Fabled Silver Gold Corp T.FCO

Idaho project

[good2004]

Formation finds ways to simplify Idaho project design 2006-12-21 09:10 ET - News Release Ms. Mari-Ann Green reports FORMATION CAPITAL'S FINAL FEASIBILITY ON COBALT PROJECT NEARING COMPLETION Formation Capital Corp. is reviewing the progress of its final feasibility study on its 100-per-cent-owned Idaho cobalt project. In early December, 2006, Formation met with its feasibility study consultants in the Samuel Engineering Inc. offices located in Denver, Colo. The purpose of the meeting was to review the recently completed hydrometallurgical testwork 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 five million pounds of copper per year. In addition, review of recently completed hydrometallurgical testwork 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 under way. 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 favourable for the production of high-purity cobalt metal. The United States 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.