Lucky Shot
(40% Full Metal/60% Harmony Gold Corp.)
Target
Lucky Shot is a past producing, high grade gold property north of Anchorage, Alaska. In 2005, Full Metal Minerals discovered additional high grade mineralization, and has now commissioned an underground exploration study to evaluate the Lucky Shot property for three potential scenarios: 1) additional surface exploration, 2) combined underground and surface exploration, 3) positive construction decision.
Location and Access
The property is well located, approximately 90 miles north of Anchorage, with excellent infrastructure, road access from Anchorage, and close proximity to both rail and power. Camp and maintenance facilities are operated year-round.
Exploration Status
Over the course of 2007, Full Metal completed over 50 diamond drill holes, the primary focus being to determine the extent of the Lucky Shot Shear zone. This drilling program tested three of the four known fault blocks and has extended the continuous gold mineralization to over 2,400 meters along strike, and 700 m down-dip. See 2007 FMM News Release #33 for 2007 drilling results. As mentioned above, Full Metal has commissioned an underground exploration study, and will make a decision on the nature of the 2008 program during the first quarter of 2008.
Ownership
Full Metal Minerals Ltd. has, subject to regulatory approval, entered into an option agreement with Harmony Gold Corp., entitling Harmony to acquire a 60-per-cent interest in Full Metal's Lucky Shot property in Alaska.
In order to acquire and exercise the option, Harmony must make a $2-million (U.S.) cash payment to Full Metal on the later of the fifth business day following acceptance of the transaction by the exchange and the date on which the parties confirm that they are satisfied with their due diligence review, issue to Full Metal four million common shares of Harmony, of which two million are to be issued on the payment date and the others upon completion of the construction of an underground access production ramp at Lucky Shot, as set out in phase II of the recommended work program in the technical report, and incur $8-million (U.S.) of exploration and development expenditures on Lucky Shot on or before Dec. 31, 2012, in respect of phase I and II of the recommended work program in the report.
Once the Harmony option has been fully exercised, both companies will form a joint venture for the purpose of the continued exploration and development of the property.
Harmony has also agreed to issue an additional eight million common shares to Full Metal outside of the option earn-in requirements, of which three million are to be issued on completion of the processing of a bulk sample from Lucky Shot of not less than 7,500 tonnes, as recommended by phase II of the technical report, and five million shares are issuable on the commencement of commercial production on the property. In addition, Harmony has agreed to pay an additional sum of $500,000 on the commencement of commercial production.
History
The Lucky Shot Project is located in the historic Willow Creek Mining District. Past-producing mines in the District are considered to be among the highest grade in the Northern Cordillera, with documented production from company records and The Alaska Department of Mines listed at over 620,000 ounces Au from multiple veins and shears, at an average grade of approximately 1.0 oz/ton Au; Full Metal has not audited these historic production figures, and they should not be relied upon. Prior to Full Metal's 2005 exploration program, limited modern exploration has been performed in the District since the mine closures.
Geology
Gold-bearing structures at Lucky Shot occur within a granitoid batholith, similar to the Grass Valley deposits in the famous Motherlode Camp, California. Historic mining exploited shallow-dipping, one to two meter wide gold-bearing quartz veins, however the recent drilling has revealed the veins occur within wider shear zones, with an average true width of three to five meters. These shears are comprised of silicified cataclasites and altered granite, as well as quartz veins with strong visible gold and telluride mineralization with minor amounts of sulphides.
Exploration highlights 2006
Full Metal is pleased that these results have shown continuity of high grade gold within the Lucky Shot Shear. As typically encountered in high-grade mesothermal gold systems, two holes (C06-15 and C06-22) encountered strong alteration and brittle faulting, coupled with anomalous gold and pathfinder elements, indicative of continuity of the structure. Commonly referred to as the 'nugget effect', these results are typical of analogous deposits worldwide.
Mineralization is typified by quartz veins within a strongly sericite-carbonate altered shear zone, with disseminated visible gold, tellurides and minor sulphides occurring within multiple phases of quartz veins and cataclasites. Continuity of the gold-bearing structure is excellent, with local minor offsets due to post-mineralization faulting.
Future drilling will include exploring for the faulted extension of the War Baby block of the Lucky Shot shear, which is offset to the north by a normal fault zone.
Lucky Shot Drill Intercepts
| Zone | Hole-ID | From (m) | To (m) | Length (m) | Au (g/tonne) | Au (oz/tonne) | True Thick (m) |
|---|
| Coleman | C05-08 | 128.68 | 132.28 | 3.61 | 24.13 | 0.78 | 3.21 |
| | including | 128.68 | 129.24 | 0.56 | 121.37 | 3.90 | 0.50 |
| Coleman | C05-09 | 142.27 | 145.31 | 3.05 | 62.23 | 2.00 | 3.05 |
| | including | 142.70 | 143.26 | 0.56 | 179.04 | 5.76 | 0.56 |
| | and | 144.63 | 145.31 | 0.69 | 108.41 | 3.49 | 0.69 |
| Coleman | C05-10 | 40.54 | 42.98 | 2.44 | 3.69 | 0.12 | 2.17 |
| Coleman | C05-11 | 46.38 | 48.77 | 2.39 | 3.16 | 0.10 | 2.39 |
| | and | 50.90 | 53.11 | 2.21 | 2.16 | 0.07 | 2.21 |
| Coleman | C05-12 | 132.66 | 137.16 | 4.50 | 219.06 | 7.04 | 4.00 |
| | including | 132.66 | 133.40 | 0.74 | 1,267.52 | 40.76 | 0.66 |
| | and | 135.94 | 137.16 | 1.22 | 37.75 | 1.21 | 1.09 |
| Coleman | C05-13 | 128.93 | 132.05 | 3.12 | 1.09 | 0.04 | 3.12 |
| Coleman | C05-14 | 78.64 | 80.16 | 1.52 | 2.98 | 0.10 | 1.30 |
| Coleman | C06-15 | NSI | | | | | |
| Coleman | C06-16 | 131.77 | 136.33 | 4.56 | 51.54 | 1.66 | 4.56 |
| Coleman | C06-17 | 146.98 | 148.44 | 1.46 | 3.28 | 0.11 | 1.40 |
| Coleman | C06-18 | 144.80 | 148.85 | 4.05 | 10.29 | 0.33 | 3.73 |
| Coleman | C06-19 | 145.60 | 146.80 | 1.20 | 134.48 | 4.32 | 1.20 |
| Coleman | C06-20 | 144.60 | 146.50 | 1.90 | 21.29 | 0.68 | 1.90 |
| Coleman | C06-21 | 150.75 | 153.35 | 2.60 | 60.27 | 1.94 | 2.50 |
| Coleman | C06-22 | NSI | | | | | |
| Coleman | C06-23 | 158.67 | 162.45 | 3.78 | 32.81 | 1.05 | 3.48 |
| Coleman | C06-24 | 152.25 | 153.77 | 1.52 | 4.07 | 0.13 | 1.46 |
| Coleman | C06-25 | 144.57 | 146.19 | 1.62 | 2.31 | 0.07 | 1.62 |
| Coleman | C06-26 | 140.00 | 142.67 | 2.67 | 8.62 | 0.28 | 2.67 |
| Coleman | C06-27 | 156.21 | 158.04 | 1.83 | 34.15 | 1.10 | 1.68 |
| Coleman | C06-28 | NSI | | | | | |
| Coleman | C06-29 | HSZ | | | | | |
| Coleman | C06-30 | NSI | | | | | |
| Coleman | C06-31 | NSI | | | | | |
| Coleman | C06-32 | 146.45 | 147.40 | 0.95 | 22.27 | 0.72 | 0.91 |
| Coleman | C06-33 | 221.74 | 222.98 | 1.24 | 1.82 | 0.06 | 1.19 |
| Coleman | C06-34 | 192.58 | 193.89 | 1.31 | 11.71 | 0.38 | 1.31 |
| Coleman | C06-36 | 157.40 | 159.47 | 2.07 | 11.80 | 0.38 | 1.99 |
| Coleman | C06-37 | 161.54 | 163.34 | 1.80 | 29.53 | 0.95 | 1.73 |
| Coleman | C06-38 | 153.20 | 155.45 | 2.25 | 2.04 | 0.07 | 2.25 |
| Coleman | C06-35 | 191.62 | 192.43 | 0.81 | 10.51 | 0.34 | 0.79 |
| Coleman | C06-39 | 137.33 | 138.15 | 0.82 | 2.94 | 0.09 | 0.82 |
| | and | 151.06 | 151.46 | 0.40 | 154.50 | 4.97 | 0.40 |
| Coleman | C06-40 | NSI | | | | | |
| Coleman | C06-41 | 116.35 | 120.98 | 4.63 | 7.30 | 0.23 | 4.26 |
| | including | 116.35 | 117.27 | 0.92 | 30.25 | 0.97 | 0.85 |
| Coleman | C06-42 | 116.25 | 117.25 | 1.00 | 1.95 | 0.06 | 0.98 |
| Coleman | C06-43 | 113.35 | 114.22 | 0.87 | 2.34 | 0.08 | 0.80 |
| Coleman | C06-44 | NSI | | | | | |
| Coleman | C06-45 | NSI | | | | | |
| Coleman | C06-46 | 150.00 | 152.90 | 2.90 | 5.49 | 0.18 | 2.76 |
| Coleman | C06-47 | NSI | | | | | |
| Coleman | C06-48 | 140.50 | 145.70 | 5.20 | 7.13 | 0.23 | 5.20 |
| | including | 145.30 | 145.70 | 0.40 | 46.80 | 1.50 | 0.40 |
| Coleman | C06-49 | 139.50 | 140.70 | 1.20 | 7.30 | 0.23 | 1.20 |
| | and | 144.90 | 146.40 | 1.50 | 3.49 | 0.11 | 1.50 |
| Coleman | C06-50 | 83.45 | 83.85 | 0.40 | 12.10 | 0.39 | 0.37 |
| Coleman | C06-51 | 47.00 | 49.50 | 2.50 | 5.70 | 0.18 | 2.48 |
| | including | 49.00 | 49.50 | 0.50 | 21.10 | 0.68 | 0.50 |
| Coleman | C06-52 | 110.75 | 113.75 | 3.00 | 2.33 | 0.07 | 2.97 |
| Coleman | C06-53 | NSI | | | | | |
| Coleman | C06-54 | 88.60 | 89.80 | 1.20 | 7.10 | 0.23 | 1.20 |
| Coleman | C06-55 | NSI | | | | | |
| Coleman | C06-56 | 83.10 | 86.10 | 3.00 | 3.25 | 0.10 | 2.79 |
| Coleman | C06-57 | NSI | | | | | |
| Coleman | C06-58 | 32.00 | 33.00 | 1.00 | 3.00 | 0.10 | 0.99 |
| Coleman | C06-59 | 87.75 | 89.25 | 1.50 | 4.35 | 0.14 | 1.46 |
| Coleman | C06-60 | 151.20 | 156.50 | 5.30 | 11.62 | 0.37 | 4.88 |
| Coleman | C06-61 | 147.00 | 148.00 | 1.00 | 3.89 | 0.13 | 0.97 |
| Coleman | C06-62 | 138.60 | 141.38 | 2.78 | 6.51 | 0.21 | 2.75 |
| | including | 138.60 | 139.00 | 0.40 | 33.00 | 1.06 | 0.40 |
| Coleman | C06-63 | 138.50 | 141.50 | 3.00 | 11.14 | 0.36 | 3.00 |
| Coleman | C06-64 | 185.00 | 186.50 | 1.50 | 2.99 | 0.10 | 1.41 |
| Coleman | C06-65 | 186.50 | 189.00 | 2.50 | 6.26 | 0.20 | 2.40 |
| | including | 188.00 | 189.00 | 1.00 | 12.20 | 0.39 | 0.96 |
| Coleman | C06-66 | 164.00 | 164.40 | 0.40 | 5.90 | 0.19 | 0.40 |
| Coleman | C06-67 | 161.52 | 163.00 | 1.48 | 3.21 | 0.10 | 1.48 |
| | and | 170.52 | 172.00 | 1.48 | 3.50 | 0.11 | 1.48 |
| Coleman | C06-68 | 161.00 | 162.13 | 1.13 | 17.40 | 0.56 | 1.04 |
| Coleman | C06-69 | 139.50 | 141.00 | 1.50 | 3.64 | 0.12 | 1.46 |
| Coleman | C06-70 | NSI | | | | | |
| Coleman | C06-71 | NSI | | | | | |
| Coleman | C06-72 | 116.03 | 117.00 | 0.97 | 8.72 | 0.28 | 0.89 |
| | and | 132.00 | 133.00 | 1.00 | 5.53 | 0.18 | 0.92 |
| Coleman | C06-73 | NSI | | | | | |
| Coleman | C06-74 | 115.00 | 117.00 | 2.00 | 27.14 | 0.87 | 2.00 |
| Coleman | C06-75 | AP | | | | | |
| Coleman | C06-76 | AP | | | | | |
| Coleman | C06-77 | 195.50 | 197.00 | 1.50 | 11.20 | 0.36 | 1.44 |
| Coleman | C06-78 | 241.50 | 243.00 | 1.50 | 14.25 | 0.46 | 1.38 |
| Coleman | C06-79 | 201.32 | 201.72 | 0.40 | 10.50 | 0.34 | 0.40 |
| Coleman | C06-80 | 209.00 | 212.00 | 3.00 | 23.74 | 0.76 | 2.91 |
| Coleman | C06-81 | 129.15 | 131.00 | 1.85 | 82.59 | 2.66 | 1.70 |
| Coleman | C06-82 | NSI | | | | | |
| Coleman | C06-83 | 110.00 | 110.50 | 0.50 | 10.10 | 0.32 | 0.49 |
| Lucky Shot | C06-84 | HA | | | | | |
| Lucky Shot | C06-86 | HA | | | | | |
| Murphy | C06-89 | 307.40 | 307.80 | 0.40 | 19.30 | 0.62 | not known |
| Murphy | C06-90 | AP | | | | | |
NSI: No Significant Intercepts
HSZ: Hole Stopped Before Zone
AP: Assays Pending
HA: Hole Abondoned Before Lucky Shot Zone
Lucky Shot Collars
| Hole-ID | UTMN | UTME | Az | Dip | Length (m) |
|---|
| C06-15 | 6851811.3 | 371995.9 | 180 | -64 | 155.45 |
| C06-16 | 6851811.7 | 371996 | 180 | -73 | 149.35 |
| C06-17 | 6851811.9 | 371995.9 | 180 | -82 | 179.83 |
| C06-18 | 6851812.1 | 371996 | | -90 | 173.74 |
| C06-19 | 6851809 | 372042.3 | 180 | -63 | 164.59 |
| C06-20 | 6851809.2 | 372042.3 | 180 | -73 | 152.10 |
| C06-21 | 6851809.5 | 372042.3 | 180 | -82 | 176.78 |
| C06-22 | 6851809.8 | 372042.2 | | -90 | 204.22 |
| C06-23 | 6851805.4 | 372090.3 | | -90 | 173.74 |
| C06-24 | 6851805.2 | 372090.2 | 180 | -82 | 170.69 |
| C06-25 | 6851805 | 372090.2 | 180 | -74.5 | 167.64 |
| C06-26 | 6851804.7 | 372090.2 | 180 | -62 | 167.64 |
| C06-27 | 6851794.5 | 372107.4 | | -90 | 170.69 |
| C06-28 | 6851794.2 | 372107.4 | 180 | -81.5 | 182.88 |
| C06-29 | 6851794.1 | 372107.4 | 180 | -72 | 131.06 |
| C06-30 | 6851793.8 | 372107.3 | 180 | -62 | 146.30 |
| C06-31 | 6851793.6 | 372107.3 | 180 | -51 | 149.35 |
| C06-32 | 6851803.7 | 371953.2 | | -90 | 198.12 |
| C06-33 | 6851802.8 | 371953.1 | 180 | -57 | 225.55 |
| C06-34 | 6851802.8 | 371953.1 | 180 | -69 | 234.70 |
| C06-35 | 6851803.7 | 371953.2 | 180 | -77 | 246.89 |
| C06-36 | 6851810.2 | 372136.4 | | -90 | 182.88 |
| C06-37 | 6851810.2 | 372136.4 | 180 | -82.5 | 179.53 |
| C06-38 | 6851810.2 | 372136.4 | 180 | -72.5 | 167.64 |
| C06-39 | 6851810.2 | 372136.4 | 180 | -66 | 152.40 |
| C06-40 | 6851810.2 | 372136.4 | 180 | -53 | 152.40 |
| C06-41 | 6851760.8 | 372020 | | -90 | 132.89 |
| C06-42 | 6851760.8 | 372020 | 180 | -78.5 | 192.02 |
| C06-43 | 6852020.8 | 372034.1 | | -90 | 277.37 |
| C06-44 | 6852019.8 | 372034.2 | 180 | -50 | 130.76 |
| C06-45 | 6852020.2 | 372034.2 | 180 | -72 | 109.73 |
| C06-46 | 6851873.1 | 372116.5 | 180 | -86 | 170.69 |
| C06-47 | 6851873.1 | 372116.5 | 180 | -78.5 | 170.69 |
| C06-48 | 6851873.1 | 372116.5 | 180 | -71 | 149.35 |
| C06-49 | 6851873.1 | 372116.5 | 180 | -63.5 | 158.50 |
| C06-50 | 6851720.3 | 372040.8 | | -90 | 118.87 |
| C06-51 | 6851720.3 | 372040.8 | 180 | -76 | 115.82 |
| C06-52 | 6851720.3 | 372040.8 | 180 | -61 | 140.21 |
| C06-53 | 6851726.3 | 372087 | | -90 | 115.82 |
| C06-54 | 6851726.3 | 372087 | 180 | -77 | 111.25 |
| C06-55 | 6851726.3 | 372087 | 180 | -62 | 118.87 |
| C06-56 | 6851726.3 | 372087 | 180 | -46 | 112.78 |
| C06-57 | 6851698.6 | 372016.9 | | -90 | 167.64 |
| C06-58 | 6851698.6 | 372016.9 | 180 | -73.5 | 109.73 |
| C06-59 | 6851698.6 | 372016.9 | 180 | -54 | 109.73 |
| C06-60 | 6851860 | 372071 | | -90 | 167.64 |
| C06-61 | 6851860 | 372071 | 180 | -81 | 164.59 |
| C06-62 | 6851860 | 372071 | 180 | -71.5 | 155.45 |
| C06-63 | 6851860 | 372071 | 180 | -63 | 188.98 |
| C06-64 | 6851859.3 | 372184.5 | | -87 | 204.22 |
| C06-65 | 6851859.3 | 372184.5 | 180 | -83 | 213.36 |
| C06-66 | 6851859.3 | 372184.5 | 180 | -76 | 213.36 |
| C06-67 | 6851859.3 | 372184.5 | 180 | -71 | 188.67 |
| C06-68 | 6851810 | 372182.2 | | -90 | 182.88 |
| C06-69 | 6851810 | 372182.2 | 180 | -80 | 188.98 |
| C06-70 | 6851810 | 372182.2 | 180 | -70 | 173.74 |
| C06-71 | 6851810 | 372182.2 | 180 | -59 | 164.59 |
| C06-72 | 6851912.5 | 372049.6 | | -90 | 155.45 |
| C06-73 | 6851912.5 | 372049.6 | 180 | -80.5 | 155.45 |
| C06-74 | 6851912.5 | 372049.6 | 180 | -72 | 140.21 |
| C06-75 | 6851912.5 | 372049.6 | 180 | -61 | 146.30 |
| C06-76 | 6851912.5 | 372049.6 | 180 | -50 | 146.30 |
| C06-77 | 6852023.1 | 372192 | 180 | -67 | 207.26 |
| C06-78 | 6852023.1 | 372192 | | -90 | 272.49 |
| C06-79 | 6852023.1 | 372192 | 180 | -73 | 219.46 |
| C06-80 | 6852017.7 | 372196 | 180 | -80 | 300.00 |
| C06-81 | 6851757.9 | 372069.4 | | -90 | 152.40 |
| C06-82 | 6851757.2 | 372069.4 | 180 | -68.3 | 128.00 |
| C06-83 | 6851756.8 | 372069.4 | 180 | -55 | 143.26 |
| C06-84 | 6851907.7 | 372735.6 | | -90 | 323.09 |
| C06-86 | 6851722.4 | 372155.3 | | -90 | 36.58 |
| C06-89 | 6852119.3 | 373896.5 | | -90 | 324.31 |
| C06-90 | 6852119.3 | 373896.5 | 180 | -84 | 362.71 |
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