NWT Mineral Exploration

[Tackler]

FMM Full Metal to option Arcadia property to Garnet Point

2004-09-30 09:43 ET - News Release

Also GRC Garnet Point Resources Corp

Mr. Michael Williams of Full Metal reports

FULL METAL OPTIONS ARCADIA GOLD PROPERTY TO GARNET POINT

Garnet Point Corp. has entered into a letter of intent agreement with Full Metal Minerals Ltd. whereby Garnet Point can earn a 51-per-cent interest in Full Metal's Arcadia property, located on Coronation Gulf, Nunavut, subject to approval from the TSX Venture Exchange.

Garnet Point can earn a 51-per-cent interest in the property, subject to regulatory approval, by making cash payments totalling $200,000 ($50,000 in the first year) and issuing one million shares of Garnet Point (250,000 in the first year) to Full Metal and performing $5-million in exploration over four years ($170,000 in the first year). Upon commencement of commercial production, Garnet Point would pay Full Metal a 2-per-cent net smelter return on all commercial gold and base metal production from the property. Garnet Point can purchase half of this royalty for $2-million at any time. During earn-in, Garnet Point will assume the underlying advance royalty payments. A finder's fee will be payable to Canaccord Capital Corp. in connection with this transaction by Garnet Point.

The Arcadia Bay property is an Archean Lode-gold type target, located on the tidewater in Canada's Nunavut territory, west of Bathurst Inlet. The project is approximately 180 kilometres west of Miramar Mining's Hope Bay greenstone belt. Arcadia has been previously explored by several small companies and prospectors, targeting multiple high-grade veins and shear zones located within greenstone and tonalite. Highlights include historic drill intercepts of up to 29 grams per tonne Au over 5.6 metres and 12.0 g/t Au over 23.1 metres in the GHX zone, and channels up to 30.9 g/t Au over 1.2 metres in the Pick zone.

A historic resource estimate of 640,650 tonnes averaging 7.2 g/t (approximately 148,000 ounces) in the North Central vein and 139,524 tonnes averaging 8.6 g/t for 38,600 ounces in the Fred vein have been reported. These resource estimates were completed prior to 2001 and NPI 43-101 and should therefore not be relied upon. Full Metal and Garnet Point are planning on an aggressive drill program to identify new resources at Arcadia, commencing in March, 2005.

The geologic setting of Arcadia is similar to other tonalite hosted Archean gold systems in Canada, such as Bell-Allarde, Renabie and Star Lake. At Arcadia, an altered and mineralized shear zone, suggested to be a first-order break, transects the western portion of the property within volcanic rocks. Multiple quartz veins at subparallel and shallowly oblique orientations to the first-order break are hosted within a multiphase tonalitic intrusive.

Full Metal currently has interests in gold and copper-gold properties in Alaska and Nunavut, including the highly prospective Ganes Creek gold project, and the Pebble South copper-gold project.