News release ยท January 22, 2007

News Release

January 22, 2007

Marshall Lake Main Zone Contains Classic Zoned VMS Copper-Zinc Phases

 
  • 9.70 metres of 1.19% Copper, 3.22% Zinc, 79.5 g/tonne Silver, 0.20 g/tonne Gold in drill hole MAR-06-05
  • Deep historic hole intersects 9.90m Copper Zinc zone, 25m-30m beneath MAR-06-03 and MAR-06-04
  • Geophysical Surveys resume to outline 5 other Zinc bearing zones

East West Resource Corporation (TSX-V: EWR) and Eyeconomy Holdings PLC (UK-PLUS: EYE) announce that assays from an additional three holes drilled on the Main Zone show both zinc and copper phases within the overall host horizon that extends for over 400m.

On the west end of the Main Zone, holes MAR-06-03 and MAR-06-04 were drilled in section at -45º and -60º, respectively, which showed the zone dipping north at 50º.

Holes MAR-06-05 and MAR-06-06 were drilled 50m east of MAR-06-03 and MAR-06-04 in section at -45º and -60º. Both sections intersected the Main Zone at approximately 15 and 25 meters vertically below surface.

MAR-06-05

Ticket # From (m) To (m) Width (m) Cu % Zn (%) Ag (g/tonne) Au (g/tonne)
364806 28.00 29.00 1.00 1.51 0.64 89.4 0.33
364807 29.00 30.00 1.00 0.99 0.14 81.6 0.22
364808 30.00 30.60 0.60 0.79 0.20 56.8 0.17
364809 30.60 32.00 1.40 0.12 0.04 4.6 0.03
364810 32.00 32.80 0.80 0.80 0.33 32.4 0.12
364811 32.80 34.00 1.20 1.57 8.41 119.0 0.16
364812 34.00 35.00 1.00 1.34 2.01 86.0 0.15
364813 35.00 36.00 1.00 1.46 1.58 104.0 0.18
364814 36.00 37.70 1.70 1.81 9.60 118.0 0.38
Wtd. Avg 28.00 37.70 9.70 1.19 3.22 79.5 0.20

Beneath holes MAR-06-03 and MAR-06-04, an old hole #154 by Imperial Oil drilled in 1976 intersected a 30 foot (9.9m) interval of 1.4% copper, 2.87% zinc and 2.99 oz/ton Silver, including 20 feet of 1.9% copper, 4.03% zinc and 4.26 oz of silver at a depth 50m below surface or 25m below hole MAR-06-04. This suggests the structural deformation of the typical VMS system has stretched the sulphides into plunging lenses that pinch and swell, similar in nature to some large deposits in the Snow Lake Belt in Manitoba. The west end of the Main Zone appears to contain high levels of copper. High zinc values such as in holes MAR-06-04 and MAR-06-06 can occur with lower copper, which is typical of a zoned VMS system.

Mise-a-la-Masse surveys will be done as part of a larger IP survey now starting this week on the Main and Teck Hill Zones to utilize the high-grade copper intersections for electrical contact. This will assist in tracing previously undetected massive sulphide lenses. The Main Zone is one of 6 zinc bearing zones that have now been found on the property; North Diabase, D, South Zone, Open Pit, and New Zinc Zone (formerly East of Teck, see News Release December 13, 2006). Geophysics is now being applied to trace the size of these other zones.

When analysing for basemetal and silver values (Copper, Zinc and Silver) were determined by ICP (inductively coupled plasma) after an aqua regia acid digestion. Assays exceeding 100 grams silver and 10,000 parts per million (ppm) copper were repeated using multi acid digestion and atomic absorption (AA). Check assays were run on high values. Gold values were determined by fire assay extraction on 30-gram samples followed by an AA finish. ALS Chemex in Thunder Bay carried out preparations of the samples outlined in this news release and ALS Chemex in North Vancouver carried out assaying.

The project set out above is being supervised by R. Middleton, P.Eng, who is the qualified person and responsible for quality control of the assaying and reporting. More details are available on all of East West’s properties at www.eastwestres.com.

About the Marshall Lake Project:

East West Resource Corporation holds a 50% interest in the Marshall Lake Copper Zinc VMS project located 310 kilometres north of Thunder Bay, Ontario, Canada.

The Marshall Lake area was explored between 1954 and 1996 and resulted in the discovery of a series of high grade near surface copper zinc deposits.

East West and its 50% partner Eyeconomy Holdings PLC became interested in the property in the second half of 2005. Negotiations to option four hundred and ten claim units from a local prospector were concluded in June 2006. A further eighty-six leased and nine staked claim were acquired from NWT Copper Mines Limited in October 2006. Finally three remaining claims were optioned from Teck Cominco in December 2006. The JV partners now consider that they have control over the Marshall Lake base metal camp with an exploration area of more than thirty square miles under option.

The partner’s long-term strategy is to define and develop near surface base metal resources on the property while considering the deeper potential of the property as the database is developed.

Two historical inferred mineral resource estimates are available from previous work based on an area within the property called the Main zone located 4 km northeast of the Gazooma copper zone:

K Zone (Main zone)

  • 240,000 tons of 1.45% copper, 4.76% Zinc, 2.8 ounces silver, 152 m long to 96 m depth D. W. Sullivan (1969) based on 15 holes

103 Zone (Main zone)

  • The 103 zone is an eastern extension of the "K" zone and is 1,174,810 tons delineated from 57 drill holes grading 0.82% copper, 2.71 % zinc, 1.77 ounces silver, 0.006 oz. gold. A. S. Bayne (1970)

Both the work by Sullivan and the work from A. S. Bayne were completed prior to NI43-101. All of the exploration results disclosed as mineral resource estimate immediately above are historic in nature and do not presently conform to National Instrument 43-101 Standards of Disclosure for Mineral Projects. They have been reviewed, but not verified, by Robert S. Middleton, PEng, who is the company's designated qualified person and responsible for the verification and quality assurance of its exploration data and analytical results. In the opinion of the qualified person, based on the information available, the mineralization on the Main or "K" Zone would be classified as an Inferred Mineral Resource based on the definition by the CIMM, since it will be required to do further in-fill drilling to establish grades. Therefore, the historic figures should not be relied on.

The property became accessible after 2000 following the completion of all weather roads by logging operators. Road access now permits the deployment of heavy digging equipment, modern geophysical tools and significantly reduces exploration costs. During the second half of 2006 the joint venture partners built a network of drill access trails focusing on exposing the existing showings.

The joint venture partners will each contribute 50% to ongoing exploration expenditure.

MAR-06-04

Ticket # From (m) To (m) Width (m) Cu % Zn (%) Ag (g/tonne) Au (g/tonne)
364702 38.45 38.80 0.35 3.43 1.98 150.0 1.41
364708 44.20 45.00 0.80 3.78 8.05 242.0 0.28
364709 45.00 45.45 0.45 4.00 1.73 161.0 0.16
364716 51.00 51.85 0.85 0.18 1.42 15.4 0.03
364717 51.85 52.35 0.50 2.75 6.29 375.0 0.33
 

MAR-06-06

Ticket # From (m) To (m) Width (m) Cu % Zn (%) Ag (g/tonne) Au (g/tonne)
364732 44.45 45.00 0.55 0.86 22.60 62.4 0.38
364733 45.00 46.00 1.00 0.11 1.80 21.3 1.00
364734 46.00 46.30 0.30 0.10 1.98 7.8 2.15
364735 46.30 47.00 0.70 0.74 4.86 44.7 0.25
Wtd. Avg. 44.45 47.00 2.55 0.44 7.15 35.0 0.79

ON BEHALF OF THE BOARD OF DIRECTORS
Blake Colvin
Blake Colvin, Director

Certain information regarding East West Resource Corporation contained herein may constitute forward-looking statements within the meaning of applicable securities laws. Forward-looking statements may include estimates, plans, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of fact. Although East West Resource Corporation believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. East West Resource Corporation cautions that actual performance will be affected by a number of factors, most of which are beyond its control, and that future events and results may vary substantially from what East West Resource Corporation currently foresees. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration results, continued availability of capital and financing and general economic, market or business conditions. The forward-looking statements are expressly qualified in their entirety by this cautionary statement. The information contained herein is stated as of the current date and subject to change after that date.

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