CRANBROOK, British Columbia - (Business Wire) Eagle Plains Resources (TSX-V:EPL) has completed a $100,000 mineral exploration program on the Kalum property. The road-accessible, 21,883 ha property is located approximately 35 km northwest of Terrace, British Columbia in the Skeena Mining Division. Eagle Plains has agreed to grant an option on the property to Windstorm Resources Ltd, a private B.C. company which funded the 2009 program. Highlights
- Prospecting activity results in the highest-grade gold sample recovered to date on the property. Grab sample DKKMR002, taken from a previously unexplored area of the property returned 983 g/t (28.667 oz/t) Au and 495 g/t (14.44 oz/t) Ag
- Numerous soil samples returned highly anomalous samples of up to 2037 ppb Au
- I.P. geophysical survey completed
2009 Program:
A total of 30 man-days were spent on the property. Fieldwork consisted of soil geochemical sampling, prospecting and geological mapping in various areas of the large property, in addition to an induced Polarization (“I.P.”) survey near the “Burn” occurrence, which was the completion of work initiated during 2008 by previous option partner First Lithium (formerly Mountain Capital).
The 2009 program was successful in delineating new mineralization on the property, including the discovery and sampling of high-grade vein mineralization which returned 983 g/t Au and 495 g/t Ag. A single sample at this occurrence was taken during fieldwork activity, and the location site has not yet been revisited to verify thickness, orientation or character of the mineralized occurrence. A re-run of the original sample was completed by Eco Tech Laboratory Ltd. and confirmed the high-grade tenor of the original sample.
Follow-up exploration work is strongly recommended for the property.
Eagle Plains/Windstorm Option Agreement
Under terms of an agreement with Windstorm Resources Ltd., Windstorm will have the right to earn a 60% interest in the property by completing $3,000,000 in exploration expenditures, making $400,000 in cash payments, and issuing 500,000 voting class common shares to Eagle Plains. Windstorm may increase its interest to 75% by delivering a pre-feasibility study by 2017. A 1% NSR is held in favour of a third party, and may be purchased at any time for $1,000,000.
Property Geology
The Property is centered upon a large Cretaceous-age granodioritic stock of the Coast Crystalline Complex that has intruded Jurassic to Cretaceous-age sedimentary rocks of the Bowser Lake Group. A number of high-grade, vein-type gold occurrences are associated with the contact zone and magnetic signature of the intrusive stock. These occurrences have been explored by various operators and to various degrees over the past 80 years. All previous exploration efforts have been directed toward the discovery of high-grade stand-alone mineralization. The current Eagle Plains tenure package represents the first time that gold occurrences related to the intrusive stock have been consolidated by a single company.
Property History
The property had last seen exploration work in 2008 by Mountain Capital Corp. (now First Lithium Resources Inc.) who completed geologic mapping, a ground geophysical survey and 1,390m of drilling in 11 holes to target the “Burn” showing (see EPL/MCI news release December 15, 2008). Highlights of the 2008 program included drill-hole HKM 08-01, which returned 10.55m grading 0.973g/t gold from 9.95m to 20.50m (including 0.3m which assayed 28.7 g/t gold from 20.20 to 20.50m) and drill-hole HKM 08-03, which returned 2.30m grading 11.949 g/t gold from 14.0-16.3m. Mountain Capital terminated their option on the property in May, 2009.
Eagle Plains initiated property acquisition in the Kalum area in 2003 and completed significant exploration programs on the property in 2003 and 2004. The programs included a VTEM airborne survey, extensive geochemical programs, geologic mapping, and a 19 hole diamond drill program. The best drill results from this work included drill-hole KRC04001, drilled at the Rico showing (discovered by Eagle Plains personnel in late 2003), which returned 35g/t Au over 2.5m from 101.8m to 104.3m; including a 0.5m interval that assayed 107g/t Au (see EPL news release December 9th, 2004). In addition, historical occurrences on the Property were located, sampled and surveyed.
About Eagle Plains Resources
Eagle Plains continues to conduct research, acquire and explore metal projects in western Canada. In addition to holding mining royalties on various projects, the Company controls over 35 gold, base-metal and uranium projects, several with third parties including Waterloo Resources Ltd (TSX-V:WAT.P) and XO Gold Resources Ltd. (a private B.C. company). In recent years, Eagle Plains has completed option agreements with Teck Limited (TSX:TCK.B), Alexco Resource Corp. (TSX-V:AXR), Billiton Metals, Rio Algom Exploration, NovaGold Resources, Kennecott Exploration and numerous other junior exploration companies, resulting in over 53,000m (158,500’) of drilling and over $27.0 million in exploration spending on its projects since 1998.
Expenditures during 2008 on Eagle Plains’ projects were approximately $6,000,000, funded equally between Eagle Plains and third party partners. This work resulted in approximately 6,300m of drilling and extensive ground-based exploration work and facilitated the advancement of numerous projects at various stages of development.
On behalf of the Board of Directors
Signed,
“Tim J. Termuende”
President and CEO
For further information, please contact Mike Labach at 1 866 HUNT ORE (486 8673)
Email: mgl@eagleplains.com or visit our website at http://www.eagleplains.com
Cautionary Note Regarding Forward-Looking Statements
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.
Eagle Plains Resources
Mike Labach, 1 866 HUNT ORE (486 8673)
mgl@eagleplains.com
http://www.eagleplains.com
