Sphinx Property

The claims consist of a total area of 15,400 ha located 60 km west of Kimberley, BC. The large land package includes all significant claims in the area, including lands suitable for mine infrastructure and tailings areas. The property area is road-accessible, has been logged extensively and is situated along a high-voltage hydro-electric line. Rail facilities are located at Marysville, 60km east of the property.

In 2009 Letho commissioned independent consultants Moose Mountain Technical Services (author Robert Morris, P.Geo.) to prepare an updated 43-101 report on the Property. In his report, Morris calculated an Indicated Resource of 41,450,000 tonnes grading 0.041 %Mo (with a 0.03% Mo cut-off) and an Inferred Resource of 37,180,000 tonnes grading 0.04% Mo (with a 0.03% Mo cut-off), based on 7,603 samples from 38 diamond drill holes totaling 10,685.8m.

During the winter of 2005/06 Eagle Plains commissioned Barry Price, P.Geo. to compile a NI43-101 compliant technical report calculating a resource for the Sphinx Project. In his report, Price outlines an Inferred Resource of 62,005,615 tonnes grading 0.035% Mo, using a cut-off grade of 0.01% Mo for a contained metal calculation of 47,844,630 lbs Molybdenum. See News Release Issued May 9, 2006.

In the Fall of 2006, a 1700m drill program was carried out and results were announced in a news release issued on February 7, 2007.  In the spring of 2007 a 2344m drill program was conducted and the results have been reported in a news release of Nov 16, 2007.  The results of these progams will be used to update the current inferred resources calculation, expected to be completed in late 2007.

sphinx-map

History

The project area was first identified by Cominco Ltd. in 1978, which carried out surface work and limited diamond drilling from 1978 to 1984. Cominco completed a soil geochemical survey which resulted in the delineation of a 1700m x 500m tungsten-moly anomaly. 4-6 drill holes were completed, but no results were released. In 1997, Barkhor Resources drilled 10 holes into the soil anomaly and encountered significant mineralization over a 1000m x 300m area. Results from only one hole were ever released (DDH JI97-06), but a private consultant reported that “typical drill intersections are averaging 0.03-0.038% Mo over core lengths ranging from 90 to 230m”. At the time of the Barkhor drill program, molybdenum sold for $ 5.00 US per pound, with the metal currently priced at $34.00 US per pound.

Geology

The property overlies sedimentary units that have been intruded by intrusive rocks. Molybdenum and associated tungsten mineralization occurs as quartz-pyrite stockwork veins hosted by both sedimentary and intrusive rocks (see Regional Map). Chemical alteration of rock units suggests the presence of a substantial porphyry-style mineralizing system.

British Columbia molybdenum mines and deposits include the Endako Mine (182 Mt at .0785 % Mo,) Kitsault Lake (95 Mt at .112% Mo), Boss Mountain (6.7 Mt at 0.13% Mo), Max (27.9Mt at 0.13% Mo) and Adanac (Ruby Creek) (199 Mt at 0.062% Mo).