Full Metal Minerals Ltd.

Full Metal Minerals Ltd.

April 04, 2007 09:01 ET

Full Metal Options Inmachuck Property to First Factor

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - April 4, 2007) - Full Metal Minerals (TSX VENTURE:FMM) and First Factor Development Inc. are pleased to announced that the Companies have entered into a Letter of Intent whereby First Factor can earn a 60% interest in the Inmachuck Property. Inmachuck has both sediment-hosted gold, and carbonate silver-lead-zinc prospects on the property.

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). The Companies are planning a mechanical trenching and 1,300 meter diamond drilling program that will 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.

Two significant carbonate-replacement mineralized zones have been identified at Hannum and Harry's Creek. The occurrences are 1,300m 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 east-west (west-northwest) by 500 meters north-south 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 (the deepest hole was only 75 meters deep). Due to an underpowered drill rig, the deepest hole was only 75 meters deep and the targets at depth remained untested.

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. Pb values reached a ranged from trace to 4220 ppm, with 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. The Companies caution 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 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 Robert McLeod, P.Geo., Vice President of Exploration for Full Metal Minerals and a Qualified Person as defined by NI 43-101.

On March 27, 2007, Full Metal was notified by the Afognak Native Corporation that they will not exercise their option on the Castle Mountain Coal Lease. Full Metal will consider its various options to advance the Property over the next few months.

Full Metal has commenced drilling on the high grade Lucky Shot Discovery. A 60 hole, 10,000 metre diamond drilling program is planned with the initial drilling testing the recently discovered Murphy Zone. Further plans for the 2006 field season in Alaska include a minimum of six diamond drill programs totaling over $6 million in exploration. Full Metal has Joint Venture Agreements with Metallica Resources, Triex Minerals Corp, and Andover Ventures.


Michael Williams, President and Director

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

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