Eagle Plains Resources (EPL.V) announced last month it was notified by Pacific Imperial Mines (PPM.V) an exploration team has been mobilized at the Brownell Lake VMS-polymetallic project in Saskatchewan. Historical drill results on this project include 3.35 meters containing 2.28% zinc, 0.48% copper and 1.46 g/t gold and several other narrow but higher grade zinc and copper intercepts. There is a 20 year old resource estimate on the property based on 37 holes but the 1.25 million tonnes at 0.56% copper and 1.75% zinc is obviously still far away from reaching a certain critical mass.
Pacific Imperial will complete an electromagnetic survey over the property to improve the depth resolution below historical drilling depths and to hopefully figure out the potential extent of the strike length of the mineralization. The exploration program will obviously be part of the company’s earn-in agreement whereby Pacific Imperial can earn a 60% stake in the property by completing C$5M in exploration expenditures as well as making a cash payment of C$500,000. On top of that, Eagle Plains will be issued 1 million shares of Pacific Imperial Mines which will allow EPL to retain exposure to the project beyond the remaining 40% stake in the property.
Meanwhile, the company is in the final stages of spinning out Eagle Royalties. Eagle Plains already obtained shareholder approval and court approval and expects to complete the spin-off in the next few days.
Disclosure: The author has no position in Eagle Plains Resources. Please read our disclaimer.
