First Factor Developments Inc.

April 03, 2007 17:28 ET

First Factor Options Inmachuk Property From Full Metal Minerals, Names Philip St. George as Vice-President of Exploration, and Initiates Change of Business

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - April 3, 2007) - First Factor Developments Inc. (NEX:FFD.H) is pleased to announce that it has entered into an Option and Joint Venture Agreement dated as of March 16, 2007 with Full Metal Minerals (USA) Inc. ("Full Metal") whereby First Factor can earn a 60% interest in the Inmachuck Property in Alaska. Full Metal is a company incorporated under the laws of the State of Alaska and a wholly-owned subsidiary of Full Metal Minerals Inc. The parties are at arm's length to each other.

To earn a 60% interest in the property, First Factor must incur US$2.5 million in exploration expenditures (US$335,000 first year), issue 600,000 shares (100,000 first year), and pay Full Metal $90,000 cash ($25,000 first year). First Factor is planning a mechanical trenching and 1,300 meter diamond drilling program that is scheduled to commence in June, 2007.

The 4,338 hectare Inmachuck Property is accessible by road and is located on the Seward Peninsula, approximately 180 km northeast of Nome, Alaska, and about 40 km southwest of the town of Deering. Deering has scheduled air service from Nome and Kotzebue and has barge service from May through to November.

Both sediment-hosted gold, and carbonate silver-lead-zinc prospects are located on the Inmachuk Property, upstream from a placer district that has historically produced more than 300,000 ounces of gold. Two significant carbonate-replacement mineralized zones have been identified at Hannum and Harry's Creek. The occurrences are 1,300 meters apart and appear to be at the same stratigraphic level. Testing for continuity between the two has been difficult due to poor exposures and permafrost. The Hannum Creek Prospect is typified by an extensive surface gossan. Historic channel samples collected from trenches completed by Bunker Hill Mining Company in the 1960's include: 15% Pb, 1.5% Zn, 2.2 ounces of Ag/ton, and 0.23% Sb over a 51-foot width. The Bunker Hill soil program identified an anomalous area about 1,500 meters by 500 meters in which soils returned values greater than 250 ppm lead and 500 ppm zinc. In 1966, Bunker Hill completed 15 diamond core holes totaling 608 meters. Due to an underpowered drill rig, the deepest hole was only 75 meters deep. The targets remained untested at depth.

Work completed by Full Metal during 2006 identified a 1,100 meter by 400 meter, northwest trending silver-lead-zinc anomaly between Harry's Creek and Hannum Creek. Lead values ranged from trace to 4220 ppm, while zinc values ranging from trace to 5390 ppm.

Gold placers were discovered on the Inmachuck River and some of its tributaries in 1900. State of Alaska Historical Production Records report that the Fairhaven/Inmachuck district produced 348,089 ounces of placer gold from 1909 to 2002. First Factor cautions that these records, though relevant, are historical in nature and have not been independently reviewed, are not NI 43-101 compliant and should not be relied upon. No systematic lode gold exploration had ever been conducted in the district until 2002 by Gold Fields N.A. This work resulted in the discovery of a 1,800 meter-long, northwest trending Au-As-Sb soil anomaly as a result of collecting 197 soil samples in the vicinity of placer gold-producing tributaries. This anomaly appears to be spatially associated with an apparent linear, northwest trending topographic break. Historical USGS reports (USGS Bulletin 247) mention angular quartz with visible gold being recovered in the placer workings in drainages downstream of the property.

A total of 267 soil samples were historically collected at Inmachuck, initially on 100m by 300m grid lines, and followed by infill soil samples on a 100m by 150m grid. Gold in soil results range from trace to 735 ppb Au, with an average of 28 ppb Au. Of these, 22 samples assayed over 50 ppb Au, and eight assayed over 100 ppb Au.

These results were reviewed and approved for release by Gregory A. Beischer, Certified Professional Geologist, a director of First Factor and a "Qualified Person" as defined by NI 43-101.

The Inmachuk Property acquisition will serve as the basis of a Change of Business (COB) application, and promotion to Tier II status on the TSX Venture Exchange. First Factor, a company incorporated under the laws of Canada, currently has its corporate address at Suite 1500, 409 Granville Street, Vancouver, British Columbia V6C 1T2. The company will, after the completion date, become a company involved in the mining sector. Previously, First Factor was an information services company and operated as iWave Information Systems Inc. until July, 2005 when it changed its name to First Factor Developments Inc. A trading halt has been requested and approved by the Exchange, and may remain in effect until the COB has been approved. During the COB review period, First Factor may aim to raise funds that will be used to fund exploration at Inmachuk, to make other acquisitions, and for general corporate purposes. First Factor will seek, during the COB review period, a change of name for the company and possibly add persons to its Board of Directors and management staff.

First Factor is also pleased to announce the appointment of Philip St. George as Vice-President of Exploration. Mr. St. George has an exceptional track record of moving grass-roots projects forward to development and production, particularly in Alaska. He lead the team that discovered the Pebble copper-gold-molybdenum deposit while working for Cominco. He managed Pebble for four years and drilled out the initial 500 million tons of the deposit. Mr. St. George was also instrumental in building NovaGold's portfolio as Vice-President of Exploration for that company. He managed the Donlin Creek project and added more than 12 million ounces of gold resources to the deposit. He brought in the Alaska Gold Company including the Rock Creek and Big Hurrah deposits which are currently under construction. Additionally, Mr. St. George has been involved with, or managed, exploration programs for Cominco's Red Dog Mine and Pine Point Mine, Placer Dome's Gaines Creek Project and the Phelps-Dodge's Chino porphyry copper mine in New Mexico.

Completion of the transaction is subject to a number of conditions, including but not limited to, Exchange acceptance and disinterested Shareholder approval. The transaction cannot close until the required Shareholder approval is obtained. There can be no assurance that the transaction will be completed as proposed or at all.

Investors are cautioned that, except as disclosed in the Filing Statement to be prepared in connection with the transaction, any information released or received with respect to the COB may not be accurate or complete and should not be relied upon. Trading in the securities of First Factor Developments Inc. should be considered highly speculative.

The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release.


Allan Williams, President

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • First Factor Developments Inc.
    Allan Williams
    (604) 484-7855
    (604) 484-7155 (FAX)