Completed Biological Assessment Significantly Advances Permitting on Idaho Cobalt Project
Vancouver, B.C., January 09, 2008, Formation Capital Corporation, (Formation, FCO-TSX),
announced today its wholly owned subsidiary, Formation Capital
Corporation, U.S. ("the Company") located in Salmon, Idaho, reports the
United States Department of Agriculture Forest Service (USFS) has
completed the Biological Assessment and Biological Evaluation (BA) of
the effects of the Idaho Cobalt Project (ICP) on listed or regionally
sensitive species under the Endangered Species Act.
"What we were happy to find is that the determination in the report
states that the ICP (including the transportation route) would have "no
effect" on federally endangered Snake River sockeye salmon or its
critical habitat", said Bill Scales, President of Formation Capital US.
"The report also states that the ICP is not likely to result in the
destruction or adverse modification of designated Critical Habitat or
Essential Fish Habitat for salmon or trout," he continued.
In reference to threatened species of salmonids the report states that
a hazardous material in transit associated with the ICP is only "likely
to adversely affect" ESA listed salmonids if (1) an accident occurs
near a stream, (2) the shipping container ruptures, (3) the amount of
material reaches toxic concentration, and (4) the salmonids are
resident in the stream. A table in the report indicates that the
accident probability analysis shows that the majority of the materials
transported would have a probability of an accident occurring near a
stream once in less than 1,000 years and only a few have a risk of once
in less than 100 years.
"We are and have always been very focused on protecting endangered or
threatened species around our project and along its transportation
route", said Ms. Green, CEO of Formation. "We will have a thorough
Spill Prevention and Response Plan in place which will largely
eliminate the potential for any spill effects on salmonid species" she
added.
"Why this is so significant", said Bill Scales from his Salmon Idaho
office, "is that there is only one more document, the Biological
Opinion, to come before the USFS can finalize the Environmental Impact
Statement and issue the Record of Decision. It is a welcomed advance in
the process."
The report has been forwarded to National Oceanic and Atmospheric
Administration (NOAA) and the Fish and Wildlife Service and the
consultation period has been initiated. The completion of the
consultation will result in a Biological Opinion which will outline for
the USFS any additional mitigation measures that NOAA and Fish and
Wildlife would want considered in the Record of Decision. Although the
consultation process has a maximum allowable time frame of 135 days,
the Company is hopeful the ICP Biological Opinion can be completed
sooner.
The USFS has revised its Schedule of Proposed Actions to reflect a
Record of Decision in July 2008. In correspondence with the USFS they
provided the following explanation:
"It is unfortunate that your investors place so much weight on dates in
the Schedule of Proposed Action (SOPA). Projected completion dates for
all but the simplest of projects are commonly revised and only become
more definitive as major milestones in the process are achieved. In the
case of the Idaho Cobalt Project, with the draft Environmental Impact
Statement behind us and the initiation of the consultation process, a
date for a decision can be more accurately predicted. We understand the
proposed July 2008 date for the Record of Decision is conservative;
being based on a maximum timeframe for completion of consultation (135
days) and a modest amount of time to prepare final documents."
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"
Mari-Ann Green
C.E.O.
For further information please contact:
Formation Capital Corporation, 1510 -- 999 West Hastings Street, Vancouver, BC, V6C 2W2
Head Office: 604-682-6229, Investor Relations: Contact Encompass Communications toll free 1-877-566-6592
Email: inform@formcap.com - Or visit our Web site at: formcap.com
