VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 05/30/11 -- Formation Metals Inc. (the "Company") (TSX: FCO) is pleased to provide its shareholders with final results from the Virgin River Uranium Project 2010 drill program, as provided to the Company by project operator, Cameco Corporation (see Company News Release dated July 8, 2010). Located within the south-central portion of the Athabasca Basin in northern Saskatchewan, the project is a joint venture between Formation Metals' wholly owned Canadian subsidiary, Coronation Mines Ltd., Cameco Corporation and AREVA Resources Canada Inc.
The joint venture has approved a budget of $3 million for continued drilling on the Virgin River project for 2011, expected to commence in early June. Over $26.8 million has been spent on the project to date exploring for a large unconformity-type deposit that has resulted in the discovery of the Centennial Deposit. The Centennial Deposit has been traced over 650 metres of strike length and has a minimum across strike width ranging from 10.0 metres to 52.5 metres. The 2011 drill program will utilize two drill rigs on and immediately surrounding the current extent of the Centennial deposit with a focus on extending the deposit along strike to both the north and south. High grade U3O8 intersections of up to 298 GT have been intersected within the deposit. GT is defined as % grade U3O8 multiplied by thickness in metres.
A total of 8,562.6 metres were drilled in 2010 in five pilot diamond drill holes VR-041 to 045 and in fourteen diamond drill directional off cut holes VR-19W2 and W3, VR-026W1, VR-029W2, VR-038W3, VR-040W1 to W3, VR-041W1, VR-042W1 to W4 and VR-44W1. A location map of the drill holes with GT values is available on the Company's website at www.FormationMetals.com. High-grade mineralization was intersected in drill hole VR-040W2 (8.40% U3O8 over 9.0 metres) collared on Line ("L") 6+50N and drill hole VR029W2 (7.46% U3O8 over 13.2 metres) on L7+00N in the southern portion of the Centennial Deposit. Both high-grade intercepts occur immediately below the Athabasca Group - Virgin River Domain unconformity and are associated with the faulted quartzite package. Grade calculations from the results of the 2010 drill program, utilizing 0.1% U3O8 and 1.0% U3O8 cut-offs for various intercepts, are reported in the Table 1.less than greater than
Table 1: Significant Centennial Deposit 2010 Grade Calculations
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Thick- Grade Max. Ave.
Drill Hole ness Cut-off Grade Grade GT
Number From (m) To (m) (m) (%) (%U3O8) (%U3O8) (mX%)
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VR-019W3 641.7 649.0 7.3 0.1 0.36 0.27 2.0
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797.2 798.7 1.5 0.1 0.28 0.19 0.3
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VR-026W1 842.5 858.0 15.5 0.1 0.19 0.08 1.2
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VR-029W2 800.4 813.6 13.2 0.1 39.10 7.46 98.5
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(includes) 801.0 813.6 12.6 1.0 39.10 7.81 98.4
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VR-038W3 815.0 824.1 9.1 0.1 2.60 0.89 8.1
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(includes) 817.7 822.7 5.0 1.0 2.60 1.26 6.3
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VR-040W1 812.3 813.8 1.5 0.1 0.15 0.13 0.2
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VR-040W2 823.0 832.0 9.0 0.1 32.10 8.40 75.6
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VR-040W3 825.5 827.0 1.5 0.1 1.03 0.41 0.6
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(includes) 826.0 826.5 0.5 1.0 1.03 1.03 0.5
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VR-041W1 848.8 857.4 8.6 0.1 0.65 0.16 1.4
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VR-042W1 810.9 819.2 8.3 0.1 14.30 1.93 16.0
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(includes) 813.1 817.8 4.7 1.0 14.30 2.86 13.4
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VR-042W4 811.9 818.4 6.5 0.1 0.30 0.15 1.0
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VR-044W1 832.2 832.6 0.4 0.1 1.05 0.17 0.1
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Note: Inductively Coupled Plasma - Optical Emission Spectroscopy Split
assay results with core recovery intervals of less than 75% replaced by
shielded probe results.
Pilot drill hole DDH VR-042, collared on L8+00N approximately 200 metres southeast of the Centennial Deposit, intersected favourable alteration, scattered structural disruption and local uranium mineralization within the basal Athabasca Group. Four directional off cut holes, VR-042W1 to W4, were also drilled. Drill holes VR-042-W1 and W4 returned assay results of 1.93% U3O8 over 8.3 metres and 0.15% U3O8 over 6.5 metres respectively. Initially interpreted to represent a separate zone of mineralization paralleling the Centennial Deposit, the additional results obtained from the drilling of this mineralized structure remains inconclusive and further drill testing along strike is planned for the 2011 drill program.
Drilling was also successful in tracing the faulted quartzite controlling structure on the Centennial deposit along strike to the north of L13+00N and south of L6+00N. Drilling within the northernmost portion of the deposit on L14+00N with drill holes VR-041, VR-041W1 and VR-043, and on L15+00N with drill hole VR-045, were successful in locating and tracing the faulted quartzite structure in two of the four holes completed. No significant mineralization was intersected in these drill holes. Drilling within the southernmost portion of the deposit on L4+95N with drill holes VR-044 and VR-044W1 was successful in locating the faulted quartzite structure, however the intersection with the unconformity in VR-044W1 was only weakly mineralized.
Drill hole VR-038W3, located on L10+00N, tested for the presence of an interpreted cross structure associated with the mineralization present on L10+50N where a previously drilled, single off cut diamond drill hole, VR-031W3, returned high grade uranium mineralization of 8.78 % U3O8 over 33.9 metres (see Company News Release dated January 10, 2009). Drill hole VR-038W3 appears to have intersected the up-dip projection of the interpreted cross structure intersecting sandstone-hosted mineralization, returning an intercept of 0.89% U3O8 over 9.1 metres immediately above the unconformity. Further testing of this cross structure is a high priority target to evaluate the high-grade potential down-dip of this intercept. To date, 35 diamond drill holes have reported primary intersections that returned U3O8 values greater than 10 GT from the project.
Table 2: Diamond drill results greater than 10 GT from the Centennial
Deposit (updated)
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Depth Depth Thickness Max Grade Avg Grade GT
DDH From (m) To (m) (m) (%U3O8) (%U3O8) (mX%)
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VR-018 789.1 795.5 6.4 17.80 5.83 37.3
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VR-018W2 788.5 795.9 7.4 24.80 4.43 32.8
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VR-019 791.9 795.6 3.7 10.40 3.56 13.2
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VR-021W1 798.1 804.4 6.3 21.60 2.63 16.6
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VR-022 778.7 794.2 15.5 2.86 0.71 10.9
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VR-022W2 781.0 799.2 18.2 18.50 2.58 47.0
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VR-024 821.3 826.5 5.2 6.76 3.68 19.1
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VR-027 800.9 816.6 15.7 2.99 0.71 11.1
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VR-027W1 806.8 818.8 12.0 11.10 1.99 23.9
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VR-027W2 800.7 820.9 20.2 52.20 6.74 136.1
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VR-027W3 806.8 816.7 9.9 5.39 1.51 14.9
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VR-027W4 797.0 829.2 32.2 19.75 2.46 79.2
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VR-029W1 797.0 802.0 5.0 38.00 9.39 47.0
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VR-029W2 800.4 813.6 13.2 39.10 7.46 98.5
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VR-031 788.9 803.5 14.6 9.77 0.96 14.0
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VR-031W1 790.9 808.7 17.8 35.30 7.57 134.7
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VR-031W2 794.5 806.0 11.5 41.00 4.46 51.3
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VR-031W3 797.0 830.9 33.9 28.90 8.78 297.6
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VR-031W4 800.0 812.0 12.0 35.00 7.14 85.7
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VR-031W5 803.0 817.4 14.4 14.70 4.58 66.0
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VR-032RW1 802.9 821.0 18.1 3.04 1.01 18.3
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VR-033 783.9 793.0 9.1 14.40 3.19 29.0
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VR-033W1 782.2 801.3 19.1 67.50 6.96 132.9
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VR-033W2 791.5 801.6 10.1 11.00 3.40 34.3
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VR-034 789.6 800.9 11.3 15.85 2.13 24.1
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VR-035 802.8 808.8 6.0 11.20 2.00 12.0
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VR-036W1 820.3 843.3 23.0 8.50 1.25 28.9
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VR-036W2 829.9 850.6 20.7 18.90 3.35 69.3
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VR-036W3 812.9 820.8 7.9 6.27 1.74 13.7
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VR-037 799.5 801.4 1.9 13.50 5.99 11.4
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VR-037W1 788.6 794.2 5.6 15.80 4.53 25.4
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VR-037W2 785.0 795.8 10.8 5.74 1.63 17.6
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VR-038W2 823.0 843.2 20.2 52.50 3.98 80.4
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VR-040W2 823.0 832.0 9.0 32.10 8.40 75.6
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VR-042W4 810.9 819.2 8.3 14.30 1.93 16.0
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Note: Inductively Coupled Plasma - Optical Emission Spectroscopy Split
assay results with core recovery intervals of less than 75% replaced by
shielded probe results.
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 Limited has the first right of offer to increase its ownership of the project up to 10%.
The Company is pleased with the ongoing success of the program and is looking forward to the results of the 2011 drill program.
All uranium geochemical assays were carried out utilizing Inductively Coupled Plasma - Optical Emission Spectroscopy analysis by the Saskatchewan Research Council of Saskatoon, Saskatchewan. 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.
Formation Metals Inc.
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
