Eagle Plains and Providence soar on Iron Range update

Vancouver – The share price of both Eagle Plains Resources (EPL-V) and Providence Capital (PV-V) climbed dramatically after the companies released an update on the Iron Range polymetallic project in southeastern British Columbia.

The companies have completed roughly 3,300 metres of drilling over 10 holes but have not yet received assay results for the bulk of the drilling.  

Eagle Plains reports in the update, however, that hole IR10-05 showed wide, intermittent intervals of breccia textures and intensive silica and albite alteration from surface to 278 metres depth, and so portions of the hole were sent for rush assay.

Results of the rush assay on an interval from 63 metres to 90 metres showed 4 metres grading 1.49 grams gold per tonne and 22.5 grams silver per tonne from 75 metres depth, and 1 metre averaging 6.05 grams gold and 33.9 grams silver from 87 metres depth.  

A 19-metre interval sent for testing that started at 144 metres averaged 0.84 gram gold throughout the sample, and included 3 metres carrying 3.17 grams gold and 22.9 grams silver.

The company reports that hole IR10-07 showed similar alteration to hole IR10-05 and mineralized material over a 13-metre interval starting at 142 metres. Hole IR10-10 also showed intensely altered material including galena and sphalerite in two short intervals at 191 metres depth and 279 metres depth.

The share price of Eagle Plains climbed 35¢ or 140% over two days to close at 60¢ on a total of 11.2 million shares traded. The company had not traded above 25¢ in the previous 52 weeks and has 79 million shares outstanding.

Providence Capital, meanwhile, climbed $1.02 or 276% to close at $1.39 after two days on just over a million shares traded. Before the update the company saw generally infrequent trading, going weeks at a time without any shares traded, and was trading at below 15¢ until mid-October. Providence has 12.6 million shares outstanding.

Eagle Plains controls the project while Providence entered into an option agreement in May to earn up to 60% of the property. To earn its interest, Providence must pay $500,000 in cash, issue 1 million shares and spend $3 million in exploration, spread out over 4 years.

Drilling has been suspended pending full assay results, though the company expects to restart drilling after the holidays. The land package spans 56,200 hectares near Creston.