Full Metal Minerals Ltd.

Full Metal Minerals Ltd.

August 15, 2007 14:11 ET

Full Metal Signs Option Agreement With Altair to Explore High Grade Gold Property in Alaska

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 15, 2007) - Full Metal Minerals (TSX VENTURE:FMM) is pleased to announce that it has signed a Binding Letter of Intent, dated August 1, 2007, with Altair Ventures Inc. ("Altair") of Vancouver, British Columbia (TSX VENTURE:AVX) pursuant to which Altair can acquire up to a 75% interest in FMM's CJ Property in Alaska. An 1,800 meter core drilling program is currently underway.

The 1,550 acre CJ Property is a sediment-hosted, structurally controlled, high-grade gold vein system located adjacent to a paved highway. Several historically producing gold mines occur within a structural corridor that currently has a strike length of 3,200 meters and spans 500 vertical meters. The area has received limited exploration since production ceased in 1940. The adjacent Dawson Mine is the only historic producer that was drilled; results from a limited 1980 drill program include:

Hole Width Average Grade
DDH#11 2.4 meters 40.4 g/t Au
DDH#15 4.9 meters 9.3 g/t Au
DDH#16 8.8 meters 18.7 g/t Au
DDH#18 6.3 meters 28.3 g/t Au
DDH#20 4.0 meters 8.7 g/t Au

The CJ Property is well located on east-central Prince of Wales Island in southeast Alaska. The southern boundary of the Property has access to both a high-voltage power line and a state maintained paved highway connecting the community of Craig to a ferry terminal at Hollis.

Several mines along the CJ trend operated from the early 1900's until 1940 when the War Powers Act closed all gold mines in Alaska. Multiple veins were developed, with historic recorded production documented from the Alaska Department of Mines totaling 25,000 ounces of gold. These production records, though significant, are historic in nature and used for reference purposes only. Full Metal has not verified these records and they should not be relied upon.

The CJ Prospect is an orogenic gold target hosted within a series of lower Paleozoic clastic and volcanic rocks, intruded by plutons and dykes of varying compositions and ages. Multiple, banded quartz veins range from continuous veins 0.2 to 4.3 meters thick, to vein swarms and sheeted vein sets within brecciated, siliceous argillite. Vein dips range from 35 to 60 degrees, dipping to both the east and west. Individual veins have been traced for over 1,600 meters along strike. Mineralization occurs as native gold and fine grained sulphides.

Subject to a 120 day due diligence period, Altair and Full Metal will enter into an Option Agreement where Altair may earn a 60% interest in the Property by making staged payments to Full Metal and the underlying vendor (Red Diamond Mining Company ("RDMC")) totaling US$210,000 by August 2009 and an additional US$100,000 to RDMC by August 2011; issuing a total of 1,300,000 shares over four years, and incurring a minimum of US$1,000,000 of exploration expenses by August 2009 and an additional US$2,500,000 by August 2011. Full Metal will be the operator during the first two years. Altair would have the right to acquire an additional 5% interest in the Property by funding a Pre-Feasibility Study and an additional 10% by funding a Bankable Feasibility Study. Subject to completion of satisfactory due diligence and applicable regulatory approvals, the Option Agreement will lead to a formal option agreement within 120 days. Altair paid Full Metal a US$25,000 non-refundable deposit upon signing the Option Agreement.

The 2007 exploration program at CJ is supervised by Greg Thurow CPG#3403 (Wyoming) with Alaska Earth Sciences, an Anchorage-based Consulting Group and a Qualified Person as defined by NI 43-101. Drill cores are cut in half using a diamond saw, with one-half placed in sealed bags, and delivered to ALS-Chemex Labs facility in Vancouver, B.C. A sample quality control/quality assurance program is in place. Contents of this release were written and approved by Robert McLeod, P.Geo., Vice President of Exploration for Full Metal Minerals and a Qualified Person as defined by NI 43-101.

Full Metal Minerals Ltd. has granted a total of 110,000 incentive stock options to consultants and employees of the company, exercisable at $2.90 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 is a generative Exploration Company with twelve active projects in Alaska and one in the Yukon Territory. Drilling programs are currently underway at the 40 Mile, Lucky Shot, Boulder Creek and CJ Projects. Full Metal currently has six active Joint Venture Agreements.


Michael Williams, President and Director

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

Contact Information