Full Metal Acquires High Grade Gold Property in Alaska
Full Metal Minerals Ltd. (TSX VENTURE: FMM) is pleased to announce that the Company has entered into a letter agreement to acquire a 100% interest in the historically producing CJ Gold Property in Alaska.
The CJ Property is a sediment-hosted, structurally controlled high-grade vein system, located adjacent to a paved highway. Several historically producing mines occur within a structural corridor that currently has a strike length of 3,200 meters and spans 500 vertical meters. The area has received only minor modern exploration since production ceased in 1940. The adjacent Dawson Mine is the only historic producer that was drilled; results from a limited 1980 drill program include:
——————————————– DDH#11 2.4 meters averaging 40.4 g/t Au ——————————————– DDH#15 4.9 meters averaging 9.3 g/t Au ——————————————– DDH#16 8.8 meters averaging 18.7 g/t Au ——————————————– DDH#18 6.3 meters averaging 28.3 g/t Au ——————————————– DDH#20 4.0 meters averaging 8.7 g/t Au ——————————————–
Several mines along the CJ trend operated from the 1900′s until 1940 when the War Powers Act closed all gold mines in Alaska. Multiple veins were developed, with historic recorded production documented from the Alaska Department of Mines totaling 25,000 ounces of gold. Historic records indicate mill recoveries of 75 to 80% by gravity concentration. These production records, though significant, are historic in nature and used for reference purposes only. Full Metal has not verified these records and they should not be relied upon.
The CJ Prospect is an orogenic gold target hosted within a series of lower Paleozoic clastic and volcanic rocks, intruded by plutons and dykes of varying compositions and ages. Multiple, banded quartz veins range from continuous veins 0.2 to 4.3 meters thick, to vein swarms and sheeted vein sets within brecciated, siliceous argillite. Vein dips range from 35 to 60 degrees, dipping to both the east and west. Individual veins have been traced for over 1,600 meters along strike. Historic and recent assay data indicate gold-silver ratios ranging from 1:1 to 1:10, with mineralization occurring as native gold and fine grained sulphides. Historic stopes are oriented northeast-southwest, however structural controls to gold mineralization have yet to be determined.
Full Metal Minerals can earn a 100% interest in patented and unpatented federal mining claims from Red Diamond Mining Company (RDMC), by agreeing to incur US$2,800,000 over four years (US$300,000 first year), pay US$700,000 in cash (US$50,000 first year). Upon earn-in, Full Metal will make annual Advanced Royalty Payments of US$150,000 until the commencement of Commercial Production. Full Metal will also make a one-time cash payment to RDMC of US$1 million upon completion of a positive, Bankable Feasibility Study. Upon commencement of Commercial Production, Full Metal will pay RDMC a 2% Net Smelter Return Royalty (NSR) for the first four years with the NSR increasing to 4% thereafter. After four years, Full Metal shall have the right to purchase one-quarter of the NSR (1%) from RDMC for US$2,000,000 at any time.
The CJ Property is located on east-central Prince of Wales Island in southeast Alaska. The southern boundary of the Property has access to a high-voltage power line and a state maintained paved highway connecting the community of Craig and a ferry terminal at Hollis.
The Company is planning to commence exploration work at CJ in June, 2007. Field work will include structural mapping, soil and rock sampling, to be followed by 2,000 meters of core drilling.
Full Metal’s 2007 exploration program will be supervised by William T. Ellis, CPG with Alaska Earth Sciences, an Anchorage-based Consulting Group, under the direction of Robert McLeod, P.Geo., Vice President Exploration, for Full Metal Minerals Ltd.; both are qualified persons as defined by NI 43-101. Mr. McLeod prepared and approved the information contained in this release.
Full Metal has thirteen active Projects in Alaska. Drilling is currently underway at Lucky Shot Gold and the 40 Mile Zinc-Silver-Lead Project. Drilling is planned on a minimum of six Properties during 2007. Full Metal has Joint Venture agreements with Metallica Resources, Andover Ventures, Triex Minerals and First Factor Development Inc.
ON BEHALF OF THE BOARD OF DIRECTORS
Michael Williams, President and Director
Some statements in this news release contain forward-looking information, including without limitation statements as to planned expenditures and exploration programs. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements. Such factors include without limitation the completion of planned expenditures, the ability to complete exploration programs on schedule and the success of exploration programs.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
Contacts: Full Metal Minerals Ltd. Jeff Sundar Manager, Investor Relations (604) 484-7855 (604) 484-7155 (FAX) Email: info@fullmetalminerals.com Website: www.fullmetalminerals.com
SOURCE: Full Metal Minerals Ltd.