Eagle Plains/Touchdown Capital Complete Geophysical Survey, Commence Drill Program at Sphinx Moly Project, Southeastern BC
Cranbrook, BC; 06 November, 2009: Eagle Plains Resources (TSX-V:EPL) and Touchdown Capital Corp (TSX-V:TDW) have completed Phase 1 exploration activity and commenced a 500m Phase 2 diamond drilling program on the Sphinx molybdenum project located approximately 60 km west of Kimberley in the Nelson and Fort Steele Mining Divisions of British Columbia.
The $220,000 program is funded by Touchdown, who have acquired Eagle Plain’s 100% interest in the 15,400 hectare property.
Sphinx Project Summary
The Sphinx property area consists of approximately 15,400 ha that were acquired in 2003 by Eagle Plains. The claims are ideally located with respect to local infrastructure. The property is road-accessible, has been logged and is situated along a high-voltage hydro-electric line. Rail facilities are located 60km east of the property. The project is being advanced as a bulk-tonnage target.
The Sphinx molybdenum-tungsten system has been defined by 38 holes for a total of 10,686m of drilling and consists of a tabular, steeply-west dipping intrusive body with a true thickness of 85m and a strike length of 230m (open in two directions and to depth). A pervasive alteration system, 700m by 350m in size, is developed in the host sedimentary and intrusive rocks. Mineralization is hosted in stockwork veins and fractures within the alteration zone.
In 2004, Eagle Plains completed an airborne geophysical survey that outlined a large intrusive feature associated with a previously-defined soil anomaly. All core from the historical 1980-83 and 1997 programs by other operators was secured and examined. The available assay results were compiled and reported in a news release issued by Eagle Plains on May 9th, 2005.
In July 2005, Eagle Plains completed a 14-hole, 10,000’ diamond drilling project and reported widespread mineralization in most holes (see Eagle Plains’ news release July 19th, 2005). The area outlined by this and past diamond drilling programs measures approximately 400 x 1000m. Nearly all holes intersected significant molybdenum mineralization over a broad area, with the mineralized zone open to depth and along strike in one direction.
B. Price, P.Geo. submitted a technical report in May, 2006 which outlined an Inferred Resource of 62,005,615 tonnes grading .035% Mo, using a cut-off grade of .01% Mo. This current inferred resource represents 47,884,630 lbs of contained molybdenum metal. The estimate is based on 14 holes drilled in 2005 by Eagle Plains and incorporates data from 10 holes drilled in 1980 and 1997 by past operators.
In 2009 Touchdown commissioned independent consultants Moose Mountain Technical Services (author Robert Morris, P.Geo.) to prepare an updated 43-101 report on the Property. In his report, Morris calculated an Indicated Resource of 41,450,000 tonnes grading 0.041 %Mo (with a 0.03% Mo cut-off) and an Inferred Resource of 37,180,000 tonnes grading 0.04% Mo (with a 0.03% Mo cut-off), based on 7,603 samples from 38 diamond drill holes totaling 10,685.8m.
Fieldwork on the Property commenced in late fall of 2009 and consisted of an 18 line-km induced polarization (“I.P.”) geophysical survey which was completed by Scott Geophysics of Vancouver, BC. Drill targeting for the current program is designed to test beneath known mineralization related to intrusive rocks. Diamond drilling is expected to commence within the next two days, and will be completed by FB Drilling Ltd. of Cranbrook, BC. C.C. Downie, P.Geo. is the Qualified Person responsible for overseeing the program.
Eagle Plains/Touchdown Acquisition Agreement
As announced June 2nd, 2009, Eagle Plains agreed to sell its 100% interest in the Sphinx property to Touchdown for consideration of 2,000,000 common shares of Touchdown (subject to escrow provisions). In addition, Touchdown agreed to fund $200,000 in exploration expenditures during 2009. Eagle Plains shall have the right to buy back a 50% ownership interest in the Property at anytime after the 2nd anniversary of the Qualifying Transaction up to the 4th anniversary at Touchdown’s cost plus 150% premium.
About Eagle Plains Resources
Eagle Plains Resources continues to conduct research, acquire and explore metal projects in western Canada. In addition to holding mining royalties on various projects, the Company controls over 35 gold, base-metal and uranium projects, several with third parties including Waterloo Resources Ltd (TSX-V:WAT.P) and XO Gold Resources Ltd. (a private B.C. company). In recent years, Eagle Plains has completed option agreements with Teck Limited (TSX:TCK.B), Alexco Resource Corp. (TSX-V:AXR), Billiton Metals, Rio Algom Exploration, NovaGold Resources, Kennecott Exploration and numerous other junior exploration companies, resulting in over 53,000m (158,500’) of drilling and over $27.0 million in exploration spending on its projects since 1998.
Expenditures during 2008 on Eagle Plains’ projects were approximately $6,000,000, funded equally between Eagle Plains and third party partners. This work resulted in approximately 6,300m of drilling and extensive ground-based exploration work and facilitated the advancement of numerous projects at various stages of development.
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.