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Idaho Cobalt Project

Project Overview

Formation Capital's primary asset, the Idaho Cobalt Project ("ICP"), remains the only advanced stage, near-term, environmentally permitted primary cobalt deposit in the United States. With initial production expected in 2019, the ICP will ethically produce environmentally sound cobalt products, made safely, responsibly and transparently in the United States.

The ICP is comprised of the Mine/Mill (M/M) site located in Lemhi County, Idaho, near the town of Salmon, Idaho, and the Cobalt Production Facility, a stand-alone processing facility to be located in Southern Idaho near the city of Blackfoot. According to the Feasibility Study dated September 27, 2017, the project is slated to produce 1,500 tons of cobalt metal equivalent annually over a projected mine life of 12.5 years.

The ICP is fully environmentally permitted having completed an Environmental Impact Statement and has received a positive Records of Decision on its Mine Plan of Operations from the U.S. Department of Agriculture National Forest Service and a water discharge NPDES (National Pollutant Discharge Elimination System) permit from the U.S. Environmental Protection Agency. Initial construction of the project began in 2011, before the project was placed on Care and Maintenance in 2013 due to market conditions. In 2017 the Company recommenced pre-construction activities, and to date approximately 90% of the earthworks have been completed at the mine site.

A total of $120M has been spent on the project to date. Approximately $16M worth of long lead time equipment was previously purchased and is stored in warehouse and staging areas outside of Salmon, ID, ready for transportation to the mill site. This equipment represents all major components of the mill and concentrator, and includes the ball mill, flotation cells, hoppers, grizzlies, etc.

The ICP will produce a clean (low arsenic content) cobalt concentrate product, an upstream precursor material for battery cathode production. Laboratory scale testing in 2017 demonstrated successful arsenic removal from ICP ore concentrates by conventional roasting methods.


The ICP has undergone numerous studies including scoping, pre-feasibility and feasibility level studies through the development of the project engaging numerous engineering firms and engineering, metallurgical and market specialists. These studies were commissioned by Management as the ICP progressed from exploration, development and into construction. Certain studies that refer to the reporting of geological resources and/or other National Instrument 43-101 requirements have been filed on SEDAR and are available at These filings include the Company’s latest Preliminary Economic Assessment (PEA) which is summarized below and in the Company’s April 22, 2015 news release. Excerpts from the PEA can also be found in the Company’s additional presentation materials.

The reader is cautioned that historical technical reports filed on SEDAR, prior to the most recent 2015 PEA, contain economic assumptions that are out of date. They may include assumptions for metal prices, plant performance, additional resources and other economics and as such should no longer be relied upon.

The historical technical reports were commissioned to define the production of High Purity Cobalt (HPC) metal for use in the super-alloy sector, which includes the manufacturing of wind and jet engine turbines. In 2014 eCobalt recognized a huge demand surge in Cobalt Sulfate brought on by the rapidly expanding electric vehicle, grid storage, and rechargeable battery sectors. Significant growth in these areas is expected to continue into 2025 and beyond. As a result, in 2015, management commissioned and completed a PEA to produce cobalt sulfate.

On June 21, 2016, the Company announced that it has signed an agreement with Micon for technical services to conduct a FS on the ICP. Micon subcontracted aspects of the study concerning the processing, infrastructural engineering, risk assessment, project scheduling, and cost estimating to SNC-Lavalin. Initial results from the FS were delivered to the Company September 27, 2017.

The proposed underground mine development layout has been optimized to minimize the scheduled lead time while providing access to stopes of above average grade early in the mine life to assist in minimizing mine payback schedule. Equipment requirements and layouts for both plants have been finalized and material take-offs (determining all materials required to accomplish the design and costing) have been quantified. In addition, SNC-Lavalin has completed its review and revision of the basic process engineering for the mill/concentrator and the CPF.

The preliminary results of the FS are available under our Technical Reports section of the site. The complete FS report (summary of results announced Sept. 27, 2017) are available on SEDAR at