Full Metal Minerals Ltd.

Full Metal Minerals Ltd.

March 01, 2007 09:00 ET

Full Metal Announces 2007 Alaska Exploration Programs and Update, Lucky Shot Drill Program to Start in March

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 1, 2007) - Full Metal Minerals Ltd. (TSX VENTURE:FMM) is pleased to provide the 2007 exploration plans and update for the Company's gold and base metal projects in Alaska. The Company has made three significant discoveries over the past two years, at the Lucky Shot, 40 Mile and Mt. Andrew Properties. The Company is actively exploring 13 projects in Alaska, totaling approximately 2.4 million acres of prospective land.

The cumulative Phase I budgets for the Lucky Shot, 40 Mile and Mt. Andrew properties (all optioned 100% to Full Metal) is approximately $4.5 million, with an estimated $2.0 million in additional exploration planned on other properties funded by joint venture partners.

Lucky Shot Gold Property - 100% Full Metal

Starting in mid-March 2007, Full Metal is planning a first phase, 75 hole, 15,000 metre diamond drill program at its Lucky Shot Property, located 90 miles north of Anchorage. The deposit is open to expansion in the west, east and north and currently has a strike length in excess of 1,800 metres. Drilling will focus on further delineating the high grade Coleman Block, and expanding the recently discovered Murphy Block located north of the past-producing War Bay zone. The last hole of the 2006 program intersected the structure 300 meters below surface and encountered 0.4 metres of 19.3 g/t (C06-89) (see Full Metal press release dated December 20, 2006). The structure is projected to come to surface 1,000 meters east of C06-89. Highlights from previous Coleman interceptions include (see Full Metal press releases dated August 30, 2005, September 20, 2005, June 27, 2006 and July 18, 2006):

Length Thick Au Au
Hole-ID (m) (m) (g/tonne) (oz/ton)
C05-09 3.05 3.05 62.2 2.00
C05-12 4.50 4.00 219.1 7.04
C06-16 4.56 4.56 51.5 1.66
C06-19 1.20 1.20 134.5 4.32
C06-21 2.60 2.50 60.3 1.94
C06-23 3.78 3.48 32.8 1.05
C06-27 1.83 1.68 34.1 1.10

The Lucky Shot Project is located in the historic Willow Creek Mining District. Past-producing mines in the District are considered to be among the highest grade in the Northern Cordillera, with documented production from company records and The Alaska Department of Mines listed at over 620,000 ounces Au from multiple veins and shears, at an average grade of approximately 1.0 oz/ton Au; Full Metal has not audited these historic production figures, and they should not be relied upon. Prior to Full Metal's 2005 exploration program, limited modern exploration had been performed in the District since the mine closures. Property infrastructure is excellent, with road access from Anchorage and close proximity to both rail and power. Camp and maintenance facilities are operated year-round.

40 Mile Silver-Lead-Zinc Project - 100% Full Metal

The 800,000 acre 40 Mile Project in Eastern Alaska includes the two new massive sulphide systems discovered by Full Metal in 2006: the LWM and Fish Prospects. Full Metal has optioned these lands with the mineral rights from Doyon Ltd, a regional Alaska Native Corporation. In May 2007, Full Metal will commence a first phase, 20 drill hole, 3,500 metre program to follow-up on last September's massive sulphide discovery hole at the LWM Prospect. Hole LWM 06-01 intersected 12.1 metres of 110.9 g/t Silver, 0.32% Copper, 4.0% Lead and 15.7% Zinc (including 6.6 metres of 200.8 g/t Silver, 0.56% Copper, 7.2% Lead and 27.0% Zinc (see Full Metal press release dated September 28, 2006). The LWM is characterized by a gravity geophysical high, located within a 1,800 metre by 365 metre zinc-silver-lead soil anomaly.

Full Metal also intends to follow-up on September's discovery at the Fish Prospect where drilling over a 500 meter strike length encountered strongly oxidized massive sulphides including 12.3% Zn over 9.0 meters and 9.0% Zn over 10.9 meters. Hole Fish 06-06 encountered primary massive sulphide mineralization (8.2 metres of 1.0 g/t gold and 118.98 g/t silver) 207 metres below surface (see Full Metal press release dated November 2, 2006). Fish is typified by a strongly weathered massive to semi massive sulphide gossan that has been traced 1500 metres along strike and along 250 vertical metres. The Company is currently conducting metallurgical testing on oxide mineralization to determine the potential for a zinc oxide-style target, in addition to the primary sulphide mineralization.

Mt. Andrew Copper-Gold Project - 100% Full Metal

Starting in April 2007, Full Metal will resume drilling on the recently announced (see Full Metal press release dated January 22, 2007) Iron Oxide Copper Gold (IOCG) discovery at Mt. Andrew, located near tidewater in Southeast Alaska on The Prince of Wales Island. Full Metal is planning a 4,000 metre Phase 1 drill program to aggressively follow-up on the initial five shallow drill holes (less than 100 meters) that targeted the edge of the historic underground and surface workings. Four of five holes encountered multiple intersections of magnetite-chalcopyrite mineralization - the mineralization is open in all directions.

From To Au Ag
Hole-Id (m) (m) Length Cu % (g/t) (g/t)
KMA06-01 1.5 31.3 29.8 0.87 0.12 3.55
including 18.1 31.3 13.2 1.41 0.25 5.33
KMA06-02 No significant intercept; drilled down post-mineralization dyke
KMA06-03 6.3 55.1 48.8 0.72 0.06 2.89
including 37.1 55.1 18.0 1.05 0.13 4.06
(i)KMA06-04 10.7 40.9 30.2 0.55 0.06 2.42
including 10.7 24.5 13.8 1.01 0.11 4.40
and 63.1 84.9 21.8 0.82 0.05 3.01
including 63.1 70.8 7.7 1.53 0.08 5.15
KMA06-05 9.8 29.4 19.6 0.58 0.17 2.30
and 39.0 48.6 9.6 0.25 0.04 0.79
and 60.4 99.1 38.7 0.42 0.09 1.40
(i) KMA06-04 was terminated at depth in underground workings

Boulder Creek Uranium Project - 35% Full Metal - 65% Triex Minerals

Full Metal and joint venture partner Triex Minerals Corporation (see Full Metal press release dated September 28, 2005) will commence a 1,300 metre drill program in May or June 2007 to test for potential new deposits along strike to the north of historic drill results at Boulder Creek where multiple new targets were identified during the 2006 exploration program. The Boulder Creek uranium deposit is located in the southeastern Seward Peninsula, Alaska, 160 km east of Nome, and 47 km north of the coastal village of Elim. Triex is the operator of this project.

In 2006, twelve holes were completed within and peripheral to the known limits of mineralization at the Boulder Creek uranium deposit. Two holes completed in the core of the deposit confirmed the historic grade and thickness of the deposit for sandstone-hosted uranium deposit types. Hole DV06-54 was completed in the core of the northern part of the deposit. It contained 0.32% U3O8 over 3.0 metres between 23.0 and 29.0 metres depth, including 0.87% U3O8 over 2.0 metres (see Full Metal press release dated November 16, 2006). Hole DV06-64 contained 0.32% U3O8 over 2.0 metres within 5.0 metres of 0.17% U3O8 between 11.4 and 16.4 metres depth. Possible extensions of the deposit along strike to both the north and south have not been thoroughly explored.

Boulder Creek is the largest known uranium deposit in Alaska, discovered by Houston Oil and Minerals (later Tenneco Mineral Company), with drilling between 1979 and 1981 outlining 1,000,000 pounds of U3O8 at an average grade of 0.27% U3O8 with an average thickness of 3 metres, and depths of mineralization from surface to 120 metres (Economic Geology, Volume 82, 1987 pp. 1558-1574). The foregoing is an historical estimate. The Full Metal and Triex have not completed the work necessary to certify the classification of the resource and is not treating the historical estimate as compliant with National Instrument 43-101. The historical estimate should not be relied upon.

AK Peninsula/Aleutian Copper Gold Project - 35% Full Metal - 65% Metallica

Full Metal has a Exploration Agreements with Option to Lease with Bristol Bay Native Corporation and with the Aleut Corporation, two Regional Native Corporations covering over 5,600 square kilometers of prospective terrain on the Alaska Peninsula, located in Southwest Alaska on the Pacific Ocean. This region hosts multiple base and precious metal prospects that have received only limited modern exploration. All of the prospects targeted during the 2006 field season are located within several kilometers of tidewater.

Full Metal and joint venture partner, Metallica Resources Inc. (see Full Metal press release dated August 8, 2005) are currently reviewing the Peninsula Project exploration results from the 2006 drill program at the Bee Creek porphyry project and from surface exploration programs at Kawisgag and Pyramid copper-gold-molybdenum porphyry targets.

At Bee Creek, two holes were completed approximately 130 meters apart (see Full Metal press release dated October 23, 2006).

From To Interval
Hole ID (m) (m) (m) Cu (%) Au (g/t)
BC06-08 150 184 34 0.26 0.085
BC06-09 16 134 118 0.31 0.126
Including 16 56 40 0.51 0.212

The companies are encouraged by the extent of mineralization encountered from this first phase of drilling as it suggests that a more strongly mineralized porphyry source exists nearby. The companies have not completed a surface use agreement with the Shumagin Village Corporation; an agreement must be completed with this surface owner before any further work can be started on the Pyramid Project.

Chickaloon Coal Project - 100% Full Metal

During 2006, Full Metal was notified by the Alaska Mental Health Trust that Full Metal has been awarded a coal lease covering 22,647 acres (see Full Metal press release dated August 8, 2006). The lease area includes Alaska's only known significant occurrences and past-producing operations of metallurgical coal.

The Chickaloon Coal Lease area lies within the greater Matanuska Coal Field of south central Alaska. This coal field encompasses a structural trough that is approximately 64 kilometers long and eight to sixteen kilometers wide. The property is located next to the Glen Highway, approximately 140 road-kilometers to the Point Mackenzie bulk loading facility located on the Pacific Ocean, and approximately 30 kilometers to the Alaska Railway. Full Metal has commenced permitting for a drilling program starting in May 2007.

Hobbs Industries Inc. and Austin R. Hobbs filed their First Amended Complaint in Superior Court in Anchorage, Alaska on January 22, 2007 against the Alaska Mental Health Trust Authority, the State of Alaska and Full Metal Minerals (USA) Inc. claiming that the State and the Authority did not conduct the 2006 coal lease sale for the Chickaloon area consistent with State of Alaska laws. Full Metal Minerals (USA) Inc. (a wholly-owned subsidiary of Full Metal) was the successful bidder for the Chickaloon area lease. The complaint also requests an injunction against exploration activities. The Alaska Mental Health Trust has assured Full Metal that they will vigorously defend their actions during the 2006 lease sale.

In October 2006, Full Metal and Afognak Native Corporation (ANC) entered into a letter agreement to earn an interest in the Chickaloon Project (see Full Metal press release dated October 30, 2006). In January 2007, the companies agreed to extend the original 90 day due diligence period, until the end of March 2007. ANC can earn an 80% interest in the property by incurring US$2,000,000 in exploration (US$600,000 first year) and paying Full Metal US$100,000 in cash. Following earn-in, ANC will incur all exploration and development costs until the commencement of commercial production.

Arcadia and Mac and Cache - 100% Full Metal

Full Metal intends to divest its 100% interest in the Arcadia and Mac-Cache properties in Nunavut to NPN Investment Group Inc. (TSX VENTURE:NPN.P). Full Metal previously announced on December 19, 2006 the divestment of the properties to Mountain Capital Inc. NPN Investment Group Inc. will now replace Mountain Capital Inc. as purchaser of the properties under the same terms as announced on December 19, 2006. The transaction will constitute NPN Investment Group Inc.'s qualifying transaction under the policies of the TSX Venture Exchange. The transaction is subject, among other things, to approval from the underlying property holders Nunavut Tunngavik Incorporated and Hunter Exploration Group, as well as the TSX Venture Exchange.


Full Metal Minerals has revised the original Letter of Intent dated January 31, 2004 with Alaska Earth Resources Inc on the Pebble South Property, whereby Full Metal has bought-out the remainder of the earn-in requirements by issuing 115,000 shares in Full Metal, subject to approval by the TSX Venture Exchange.

Full Metal has granted a total of 15,000 incentive stock options (the "Options") to an employee of the Company, exercisable at $2.60 per share. The Options are exercisable for a period of five years from the date of grant and are subject to the policies of the TSX Venture Exchange.

Full Metal has budgeted an additional $500,000 towards generative exploration, and early stage projects, including the Moore Creek and Golddigger gold properties. Partner Andover Ventures will perform an IP geophysical survey at the Kamishak copper-gold property. The Company is also pursuing additional gold and base metal opportunities in Alaska.

Robert McLeod, P.Geo, Vice President Exploration for Full Metal Minerals and Qualified Person as defined by NI43-101 has prepared and approved the technical content of this Release.


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.

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