Formation Metals reports highest grade uranium to date from Virgin River joint venture with Cameco and Areva

Formation Metals (“Formation") (TSX-V: FCO) released an update on the Virgin River Uranium Project, in which it holds a 2% interest and a right to increase its interest to 10%, subject to certain terms. The Virgin River Uranium Project is operated by Cameco Corporation (TSX & NYSE: CCO). French nuclear giant Areva (Euronext Paris: CEI) is also a stakeholder.

Formation reported that a total of 7,742 metres of diamond drilling was completed in 2009. During the Phase II winter drilling program, Cameco reported numbers intersects of uranium mineralization, with the highlight being DDH VR-031W3 which returned 8.73% U3O8 over 33.9 meters (0.1% grade cut-off).This is highest grade interval on the project to date.

“The Centennial deposit has now been traced over a known 650 m of strike length and appears to remain open to both the north and the south,” Formation commented, “Diamond drilling suggest the deposit has a minimum across strike width ranging from 10.0 m to 52.5 m and is currently open to the east and west on most sections.”

Looking ahead to 2010, Formation reported that an exploration budget of $5 million had been approved, which will consist of additional diamond drilling and time-domain electromagnetic geophysical surveying.

“A winter campaign utilizing two drills will be initiated in early 2010 to test regional targets to the north of the Centennial deposit. A summer campaign utilizing both drills will also concentrate on extending the strike length of the Centennial deposit to both the north and south and continue testing the across-strike width and the potential for high-grade mineralization (ie. greater than 100 GT) on select fences.”

Share in Formation Metals were on the move yesterday, which was attributed to the company’s cobalt interests.  http://www.proactiveinvestors.com/companies/news/3486/formation-metals-reports-highest-grade-uranium-to-date-from-virgin-river-joint-venture-with-cameco-and-areva-3486.html