Vancouver — Thinking two heads are better than one, Eagle Plains Resources (EPL-V, EGPLF-O) and Teck Cominco (tck.b-t, tck-n) are partnering to explore for base metals in the Mackenzie Mountain area of the western Northwest Territories.
Eagle Plains, holding about 5,400 sq. km of ground in the region, has been active in the area for more than five years and has built up a significant database covering a broader 19,000 sq. km that will compose part of the “area of mutual interest.”
Teck Cominco predecessor Cominco also explored parts of the area in the 1970s and will kick in its proprietary data to the partnership. As part of the strategic alliance, Teck Cominco intends to purchase 1.2 million Eagle Plains units at $1.25 apiece.
The alliance covers a large area of folded and thrusted Proterozoic to Devonian carbonates and shales thought to be prospective for large base metal deposits. Eagle Plains has documented dozens of high-grade lead-zinc occurrences discovered by a number of previous explorers over its permit area.
A budget of $1.25 million has been allocated for this year’s fieldwork, which has already started. The strategic alliance is set to expire at the end of 2008.
Shares of Eagle Plains reacted favourably to the news, gaining 17% or 13 to close at 89 apiece.
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