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40 Mile District
Target
The 242,000 acre 40 Mile project encompasses numerous lead-zinc-silver targets as well as prospective gold and copper showings. Exploration by Full Metal at West Little Whiteman, Little Whiteman, and Fish has resulted in the discovery of a previously unknown mineral district containing multiple occurrences of massive to semi-massive to disseminated sphalerite and galena mineralization distributed over a fourteen kilometer trend. Due to lack of outcrop and remoteness the district has seen little previous exploration and the potential for further discoveries is excellent. At Little Whiteman a large area of lead, zinc, silver mineralization has been discovered which has the potential to become an economic deposit. Multiple other prospective Carbonate Replacement Style (CRD) targets have been identified on the Property.
Introduction, Location
The 40 Mile Project is located in Eastern Alaska approximately 260 kilometers east of Fairbanks, near the community of Chicken. In 2006, Full Metal Minerals signed a lease agreement with Doyon, Ltd. The lease grants Full Metal exploration and development rights to over 242,000 acres of Doyon land containing numerous lead-zinc-silver targets as well as prospective gold and copper showings. Full Metal has completed three years of systematic exploration evaluating the project's mineral potential resulting in the discovery of a previously unknown mineral district.
History
The 40 Mile District is primarily known for its placer gold. However, both porphyry style and carbonate hosted base metal occurrences are known and have been explored for since the early 1900's.
The district has seen modern day exploration for both base and precious metals by numerous mining companies. As part of the Alaska Native Claims Settlement Act of 1971 ownership of over 40 million acres of land in Alaska was to be conveyed from the federal government to twelve Alaska Native Corporations. The lands under the present lease agreement were selected for transfer of ownership to Doyon, Ltd, an Alaska Native Corporation. As part of the selection process Doyon, Ltd conducted extensive mineral evaluation of the area.
Full Metal Minerals Exploration
Full Metal has spent in excess of US$10M in exploration work on the project: including geologic mapping, surface rock and soil geochemical surveys, geophysical surveys, and diamond core drilling. Exploration results have been positive and indicate the potential for multiple carbonate replacement or massive sulphide deposits within the district.
Full Metal's exploration program has been conducted under the supervision of Robert McLeod, P.Geo, Vice-President Exploration for Full Metal Minerals: a Qualified Person as defined by NI 43-101. All exploration including surface and core sampling was conducted using accepted industry practices; a sample quality control/quality assurance program was implemented.
Little Whiteman (LWM)
The Little Whiteman (LWM) prospect was first noted during Doyon's mineral evaluation program conducted as part of their land selection process. Initial interest in the area was caused by the discovery of a large 'kill zone;' a field term that describes an area of minimal vegetation caused by acidic soils that may be a product of weathering sulphides. Follow up exploration resulted in soil and rock geochemical anomalies coincident with a gravity high and a relative magnetic low.
Mineralization at Little Whiteman occurs in dolomitized marbles and marble breccias located in the hanging wall of a northeast trending high angle normal fault. It consists of massive to semi-massive to disseminated sphalerite, galena and chalcopyrite capped by a thick zone of oxide mineralization which includes the minerals smithsonite, hemimorphite, and cerrusite.
In addition to surface geophysical - geochemical surveys and geologic mapping Full Metal has completed sixty diamond drill core holes totaling 13,343 meters at LWM. Drilling has delineated a zone of continuous mineralization extending 700 meters along strike and 300 meters down dip. Drill hole spacing along this zone is approximately 50-meter intervals.
Drilling highlights from LWM include:
- LWM07-04: 44.6 meters averaging 15.7% Zn, 5.3% Pb, 76 g/t Ag
- LWM07-07: 11.1 meters averaging 26.3% Zn, 11.7 % Pb, 169.8 g/t Ag
- LWM07-09: 6.5 meters averaging 31.6% Zn, 11.3% Pb, 464.2 g/t Ag
- LWM07-19: 5.6 meters averaging 31.8 % Zn, 19.9 % Pb, 346.8 g/t Ag
- LWM08-32: 17.7 meters averaging 14.5% Zn, 11.1% Pb, 217.5 g/t Ag
LWM mineralization also hosts a significant copper content, as well as indium. During 2008, nine individual samples from holes LWM08-23, 28 and 34 were also analyzed for Indium; values range from trace to 39.8 g/t In, averaging 16.1 g/t In. Global Indium production is generally a byproduct of zinc mining, and is used in many high-technology applications including LCD screens and solar panels. Indium currently trades in the US$745 per kilogram range. Full Metal plans on more extensive analysis for Indium at the Fortymile Property
A mineralization model using data from 2006-07 & 08 drilling programs outlines two mineralized zones. The lower zone extends the full length of the drilled area and is open at both ends, it measures 700 meters along strike, is 25-50 meters thick, and dips to the southeast. The upper zone extends approximately 200 meters along strike, is 10-30 meters thick, and occurs near the center of the drilled area. Mineralization in upper and lower zones is continuous throughout with both containing numerous intervals of >5% combined lead-zinc.
Based on available data, mineralization at Little Whiteman is considered a high temperature Carbonate Replacement Deposit Type (CRD), also known as a manto.
LWM Property - Assay Data from 2006, 2007, and 2008 Drill Holes
| Hole ID |
From (m) |
To (m) |
Length (m) |
Ag (g/t) |
Cu % |
Pb % |
Zn % |
| LWM06-01 |
30.2 |
42.3 |
12.1 |
110.9 |
0.32 |
4.02 |
15.72 |
| including |
35.7 |
42.3 |
6.6 |
200.8 |
0.56 |
7.21 |
26.99 |
| including |
35.7 |
39 |
3.3 |
60.8 |
0.48 |
1.69 |
43.69 |
| LWM06-02 |
31.1 |
43.6 |
12.5 |
37 |
0.05 |
2.94 |
2.79 |
| including |
41.2 |
43.6 |
2.4 |
190.3 |
0.23 |
15.21 |
2.98 |
| including |
33.3 |
34.7 |
1.4 |
1 |
0.02 |
0.02 |
10.55 |
| LWM06-03 |
43.9 |
51.9 |
8 |
nsv |
nsv |
Nsv |
3.22 |
| LWM07-04 |
14.1 |
26.37 |
12.27 |
68.6 |
0.13 |
3.7 |
8.1 |
| and |
74.2 |
118.77 |
44.57 |
76.6 |
0.19 |
5.3 |
15.9 |
| including |
98.67 |
118.77 |
20.1 |
159.4 |
0.37 |
11.1 |
19.7 |
| LWM07-05 |
52 |
60.5 |
8.5 |
105.3 |
0.08 |
8 |
12.3 |
| including |
55 |
57.5 |
2.5 |
340 |
0.59 |
26.1 |
21 |
| and |
104.1 |
105.63 |
1.53 |
1 |
0.19 |
0.02 |
11 |
| LWM07-06 |
No significant assays |
| LWM07-07 |
101.9 |
117.5 |
15.6 |
127 |
0.22 |
8.7 |
21.2 |
| including |
101.9 |
113 |
11.1 |
169.8 |
0.3 |
11.7 |
26.3 |
| and |
160.85 |
163.16 |
2.31 |
21 |
0.03 |
0.8 |
9.4 |
| LWM07-08 |
112.76 |
113.8 |
1.04 |
85 |
0.17 |
6.7 |
8 |
| and |
174.8 |
185.7 |
10.9 |
24.9 |
0.04 |
1.5 |
7.9 |
| and |
208.89 |
210.31 |
1.42 |
29 |
0.04 |
1 |
8.6 |
| and |
226.5 |
228 |
1.5 |
275 |
0.32 |
5.5 |
18.6 |
| LWM07-09 |
127.71 |
128.63 |
0.92 |
221 |
0.16 |
9.3 |
4.3 |
| and |
168.92 |
170.4 |
1.48 |
198 |
0.29 |
20.1 |
2.5 |
| and |
184.04 |
186.71 |
2.67 |
82.1 |
0.16 |
4 |
16.9 |
| and |
203.35 |
205.1 |
1.75 |
101 |
0.06 |
9.1 |
0.5 |
| and |
211.52 |
218 |
6.48 |
464.2 |
1.41 |
11.3 |
31.6 |
| LWM07-10 |
39.97 |
40.54 |
0.57 |
20 |
0.01 |
1 |
6.5 |
| LWM07-11 |
180.5 |
188.85 |
8.35 |
136.4 |
0.2 |
7.5 |
4.9 |
| including |
187.85 |
188.85 |
1 |
496 |
0.69 |
25 |
16.5 |
| and |
191.79 |
194.78 |
2.99 |
58 |
0.08 |
3 |
3.6 |
| LWM07-12 |
9.14 |
16.8 |
7.66 |
3.6 |
0.08 |
0.1 |
5.8 |
| and |
47.69 |
52.36 |
4.67 |
23 |
0.04 |
1.3 |
4.7 |
| LWM07-13 |
Hole was lost |
| LWM07-14 |
103.75 |
123.16 |
19.41 |
31.2 |
0.06 |
1.4 |
6.6 |
| including |
111.7 |
118.43 |
6.73 |
54.6 |
0.15 |
2.2 |
13.6 |
| LWM07-15 |
No significant assays |
| LWM07-16 |
49.55 |
51.13 |
1.58 |
31 |
0.05 |
1.6 |
13.1 |
| LWM07-17 |
28.45 |
41.6 |
13.15 |
159.2 |
0.25 |
9.5 |
13.3 |
| including |
28.45 |
33.53 |
5.08 |
266.6 |
0.37 |
14 |
19.4 |
| and |
85.38 |
85.9 |
0.52 |
45 |
0.08 |
1.2 |
24.3 |
| LWM07-18 |
No significant intercepts |
| LWM07-19 |
9.5 |
136 |
126.5 |
30.7 |
0.16 |
2 |
10.8 |
| including |
9.5 |
24.5 |
15 |
43.7 |
0.41 |
1 |
17.8 |
| including |
41.61 |
44.5 |
2.89 |
2 |
0.69 |
0 |
35.1 |
| including |
79.75 |
81.75 |
2 |
118 |
0.11 |
8.4 |
19.4 |
| including |
88.6 |
107.5 |
18.9 |
25.4 |
0.08 |
0.1 |
18.7 |
| including |
127.88 |
133.52 |
5.64 |
346.8 |
0.72 |
31.8 |
19.9 |
| LWM07-20 |
9.14 |
15 |
5.86 |
126.7 |
0.05 |
1.3 |
3.1 |
| and |
62.65 |
63.79 |
1.14 |
58 |
0.03 |
5 |
0.2 |
| LWM07-21 |
80.9 |
84.54 |
3.64 |
27.5 |
0.03 |
1.9 |
3.4 |
| and |
88.71 |
93 |
4.29 |
59.6 |
0.08 |
4.2 |
9 |
| and |
107.29 |
118 |
10.71 |
110.3 |
0.15 |
7.6 |
5.5 |
| LWM08-22 |
207.49 |
208.57 |
1.08 |
65 |
1.32 |
1.63 |
7.42 |
| LWM08-23 |
188.28 |
190.5 |
2.22 |
134.3 |
0.12 |
9.84 |
4.38 |
| and |
310 |
315.81 |
5.81 |
85 |
0.02 |
4.95 |
0.77 |
| including |
312 |
315.81 |
3.81 |
98 |
0 |
5.98 |
0.04 |
| LWM08-24 |
103.51 |
108.12 |
4.61 |
1.5 |
0.03 |
0 |
4.36 |
| and |
247.59 |
257.91 |
10.32 |
1.4 |
nsa |
nsa |
4.34 |
| LWM08-25 |
250.78 |
252.42 |
1.64 |
67.1 |
0.11 |
0.36 |
5.43 |
| and |
257.68 |
259.05 |
1.37 |
142.9 |
0.12 |
7.21 |
6.34 |
| LWM08-26 |
No significant intercepts |
| LWM08-27 |
89.09 |
89.6 |
0.51 |
50 |
0.06 |
1.83 |
21.6 |
| and |
105.5 |
106.5 |
1 |
29 |
0.03 |
1.07 |
10.55 |
| LWM08-28 |
227.69 |
230.22 |
2.53 |
246 |
0.54 |
14.34 |
26.22 |
| LWM08-29 |
46.68 |
155 |
108.32 |
42.7 |
0.11 |
2.47 |
6.56 |
| including |
46.68 |
51.84 |
5.16 |
254.3 |
0.34 |
17.48 |
4.36 |
| and |
67.94 |
74.32 |
6.38 |
20.4 |
0.14 |
0.76 |
14.18 |
| and |
81.86 |
97.15 |
15.29 |
16.1 |
0.1 |
0.4 |
17.81 |
| and |
126 |
132 |
6 |
45.7 |
0.17 |
2.77 |
14.9 |
| and |
138 |
140.49 |
2.49 |
275.4 |
0.42 |
17.53 |
2.08 |
| LWM08-30 |
244 |
247 |
3 |
26.7 |
0.05 |
1.48 |
1.78 |
| LWM08-31 |
141.36 |
142.49 |
1.13 |
33 |
0.35 |
0.84 |
20.5 |
| LWM08-32 |
157 |
180.18 |
23.18 |
158.7 |
0.18 |
8.13 |
12.49 |
| including |
157 |
173.67 |
16.67 |
217.5 |
0.24 |
11.14 |
14.46 |
| LWM08-33 |
39.42 |
48.3 |
8.88 |
259.6 |
0.42 |
15.58 |
12.71 |
| and |
57.9 |
65.94 |
8.04 |
138.5 |
0.22 |
6.6 |
12.35 |
| including |
58.91 |
62.82 |
3.91 |
235.5 |
0.33 |
11.84 |
17.87 |
| and |
168.1 |
171.55 |
3.45 |
140.7 |
0.25 |
11.57 |
12.33 |
| LWM08-34 |
105 |
108.9 |
3.9 |
158.3 |
0.3 |
9.52 |
17.25 |
| including |
107.82 |
108.9 |
1.08 |
326 |
0.57 |
19.85 |
28.5 |
| LWM08-35 |
120.23 |
121.05 |
0.82 |
77 |
0.26 |
4.08 |
26.4 |
| and |
137.07 |
152.78 |
15.71 |
39.1 |
0.02 |
2.72 |
6.39 |
| including |
142.77 |
145.65 |
2.88 |
85.4 |
0.03 |
5.37 |
8.1 |
| and |
151.88 |
152.78 |
0.9 |
182 |
0.5 |
12.95 |
41.81 |
| LWM08-36 |
96.87 |
99.23 |
2.2 |
221 |
0.32 |
14.18 |
31.15 |
| and |
104.79 |
109.04 |
4.25 |
80 |
0.03 |
5.81 |
10.51 |
| and |
115.31 |
116.36 |
1.05 |
106 |
0.28 |
8.17 |
7.81 |
| and |
124.4 |
125.47 |
1.07 |
59 |
0.15 |
4.42 |
6.8 |
| LWM08-37 |
10.34 |
11.69 |
1.35 |
154 |
0.3 |
3.9 |
5.87 |
| LWM08-38 |
87 |
88 |
1 |
9 |
0.01 |
0.02 |
9.9 |
| LWM08-39 |
133.14 |
134.5 |
1.36 |
9 |
0.05 |
0.03 |
13.75 |
| LWM08-40 |
78.36 |
80 |
1.64 |
125 |
0.23 |
3.29 |
0.97 |
| LWM08-41 |
94 |
109 |
15 |
29.8 |
0.11 |
1.45 |
13.11 |
| including |
94 |
100.5 |
6.5 |
60.3 |
0.19 |
2.96 |
17.35 |
| and |
120.3 |
123.3 |
3 |
104.7 |
0.14 |
4.74 |
11.85 |
| and |
127.42 |
131.08 |
3.66 |
459.4 |
0.35 |
33.52 |
4.71 |
| LWM08-42 |
231.5 |
237 |
5.5 |
65.5 |
0.16 |
4.5 |
6.4 |
| including |
235 |
236 |
1 |
204 |
0.62 |
12.25 |
22.5 |
| LWM08-43 |
Hole was lost |
| LWM08-44 |
79.15 |
81 |
1.85 |
76 |
0.31 |
4.32 |
7.22 |
| and |
89.26 |
97.29 |
8.03 |
181.3 |
0.24 |
11.61 |
4.88 |
| LWM08-45 |
38 |
43.54 |
5.54 |
54.5 |
0.07 |
4.3 |
11.37 |
| including |
38 |
39.66 |
1.66 |
158.8 |
0.09 |
13.02 |
35.09 |
| LWM08-46 |
Hole was lost |
| LWM08-47 |
Hole was lost |
| LWM08-48 |
Exploration hole NE of property - No significant intercepts |
| LWM08-49 |
156 |
163.5 |
7.5 |
23 |
0.03 |
0.77 |
1.83 |
| and |
179.35 |
184.5 |
5.15 |
179.2 |
0.25 |
14.53 |
7.95 |
| and |
230.33 |
233 |
2.67 |
61.5 |
0.37 |
1.36 |
9.71 |
| and |
264.59 |
271.79 |
7.2 |
165.7 |
0.41 |
4.25 |
18.24 |
| including |
264.59 |
266.8 |
2.21 |
269.5 |
0.88 |
12.85 |
28.07 |
| LWM08-50 |
404.95 |
406.1 |
1.15 |
22 |
0.04 |
0.99 |
3.3 |
| LWM08-51 |
Exploration hole NE of property - No significant intercepts |
| LWM08-52 |
Exploration hole NE of property - No significant intercepts |
| LWM08-53 |
191.1 |
192.08 |
0.98 |
160 |
0.25 |
14.85 |
13.25 |
| and |
196.3 |
198.16 |
1.86 |
42.3 |
0.18 |
1.58 |
15.72 |
| and |
207.65 |
213.42 |
5.77 |
74.8 |
0.17 |
4.3 |
13.43 |
| including |
210.05 |
212.13 |
2.08 |
173.6 |
0.4 |
9.94 |
28.26 |
| LWM08-54 |
168 |
170 |
2 |
0.07 |
1.41 |
2.03 |
1.73 |
| LWM08-55 |
90.06 |
97.54 |
7.48 |
45.7 |
0.12 |
1.54 |
4.66 |
| and |
134.0 |
135.5 |
1.49 |
73.0 |
0.08 |
1.68 |
9.73 |
| and |
153.92 |
155.45 |
1.53 |
186.3 |
0.16 |
21.98 |
12.43 |
| LWM08-56 |
149.77 |
175.56 |
25.79 |
47.4 |
0.08 |
3.2 |
3.92 |
| including |
149.77 |
155.50 |
5.73 |
167.6 |
0.19 |
11.8 |
7.51 |
| LWM08-57 |
222.12 |
223.61 |
1.49 |
192.4 |
0.68 |
9.97 |
24.82 |
| LWM08-58 |
89.0 |
90.0 |
1.0 |
648.0 |
0.51 |
37.51 |
0.42 |
| and |
127.0 |
131.0 |
4.0 |
19.0 |
0.13 |
11.33 |
11.46 |
| LWM08-59 |
No significant intercepts |
| LWM08-60 |
108.00 |
112.60 |
4.60 |
106 |
0.65 |
0.27 |
0.8 |
| and |
246.38 |
246.89 |
0.51 |
110 |
0.53 |
5.54 |
19.8 |
Fish Prospect
The Fish prospect is located approximately nine kilometers northeast of LWM. Ten drill holes have been completed by Full Metal at the prospect. Drill holes are located to test an extensive gossan, which is interpreted to be a weathered massive sulphide. The gossan can be traced over 1,500 meters along strike and has been intercepted by drill holes up to 250 meters down dip. Several holes have encountered strongly oxidized massive sulphides up to 44 meters thick including intercepts of up to 4.2 meters of 17.3% zinc, and silver rich sections including 297 g/t silver. The thickest gossan intercepts are at the south while surface soil geochemistry suggests that the mineralized zone continues further north.
Eva Prospect
This prospect occurs along a ridge top typified by very minimal bedrock exposure, surrounded by overburden cover. A north-south striking unit of marble hosts carbonate replacement where exposed through rubble crop. Full Metal recently discovered an extensive area of partially oxidized sphalerite and galena within a 'kill zone' at the Drumstick prospect within the same marble unit, 2,200 meters north of the Eva prospect. The area between the two prospects is completely covered by overburden and vegetation. A single drill collar from a small diameter hole, likely from the 1960's era was identified at Eva. Results from this hole are not known.
A total of 14 samples were collected from subcrop and historic prospect pits at the Eva Prospect in 2007. Individual silver values include 3,730, 1,960 and 1,280 g/t Ag. All samples of mineralized rock averaged 957 g/t Ag, 23.6 % Zn, 12.6% Pb, and 0.9% Cu. Three samples averaged over 25% Pb; overlimit lead assays are currently pending. Samples range from lows of 207 g/t Ag, 6.5% Zn, 4.1% Pb and 0.18% Cu to highs of 3,730 g/t Ag, 43.6% Zn, >25% Pb and 4.9% Cu. Samples were collected over a 50 meter by 50 meter area of rubble crop. Mineralization occurs within a marble unit replaced by partially oxidized, coarse-grained massive sphalerite, galena and chalcopyrite.
Oscar Prospect
The Oscar Prospect covers 10 square kilometers of base and precious metal-rich CRD-style mineralization, primarily associated with skarn alteration within a marble unit, and adjacent to a megacrystic syenite unit. Mineralogy of the individual skarn outcrops varies considerably at Oscar with a rough zoning of magnetite-chalcopyrite in areas proximal to the intrusive contract, grading outwards towards galena-sphalerite mineralization at more distal locations. In the central area, samples from prospect pits include: 17% Cu and 521 g/t Ag, 1.1% Cu and 441 g/t Ag, 6.2% Zn, 4.4% Pb, and 99 g/t Ag. Outcrop exposure is limited at Oscar, however, two chalcopyrite-magnetite mineralized outcrops located 600 meters apart were systematically sampled on one to two meter centers; 38 samples from the upper outcrop range from trace to 2.3% Cu, averaging 0.6%, and trace to 356 g/t Ag, averaging 30.7 g/t. 62 samples from the lower outcrop range from trace to 1.0% Cu averaging 0.16%, and trace to 34.1 g/t Ag, averaging 4.6 g/t, as well as trace to 1.2% Zn, averaging 0.19%. Rock samples at Oscar are also anomalous in gold, lead and iron.
222 soil samples were collected at Oscar during 2007, extending a historic grid covering the prospect. Soil samples range from: trace to 421 ppm Cu, averaging 62 ppm; trace to 12.8 ppm Ag, averaging 0.8 ppm; trace to 2,160 ppm Pb, averaging 88 ppm, and 22 to 2,320 ppm Zn, averaging 221 ppm. The soil grid has outlined a 1,000 meter by 1,250 meter anomalous area open for expansion to the north (>100 ppm Zn, >50 ppm Cu, >100 ppm Pb. This prospect has never been drill tested.
Lead Creek Prospect
The Lead Creek Prospect is located approximately 75 kilometers northeast of Little Whiteman. The property is situated near the boundary of a large thrust fault with upper plate of mafic ophiolite volcanic rocks and lower plate of greenschist facies metasediments and marbles. Two types of mineralization have been identified at the prospect: a) siliceous nodules containing up to 10% massive sulphides within quartz mica schists. Due to lack of outcrop it is uncertain whether these are actual nodules or a thin bed within the schist. b) Carbonate replacement mineralization hosted in greenschist facies clastic and carbonate units. The mineralization appears to be galena rich with secondary sphalerite.
Previous operators completed 22 drill holes from 1978 to 2001 totaling 3,627 meters. Significant high-grade silver and lead values were encountered, hosted within a structurally complex mélange of metamorphosed siltstones, limestones, and mafic volcanics of varying ages. Highlights of historic drilling include:
- 9.6 meters averaging 724.6 g/t silver, 6.4% lead, 0.3% zinc
- 15.4 meters averaging 370.1 g/t Ag, 5.1% Pb, 0.2% Zn
- 1.9 meters averaging 357.7 g/t Ag, 7.0% Pb, 1.4 % Zn
Geologic reconnaissance mapping and re-interpretation of historic data resulted in development of new target models at Lead Creek.
Ownership
Full Metal Minerals has an option to acquire 100% interest in the 40 Mile property from Doyon, Ltd. During the exploration agreement, Full Metal will pay Doyon US$325,000 over six years, make annual scholarship donations of US$10,000 per year, and make exploration expenditures totaling US$3,850,000.
At any time, Full Metal may enter into one or more Mining Leases with Doyon, Ltd. For each lease, Full Metal would make Advanced Royalty payments of US$100,000 per year during years one thru five, increasing to US$250,000 per year prior to commencing commercial production. Upon commencement of Commercial Production, Full Metal would pay to Doyon a Precious metals production royalty calculated as the greater of:
- 2 % Net Smelter Returns pre-payback and 4 % Net Smelter Returns post-payback or 10 % Net Profits Interest pre-payback and 20 % Net Profits Interest post pay-back
- In addition to a base metals production royalty calculated as the greater of: 1 % Net Smelter Returns pre-payback and 3 % Net Smelter Returns post-payback or 10 % Net Profits Interest pre-payback and 20 % Net Profits Interest post-payback
For each Lease Agreement, Full Metal will make scholarship payments of US$25,000 per year for the period subsequent to Option period (to be used for vocational training for project) and US$50,000 per year upon commencement of Commercial Production.
Exploration Status
An aggressive exploration program is planned for the 40 Mile property in 2009. Work will be concentrated at Little Whiteman, West Little Whiteman, Fish and the Lead Creek Property.
At Little Whiteman a block model and resource calculation will be completed using the mineralization model. This model will be used to plan the 2009 drilling program. The goal of the program will be to achieve a measured/indicated resource.
To discover additional mineralization within the district surface soil and geophysical surveys will be extended to connect the three properties.
Surface rock and soil anomalies will be drill tested at West Little Whiteman.
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