April 14, 2007
Price: C$ 0.90
Shares Outstanding: 53.3 Million
Warrants: 4.5 Million
Options: 4.6 Million
Fully Diluted: 62.4 Million
Cash: 8.8 Million
Market Cap: 62.4*0.9= 56 Million
Background/Profile
Eagle Plains Resources (EPL) is a junior exploration company that currently has over 35 properties/projects in British Columbia, Yukon, Saskatchewan and the Northwest Territories. EPL is what people call a project generator in that it acquires prospective mineral properties, does the grassroots work on the property (geophysical surveys etc.) and brings in joint venture partners to pay the big bucks required to advance these projects. So far, EPL has optioned its properties to Billiton Metals, Rio Algom, Novagold, Kennecott, Viceory and others. Among the minerals found on EPL’s properties are Molybdenum, Gold, Zinc, Copper, Uranium, Lead, Gypsum and many more. Also 2 of EPL’s properties have NI 43-101 compliant resources. The Blende project has 19.6 million tonnes grading 55.9 g/t silver and 5.85 % lead-zinc containing an inferred resource of 2.48 Billion lbs Lead/Zinc and 35 Million oz Silver and the Sphinx project has inferred resource of 62,005,615 tonnes grading 0.035% Molybdenum, using a cut-off grade of 0.01% Molybdenum for a contained metal calculation of 47,844,630 lbs Molybdenum. In today’s’ prices that project alone is worth (47 million pounds * 25 = 1.1 Billion Dollars). Finally, EPL hopes to spin off successful projects into new companies which are distributed to shareholders, like they did with Copper Canyon Resources in June 2006. EPL recently purchased a controlling interest in Apex Diamond Drilling in January after experiencing much frustration last drilling season with the unavailability of drills.
Properties
EPL will be drilling with joint venture partners at the Bronco property, Blende property, Sphinx property (starting May 1st), Acacia property, Copper Canyon and on the uranium properties. Go to For more on Copper Canyon
Since EPL has so many properties I am just going to highlight a few of them –
Gayna River Project in the NorthWest Territories: The 2500 acre property contains a number of zinc deposits outlined by Rio Tinto Canadian Exploration during the mid-1970s. Rio Tinto completed some 27,000m of diamond drilling on the property, and suggested reserves of over 50,000,000 tons grading 4.7% zinc from numerous individual orebodies, making it one of Canada's largest undeveloped zinc deposits. The best drill intersection reported by Rio Tinto included a 6.0m interval which graded 20% combined lead-zinc. EPL believes that they can potentially increase the size of the deposit.
Bronco project in the NWT : Surface work in this newly acquired land package returned very encouraging results earlier this year, including continuous-chip assay results of 420g/T silver, 0.9% copper and 2.8% lead over 13m, including 3.0m grading 1313g/T silver, 2.7% copper, 10.2% lead, and 1.1% zinc. Additionally, grab samples from three separate float occurrences up to 2km from Bronco returned assay results of 14.4%, 12.7% and 24.4% zinc and rock samples taken 7km along strike of the Bronco occurrence return assay results of 17.5%, 19.8%, 12.7%, 25.4%, 21.3%, 18.5% zinc over an area of 300m x 700m.
Kulyk Lake and Jenny Lake in Saskatchewan: EPL has announced a formal option agreement has been executed with Wellstar Energy Corporation (WST:TSX-V) whereby Eagle Plains has agreed to grant an option to Wellstar to earn a 60-per-cent interest in the Kulyk Lake and Jenny Lake uranium properties, located 30 to 40 kilometers southeast of Cameco's Key Lake mining operation in north-central Saskatchewan, Canada. The Kulyk Lake property covers approximately 96 square km and was staked to cover known historical uranium mineral occurrences and uranium lake sediment anomalies within prospective folded and faulted basement lithologies of the Wollaston group. Historical trenching at one such occurrence revealed 0.369 per cent U3O8 over 3.4 meters and grab sampling from another occurrence returned up to 1.68 per cent U3O8. The 50 square km Jenny Lake area also covers prospective basement lithologies of the Wollaston domain at its eastern limit along a major tectonic boundary. Historical grab samples of yellow-stained fractures in gneiss and pegmatite returned values up to 0.47 per cent U3O8.
For more on EPL’s properties, interviews with the CEO and newsletter recommendations go to their official website .
Management Pedigree:
Tim J. Termuende (P. Geo Director, President & CEO): is a professional geologist with over 25 years experience in the mineral exploration industry. Since earning his degree in Geological Sciences at the University of British Columbia in 1987, Tim has worked on exploration projects throughout North, Central, and South America, and has inspected mineral deposits in the former Soviet Union. Tim has been continuously active in mineral exploration throughout western Canada since 1976. Tim is one of the founders of EPL.
Charles C. Downie (P.Geo. Director, Vice-president Exploration): Is a former Cominco geologist who has worked at Pine Point, Polaris, Snip and Sullivan mines. Mr. Downie has been associated with Eagle Plains Resources since 1993 and brings extensive project management experience related to property evaluation.
David Johnston (BASC, MASC, Director): From 1973 - 1980 Mr. Johnston held the position of manager of operations at the Fording River coal mine. From 1982 – 1989 he was vice president and general manager for Cominco Ltd.’s northern operations group overseeing three operating mines in the Canadian arctic and sub-arctic. During 1990 to 1995, he served as vice president mine operations of Cominco Metals overseeing the Polaris and Magmont underground operations. During his tenure as vice president of mine operations he was responsible for assembling the project and production team that brought the Snip gold mine into production. From 1995 to 1999 Mr. Johnston was president and general manager of Highland Valley Copper Corporation, North America's third largest open pit copper mine.
Ron Netolitzky (M.SC. Geol., Director): Mr. Netolitzky has been directly involved in the mineral exploration industry in Western Canada since 1964. His knowledge of mineral exploration and aggressive business acumen has resulted in exploration success on three Western Canadian gold projects (all of which became producing mines): the Snip and Eskay Creek deposits in British Columbia and the Brewery Creek deposit in Yukon. He was honoured with the Bill Dennis Prospector of the Year Award in 1990 by the Prospectors and Developers Association of Canada. He is currently President and CEO of Viceroy Exploration Ltd.
Summary: For someone who wants to play the current resource bull market EPL is the ideal investment because it offers a low risk and high reward proposition. By joint venturing out their properties, EPL recoups most and sometimes even more of the capital they spent in acquiring the property and they still continue to hold a minority stake in the property in case a discovery is made on that property. Sooner or later, EPL is going to make a discovery and their business model gives shareholders an ideal low risk way to be part of the process.
|