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Full Metal Minerals Ltd (2)
Symbol FMM
Shares Issued 59,309,395
Close 2014-02-27 C$ 0.015
Market Cap C$ 889,641
Recent Sedar Documents

Full Metal Minerals acquires 100% of Pyramid

2014-03-05 15:05 ET - News Release

Mr. Robert McLeod reports

FULL METAL REACQUIRES 100% INTEREST IN PYRAMID COPPER DEPOSIT, ALASKA

Full Metal Minerals Ltd. (FMM) has reacquired from Antofagasta Minerals SA a 51-per-cent interest in the Pyramid copper-gold-molybdenum porphyry project in Alaska, subject to approval from the TSX Venture Exchange. Full Metal owns a 49-per-cent interest in the project. Antofagasta had been in phase II of the option agreement with Full Metal, with Antofagasta having further rights to earn up to an 80-per-cent interest in the property.

As consideration for the assignment, Full Metal will make cash payments to Antofagasta in an aggregate of $5.5-million (U.S.), subject to certain acceleration and dispositions clauses, as follows:

  • $3-million (U.S.) on or before the fifth anniversary of the assignment date;
  • $2.5-million (U.S.) upon the completion of a positive, bankable feasibility study, where the date of the payment of this final $2.5-million (U.S.) is referred to as the final payment date.

"Consolidating a 100-per-cent interest in Pyramid will allow Full Metal to step out from near-surface higher-grade copper mineralization identified to date at Pyramid, test new targets, as well as explore the large, adjacent 60-square-kilometre San Diego Bay zone of alteration and anomalous polymetallic mineralization," said Rob McLeod, PGeo, chief executive officer of Full Metal Minerals. "We are grateful for the excellent technical work performed by Antofagasta, that led to our discovery at Pyramid. Antofagasta, through its affiliate company Antofagasta Investment Company Ltd., a wholly owned subsidiary of Antofagasta PLC, will be exposed to exploration upside on the property through their 15-per-cent shareholding in the company."

The Pyramid deposit is located on lands under option from the Aleut Corp., an Alaska regional native corporation. The deposit is located less than eight kilometres from deep tidewater. From 2010 to 2012, drilling has spanned an area measuring approximately 1,800 metres east-west and 1,050 m north-south. From 2010 to 2012, 30 diamond drill holes, totalling 7,486 m, were drilled at Pyramid. The property hosts an inferred resources (see report filed on SEDAR, dated June 21, 2013, prepared according to National Instrument 43-101 guidelines, and in accordance with CIM standards on mineral resources and reserves, under the supervision of independent qualified persons. The report was compiled by Dr. Gilles Arseneau, PGeo, and Darrell Farrow, MSc, PrSciNat, both associates with SRK Consulting (Canada) Inc.).

At a 0.21-per-cent-copper-equivalent cut-off, total contained copper in the inferred resource category is estimated to be 1,338 million pounds of copper, 74 million pounds of molybdenum and 488,000 ounces of gold. Both near-surface supergene enriched mineralization as well as hypogene copper mineralization were modelled and interpolated. The mineral resource estimate shows that the hypogene mineral resource remains open to depth and along strike in most areas, and the higher-grade supergene enriched mineralization is also open for expansion in several areas.

The inferred resource for the Pyramid deposit reported at a CuEq grade of 0.21 per cent is presented in the table.

                     MINERAL RESOURCE STATEMENT, PYRAMID DEPOSIT

Deposit     Class       Tonnes     Au       Au    Cu             Cu    Mo          Mo 
                                 (g/t)     (oz)   (%)           (lb)   (%)        (lb)

Pyramid  Inferred  173,000,000  0.088  488,000  0.35  1,338,000,000  0.02  74,000,000
 
All numbers have been rounded to reflect the relative accuracy of the estimates. 
Mineral resources are reported in relation to a conceptual pit shell. Mineral 
resources are not mineral reserves and do not have demonstrated economic viability. 
The contained copper represents estimated contained metal in the ground and has not 
been adjusted for metallurgical recoveries. A copy of the report is available on 
SEDAR.

Qualified persons

The resource estimate and associated information was prepared under the supervision of, and approved by, independent consultants to the company, Dr. Gilles Arseneau, PGeo, and Darrell Farrow, MSc, PrSciNat, with assistance from Michael Tedeschi of FMM. The information contained in this report was provided by FMM. Dr. Arseneau carried out a visit to the Pyramid project on March 19 and March 20, 2013, to examine drill core, core logging and sampling procedures, and visit the drill sites. Mineral resources were estimated by Darrell Farrow, PrSciNat, under the supervision of Dr. Arseneau. The contents of the news release have been reviewed and approved by Robert McLeod, PGeo, chief executive officer and vice-president of exploration of Full Metal Minerals. Dr. Arseneau, Ms. Farrow and Mr. McLeod are qualified persons as defined in National Instrument 43-101.

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