Full Metal Minerals (TSX VENTURE: FMM) is pleased to announce that it has entered into a letter agreement to acquire a 100% interest in Mineral Rights to the Mount Andrew Copper-Gold Property, located in Southeast Alaska.
Drilling has commenced on a minimum six hole, 600 meter core drilling program targeting historic occurrences of copper-gold mineralization.
The 251 acre Property is comprised of patented federal claims, encompassing the historic Mount Andrew mine, along with several other smaller mines and prospects. The Property is located on the Kasaan Peninsula on Prince of Wales Island, approximately 30 miles west-northwest of Ketchikan, Alaska. The Kasaan Peninsula is accessible via the state-maintained Prince of Wales Island Road System. The village of Kasaan is located on the south shore of the peninsula. An extensive privately-owned logging road system covers most of the peninsula and flanks the Property.
Copper ore was first discovered on the Kasaan Peninsula in 1865, with the Mount Andrew mine discovered in 1898-99. Eventual production from Mount Andrew and adjacent operations totaled 5,729 tonnes copper, 1.74 tonnes silver and 216 kg gold. This historical production figure was compiled from historic literature including the Alaska Bureau of Mines, has not been independently verified, and should not be relied upon. The U.S. Bureau of Mines (U.S.B.M.) performed drilling, evaluation and beneficiation testing of ores from the Mount Andrew deposit in 1942-44. The Mount Andrew deposit was drilled extensively for iron ore by Utah Construction (Utah International/BHP) in 1957 and 1960-1961 and by Kaiser Resources in 1970-1971.
Full Metal can earn a 100% interest in Mineral Rights from the Mt. Andrew Mining Company (MAMC) by incurring US$800,000 in exploration over four years (US$100,000 first year) and paying US$210,000 in cash over four years (US$30,000 first year), followed by annual US$50,000 in Advanced Royalty payments until the commencement of Commercial Production. Upon commencement of commercial production, Full Metal will pay MAMC a Net Smelter Return Royalty (NSR) of 2% of net revenues for five years, after which, the NSR will increase to of 4% of net revenues. Full Metal shall have the right to purchase one percent (1%) of the NSR at any time for one million dollars (US$ 1,000,000) at any time (resulting in a NSR of 1% and/or 3% of net revenues).
The 2006 exploration program for the Mount Andrew Project is being managed by William T. Ellis, CPG with Alaska Earth Sciences, an Anchorage-based Consulting Group, under the supervision of Robert McLeod, P.Geo, Vice-President Exploration for Full Metal Minerals; both are Qualified Person as defined by NI 43-101. Drill cores will be cut in half using a diamond saw, with one-half placed in sealed bags, and delivered to ALS-Chemex Labs 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.
Full Metal has thirteen active mineral projects in Alaska. Drilling is now finished for the season at the Lucky Shot gold Project. Results are currently pending from drilling programs at the 40 Mile silver-lead-zinc Project, Boulder Creek uranium Property, the Kamishak copper-gold Property, and the Bee Creek (Chignik) copper-gold-moly porphyry. Details on Full Metal's extensive Alaska property portfolio can be reviewed at the Company's website at www.fullmetalminerals.com.
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.