Drilling on Formation Metals' Uranium Project Continues to Return High Grade Intercepts
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 04/04/12 -- Formation Metals Inc. (the "Company") (TSX: FCO) has been advised by the Virgin River Uranium Project operator, Cameco Corporation, that final results from the 2011 drill program have been received confirming additional high grade uranium intersections in diamond drill core from the Centennial Deposit. The Virgin River Project is located within the south-central portion of the Athabasca Basin in northern Saskatchewan, approximately 130 km northwest of Cameco's Key Lake mill. The project is a joint venture between the Company's wholly owned Canadian subsidiary, Coronation Mines Ltd., Cameco Corporation and AREVA Resources Canada Inc.
A total of 7,746.2 metres were drilled in 6 pilot diamond drill holes and 7 wedge off-cuts during the 2011 diamond drill program on the Virgin River project. Results of this program were discussed in the Company's news release dated January 12, 2012. Final assay results were not available at that time and are being reported in this news release.
All drill holes completed on or immediately surrounding the Centennial Deposit in 2011 displayed uranium enrichment throughout the basal sandstone in contact with the basement unconformity with elevated pathfinder elements such as lead, vanadium and nickel. Significant high grade uranium intercepts were intersected in 7 of the drill holes with the results tabled below.
Table 1: Significant Centennial Deposit Grade Calculation Results 2011
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Cut-Off Max. Ave.
Drill Hole From To Thickness Grade Grade Grade GT
Number (m) (m) (m) (%) (%U3O8) (%U3O8) (mX%)
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VR-042W5(i) 790.0 812.0 22.0 0.1 27.40 2.23 49.1
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(includes) 792.0 798.6 6.6 1.0 27.40 6.12 40.4
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(includes) 810.0 812.0 2.0 1.0 2.70 1.75 3.5
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VR-046 799.4 824.2 24.8 0.1 12.00 1.00 24.8
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(includes) 814.1 818.5 4.4 1.0 12.00 4.52 19.9
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VR-046W1 821.0 824.5 3.5 0.1 8.59 1.73 6.1
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(includes) 821.5 822.7 1.2 1.0 8.59 4.24 5.1
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VR-046W2 818.5 823.5 5.0 0.1 1.98 0.58 2.9
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(includes) 821.5 823.0 1.5 1.0 1.98 1.36 2.0
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827.9 829.4 1.5 0.1 2.30 0.93 1.4
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(includes) 828.4 828.9 0.5 1.0 2.30 2.30 1.2
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VR-049(i) 781.0 825.6 44.6 0.1 1.97 0.33 14.7
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VR-049W1(i) 786.0 827.0 41.0 0.1 7.55 0.29 11.9
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(includes) 824.6 826.6 2.0 1.0 7.55 5.13 10.3
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VR-051 822.5 828.4 5.9 0.1 1.67 0.59 3.5
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(includes) 825.0 826.0 1.0 1.0 1.67 1.33 1.3
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857.8 881.0 23.2 0.1 1.80 0.27 6.3
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(includes) 866.3 866.9 0.6 1.0 1.80 1.80 1.1
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Notes to Table 1: (i) Inductively Coupled Plasma - Optical Emission Spectroscopy split assay results with core recovery intervals of less than 75% were replaced by shielded probe results. True widths of the intersections on holes VR-046, VR-049 and VR-049W1, are estimated to be approximately 90 - 95% of the reported widths in the table above.
Five of the remaining drill holes, DDH VR-047, -048, -048W1, -004W1 and -004W2 intersected anomalous levels of uranium. Drill hole VR-050, located on L18N, 550 meters north of the northernmost extension of the Centennial Deposit returned significant uranium enrichment throughout the basal 110 metres of sandstone with a weighted partial average of 8.12 ppm uranium with values reported as high as 450 ppm uranium.
DDH VR-051, located approximately 1.4 km from the current northern extension of the Centennial Deposit, intersected a broad zone of elevated radioactivity and weak mineralization within the lower sandstone. The final assay results of DDH VR-051 are extremely encouraging considering mineralization is associated in a similar off-conductor geological setting to that encountered on the Centennial Deposit 1.4 km to the south.
The 2011 program has provided data for additional drill targets for further follow-up in 2012 and was successful in determining the presence of east - west striking cross structures and the potential remains immediately to the east and west of the deposit for the discovery of additional mineralization both parallel to and cross-cutting the deposit.
A budget of $2.15 million for the 2012 diamond drilling and geophysical exploration program on the Virgin River Project has been approved by the joint venture. The 2012 program is expected to consist of 5 - 6 diamond drill holes and 2 - 3 wedge off-cut diamond drill holes.
The 2012 drill program will concentrate on the evaluation of the off-conductor mineralization intersected in drill hole DDH VR-051 and will evaluate the conductor responses from a proposed geophysical survey between L21N and L33N located to the north of the deposit. Several tests will also be dedicated to upgrading mineralization on the Centennial Deposit by assessing the cross structural influence on uranium mineralization within the deposit.
High grade U3O8 intersections of up to 298 GT have been intersected within the Centennial Deposit (33.9 metres grading 8.78% U3O8- see Company News release dated May 30, 2011). GT is defined as % grade U3O8 multiplied by thickness in metres. Assay results returned from diamond drill programs from 2004 to 2011 on the Centennial deposit have resulted in 39 significant primary uranium intersections returning results greater than 10.0 GT.
The Company is pleased with the continued success the exploration and drilling of the Centennial Deposit and is looking forward to the results of the 2012 program.
The Virgin River project joint venture was formed in 1998 between the Company's subsidiary, Coronation Mines Ltd. (2%), Cameco Corporation (49%) and AREVA Resources Canada Inc. (49%). Coronation Mines Ltd. has the right of first offer to increase its ownership of the project up to 10%.
All uranium geochemical assays were carried out utilizing Inductively Coupled Plasma - Optical Emission Spectroscopy analysis by the Saskatchewan Research Council of Saskatoon, Saskatchewan. Select split core X-Ray Fluorescence U3O8check assays were completed by SGS Minerals Services of Lakefield, Ontario. 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 based on an examination of the data submitted to the Company by the project operator Cameco Corporation.
Mari-Ann Green, C.E.O.
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.
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 marketplace changes.
Contacts:
Formation Metals Inc.
E.R. (Rick) Honsinger, P.Geo.
V.P. Corporate Communications
604-682-6229
inform@formationmetals.com
www.formationmetals.com