The Black Pine Property is located approximately 17 miles from the town of Salmon, Idaho, in Lemhi County, proximal to the Company's Idaho Cobalt Project. Stratiform sulphide mineralization is found in massive sections which typically contain pyrite and chalcopyrite. Aside from the copper rich strata, there are a number of narrower cobalt-gold rich arsenopyrite-bearing beds present in the copper mineralized section. Primary cobalt mineralization within the Regina target has returned some broader cobalt intervals as well as multiple stacked narrower beds. The narrower strata typically carry values sufficiently high to be minable when diluted to a 6 foot mining width.

Mineralization was first discovered in the area of the present Black Pine property in the late 1800s with several short adits, crosscuts and a shaft completed by 1947. By the 1960's, operators had defined a mineable reserve in one of twelve defined target zones of 340,000 tons grading 3.5% copper.

In 1992, Formation Capital optioned the Black Pine property and shortly thereafter staked additional claims. Since the acquisition of Black Pine, Formation has spent CAN$3.2 million on property payments and exploration including geological mapping, soil geochemistry, geophysical surveys, trenching and drilling programs. Formation has completed 100 diamond drill holes totaling 44,954 feet, and 100 reverse circulation holes totaling 15,625 feet.

Core drilling has defined a preliminary sulphide resource of 224,673 tons grading 4.17% copper, 0.013% cobalt and 1.269 grams per tonne (gm/T) (0.037 oz/t) gold has been calculated for the Swift East and Trench zones. Comparatively under-explored zones include the Regina zone where the best drill hole intersected a cobalt-rich horizon which assayed 1.133% cobalt. 0.02% copper and 1.920 gm/T (0.056 oz/t) gold over 17.5 feet and the Troll Zone where drilling intersected a copper-rich horizon grading 0.164% cobalt, 4.90% copper and 0.446 gm/T (0.013 oz/t) gold. over a 9.2 feet. All of these zones remain open in at least one direction.

Reverse circulation drilling has defined an acid soluble copper oxide resource of 1,565,464 tons grading 0.40% copper and 0.017% cobalt in the Swift West, Swift East and Trench zones. A preliminary resource of 169,214 tons of oxide copper grading 0.98% copper has been calculated for the Jacob zone. These copper oxide resources are amenable to low cost, solvent extraction - electro-winning (SX-EW) recovery techniques. Preliminary indications suggest a reserve as small as 2 million tons grading 1% copper may be economic given the proximity of the property to infrastructure.