Full Metal Minerals Expand Porphyry Exploration Program in Alaska
June 05 2008 - 12:28PM
Marketwired
VANCOUVER, BRITISH COLUMBIA 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
Or
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
Or
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:
info@fullmetalminerals.com Website: www.fullmetalminerals.com
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