Drilling Commences on Titan Molybdenum Project
Cranbrook BC, 03 August, 2004: Management of Eagle Plains Resources Ltd. (TSX-V:EPL) and Kobex Resources Ltd. (TSX-V:KBX) announce that diamond drilling has commenced on Eagle Plains’ Titan molybdenum project located 50km west of Atlin in northwestern British Columbia. The property is controlled 100% by EPL (subject to a 1.5% NSR), and consists of 107 claim units covering approximately 6,500 acres. Kobex may earn a 60% interest in the project from EPL by completing $3,000,000 in exploration expenditures, making total cash payments of $167,000 and issuing a total of 600,000 voting-class common shares to EPL by the fifth anniversary of signing. EPL will remain operator of the project up to the completion of Phase 1 work, with operatorship determined on a year-to year basis.
The Phase 1 work program expenditures are projected to total $150,000. Drilling follows a detailed Induced Polarization (IP) geophysical survey conducted by Aurora Geosciences Ltd. of Whitehorse, Yukon over an area associated with surface and float mineralization discovered in 2003.
Drilling will consist of 4-5 holes totaling 400-500m (1300-1600’), and should take 1-2 weeks to complete. Overall project supervision will be the responsibility of Charles C. Downie, P.Geo., Exploration Manager of Eagle Plains and identified as a Qualified Person under National Instrument 43-101.
The Titan claim block covers a high-grade molybdenum-copper porphyry occurrence that has been recently exposed by the retreat of glacial ice. 2003 fieldwork by Eagle Plains resulted in the discovery of high-grade molybdenum mineralization in float boulders grading up to 1.877% molybdenum. Outcrop material returned a value of 0.966 % molybdenum in grab samples. Eight of ten rock samples collected returned greater than 0.1% molybdenum. Some samples are also associated with elevated copper (up to 2873 ppm), tungsten (up to 93.1 ppm), and bismuth (up to 60.7 ppm). An Induced Polarization (I.P.) survey completed in the fall of 2003 indicates the presence of a large, high-intensity chargeability anomaly in the vicinity of the high-grade mineralization (see EPL News Release Oct. 16, 2003).
Molybdenum is a hard, malleable, ductile, high-melting, silver-white corrosion resistant metal. Steel making accounts for about 80% of molybdenum production, with the remainder used in the manufacture of high-speed cutting tools, aircraft parts, forged automobile parts, X-ray tubes, electronic tubes and electric furnaces, rocket and missile parts, lubricants and pigments. British Columbia molybdenum mines and deposits include the Endako Mine (182 Mt at .0785% Mo,) Kitsault Lake (95 Mt at .112% Mo), Boss Mountain (6.7 Mt at 0.13% Mo) and the Adanac (152 Mt at 0.063% Mo) (reference: Geology of Canadian Mineral Deposit types 1995).
On behalf of the Board of Directors
“Tim J. Termuende”
President and CEO
Cautionary Note Regarding Forward-Looking Statements
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.