First Metals Inc.
TSX : FMA

First Metals Inc.

July 17, 2007 14:40 ET

First Metals Obtains Mining Licence

TORONTO, ONTARIO--(Marketwire - July 17, 2007) - First Metals Inc. (TSX:FMA) is pleased to announce that the Ministry of Natural Resources and Wildlife of the Province of Quebec has issued a surface and underground mining licence to First Metals Inc.

The 20 year mining licence applies to an area covering 11,467 hectares which encompasses the Fabie Bay Copper Deposit, near Rouyn-Noranda, Quebec. The Fabie Bay deposit hosts approximately 672,800 tonnes at an inferred grade of 2.77 % cu from surface to approximately 600 feet. Most of the underground portion of the deposit is accessible by a ramp.

The granting of the licence was the final condition precedent to the release from escrow of the balance of the proceeds from the Company's $20 Million note issue completed in May. These funds will be used for the continued development of the underground workings and for working capital purposes.

Surface facilities including offices, dry, maintenance shop, core shack, main hydro sub-station and site power distribution system, are all in place and operational. Hiring of key personnel has been completed and the hiring of additional underground miners is underway. The Company presently has some 80,000 tonnes of ore ready for blasting and shipping in an open pit at surface, which represents 2 months of initial feed to the mill at projected throughput rates. Underground workings have been dewatered and are being readied for underground extraction. Concurrently, rehabilitation work at the Horne mill is in progress.

C.E.O. Richard Williams stated: "We continue to be very pleased with the progress being achieved at the site and the support being extended by the province and the community. It is exciting to be a part of the creation of a new mine which will generate 60 direct jobs and 35 indirect jobs including the operating crew at the custom milling facility. The finish line is now well within sight and, at current copper prices, this operation should be very financially rewarding for our investors."

First Metals is bringing into production the Fabie Bay and Magusi River Copper, Zinc, Gold and Silver Projects, near Rouyn-Noranda, Quebec, Canada acquired from Globex Mining Enterprises, Inc. last year. The Company has approximately 33 Million shares issued and outstanding and is listed on the Toronto Stock Exchange.

Contact Information