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CJ Property
(40% Full Metal/60% Altair Ventures Inc.)
TargetThe CJ Property is a sediment-hosted, structurally controlled high-grade vein system, located adjacent to a paved highway. Several historically producing 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 only minor modern 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:
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DDH#11 2.4 meters averaging 40.4 g/t Au
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DDH#15 4.9 meters averaging 9.3 g/t Au
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DDH#16 8.8 meters averaging 18.7 g/t Au
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DDH#18 6.3 meters averaging 28.3 g/t Au
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DDH#20 4.0 meters averaging 8.7 g/t Au
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LocationThe CJ Property is located on east-central Prince of Wales Island in southeast Alaska. The southern boundary of the Property has access to a high-voltage power line and a state maintained paved highway connecting the community of Craig and a ferry terminal at Hollis.
Exploration StatusExploration work in 2007 consisted of field work including structural mapping and soil/rock sampling to identify drill targets. Full Metal and Altair subsequently completed 1,015m of core drilling late in the summer of 2007. Assay results are shown below. Full Meat and Altair will complete additional drilling in 2008 to test further targets.
2007 Drill Results
The table below shows the assay results of Full Metal Minerals' 2007 drill program with Altair Ventures.
| Hole ID |
From (m) |
To (m) |
Length (m) |
Au (g/t) |
Ag (g/t) |
| CJ07-01 |
89.76 |
90.60 |
0.84 |
1.22 |
6.1 |
| |
94.90 |
98.11 |
3.21 |
4.94 |
5.7 |
| including |
94.90 |
95.61 |
0.71 |
20.90 |
19.5 |
| CJ07-02 |
107.65 |
111.25 |
3.60 |
4.23 |
11.4 |
| including |
109.90 |
111.25 |
1.35 |
8.72 |
12.5 |
| |
155.20 |
155.60 |
0.40 |
2.51 |
276.0 |
| CJ07-03 |
103.90 |
110.16 |
6.26 |
2.74 |
42.7 |
| including |
107.93 |
110.16 |
2.23 |
5.47 |
63.7 |
| |
113.84 |
115.82 |
1.98 |
1.16 |
4.2 |
| CJ07-04 |
92.00 |
92.45 |
0.45 |
1.30 |
4.3 |
| CJ07-05 |
99.51 |
100.58 |
1.07 |
4.15 |
20.0 |
| CJ07-06 |
42.45 |
44.50 |
2.05 |
9.56 |
76.7 |
| CJ07-07 |
42.60 |
43.61 |
1.01 |
1.75 |
9.8 |
| |
45.84 |
48.79 |
2.95 |
2.01 |
8.2 |
| |
67.76 |
69.97 |
2.21 |
1.83 |
15.2 |
| CJ07-08 |
67.81 |
69.13 |
1.32 |
1.27 |
1.4 |
*True widths are estimated to range from 86 to 100% of drilled length.
All eight holes encountered gold mineralization, spanning more than two kilometers of strike length. These results show the continuity of gold mineralization and confirm the potential for an additional high-grade zone. The deposit is wide open for expansion.
Drill holes CJ07-01 to -03 were drilled to intersect the down-dip extension of vein mineralization exposed in a small underground stope at the Crackerjack mine. All holes penetrated the target structure on projection and discovered a new vein, approximately 15 meters up-dip.
CJ07-04 and -05 targeted similar vein mineralization in black shale exposed in the Hollis tunnel 800m southeast of Crackerjack. Both holes intersected the targeted vein on projection associated with an andesite sill.
Holes CJ07-06 to -08 were located near the past producing Dawson mine, where multiple high-grade intercepts were drilled in the 1980's (see top of page). All three holes intersected the same vein structure at 25 to 55 meter depths. The target structure in this area is associated with a fault zone that was difficult to penetrate with the drill, and recoveries of core were also low (56%, 69%, and 22% respectively).
OwnershipFull Metal Minerals and Altair Ventures Inc. signed a Binding Letter of Intent August 1, 2007. Under the terms of the agreement, and 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.
Full Metal Minerals originally acquired a 100% interest in patented and unpatented federal mining claims from Red Diamond Mining Company (RDMC), by agreeing to incur US $ 2,800,000 over four years (US$300,000 first year), pay US$700,000 in cash (US$50,000 first year). Upon earn-in, Full Metal will make annual Advanced Royalty Payments of US$150,000 until the commencement of Commercial Production. Full Metal will also make a one-time cash payment to RDMC of US$1 million upon completion of a positive, Bankable Feasibility Study. Upon commencement of Commercial Production, Full Metal will pay RDMC a 2% Net Smelter Return Royalty (NSR) for the first four years with the NSR increasing to 4% thereafter. After four years, Full Metal shall have the right to purchase one-quarter of the NSR (1%) from RDMC for US$2,000,000 at any time.
HistorySeveral mines along the CJ trend operated from the 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. Historic records indicate mill recoveries of 75 to 80% by gravity concentration. 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.
GeologyThe 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. Historic and recent assay data indicate gold-silver ratios ranging from 1:1 to 1:10, with mineralization occurring as native gold and fine grained sulphides. Historic stopes are oriented northeast-southwest, however structural controls to gold mineralization have yet to be determined
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