Vancouver, B.C., April 28, 2011 Formation Metals Inc. (FCO-TSX) ("Formation") is pleased to announce that its 100% owned Mexican subsidiary, Minera Terranova, S.A. de C.V. (the "Company") has recently acquired a central core land package that is surrounded by its 100% owned Mexican silver / lead / zinc El Milagro Project. The Company has been working towards gaining control of the entire land package for over five years and its acquisition is fortuitous considering current silver prices. Initial stages of review are now in progress and existing data is being compiled to develop a systematic surface sampling and mapping program which will delineate future potential drill targets.
The El Milagro Project is located 60 kilometers northwest of the city of Tampico, in the southeast portion of the state of Tamaulipas, Mexico. The project is located within the southernmost portion of the Chihuahua Trough, where alkaline dikes and sills along the caldera ring fracture of the Trough carry semi-massive sulphide stockwork zones in altered intrusive rocks.
The primary target defined within the Milagro property is the Santa Maria Vein, a 1-4 meter wide tabular subvertical NNE trending breccia vein that has been mapped over a strike length of 450 meters, with a lead-rich polymetallic assemblage that carries silver grades often in excess of 1,500 grams per tonne (43.8 ounces per ton) and combined lead-zinc grades that often exceed 10%. This target remains open along both strike directions. The new claims are considered a strategic acquisition as they cover a portion of both the northern and southern strike extensions of the Santa Maria Vein.
Previous work by an independent consultant working for the Company returned silver values across the host dike in the Santa Maria workings that vary from 800 to 3,800 grams per tonne (23.4 - 111.0 ounces per ton) over 4 metres. The Santa Maria vein was a relatively recent discovery and as such it is considered probable that other silver-rich veins and replacement zones exist within the area covered by the El Milagro property. Accompanying base metal values include lead assays ranging from 10.3% to 12.3% and zinc assays from 2.8% to 6.8%. Anomalous copper values are also associated with the mineralization. Mineralization is very low in arsenic, mercury and cadmium and only slightly elevated in antimony.
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 which is based on historical information.
Formation Metals Inc. is dedicated to the principles of environmentally sound mining and refining practices, and believes that environmental stewardship and mining can co-exist. Formation trades on the Toronto Stock Exchange under the symbol FCO.