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« Silver Wheaton Corporation Call Options Up 105% since November 8th, 2010 | Main | Silver Eagle coin sales shaping up for record in November 2010 »
Thursday
Dec022010

Eagle Plains Resources Limited: Up 100% in Two Days

EPL Chart 03 Dec 2010.JPG


Every picture tells a story and the above chart of Eagle Plains Resources Limited (EPL) clearly shows what a few good drill results can do for a small company. Also note the dramatic increase in the volume of shares traded as the euphoria heightens.

Eagle Plains Resources Ltd. (EPL: TSX-V) is a junior exploration & mining company operating in western Canada.

Eagle Plains Resources primary objective is to enhance shareholder value through acquisition and development of early stage mineral exploration projects using our in-house geological and financial expertise.  The company currently controls over 35 gold, silver, uranium, copper, molybdenum, zinc and rare earth mineral projects.  The company has been employing the following business model since 1992:

1. Acquire & develop mineral exploration projects using
in-house geological expertise.

2. Utilize joint venture participation and gold production revenue to fund the development of the exploration projects.

3. Spin-off exploration successes into new companies to spotlight value, make available to producing companies for capitalization and create shareholder value.

In our latest update of our portfolio, which we posted a couple of days ago we wrote the following:

Eagle Plains Resources Limited (EPL) – We bought this stock for around $0.53, it has been down to $0.08 but closed at $0.24, at the last update, last week EPL closed at $0.24. Not good enough, we’ll observe a little longer.

What a difference two days makes, Eagle Plains closed today at $0.58, having gained around 100% in two days, which appears to be triggered by the following news release:

EPL have now completed ten diamond drill holes for a total footage of 10,945 feet (3,337m). Drilling activity has been suspended pending receipt of analytical results, but is expected to resume following the Christmas holidays. The partners continue to test the stratigraphic interval known to host the Sullivan deposit, located 70km to the north. Current work is targeting both precious metal and base metal mineralization and is funded by Providence Capital under terms of an option agreement.

The partners are encouraged by observations made to date of existing drill-cores. Hole IR10-05 encountered wide, intermittent intervals from surface to a depth of 278m containing breccia textures and intensive silica and albite alteration. Associated sulphide mineralization includes iron sulfides and arsenopyrite (a mineral often associated with gold). Intervals 148.0m to 163.0m (15.0m) and 270.0m to 278.0m (8.0m) were particularly enriched with lead-zinc sulphide mineralization. Hole IR10-07 returned similarly altered and mineralized material from 142.0m to 155.0m. Hole IR10-10 hosted the most intensely-altered and mineralized material, with semi-massive to massive sulphide mineralization including galena (lead) and sphalerite (zinc) reported over two intervals from 191.0m to 202.0m and from 276.0m to 279.0m. The lower massive sulphide interval is overlain by a 55m zone of disseminated to net-textured mineralization within intensely altered rock. The base of the lowermost massive sulphide appears to be truncated by a fault. Significant in the lower interval was the location of the massive sulphide mineralization, which is interpreted to be at or near the Lower-Middle Aldridge contact, the stratigraphic horizon which hosts the Sullivan deposit. The hole was terminated in rocks interpreted to be of the Lower Aldridge Formation.

A portion of the altered material from Hole IR10-05 was sent for rush assay analysis in order to confirm the presence of suspected gold mineralization. The interval from 62.5m-89.5m returned 0.64 g/t over 27m, including:


74.5m to 78.5m: 1.49 g/t gold and 22.5 g/t silver over 4.0m

86.5m to 87.5m: 6.05 g/t gold and 33.9 g/t silver over 1.0m
The interval from 144.0m to 163.0m returned .84g/t gold over 19.0m, including

148.0m to 155.0m: 1.80 g/t gold and 15.7 g/t silver over 7.0m, including 3.17 g/t gold and 22.9 g/t silver over 3.0m

Widths of altered and mineralized intervals are apparent thicknesses only. True thicknesses will be established with the completion of additional drilling.

Drilling by Eagle Plains on the property in 2008 intersected gold mineralization including drill hole IR08006, which returned 7.0m grading 51.52 g/t (1.50 oz/ton) gold from 20.0m to 27.0m (see EPL news release dated April 20th, 2009). DDH IR05-03, drilled in 2005, was collared 175m away from DDH IR10-10 and returned values of 3.82 g/t Au and 46g/t Ag over a 2 m interval (see EPL NR June 13, 2005). The mineralization encountered in this hole was associated with a silicified, veined and altered breccia unit with associated galena, sphalerite and arsenopyrite, and appears to be similar to material observed in the current drill-holes as described above.

Additional staff have been added to the project crew to assist in core-logging and sampling operations. Analytical results will be forthcoming as they are received, compiled and interpreted.
The Iron Range project is owned 100% by Eagle Plains and holds no underlying royalties or encumbrances. Providence holds the option to earn a 60% interest in the Property by spending $3,000,000 on exploration, making $500,000 in cash payments and issuing 1,000,000 shares to EPL over 4 years. As announced on November 2nd, an additional 35,800 ha of claims were added to the existing land package, resulting in a total of 56,200 ha – an area approximately 11km x 50km.




So there we have it and its more by good luck than good judgment that we still hold this stock. So, its back to observation mode for now and we are pleased to see that we now have a small paper profit.


Eagle Plains trades on the TSX Venture exchange under the symbol of EPL, has a market capitalization of $46.56 million with 78.91 million shares outstanding and has traded as low as $0.11 and as high as $0.72 over the last year.

Meanwhile back at the ranch during our knockabout sessions we have toyed with the idea of running an Accumulator whereby we make a trade and then use the total proceeds for the next trade and so on. So the stake and any profits are rolled into the next move, if you would like to comment on this idea, then please click here.

Over in the options trading pit the team have updated the progress chart to include closed trades, now 53 winners and out of 55 trades, having been stopped out of a trade with a profit of 41.84% made in just 8 days. We currently have a number of open positions which we are pleased to say are all in positive territory.

sk chart 19 Nov 2010.JPG



The above progress chart is being updated constantly. However, to see exactly how it is going, please click this link.

So, the question is: Are you going to make the decision to join us today?


Stay on your toes and have a good one.

Got a comment then please add it to this article, all opinions are welcome and very much appreciated by both our readership and the team here.



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