Eagle Plains (EPL-TSE) is itself a product of the merger with Wild Horse Resources way back when.  After the spin off of Copper Canyon (CPY-TSE) this small exploration company went on an aggressive mode to acquire and consolidate it’s properties.  They presently have several important sites.  One is the promising uranium property in the province of Saskatchewan, an equally promising molybdenum prospect in southern British Columbia. 

However their current pride and joy is the Yellow Jacket gold mine in northern BC.  This mine is currently producing gold although I don’t know how much or if it’s profitable.  The plan is to become profitable in the near future, that I do know.  From what I hear, hush hush, wink wink, the idea is floating around for the company to spin off this mine as it did Copper Canyon.  That could be a real boon for current Eagle Plains shareholders.  However, I do believe we’ll have to see EPL’s share price at a higher level that it currently is.

The other exciting development is the ongoing progress at their new Iron Range discovery in south-eastern British Columbia.  About 65 miles north-eastward the Sullivan lead-zinc mine operated for almost 100 years until it closed a few years back.  All during that time mine managers and geologists have been convinced that that the Sullivan deposit was only half of the total. They have been looking for the other half all those years, without success.  The search for the other half has continued but, thus far, all the efforts have been in vain.

Just a few weeks ago Eagle Plains, which owns 100% of several hundred square kilometers of this prospect have found, what they firmly believe, is the other half. Of course much more drilling and exploration will have to be completed before any official claims can be made.  Meanwhile I’m just sitting on my shares.  Sooner or later there will be a payout.

A note on strategy when dealing with these small exploration companies. I like to take a fair position then if the share price doubles I sell one half of my position.  That way I lock in a profit and still have the other half left at no cost to me to enjoy any additional gains, if any.  Then if that half doubles I sell all or just a portion thereby locking in additional profits and maintaining a position for any possible additional gains. Of course if things start to look really bad I try to unload everything as soon as possible.

This is all for the benefit of those who own either EPL or CPY or both.  It has nothing to do with my current ETF program which I know will be very profitable and low risk for the next few years.

Cheers

Ted L.