Full Metal Minerals Expand Porphyry Exploration Program in Alaska
Full Metal Minerals (TSX VENTURE: FMM) and BHP BILLITON Mineral Services Company (“BHP Billiton”) (NYSE: BHP)(NYSE: BBL) are pleased to announce that exploration work has commenced on multiple copper-gold porphyry targets in eastern Alaska. Full Metal Minerals have expanded the land package through a Mining Exploration Agreement with Option to Lease with Doyon Ltd. (“Exploration Agreement”), an Alaska Native Regional Corporation to acquire a 100% interest in mineral rights covering 88,675 acres of Doyon conveyed and selected lands in Eastern Alaska.
The expanded land package agreed in the Exploration Agreement with Doyon falls within the area of interest outlined in the Option Agreement with BHP Billiton, whereby BHP Billiton is earning an initial 60% interest in the Properties from Full Metal Minerals (see news release FMM 2007 -NR #32, December 12, 2007).
Full Metal Minerals and BHP Billiton recently completed an extensive airborne geophysical survey identifying multiple new target areas with potential to host copper-gold porphyry deposits. Field crews have commenced a program of surface mapping, sampling and IP geophysics over historic and newly identified prospects, with the purpose of identifying drill targets. The exploration program is managed by Full Metal Minerals with technical support from BHP Billiton. Over the past 10 months, Full Metal Minerals and BHP Billiton have staked multiple claim groups totaling 95,760 acres, in addition to the mineral rights on Doyon lands.
The 2008 Exploration Program is managed by David Hedderly-Smith, Ph.D., PG, under the supervision of Robert McLeod, P.Geo., VP of Exploration and CEO for Full Metal Minerals. Both are Qualified Persons as defined by NI 43-101. Surface samples are placed in sealed bags and delivered to ALS-Chemex Labs sample preparation facility in Fairbanks, Alaska. A sample quality control/quality assurance program is in place. Mr. McLeod prepared and approved the information contained in this release.
During the Exploration Agreement, Full Metal Minerals will pay Doyon US$125,000 (US$50,000 first year) over two years, increasing to US$100,000 over the following seven years. Full Metal Minerals will make annual scholarship donations of US$10,000 per year, and make exploration expenditures totaling US$3,050,000 (US$300,000 first year). At any time, following exploration expenditures totaling at least US$700,000 on one prospect and having completed at least 10,000 feet of core drilling, and completion of a positive prefeasibility study, Full Metal Minerals may enter into one or more Mining Leases with Doyon. Unless otherwise agreed by Doyon, Full Metal Minerals may not select more than eight designated areas aggregating not more than 20,000 acres. For each Lease, Full Metal Minerals would make Advanced Royalty payments of $100,000 per year during year’s one through five, increasing to US$250,000 per year prior to commencing commercial production. Upon commencement of Commercial Production, Full Metal Minerals would pay to Doyon a Precious metals production royalty calculated as the greater of:
2 % Net Smelter Returns pre-payback and 4 % Net Smelter Returns post-payback
10 % Net Profits Interest pre-payback and 20 % Net Profits Interest post pay-back
As well as a base metals production royalty calculated as the greater of:
1 % Net Smelter Returns pre-payback and 3 % Net Smelter Returns post-payback
10 % Net Profits Interest pre-payback and 20 % Net Profits Interest post-payback
For each Lease Agreement, Full Metal Minerals incur minimum exploration expenditures totaling the greater of US$25 per acre or US$250,000 over the first five years, increasing to the greater of US$50 per acre of $500,000.
Full Metal Minerals shall enable business entities in which Doyon has a financial interest of 25% or more to make proposals on contracts during through both the Exploration and Lease Agreements under preferential consideration, as well as giving a hiring preference to Doyon shareholders.
Full Metal Minerals is a generative exploration company with multiple precious and base metal projects in Alaska and the Yukon. Drill programs are currently underway at the high grade 40 Mile zinc-silver lead project, and the Moore Creek gold project. The Company has Joint Venture Agreements with Kinross Gold, Freeport McMoRan, BHP Billiton, Metallica Resources, Triex Minerals, Altair Ventures, and Highbury Projects.
ON BEHALF OF THE BOARD OF DIRECTORS
Michael Williams, President and Director
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
Contacts: Full Metal Minerals Ltd. Jeff Sundar Vice President, Investor Relations (604) 484-7855 (604) 484-7155 (FAX) Email: firstname.lastname@example.org Website: www.fullmetalminerals.com
SOURCE: Full Metal Minerals Ltd.