Eaglehead results disappoint Carmax speculators (January 21, 2008)

Vancouver — The first assays from Carmax Explorations’ (CMX-V, CAXPF-O) 2007 drill program on its B.C. Eaglehead property disappointed speculators who had run the company’s share price up while awaiting the numbers.

Calling them the “best holes to date,” Carmax released results from two of 12 holes drilled over the summer at Eaglehead. Both holes were mineralized over their entire lengths, though near-surface grades were low.

Hole 74 intersected 162.6 metres grading 0.4% copper, 0.018% molybdenum, 1.46 grams silver per tonne and 0.12 gram gold from 176 metres depth. The broad intersection included several higher-grade segments, such as 80.2 metres grading 0.48% copper, 0.027% molybdenum, 2.35 grams silver and 0.14 gram gold, and 12.5 metres grading 0.95% copper, 0.07% molybdenum, 5.88 grams silver and 0.45 gram gold.

Hole 70 returned 60.8 metres grading 0.28% copper, 0.004% molybdenum, 1.2 grams silver and 0.5 gram gold from 296 metres depth, including 16.6 metres of 0.49% copper, 0.003% molybdenum, 3.67 grams silver and 1.71 grams gold.

Carmax initially said the results would be out in late October, but a series of delays from Acme Analytical Labs held them up until mid-December. In the meantime, Carmax’s share price climbed to 35 from around 10. The company lost half of that gain when the results finally appeared, falling 13.5 or 39% to close at 21.5 on 14.4 million shares traded.

The Eaglehead property consists of 26 claims covering some 94 sq. km in the Liard mining division, 50 km east of Dease Lake in northern B.C. From the mid-1960s until 1982, several companies carried out exploration programs on the property. The site saw extensive geochemical surveying, geophysical programs, and 59 diamond-drill holes. Of the 59 holes drilled, 54 intersected copper mineralization, indicating a mineralized body over a 5.2-km strike length.

Mineralization at Eaglehead is intrusive-hosted copper-molybdenum, with lesser grades of precious metals, occurring in border phases along the southern margin of the Eaglehead pluton, a quartz-monzonite to granodiorite complex of early Jurassic age.

Drilling to date has established six zones that appear contiguous across the property, the most significant of which are the Bornite, East and Far East zones.

Carmax optioned the property in 2004, carrying out extensive sampling and surveying work the following year, and drilling 10 holes totalling 3,076 metres in 2006. The grades were promising: hole 60A intersected 18.7 metres grading 0.41% copper, 0.016% molybdenum, 1.21 grams silver and 0.09 gram gold, including a 1.25-metre section grading 1.43% copper, 0.025% molybdenum, 5 grams silver and 0.47 gram gold. Hole 61 returned 24 metres of 0.52% copper, 0.036% molybdenum, 2.17 grams silver and 0.025 gram gold, including 0.77 metre of 8.08% copper, 0.065% molybdenum, 54 grams silver and 0.3 gram gold.