Option Agreement Signed with Respect to the Hamlin IOCG Property
East West Resource Corp. and its joint venture partner, Mega Uranium Ltd., have signed an option agreement with Xstrata Copper, whereby Xstrata Copper may earn a 51-per-cent interest in two contiguous properties (Hamlin and Deaty Creek) totalling 157 claim units, by spending $3.0-million over four years, with an option to earn an additional 24-per-cent interest, by completing or spending $20-million toward a feasibility study.
The Hamlin and Deaty Creek properties cover a seven-kilometre-long series of breccias, related to an IOCG iron-oxide-copper-gold system.
These two properties were originally acquired in March, 2003, and a detailed program of mapping, prospecting, airborne and ground geophysics, trenching, and diamond drilling was carried out by the partners. The IOCG system was drill tested on the Hamlin property over a strike length of 800 metres, with widths of copper-gold-molybdenum mineralization ranging from 50 metres to 100 metres (for example 0.415 per cent copper, 0.016 per cent molybdenum, 2.9 grams per tonne silver and 0.107 g/t gold, over 72 metres in hole HAM-06-39). The zone on Hamlin and others on Deaty Creek consist of hematized breccias, with chalcopyrite, pyrite, magnetite, epidote and molybdenite. Age dating of the mineralization yielded a Timiskaming age, which is similar in age to large IOCG deposits located in the Carajas district of Brazil.
Xstrata Copper has considerable experience with the Brazilian IOCG settings, and the partners look forward to seeing new aspects of this unique geological setting being uncovered by Xstrata Copper.
ON BEHALF OF THE BOARD
Blake Colvin, Director