately 60 percent of the tailings produced would be required
    underground as backfill. The backfill tailings would be dewatered to
    produce a paste and have cement added for strength. The paste would be
    pumped from the mill site to the Ram in a pipeline.
    Mine and mill process waters would be managed and recycled in the
    process circuit using a lined water management reservoir as storage.
    Excess precipitation and mine water would be treated and discharged in
    accordance with an NPDES permit. Treatment would consist of pH
    adjustment, precipitation and filtration for metals removal followed by
    reverse osmosis membrane separation as a polishing step and to remove
    nitrate, sulfate and other constituents. Treated water is projected to
    meet effluent limits at the end of the discharge pipe. The project as
    proposed by Formation would disturb 149 acres of National Forest Land.
    Power for the project would be secured from an existing power line
    delivering power to the nearby Blackbird Mine. Emergency power would be
    supplied with diesel generating equipment located at the main portals
    and at the mill.
    It is anticipated that most of the project employees would live in
    the Salmon area. Employees would be transported to the project site by
    buses or vans assigned to personnel. The proposed transportation route
    for the employees is via the Williams Creek Summit, along the Williams
    Creek road, the Deep Creek road, the Panther Creek road and the
    Blackbird Creek road. The transportation route for mine supplies and
    the concentrates would also be via Williams Creek Summit. The West
    Panther and South Panther Roadless Areas lie to the north, west and
    east of the ICP. Proposed activities in the company and agency
    alternatives would utilize upgraded existing and to a lesser degree new
    roads within the designated roadless area. Up to eight acres of
    disturbance within the designated roadless area would occur under the
    action alternatives.
    There would be three main phases in the life of the Idaho Cobalt
    Project: the construction phase, the production phase, and the
    reclamation phase. There would also be concurrent reclamation in the
    construction and production phases as existing disturbed areas or new
    disturbance is reclaimed post-use. The construction phase would include
    upgrading 23.2 miles of existing roads, and construction of 2.7 miles
    of new roads, construction of the portals and waste rock dumps, the
    mill site, power line and substation and the tailings disposal site.
    Soil stockpile areas, stormwater diversion ditches and borrow areas
    would also be included in the surface disturbance.
    The production phase would bring the mill on line at 400-tons per
    day increasing to 800-tons per day as the underground Ram mine expands.
    Each of the project components is integral to the whole operation and
    therefore there would be limited opportunities for concurrent
    reclamation. However, there


    [[Page 64239]]


    would be concurrent reclamation in some areas when active use stops.
    The reclamation phase would include final shaping of waste rock dumps,
    sealing mine portals, mill demolition, power line and substation
    dismantling, tailings disposal area shaping and revegetation, water
    management reservoir reclamation, and road reclamation.
    Cobalt is a strategic and industrial metal with a diverse range of
    uses. The largest single use is in 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 power automobiles. Cobalt is used in computer hard disk drives,
    semiconductors, magnetic data storage and solar collectors. It is also
    used as a component in the effort to reduce air pollution, as it is a
    catalyst for removing sulfur from oil to provide for clean burning
    fuels and has important medical uses as well.
    Proposed Action and Regulatory Requirements: The Forest Service
    decision to be made in response to Formation's Plan is described by
    regulation at 36 CFR 228.5 and includes: (a) Approve the project as
    proposed, (b) Notify the operator of changes or additions to the plan
    of operations deemed necessary to meet the purpose of the regulations.
    These regulations also direct the Forest Service to comply with the
    requirements of the National Environmental Policy Act (NEPA) in
    connection with each Plan of Operation. In this regard, the Salmon-
    Challis Forest Supervisor has determined that an EIS is required to
    support a decision on the Idaho Cobalt Project. The EIS will analyze
    the direct, indirect, and cumulative environmental effects of the
    proposed Plan of Operation and other reasonable alternatives including
    mitigation, monitoring and reclamation measures designed to minimize
    adverse effects.
    In order to implement the project, the proponent, Formation, must
    obtain approval or conduct consultation with several other federal,
    state, and local regulatory agencies. These agencies include: U.S.
    Environmental Protection Agency, U.S. Fish and Wildlife Service,
    National Marine Fisheries Service, Army Corps of Engineers, Idaho
    Department of Environmental Quality, Idaho Department of Water Resources,
    Idaho State Historic Preservation Officer and Lemhi County, Idaho.
    The Salmon Forest Plan provides guidance for management activities
    within the potentially affected area through its goals, objectives,
    standards and guidelines, and management area direction. The proposal
    would occur within Management Area 5B. Management emphasis in this area
    is on producing long-term timber outputs through a moderate level of
    investment in regeneration and thinning. It recognizes the potential
    for high-value locatable mineral occurrence and probable development.
    The Forest Plan directs that exploration, location, leasing and
    development of energy and non-energy minerals resources be coordinated
    with other resources.
    Under the United States Mining Laws of May 10, 1872, as amended (30
    U.S.C. 22), United States citizens and corporations have the right to
    search for and develop minerals upon public lands, including National
    Forest Systems lands, open to mineral entry. Forest Service regulations
    (36 CFR 228, Subpart A) require that the agency work with mineral
    operators to minimize or eliminate adverse environmental impacts from
    mineral activities on National Forest System lands.
    Public Participation: The Forest Service held an initial public
    meeting to provide information on the Idaho Cobalt Project on July 20,
    2001, at the City Center in Salmon, Idaho. The Forest issued a Notice
    of Intent (NOI) to prepare an EIS for the proposed mining project in
    the Federal Register on September 10, 2001. The NOI invited comments on
    FCC's proposed Plan of Operations and the Forest's environmental
    analysis process for the proposed Project. The Forest held public
    scoping meetings on October 10, 2001, in Challis, Idaho and October 11,
    2001 in Salmon, Idaho.
    The scoping process and subsequent environmental analysis, to date,
    have identified the following significant issues:
    1. Blackbird Mine CERCLA Remediation & Restoration--What is the
    relationship between the proposed Idaho Cobalt Project and the current
    program to remediate the environmental damage at the Blackbird Mine and
    to re-establish an anadromous fishery in Panther Creek?
    2. Surface Water Quality--What is the potential for adverse impacts
    to water quality downstream of project facilities from the proposed
    mining activities, including development of acid mine drainage and
    mobilization of heavy metals from geologic materials exposed by the
    proposed mining activities, and how would water quality be maintained
    and beneficial uses protected?
    3. Groundwater Quality--What is the relationship of the aquifer
    systems between the proposed project and surrounding areas,
    particularly the Blackbird Mine and receiving streams? What is the
    existing quality of groundwater in the project area and how would the
    project affect existing groundwater quality?
    4. Water Use, Management, Treatment and Disposal--How would surface
    water and groundwater quality monitoring be conducted to detect and
    allow for the correction of any water quality problems resulting from
    the proposed mining activities? What water management and treatment
    systems would be in place to assure no adverse impacts to water quality
    or quantity?
    5. Sediment Delivery (Storm Water Management)--What are the
    potential effects on water quality from accelerated erosion and
    sedimentation, in consideration of surface disturbance associated with
    the proposed mining operations and the existing effects of the Clear
    Creek wildfire of the summer of 2000?
    6. Roads and Access--Opportunities exist to improve the
    transportation system on the project site and the access roads
    including reclamation of existing roads not meeting Forest standards.
    7. Transportation of Product, Chemicals, and Fuel--What is the
    potential for adverse impacts to water quality from accidental spills
    of hazardous materials along the transportation route?
    8. Socio-Economics--What are the potential impacts to local
    communities, tax base and infrastructure from the proposed project?
    9. Vegetation/Reclamation--What effects would the Idaho Cobalt
    Project have on vegetation, particularly the natural recovery of the
    area following the 2000 Clear Creek fire?
    10. Wetlands and Other Waters of the U.S.--What are the impacts to
    wetlands from the Idaho Cobalt Project?
    11. Fish Populations and Habitat of Concern--Would special status
    fish species and their habitat (threatened, endangered, sensitive) or
    species whose populations or habitat are present be adversely affected
    by the proposed mining activities?
    12. Air Quality/Visual Resource/Wilderness Resources--Would there
    be impacts to air quality, visual resources or the nearby wilderness?
    13. Wildlife Populations and Habitat of Concern--
    14. Cultural Resources and Tribal Trust Responsibilities--Are there
    cultural, historical or heritage resources in project area and would
    they be affected by the proposed Plan.
    15. Planning and Land Use--How would the proposed mining activities
    affect other Forest activities and would any changes be required to the
    Forest Plan.