Eagle Plains/Kobex Resources Sign Letter of Intent for “Titan” High-Grade B.C. Molybdenum Project
Cranbrook, B.C.: Eagle Plains Resources Ltd. (EPL:TSX-V) announces that it has executed a Letter of Intent with Kobex Resources Ltd.(KBX:TSX-V) whereby Kobex may earn a 60% interest from EPL in the Titan molybdenum project located 50km west of Atlin in northwest British Columbia. The property is controlled 100% by EPL (subject to a 1.5% NSR), and consists of 29 claim units covering approximately 1,700 acres.
Kobex has agreed to pay $5,000 cash and issue 100,000 common shares on the signing of a formal option agreement. To complete its earn-in, Kobex will carry out $3,000,000 in exploration expenditures, make total cash payments of $167,000 and issue a total of 600,000 voting-class common shares to EPL by the fifth anniversary of signing. A $150,000, first-phase program consisting of geological mapping, geophysical survey and subsequent diamond drilling will be completed during the 2004 field season. 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 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 high-grade molybdenum mineralization in float boulders up to 1.877% molybdenum. Outcrop material returned a value of 0.966 % molybdenum. Eight of the 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).
Eagle Plains Resources Ltd. is a junior exploration company aggressively exploring for minerals in British Columbia, Yukon and the Northwest Territories. The company's objective is to enhance shareholder value by identifying and securing early-stage exploration and development opportunities in gold, silver and base metal projects. Eagle Plains continues to conduct research, acquisition and exploration projects in western Canada. Through a network of prospectors, consultants and experienced contractors in addition to seasoned employees and a well-rounded Board of Directors, the Company has assembled a diverse portfolio of gold and base-metal properties. EPL seeks to attract joint-venture participation on its properties, thereby leveraging exploration spending to the ultimate benefit of the Company’s shareholders. In recent years, Eagle Plains has completed option agreements with Billiton Metals Canada, Rio Algom Exploration, Kennecott Canada Exploration, NovaGold/SpectrumGold Inc., Viceroy Resource Corp. and numerous other junior exploration companies, resulting in nearly 13,000m (43,000’) of drilling and over $5,000,000 in exploration spending on its properties since 1998.
On behalf of the Board of Directors
“Tim J. Termuende”
President and CEO
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