Carmax Explorations Ltd (C-CMX) - News Release
Carmax shareholders approve Eaglehead acquisition
2005-01-26 14:34 ET - News Release
Shares issued 10,086,250
CMX Close 2005-01-25 C$ 0.15
Mr. Ernest Peters reports
EAGLEHEAD OPTION AGREEMENT APPROVED BY SHAREHOLDERS
At Carmax Explorations Ltd.'s annual general meeting held on Jan. 21, 2005, the proposed non-arm's-length transaction to acquire the Eaglehead property was approved by the disinterested shareholders. The company will now be proceeding to obtain conditional acceptance of the TSX Venture Exchange to the terms of the agreement, subject to the company securing satisfactory financing.
The terms of acquisition are subject to the company spending no less than $6-million for the purpose of commencing a minimum of a three-phased exploration program on the claims over a period of seven years ending Oct. 31, 2011. In addition, the corporation is required to pay the total sum of $350,000 and issue a total of three million shares in annual instalments of $50,000 and 500,000 shares. The corporation will earn 30 per cent after it spends $2-million, a further 30 per cent after it spends the next $2-million and a final 40 per cent after it spends the last $2-million. The property is subject to a 2.5-per-cent net smelter return royalty, of which 1.5 per cent may be purchased for $2-million.
Property history
The Eaglehead property is located in the Liard mining division approximately 48 kilometres east of Dease Lake in Northern British Columbia and is accessible by the Turnagain road to a point approximately eight kilometres southwest of the property. The Eaglehead property has experienced significant historical exploration. The property was initially discovered in 1963 by Kennecott Explorations Ltd. when geochemical surveys, geological mapping, trenching, an induced polarization (IP) survey and four diamond drill holes were drilled in the Camp and Pass zones. During the period between 1970 and 1976 Esso Minerals conducted further geological, geophysical and geochemical surveys, and drilled a total of 5,607 metres in 30 diamond drill holes in the Camp and Pass zones and in the newly discovered Bornite zone. Between 1979 and 1981 an additional 25 diamond drill holes were completed and additional zones to the southeast, such as the East zone and Far East zone, were discovered.
This work has resulted in a mineralized trend in excess of 10 kilometres with 59 holes drilled along a six-kilometre strike length. Drill hole data indicate significant intercepts in 54 of the 59 holes, with numerous holes having multiple intercepts. One of the last holes drilled in the East zone -- DDH No. 55 -- intercepted 208 feet averaging 0.94 per cent Cu, 0.009 per cent Mo, 4.44 grams per tonne Ag and 0.17 gram per tonne Au.
In the valuation report prepared by Charles K. Ikona, PEng, which has been filed with the TSX Venture Exchange in a preliminary filing, it is stated that previous work on the Eaglehead property indicates that it has considerable potential to develop copper and molybdenum mineralization with associated precious metal values. Of the five zones discovered to date, only the Bornite zone has had sufficient drilling to report volume calculations which at this stage indicate in excess of 20 million tons at 0.42 per cent Cu, 0.029 per cent Mo, 1.60 grams per tonne Ag and 0.035 gram per tonne Au. The East and Far East zones, which are later discoveries and have received very limited work to date, show good promise and diamond drilling is recommended for this area in the phase 1 exploration program.
Whiskeyjack Creek property
The company's geological consultants are continuing to review and interpret the results of the phase 1 diamond drilling program conducted on its Whiskeyjack property located in Cairo township in the Larder Lake mining division of Ontario. A total of 10 diamond drill holes was completed during 2004, with the best hole returning anomalous values where previous historical samples had assayed between 0.12 and 1.89 ounces of gold per ton. Future plans for the Whiskeyjack property will be announced within the next few months.
Corporate update
At the company's annual general meeting held on Jan. 21, 2005, the following business was transacted and approved by shareholders.
Election of directors
Ernest S. Peters (president and chief executive officer), Charles S. Underhill (secretary and chief financial officer), Jeffrey Poloni and John Poloni, PEng, were reappointed to the board.
Harry Bygdnes, who has served on the board of directors since Aug. 12, 2002, did not stand for re-election, and the current directors wish to extend, on behalf of the company's shareholders, their gratitude to Mr. Bygdnes for his contribution during the company's formative years.
Stock option plan
Disinterested shareholders approved the implementation of a rolling stock option plan whereby a maximum of up to 20 per cent of the issued shares of the company, from time to time, may be reserved for issuance pursuant to the exercise of options. The plan is subject to approval and filing with the TSX Venture Exchange.
Management contracts
Disinterested shareholders approved two management contracts whereby consulting and management services are provided to the company by Petco Enterprises Ltd., a company 100 per cent beneficially owned and controlled by Mr. Peters, and Western Information Services (1992) Ltd., a company 100 per cent beneficially owned and controlled by Mr. Underhill, on the basis of monthly compensation to each of Petco and Western in the amount of $4,000 per month.
In addition to the foregoing, it was disclosed to shareholders that the company is continuing to evaluate several other potential mineral property acquisitions, details of which will be released to shareholders upon any decision to proceed with any commitment.
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