Exploration Update and Acquisition AgreementFull Metal Minerals Exploration Update and Acquisition Agreement
Vancouver, BC - September 22, 2004 - Full Metal Minerals Ltd. ("Full Metal") is pleased to provide an update for the Pebble South and Gunsite Properties. In addition, Full Metal has entered into an agreement to explore the Port Moller Region of the Aleutian Islands and the western Alaska Peninsula, this area is prospective for both copper-gold porphyry and epithermal gold deposits.
Pebble South
Full Metal has successfully completed its 2004 Summer Exploration program at the Pebble South Property, identifying multiple target areas adjacent to Northern Dynasty's Pebble Deposit (2003 estimate 2.7 billion tonnes containing 26.5 million oz. Au, and 16.5 billion bounds Cu). The Northern Dynasty property also hosts several other porphyry, skarn and epithermal prospects. At Pebble South, over 1400 samples (944 soil, 316 stream and 211 rock) were collected, 50 line-kilometers of 2D-IP (Induced Polarization) were completed and 32 line-kilometers of ground magnetics were completed on the property. Mineralized areas along the Pebble Copper trend are often found in valley lowlands veneered by glacial cover. Due to the overburden cover, IP geophysics was selected as the best method for identifying mineralized zones in covered areas. During this work, at least eleven significant IP chargeability anomalies were identified.
Two high priority drill targets include:
The BOO Prospect: two 1.2 kilometer long zones of high chargeability (apparent chargeability of 50 and above) coupled with moderate to low resisitivity were identified beneath up to 100 meters of glacial cover. The prospect lies along the extension of Northern Dynasty's southwest-trending Pebble Copper IP anomalies including; the drilled/mineralized properties #37 Skarn, and the #38 and #52 Porphyry deposits. By geologic inference, the BOO prospect area is likely underlain by favorable Cretaceous-aged rocks. Additional 3D-IP surveys followed by drilling are planned for the property.
At the TYP prospect: located 13 kilometers north of BOO, a 0.6 kilometer long zone of moderately high chargeability was identified at the western margin of the Kaskanak Batholith and with anomalous Au (gold), Cu (copper) and Mo (molybdenum) in soil grids. Exposures of rhyolite and mineralized granodiorite occur within the 1.7 km long by 0.7 km wide geochemical anomaly which consists of 70 to 340 ppm Cu in soils and rock, plus up to 99 ppm Mo and 160 ppb Au. Geologic mapping of rubblecrop southwest of TYP identified Kaskanak Batholith-marginal phases of potassium flooded quartz monzonite porphyry. This is a similar geological setting to the Pebble Copper deposit found 15 kilometers east along the Kaskanak Batholith's eastern margin where a 0.6 kilometer long IP anomaly was detected proximal to the porphyry.
Full Metal will continue to evaluate the geological, geochemical and geophysical results, with the intent of drilling the highest priority targets in 2005.
Gunsite
The Gunsite Property is a copper-gold porphyry prospect located in the Talkeetna Mountains approximately 144 km north of Anchorage, Alaska within 25km of an all-weather road.
Underlain by a Cretaceous dioritic batholith, the property hosts high-grade intrusive hosted copper-gold mineralization in subhorizontal fractures and veins over an area of four square miles. Mineralization consists of both structurally-controlled and disseminated porphyry-type copper/gold styles. Four areas of high-grade Cu-Au mineralization are present on the property.
In June and July 2004, Full Metal completed a six hole, 734-meter diamond drilling program at the Gunsite Property. Drilling intersected local zones of copper-gold mineralization, including 5.8 meters of 2.0 g/t Au, 7.4 g/t Ag, and 1.82% Cu. Several of these drill holes intersected an extensive east-west trending fault zone running parallel with the surface exposure, which appears to truncate the mineralized zones.
Drill Hole North East From (m) To (m) Thick (m) Au(ppb) Cu% Ag (g/t)
Gun04-01 6885561 381526 19.8 36.9 17.1 111 0.08 0.7
including: 36.3 36.9 0.6 1170 1.11 6.1
Gun04-02 6885560 381525 18.3 27.4 9.1 188 0.16 1.0
Gun04-03 6885475 381455 no significant intercepts
Gun04-04 6885216 382195 no significant intercepts
Gun04-05 6885380 382244 44.2 65.5 21.3 572 0.56 2.3
including: 59.7 65.5 5.8 2000 1.82 7.4
Gun04-06 6885340 382290 no significant intercepts
Port Moller Agreement
A letter of intent dated July 13, 2004 between Full Metal and Alaska Earth Resources Inc. (AERI) granted Full Metal an option to acquire a 100% interest in the Port Moller Property. Through this agreement, Full Metal has an exclusive option with the Aleut Corporation, a native-owned Alaskan corporation, to explore native-owned lands in the Port Moller Quadrangle encompassing the western Alaskan Peninsula, and the eastern Aleutian Islands. Additionally, Shumagin Village Corporation, the owner of surface rights in certain areas of the Port Moller region, has granted permission for trespass and exploration on their lands.
The Port Moller Quadrangle includes, the Pyramid Porphyry Project which lies along the southern margin of the Alaska Peninsula west of the Shumagin Islands. It was discovered in 1974 by the Aleut-Quintana-Duval Joint Venture, who drilled 19 shallow holes in late 1975 (5,563 feet total), identifying a resource of 125 million tons of copper mineralization grading 0.4% copper and 0.025% molybdenum in a near-surface zone consisting largely of chalcocite-enriched rock. This historic resource was completed prior to 2001 and NI 43-101, and should therefore not be relied upon. Gold was not an exploration target in the initial exploration effort. More recent exploration by Battle Mountain Gold in the late 1980's identified associated gold values that have improved the potential of Pyramid.
The two most advanced epithermal gold projects in the Port Moller Quadrangle include: 1) Centennial, located on Popov Island adjacent to Sand Point - in the 1980's Battle Mountain Gold Corp. identified 6,000,000 tonnes averaging about 1.5 g/t Au in an intermediate sulphidation system; mineralization occurs as quartz stockworks with pyrite and rare visible gold located below a capping basalt. 2) the Shumagin and Apollo gold prospects, low-sulphidation epithermal systems located on Unga Island. The Shumagin deposit hosts an uncut vein hosted resource of about 280,000 tonnes averaging 0.80 oz/ton Au and 2.7 oz/ton Ag, for about 224,000 oz of gold. At the Apollo mine, approximately 145,000 oz of gold averaging 0.29 oz/ton were mined from 1891 to 1904. These resources were completed prior to 2001 and NI 43-101, and should therefore not be relied upon. Daugherty Resources Inc. owns the Apollo and Shumagin Deposits.
Full Metal will negotiate exploration and development leases for select target areas in the Port Moller Quadrangle with the Aleut and Shumagin Corporations, prior to the commencement of drilling.
Full Metal paid to AERI the sum of US$10,000 (1st signature payment) upon execution, and will pay the sum of US$10,000 (2nd signature payment) upon either the signing of Full Metal's Exploration Agreement and Surface Access Agreement with the Aleut Corporation and the Shumagin Corporation respectively, or March 31, 2005, whichever occurs first. An annual fee of US$20,000 shall be paid by Full Metal to AERI for each of the first four project years. Full Metal will issue 200,000 shares to AERI, (50,000 first year, upon signing an exploration and development lease with the Aleut Corp, and Shumagin Corp., respectively), and incur US$525,000 in exploration expenditures (US$75,000 in the first year).
Full Metal's exploration programs were supervised by William T. Ellis, CPG with Alaska Earth Sciences, under the direction Robert McLeod P.Geo., Vice President Exploration, for Full Metal Minerals Ltd., both are qualified persons as defined by NI 43-101. All holes were sampled in their entirety at approximately one to five foot sample intervals. Core was sawn in half with a diamond saw. Samples were delivered in sealed bags to the ALS Chemex facility in Fairbanks, Alaska for sample preparation and were then sent to the ALS Chemex laboratory in Vancouver for analysis (30 gram-tonne gold fire assay with an AA finish plus multi- element ICP). A sample quality control/quality assurance program is in place.
Full Metal currently has interests in six gold and copper-gold properties in Alaska and Nunavut, including the highly prospective Ganes Creek Gold Project.
The Company has granted, subject to regulatory approval, incentive options for the purchase of a total of 50,000 shares. The options are exercisable for a period of 5 years at the price of $ .43 per share, being the closing price of the Company's shares on the TSX Venture Exchange on the trading day immediately preceding the date of this press release.