Full Metal Minerals (TSX VENTURE: FMM) is pleased to announce that
the Company has entered into an agreement to acquire 100% of the
mineral rights to the Russian and Horn Mountain complexes from
Calista Corporation, an Alaska Regional Native Corporation. Surface
exploration and diamond drilling has commenced on the Property.
The 44,500 hectare Russian and Horn Mountain targets are
situated in the Kuskokwim Region of Southwest Alaska, approximately
40 kilometers southwest of Barrick Gold/Novagold's Donlin Creek
Deposits. Gold-silver mineralization occurs within Late Cretaceous
to early Tertiary Age volcanic-plutonic complexes. Multiple targets
on both prospects are currently being explored. Limited modern
exploration has been performed in the area.
The Companies have commenced a 2,000 meter core drilling
program, testing multiple targets primarily at Russian Mountain.
Additionally, surface mapping, sampling and ground geophysics are
being completed.
RUSSIAN MOUNTAIN
Russian Mountain is a volcanic-plutonic complex that consists of
a circular-shaped field of intermediate to felsic volcanic units
that flank and overlie a multiphase monzonite to quartz syenite
pluton.
Mineralization in Russian Mountain consists primarily of several
intrusive hosted zones of polymetallic Gold-Silver-Copper-Arsenic
mineralization with anomalous amounts of Sb, Sn, Zn, Bi, Pb, W, U,
and Co. Six prospects are currently recognized on the Russian
Mountain project; three historic (Owhat/Louise, Headwall, and
Mission Creek) and three recently identified by FMM/Kinross (Bits,
Half-Day, and Mac). There is also evidence for additional
mineralized zones along the ridges and talus slopes of Russian Mt
that lack significant exposure. The exposed mineralized zones range
from 1.5 to 10m wide and have been traced up to 600m (Headwall)
along strike before disappearing beneath talus. Mineralized float
can be traced in the talus for up to 2km along strike of the Owhat
and Mission Creek zones, suggesting that mineralization continues
under cover. The Owhat, Bits, Headwall, and Mission Creek prospects
all consist of early zones of tourmaline quartz that are cross-cut
by pods of massive arsenopyrite and/or chalcopyrite.
At the Headwall prospect, seven grab samples were collected over
600m, from prospect pits along a NW trending zone up to 10m in
width. Samples assayed up to 9.28 g/t Au, 428 g/t Ag, and greater
than 1% Cu. Six of the samples assayed greater than 1 g/t Au, three
samples assayed greater than 100 ppm Ag, and four samples assayed
greater than 1% Cu. Mineralized quartz-tourmaline float (up to
0.572 g/t Au) collected along strike suggests the zone may continue
up to 1 km to the NW.
At the Owhat prospect, 17 samples were collected from multiple
historic prospect pits and adits over 215m along a northwest
trending zone of mineralization. Widths range from 1.5m - 8.0
meters in thickness. Samples assay up to 15.42 g/t Au, 604 ppm Ag,
and greater than 1% Cu. Quartz, tourmaline and sulfide float can be
traced for up to 200m to the northwest and southeast of the
prospect, suggesting that mineralization continues under cover.
HORN MOUNTAIN
Horn Mountain is a volcanic-plutonic complex located 23
kilometers southwest of the Village of Crooked Creek, and consists
of a circular-shaped field of intermediate to felsic volcanic units
that flank and overlie a multiphase monzonite to quartz syenite
pluton. The volcanic succession is commonly referred to as the Horn
Mountain Volcanic Field (HMVF).
Mineralization at Horn Mountain includes the Saddle Prospect, a
two kilometer long zone of polymetallic Gold-Silver-Copper-Arsenic
mineralization with anomalous amounts of Sb, Sn, Zn, Bi, Pb, W, and
Co. Mineralization occurs within multiple northwest trending zones
of tourmaline-quartz veining and within breccias of up to 30m wide
that include weathered sulfides. Cross-cutting relationships among
the veins indicate multiple hydrothermal events.
Highlights of previous grab sampling include: 27.45 g/t Au, 769
g/t Ag, and greater than 1% Cu. A priority target is the Saddle
prospect/zone in which nine samples assayed over 1.0 g/t Au (up to
27.45 ppm) and where the majority of the samples over a 2,000 meter
strike length were anomalous: Au (greater than 0.025 ppm), Ag
(greater than 0.500 ppm), and Cu (greater than 100 ppm).
A second, north-south trending zone of anomalous mineralization
has also been identified 2,500 meters south of the Saddle zone,
along the eastern ridge of Whitewing valley. Multiple samples with
anomalous gold (up to 9.06 g/t Au), silver (up to 769 g/t Ag), and
copper (up to 0.23% Cu) are noted over a four square kilometer
area. Combined, these zones create a 5,500 by 2,000 meter
north-south trending zone within the central Horn Mountain of
anomalous Gold, Silver and Copper, plus anomalous As, Hg, Sb, Sn,
Zn, Bi, Pb, W, and Co.
CALISTA LETTER AGREEMENT
On behalf of the Full Metal/Kinross strategic alliance, Calista
Corporation, an Alaska Regional Native Corporation and Full Metal
have entered into a Mining Exploration License Letter Agreement.
The Companies have until December 31, 2009 to enter into a
comprehensive mining lease Agreement under the following terms:
Full Metal must incur US$3.5 million in Exploration Expenditures
over seven years ($250,000 first year) pay US$525,000 Advanced
Royalty Payments over seven years ($70,000) first year including
signature payment). After seven years, Full Metal will pay annual
$150,000 Advanced Royalty payments until the Commencement of
Commercial Production. Additionally, Full Metal will make annual
$7,500 increasing to US$10,000 Scholarship Donations over the life
of the Lease Agreement. Upon Commencement of Commercial production,
Full Metal will pay a 1.5% Net Smelter Returns Royalty (NSR) for
precious metals, and a 1% NSR for base metals until commercial
Payback is achieved or for five years, whichever comes first.
Afterwards, Full Metal will pay a sliding scale NSR for precious
metal ranging from 2.0% if the Spot London Metal Exchange price of
gold is less than US$600 per ounce, escalating to 4.0% is the price
is great than $1,000 per ounce. After payback, a 3% NSR will be
payable on base metal production.
KINROSS - FULL METAL MINERALS AGREEMENT
In 2008, Kinross Gold and Full Metal Minerals entered into a
strategic alliance to explore for gold in certain regions of Alaska
(see FMM 2008 - NR #6, February 29, 2008). Kinross and Full Metal
have revised the terms of this alliance whereby for 2009, the
Companies will budget US$1.5 million for exploration in Alaska,
where Kinross will fund $1.0 million, and Full Metal funds $0.5
million. Full Metal has issued to Kinross a promissory note for
US$0.5 million, repayable in July 2010. Full Metal will have the
option to repay Kinross in cash or issue shares for the full
amount. Revised participating interest shall be 60% for Kinross and
40% for Full Metal. The first US$3.0 million on any given property
shall be funded on a 60/40 pro-rata basis. Kinross will have the
option to increase its interest to 75% following the JV expenditure
of the first US$3 million by solely funding the next US$10 million
in exploration expenditure.
Full Metal and Kinross' 2009 exploration program at the Russian
and Horn Mountain Projects are being performed under the
supervision of Robert McLeod, P.Geo, Vice-President Exploration for
Full Metal Minerals, and a Qualified Person as defined by NI
43-101. Samples are placed in sealed bags and shipped to ALS-Chemex
Labs facility in Fairbanks, Alaska and Vancouver, B.C. A sample
quality control/quality assurance program is in place. Mr. McLeod
prepared and approved the information contained in this
release.
Full Metal is a generative exploration company with multiple
precious and base metal projects in Alaska and the Yukon. The
Company's Joint Venture Agreements include Kinross Gold and
Freeport McMoRan.
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 VP, Investor
Relations 604-484-7855 604-484-7155 (FAX)
info@fullmetalminerals.com www.fullmetalminerals.com
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