Full Metal Options Epithermal Gold Targets to Redstar
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 06/13/11 -- Full Metal Minerals Ltd. (TSX VENTURE: FMM) ('Full Metal') is pleased to announce that the Company has entered into a Letter Agreement with Redstar Gold Corp. ('Redstar') (TSX VENTURE: RGC) whereby Redstar can earn a 60% interest in Full Metal's Unga and Popov epithermal gold targets.
The Unga-Popov property includes the multiple high-grade as well as bulk-tonnage disseminated gold-silver prospects. The property is located on Unga and Popov islands in the Shumagin Islands, southwest Alaska.
Scott Weekes, President of Redstar comments: 'This is an extremely important acquisition for Redstar. The Unga-Popov property together with the Shumagin property gives Redstar control of an underexplored epithermal vein field or camp. Two parallel gold bearing trends can be traced for over 10 km on the properties - this gives us a total strike length of over 20 kilometres to explore. The historic resource reported on the Shumagin property together with the exploration potential of the Unga-Popov property provides a unique opportunity for a company to control an entire epithermal district. We are also extremely pleased to have partnered with Full Metal Minerals on this project. Full Metal has extensive experience in Alaska and a very strong technical team to help advance the project.'
Previous work on the Unga-Popov property has included soil geochemistry, ground geophysics, geologic mapping, alteration studies and drilling. More than eight gold showings have been identified to date including the Aguila vein system. The Aguila system is approximately 6 kilometers along strike from the Shumagin vein and has been traced through trenching and drilling for over two kilometres. The system is comprised of at least of three sub parallel near vertical veins. Initial drilling in the early 1980's returned grades up to 113 g/t gold over 0.4 m and 12.0 g/t gold over 2.74 metres. No follow up drilling has been completed under these high grade intercepts.
The Unga-Popov Property includes the Centennial deposit, a bulk tonnage target was identified in the 1990's on Popov Island, near the community of Sand Point. During the late 1980's Battle Mountain Gold Corp. outlined 4.9 million tonnes grading 1.4 g/t (200,000 oz gold) within 50 metres of surface. Trenching and geophysics indicates the zone remains open in a number of directions. Note that a qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves that is compliant with NI 43-101. The Company is not treating the historical estimate as current mineral resources or mineral reserves and the historical estimate should not be relied upon or understood to indicate the existence of reserves or resources.
The mineral rights to the Unga-Popov property are held by Full Metal Minerals Inc. under a Lease Agreement with Aleut Corporation, an Alaska Native Regional Corporation. Redstar has signed an Agreement with Full Metal giving Redstar the right to earn a 60% interest in the property by: completing $5 million in exploration expenditures by August 1, 2015, making cash payments totaling $300,000 by August 1, 2014 and issuing 1,000,000 shares by August 1, 2014. Redstar has the option of earning an additional 25% interest by producing a Bankable Feasibility Study and issuing an additional 1 million shares to Full Metal. Redstar will issue an additional 1 million shares on the commencement of commercial production.
The 2011 exploration program at Unga-Popov will be supervised by Robert McLeod, P.Geo., Vice-President Exploration of Full Metal Minerals, a Qualified Person as defined by NI 43-101. Contents of this release were prepared by and approved for release by Mr. McLeod.
Full Metal Minerals is a generative exploration company with multiple precious and base metal projects in Alaska. Drilling will commence shortly on the nearby Pyramid Cu-Au-Mo porphyry project, funded by Antofagasta Minerals.
ON BEHALF OF THE BOARD OF DIRECTORS
Michael Williams, President and Director
This news release includes certain forward-looking statements or information. All statements other than statements of historical fact included in this news release, including, without limitation, statements regarding plans for the completion of a proposed Arrangement, the structure of such Arrangement and other future plans and objectives of Full Metal are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Full Metal's plans or expectations include Full Metal's ability to obtain approval of the TSX Venture Exchange, the Supreme Court of British Columbia and the shareholders of Full Metal to the proposed Arrangement and general economic, market or business conditions, regulatory changes and other risks detailed herein and from time to time in the filings made by Full Metal with securities regulators. Full Metal expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise except as otherwise required by applicable securities legislation.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contacts:
Full Metal Minerals Ltd.
Kevin Stewart
Investor Relations
604-484-7855
604-484-7155 (FAX)
info@fullmetalminerals.com
www.fullmetalminerals.com