Copper Canyon Receives Shares and $100,000 Cash Payment for Abo
Cranbrook, B.C., February 29th, 2008: Copper Canyon Resources Ltd. (CPY:TSX-V) has received a scheduled 200,000 shares and $100,000 cash payment from Egoli Resources Inc. (a private British Columbia Corporation) pursuant to an option agreement whereby Egoli may 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. Egoli intends to earn a 75% interest in the Property by completing $7,500,000 in exploration expenditures, paying Copper Canyon $1,500,000 in cash and issuing 1,000,000 million common shares of Egoli over a 5 year period. A 2% net smelter royalty is reserved for Copper Canyon. Work commitments on the project by Egoli in 2008 total $500,000.
The Property is 100% owned by Copper Canyon and consist 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 1970’s including Abo Resources, Kerr Addison Mines Ltd. (Kerr Addison) and Bema International Resources Ltd. Most recently, Northern Continental Resources optioned the property from 2002-2005. Exploration work since 1970 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 grams per tonne gold (EMPR ASS RPT 19584). Drill results reported from the Jenner Stock include 64m averaging 3.77 g/t (EMPR ASS RPT 20144). 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 resource estimate for the Abo project based on historical results. Price estimated a Probable Resource of 1,845,000 tonnes averaging 2.79 g/t or 165,200 oz in situ, with a further Possible 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. This resource estimate is based on historical data and is not in compliance with NI 43-101 definitions of a resource.
CopperCanyon 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
For further information, please contact Mike Labach at
1 866 HUNT ORE (486 8673)
Email: firstname.lastname@example.org or visit our website at http://www.copcanyon.com
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