CRANBROOK, BC -- (Marketwire) -- 12/18/08 -- Copper Canyon Resources Ltd. (TSX-V: CPY) and Egoli Resources Inc. (a private British Columbia Corporation) have agreed to amend Egoli's option to earn a 75% interest in Copper Canyon's wholly owned Abo Gold Property (the Property) located in the Harrison Lake area of south-western British Columbia, approximately 130km east of Vancouver. Under the modified terms of the agreement, Egoli may earn a 75% interest in the Property by completing $6,050,000 in exploration expenditures, paying Copper Canyon $1,385,000 in cash and issuing 1,500,000 common shares of Egoli over a 5 year period.
The Property is 100% owned by Copper Canyon and consists of 2427 ha which were staked by Eagle Plains Resources in 2000 and subsequently transferred to Copper Canyon in 2006 as part of a Plan of Arrangement. The claims overlie a number of gold occurrences associated with a series of intrusive stocks. Accessory minerals include copper, silver, lead, zinc, molybdenum, tungsten and bismuth. The Property is road-accessible year-round. Hydroelectric power, natural gas and rail-service are located within 3 kilometers of property boundaries.
The Property area has been held or optioned by various operators since the early 1970s including Abo Resources, Kerr Addison Mines Ltd. (Kerr Addison) and Bema International Resources Ltd. Exploration work has included mapping, soil sampling, ground-based geophysics and a total of 13,856m (45,448') of diamond drilling. Some small-scale underground development has also been completed. Most of the work was focused on the northern part of the Property in the area of the Jenner and Portal Stocks. Drill results reported from the Portal Zone include 30 meters averaging 3.17 g/t gold (EMPR ASS RPT 19584). Drill results reported from the Jenner Stock include 64m averaging 3.77 g/t (EMPR ASS RPT 20144). In 1987, Kerr Addison collected a 1053 tonne bulk sample from the Jenner Stock underground workings. Using the metallurgical results from this sample combined with extensive underground sampling and results from diamond drilling, Kerr Addison reported and indicated a grade of 3.2 - 4.1 g/t Au with an inferred tonnage of 1.3 million tonnes from surface to 100m elevation, and an additional 2.2 million tonnes from surface to sea level (EMPR ASS RPT 20144, MINFILE #92HSW092). Other gold-bearing stocks identified on the Property include the Hill and Lake Stocks. These areas have seen limited exploration in comparison to the Jenner-Portal Stocks areas. Diamond drill intersections reported from the Hill Stock area include DDH BX88-130 which averaged 3.54 g/t Au and 6.3 g/t Ag over 27 meters, and contained 8m averaging 8.7 g/t Au and 14.2 g/t Ag (EMPR ASS RPT 20144).
In 2002, Barry Price was retained by Eagle Plains to provide a NI 43-101 compliant resource estimate for the Abo project based on historical results. Price estimated an Indicated Resource of 1,845,000 tonnes averaging 2.79 g/t or 165,200 oz in situ, with a further Inferred Resource of 613,600 tonnes averaging 2.79 g/t or 55,100 oz. These resources are contained within the Jenner and Portal Stock zones.
Copper Canyon Resources was created by way of a Plan of Arrangement on June 9, 2006. Shareholders of Eagle Plains Resources Ltd. approved the plan to reorganize the Company's mineral property assets in an effort to maximize shareholder value. Under the terms of the arrangement, three of Eagle Plains' projects, Copper Canyon, Severance and Abo (Harrison) Gold, were transferred into Copper Canyon on a one-for-one share basis.
On behalf of the Board of Directors "Tim J. Termuende" President and CEO
Cautionary Note Regarding Forward-Looking Statements
The TSX Venture Exchange has not reviewed and does not accept 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.
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