Vancouver, BC, November 29, 2021 – Eagle Bay Resources Corp. (“Eagle Bay” or the “Company) is pleased to announce that it has expanded its land holdings in the Wicheeda District of the Rocky Mountain Rare Metal Belt located approximately 85 km NE of Prince George, British Columbia. The Prince Property is comprised of 24 mineral claims and totals 5,317 hectares. The claims were acquired from multiple vendors in separate transactions and increases the Company’s land holdings from 10,482 hectares to 15,798 hectares.
“This is a significant milestone for Eagle Bay Resources. Increasing our land position gives us the ability between drill work programs to continue exploration and discovery for a very long time.” said Steve Mynott, Director of Eagle Bay Resources. “With the current increased demand for rare earth elements (REE) and niobium, we feel that we have made a big step in the right direction.”
About the Prince Property
The Prince Property is situated immediately north of the Company’s existing Cap Property and is adjacent to the Wicheeda Deposit (see Figure 1. Regional Claim Map below).
The Wicheeda Deposit is currently being developed by Defense Metals Corp. and contains indicated mineral resources of 4,890,000 tonnes averaging 3.02% Light Rare Earth Elements LREO” and inferred mineral resources of 12,100,000 tonnes averaging 2.90% LREO, reported at a cut-off grade of 1.5% total metal. Defense Metals Corp. have disclosed it is currently completing the necessary work to produce a preliminary economic assessment (“PEA”) on the Wicheeda Deposit. 1
The Prince Property was previously explored for niobium and rare earth elements as early as 1986 by Teck Resources which completed a preliminary amount of exploration on two main areas, known as the “Prince Grid” and the “George Grid”. The George Grid now covers the Wicheeda Deposit, while the Prince Grid is located on the current Prince Property. Exploration work performed by Commerce Resources in 2007 and 2008 followed up and confirmed the exploration work done by Teck Resources. Canadian International Minerals (“CIN”, now Gambier Gold Corp.) conducted detailed rock and soil sampling on the Prince Property, as well as airborne magnetic and radiometric surveys. In 2010 CIN drill tested an area located approximately 800 meters northeast of the Wicheeda Deposit (results highlighted below). Follow-up drilling by CIN in 2011 tested additional areas of the property to the southeast, and along strike of the Wicheeda Deposit.
Highlights of the George Property:
- Drill Hole CA-10-006, collared approximately 800 meters northeast of the Wicheeda Carbonatite REE Deposit, encountered 43% TREO across 37.3 m, including 2.7% TREO over 3.0 m;
- Drill Hole CA-10-011 encountered 0.33% TREO across 60.3 m, including 0.94% TREO across 3.0 m;
- Drill Hole CA-10-014, encountered 0.226% Nb2O5 across 37.6 m, including 0.63% Nb2O5 across 2.2 m;
- Sample WI09-KM02 with 7064 ppm Ce, 4461 ppm La and 1387 ppm Nd (which converted to oxide contains at least 1.5% LREO), located 6 kilometers along strike from the Prince Grid carbonatite intrusive center, and has not yet been followed up.
After a preliminary review of the historical data on the Property, the Company has highlighted 4 high-priority target areas (see Figure 2. Prince Property Target Map below) that merit additional exploration work, as they are located in areas with minimal historical work yet appear to have important exploration characteristics. They are summarized in Table 1 ‘Exploration Target Summary’ set out below.
Additionally, after a review of the airborne magnetic data, the Company has interpreted that there are 2 separate and related carbonatite intrusive centers: 1. The Wicheeda Eruptive Center (“WEC”), which hosts the carbonatite plug that hosts the Wicheeda REE Deposit; and 2. The Prince Eruptive Centre (“PEC”), which hosts several altered carbonatite and syenite sills. Target A (in Table 1 below) is within the middle of the PEC, and thus has the potential to host an un-altered carbonatite plug based on its similar geophysical setting as the WEC.
In addition to the targets at the PEC, the sample collected at the historical Fluorite Grid (with at least 1.5% LREO) requires additional follow up. Due to the history of the land holdings in the area, it has not seen any systematic exploration such as what was seen in the 2007 to 2011 era.
Table 1. Exploration Target Summary
|Magnetic trough, similar to the Wicheeda Deposit area, associated with thorium anomaly and moderate soil sample anomalies. No detailed geological mapping in this area
|Moderate thorium anomaly, located 1,000 meters southeast of the Wicheeda Deposit, and along strike
|Along a magnetic flank of the Prince Eruptive Centre, moderate airborne thorium anomaly
|Along a magnetic flank of the Prince Eruptive Centre, moderate airborne thorium anomaly, and no soil sampling or geological mapping has covered the area
Principal Terms of the Acquisition
The Company acquired a 100% interest in 6 mineral claims (totaling 1,953 hectares) from Gambier Gold Corp. for a total purchase price of $150,000 and no underlying net smelter return royalty (“NSR”). The remaining 100% interest in 18 mining claims (totaling 3,364 hectares) comprising the Property was acquired from a group of vendors, pursuant to separate transactions, for an aggregate purchase price of $40,000 and 700,000 shares of Eagle Bay and no NSR.
The scientific and technical information contained in this news release has been reviewed and approved by Neil McCallum B.Sc., P.Geol. of Dahrouge Geological Consulting, and is a “Qualified Person” as defined in National Instrument 43-101 – Standards of Disclosure for Mineral Projects.
 “Technical Report on the Wicheeda Property, British Columbia”, effective June 27, 2020 and prepared by APEX Geoscience Ltd. (Steven J. Nicholls, B.A. Sc., MAIG and Kristopher J. Raffle, B.Sc., P.Geo.) is available under Defense Metals Corp.’s profile on SEDAR (www.sedar.com).
Management cautions that the results of any exploration activities or any resources estimates on any adjacent properties (i.e. Wicheeda) may not necessarily be indicative of the presence of any mineralization on the Company’s Prince or Cap properties.
TREO is the summation of Ce2O3 + La2O3 + Pr2O3 + Nd2O3 + Eu2O3 + Sm2O3 + Gd2O3 + Tb2O3 + Dy2O3 + Ho2O3 + Er2O3 + Tm2O3 + Yb2O3 + Lu2O3 + Y2O3. LREO (light rare earth oxides) is the summation of Ce2O3 + La2O3 + Pr2O3 + Nd2O3.
Non-Brokered Private Placement Financing
Eagle Bay is currently undertaking a non-brokered private placement offering (the “Offering”) of up to 13,000,000 units (each, a “Unit”) at a price of $0.075 per Unit for gross proceeds of $1,000,000. Each Unit will be comprised of one common share in the capital of Eagle Bay and one share purchase warrant (a “Warrant”). Each Warrant shall entitle the holder to acquire one common share (a “Warrant Share”) in the capital of Eagle Bay for a period of 12 months from the date of issuance, at a price of $0.10 per share, if exercised within the first six months after the date of issuance and, thereafter, at a price of $0.15 per share. Proceeds from the Offering will be used for regulatory filings, property acquisitions and for general working capital purposes. The Units will be issued pursuant to the applicable prospectus exemptions set out in the Securities Act (British Columbia), or in any regulation or rule thereunder, or in any policy statement or instrument of the British Columbia Securities Commission, and will be subject to resale restrictions as may be set out in the Company’s articles and constating documents and in National Instrument 45-102 Resale of Securities
About Eagle Bay Resources Corp.
Eagle Bay Resources Corp. is a privately-held, early stage exploration company focused on exploring and developing the Cap and George Properties, which are believed to be prospective for rare earth elements and niobium. Both properties are located 85 km NE of Prince George, B.C. and comprise an aggregate of 45 mineral tenures covering 15,798 ha. Some reconnaissance has occurred previously on both properties, including sample collection, an airborne geophysical survey, and some limited drilling on the Cap Property.
On Behalf of the Board of Directors
EAGLE BAY RESOURCES CORP.
This press release contains forward‑looking statements, which includes any information that addresses activities, events or developments that the Company believes, expects or anticipates will or may occur in the future. Forward looking statements in this press release include statements with respect to the terms of the Offering, the completion of the Offering, the expected use of the net proceeds of the Offering, and statements with respect to future drill or exploration programs on the Prince and Cap properties.
These statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to be materially different from those expressed, implied by or projected in the forward‑looking information or statements. Important factors that could cause actual results to differ from these forward‑looking statements include but are not limited to: adverse market conditions and the inability of the Company to complete the Offering on the terms set out herein or at all. In addition, the Company may not be able to fully finance exploration at the Prince or Cap properties; the initial findings on the Company’s Cap or Prince properties may prove to not merit further expenditure; commodity prices may not support exploration expenditures on the Prince or Cap properties, or both; and economic, competitive, governmental, environmental and technological factors may affect the Company’s operations, markets or products. Even if the Company explores and develops the Prince or Cap Properties, and even if metals or minerals are discovered in quantity, neither project may be commercially viable.
Except as required by law, the Company does not intend to revise or update these forward‑looking statements after the date of this document or to revise them to reflect the occurrence of future unanticipated events.