Solomon Signs Letter of Intent with Eagle Plains Resources on Hall Lake Gold Project, Southeast British Columbia
Solomon Resources Ltd.(TSX-Ven.SRB) is pleased to announce that, subject to TSX-V exchange approval, it has signed a Letter of Intent (LOI) with Eagle Plains Resources Ltd. (TSX-V:EPL) outlining the companies’ intent to enter into a formal option agreement whereby Solomon will have the right to earn up to a 75 percent interest in Eagle Plain’s 100 percent owned “Hall Lake” (formerly “Cretin”) property. Located 50km west of Cranbrook, in southeast British Columbia, the Hall Lake property is road-accessible and is located near a high-voltage hydroelectric power line.
(PRWEB) October 7, 2005 -- Solomon Resources Ltd.(TSX-V:EPL) is pleased to announce that, subject to TSX-V exchange approval, it has signed a Letter of Intent (LOI) with Eagle Plains Resources Ltd. (TSX-V:EPL) outlining the companies’ intent to enter into a formal option agreement whereby Solomon will have the right to earn up to a 75% interest in Eagle Plain’s 100 percent owned “Hall Lake” (formerly “Cretin”) property. Located 50km west of Cranbrook, in southeast British Columbia, the Hall Lake property is road-accessible and is located near a high-voltage hydroelectric power line.
The Hall Lake property was acquired by Eagle Plains in 2002 by staking and covers an area of 1779 hectares. The claims overlie a Cretaceous-aged intrusive stock situated along a regional fault structure hosted by Precambrian sedimentary rocks. No historical work has been reported for the property area. In 2004 Eagle Plains carried out reconnaissance geological mapping, prospecting and limited geological and geochemical sampling that resulted in the discovery of gold mineralization in three individual areas. A total of 20 samples were collected with values ranging from trace gold content up to 2.45 g/t gold and 42 g/t silver.
Solomon and Eagle Plains intend to carry out geological exploration work immediately, with a $40,000 budget now in place. Fieldwork will consist of geologic mapping, prospecting and geochemical work.
Solomon will fund the initial $40,000 work program in exchange for an exclusive, one time option to earn into the property. Proposed terms of the agreement include a 2-phase earn-in, whereby Solomon may elect, before January 31, 2006, to earn a 60% interest by making $110,000 cash payments, issuing 225,000 common shares and completing CAN$1,000,000 in exploration expenditures by June 30th, 2008. Eagle Plains will be operator during the Phase 1 earn-in period. Solomon may increase its interest to 75% by making a total of $160,000 in cash payments, issuing 450,000 shares and completing exploration expenditures totaling CAN $2,000,000 prior to Dec. 1, 2010.
Qualified Person under National Instrument 43-101
David W. Tupper, P.Geol. a ‘qualified person’ for the purposes of National Instrument 43-101, has reviewed and approved this news release.
Forward Looking Statements
Some of the statements in this news release contain forward-looking information, which involves inherent risk and uncertainty affecting the business of Solomon Resources Ltd. Actual results may differ materially from those currently anticipated in such statements
About Solomon Resources Ltd.
Solomon Resources Ltd. is a Canadian public company focused on the acquisition, exploration and development of gold properties world wide. The Company is managed by a proven team of exploration geologists credited with the discovery and/or development of a number of significant deposits in the world, including the SNIP, Eskay Creek, and Brewery Creek deposits in Canada, the Segala gold deposit in Mali, the Chimney Creek, Mule Canyon, Ruby Hill, Mesquite, and Ortiz gold deposits in the United States, the Gosowong deposit in Indonesia, and the Cadia East deposit in Australia.
Solomon has significant gold exploration projects in Mongolia and Australia. Solomon’s shares trade under the banner SRB on the TSX Venture Exchange (TSX-V). For additional information visit Solomon’s website at www.solomonresources.ca.
On Behalf of the Board of Directors of
SOLOMON RESOURCES LIMITED
“Keith Laskowski”, President and Chief Operating Officer
Contact Information - Keith A. Laskowski, President
Solomon Resources Limited
Suite 900 - 475 Howe Street, Vancouver, BC, CANADA, V6C 2B3
Phone: 604-669-6656
Direct: 720-272-6224
Fax: 604-684-9877
Web Site: www.solomonresources.ca
The TSX Venture Exchange does not accept responsibility for the
adequacy or accuracy of this release.
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