Eagle Plains Releases Preliminary Results From PhaseOne Drilling Program at Sphinx Molybdenum Project
Cranbrook, B.C. 19 July, 2005: Eagle Plains Resources Ltd. (EPL: TSXV) has completed Phase 1 drilling activity on it’s 100% controlled Sphinx property, located 60 km west of Kimberley, BC. The claims consist of a total area of 2500 ha, with 1600 ha acquired by staking by EPL and 900 ha subject to an option to earn 100% interest (less 1% NSR) from armslength individuals. A total of 14 holes were completed for a total of 10,921’ (3,330m). The area outlined by this and past diamond drilling programs measures approximately 400 x 1000m.
- Nearly all holes intersect significant molybdenum mineralization over a broad area, with mineralized zone open to depth and along strike in one direction.
- Analytical results include 47.0m grading .10% Mo (0.167% MoS2).
- Surface work continues on the property in preparation for Phase 2 drilling activity
The drill program was successful in outlining molybdenum mineralization in an area with excellent infrastructure. A summary of analytical data from the first 7 holes of the program follows:
|SX05001||45/270/340.9m||(hole ended in mineralization)|
|4.0 to 340.9m||(entire hole)||336.9||0.033||0.055|
|Including:||25.0 to 44.0||19.0||0.060||0.100|
|96.0 to 118.0m||22.0||0.050||0.084|
|Including||96.0 to 101.0m||5.0||0.112||0.187|
|288.0 to 318.0m||30.0||0.066||0.109|
|Including||292.0 to 318.0m||26.0||0.070||0.117|
|SX05002||75/270/231.1m||(hole ended in mineralization)|
|3.0 to 231.1m||(entire hole)||228.1||0.036||0.066|
|Including:||51.0 to 159.0m||108.0||0.060||0.101|
|Including:||110.0 to 159.0m||47.0||0.100||0.167|
|Including:||121.0 to 128.0m||7.0||0.308||0.514|
|9.0 to 106.0m||97.0||0.012||0.020|
|Including:||37.0 to 52.0m||15.0||0.021||0.035|
|No significant results|
|SX05005||45/270/391.7m||(hole ended in mineralization)|
|7.1m to 391.7m||(entire hole)||384.6||0.029||0.048|
|Including:||193.0 to 245.0m||52.0||0.051||0.086|
|Including:||193.0 to 210.0m||17.0||0.063||0.106|
|375.0 to 382.0m||7.0||0.101||0.168|
|6.1 to 309.0m||302.9||0.021||0.035|
|Including:||114.0 to 239.0m||125.0||0.030||0.049|
|204.0 to 223m||19.0||0.060||0.103|
|Including:||208.0 to 220.0m||12.0||0.078||0.130|
|6.0 to 100.0m||94.0||0.029||0.048|
|Including:||36.0 to 55.0m||19.0||0.061||0.102|
|Including:||43.0 to 54.0m||11.0||0.085||0.141|
Results from holes 814 will be released as they are received, compiled and interpreted. Crews are currently working to expand the soil geochemical coverage area and complete geological mapping based on new interpretations generated by Phase One drilling. Additional diamond drilling is planned for the project later in the season.
The claims are ideally located with respect to local infrastructure. The property is roadaccessible, has been logged extensively and is situated along a highvoltage hydroelectric line. Rail facilities are located 60km east of the property.
The project area was first identified by Cominco Ltd. in 1978, which carried out surface work and limited diamond drilling from 1978 to 1984. Cominco completed a soil geochemical survey which resulted in the delineation of a 1700m x 500m tungstenmoly anomaly. 5 drill holes were completed by Cominco, but no results were released. In 1997, Barkhor Resources drilled 10 holes into the soil anomaly and encountered significant molybdenum mineralization over a 1000m x 300m area. Results from only one hole were ever released (DDH JI9706), but a private consultant reported that “typical drill intersections are averaging 0.030.038% Mo over core lengths ranging from 90 to 230m”. At the time of the Barkhor drill program, molybdenum sold for $ 5.00 US per pound the metal is currently priced at $29.75 US per pound (July 8 th price).
The property overlies brittle sedimentary units that have been intruded by intrusive rocks. Molybdenum and associated tungsten mineralization occurs as disseminations and within quartzpyrite stockwork veins hosted by both sedimentary and intrusive rocks. Chemical alteration of rock units suggests the presence of a substantial porphyrystyle mineralizing system.
EPL has consolidated a large land package which includes all significant claims in the area, including lands suitable for mine infrastructure and tailings areas. In 2004, EPL completed an airborne geophysical survey that outlines a large intrusive feature associated with the previously-defined soil anomaly. All core from the 198083 and 1997 programs has been secured and examined available assay results have been compiled and interpreted, and were reported in a News Release issued May 9th ,2005.
Onsite geological work is the responsibility of David Pighin, P.Geo., with overall project supervisionprovided by C.C. Downie, P.Geo. (the “Qualified Person” under National Instrument 43101).
British Columbia molybdenum mines and deposits include the Endako Mine (182 million tons (Mt) at 0.078 % Mo,) Kitsault Lake (95 Mt at 0.112% Mo), Boss Mountain (6.7 Mt at 0.13% Mo), Max (27.9 Mt at 0.13% Mo) and Adanac/Ruby Creek (199 Mt at 0.062% Mo).
Eagle Plains Resources continues to conduct research, acquisition and exploration projects in western Canada. The Company controls over 30 gold and basemetal projects, many of which with third parties including NovaGold Inc. (AMEX,TSX:NG), Amarc Resources Ltd. (a Hunter Dickinson Group Company;TSXV: ARC), Northern Continental Resources Inc. (TSXV: NCR), and Golden Cariboo Resources Inc. (TSXV: GCC). These agreements expose Eagle Plains to over $11.5 million in exploration expenditures over the next five years. In recent years, Eagle Plains has completed option agreements with Billiton Metals, Rio Algom Exploration, Kennecott Exploration, Viceroy Resource Corp. and numerous other junior exploration companies, resulting in over 26,000m (85,000 ft) of drilling and over $7,500,000 in exploration spending on its projects since 1998.
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.