Cranbrook,
B.C. 31 July, 2008: Eagle Plains Resources Ltd. (EPL:TSX-V) and option partner Blind Creek Resources Ltd. (a
private B.C. company) jointly announce that they have mobilized crews and
equipment to commence a diamond drilling program on the Blende property,
located in central Yukon approximately 65km NE of Keno. A total of 1,200m
of drilling is planned for the project during 2008. The budget for the
2008 program has been set at $700,000 and includes metallurgical testing
of mineralized material.
Blind Creek may earn a 60% interest in
the 73-unit (3700 acre) property, which is owned 100% by EPL (subject to
a 1% NSR). To earn its 60% interest, Blind Creek has agreed to complete a
total of $5,000,000 in exploration expenditures, pay EPL $250,000 cash
and issue 1,000,000 common shares by December 31st, 2010.
The
Blende is a carbonate-hosted deposit on the south edge of the Mackenzie
Platform, hosted by Middle Proterozoic Gillespie Group dolomite. A N.I.
43-101 compliant report was completed on the property in 2004 by B.
Price, P.Geo. In his technical report, Price used calculations
prepared in 1991 by Billiton Metals Canada Ltd., which identified an
inferred resource estimate for the property comprising a total of
19,600,000 tonnes (21,500,000 tons) grading 56.0 g/T silver, 3.04% Zn and
2.80% Pb at a cut-off based on an in-situ gross metal value (?GMV?) of
$25 (based on 1990 metal prices and exchange rates)*. Within this
resource is 15,300,000 tonnes grading 67.5 g/T silver, 3.04% Zn and 3.23%
Pb (note: this inferred resource does not consider metallurgical
recoveries).
Table 1-Inferred Resource Summary**
|
Inferred
Resource
|
Contained
Silver
|
Contained
Zinc
|
Contained
Lead
|
|
19,600,000
tonnes
|
38,700,000
oz
|
1,300,000,000
lbs
|
1,200,000,000
lbs
|
*These resource
estimates were prepared by Billiton Canada Explorations In., a large
integrated international exploration company prior to the introduction of
National Instrument 43-101. Nevertheless, in (Price?s) opinion, the
estimates are relevant and reliable.
**These figures
represent in-situ resources and do not account for mining or
metallurgical recoveries
Although
initially explored as an open pit target, Eagle Plains and Blind Creek
management believe that there is excellent potential to outline
additional resources, and possibly develop the deposit as an underground
operation, which would allow mining of a smaller tonnage with higher
grade. By adjusting the cutoff grade of the blocks calculated previously,
the current inferred resource could be reduced in tonnage, but increased
in grade to 4.1 million tonnes grading 105 g/T (3.1 oz/t) silver, 6.7%
lead, and 4.6% zinc. At the completion of work in 2007, the deposit was
found to be open along strike to the west, and down-dip.
Numerous
high-grade intersections have been reported by past operators, including
hole 88-02 which assayed 282 g/t (8.22 oz/t) silver, 12.2% lead, and 4.4%
zinc over 19.8m from a depth of 70.7 to 90.5m. Hole 88-03 returned
8.5m grading 550.1 g/t (16.04 oz/t) silver, 15.3% lead and 4.6 % zinc
from 118.0 to 126.5m, and hole 90-15 intersected 9.5m grading 351.2
g/t (10.24 oz/t) silver, 14.11% lead, and 6.59% zinc from 60.1 to
69.6m. Step-out drilling in 1994 confirmed the continuation of ore-grade
mineralization westward, with the addition of significant copper values.
Hole 94-81 contained 14.9 m of mineralization which assayed 228.4 g/t (6.66
oz/t) silver, 9.71% lead, 5.48% zinc, and 0.78% copper from 9.2m to
24.1m, while hole 94-84 intersected 8.5m which returned 136.1 g/t (3.97
oz/t) silver, 6.74% lead, 3.65% zinc and 2.43% copper from 45.5-54.0m.
Drillhole BE07116, drilled in 2007, returned 8.5% lead/zinc , 67.1 g/t Ag
over 8.0m from 8.9 m to 16.9 m. (including 22.8% lead/zinc and 193.0 g/T
silver over 1.0m from 10.9m to 11.9m)
The 2008
program is carried out under the supervision of C.C. Downie, P.Geo.,
hereby identified as the ?Qualified Person? under N.I. 43-101. Drilling
services have been contracted to Apex Diamond Drilling Ltd. of
Smithers, B.C., a company related to Eagle Plains.
Update on
Diamond-Drilling at Iron Range Project (iron, copper-gold)
Phase 1 diamond
drilling has been completed on EPL?s 100% owned Iron Range
project located 10km north-east of Creston, BC. A total of 20 holes were
drilled during July with a total footage of 1,670m (5,500?). Significant
iron mineralization was encountered in all sections, which were spaced
over 3km of strike length. Analytical results will be released as assays
results are received, compiled and interpreted.
Update on
Additional Eagle Plains Properties
Crews are
continuing work on the Mackenzie
Valley Zinc Project (part of a Strategic Alliance
with Teck Cominco Ltd.) located west of Norman Wells, NWT. An average of
20 people have been carrying out systematic exploration of the Mackenzie
Mountains since mid-June. Fieldwork consisting of ground geophysical
surveys, soil and stream geochemical sampling and geological mapping is
expected to continue until late August. A $2.5M budget has been allocated
for this project.
First-Phase
2008 fieldwork has been completed on EPL?s Saskatchewan uranium projects,
two of which are under option to Blue Sky Uranium Corp (BSK:TSX-V) (Eagle Lake and Karin Lake).
Prospecting, mapping and systematic lake-sediment sampling was completed
on these properties and on EPLs 100% owned Kulyk Lake and Jenny Lake Projects
over a three-week period.
Crews have
recently been mobilized to the Titan
(copper-gold-molybdenum) Property located 50km west of
Atlin, BC. A $400,000 budget has been approved by option partner XO Gold
Corp (a private BC company) to carry out surface exploration work on
Titan and an adjoining property and will include an airborne geophysical
survey, geological mapping, prospecting and soil geochemical surveys.
Fieldwork is
underway on EPL?s 100% owned Kalum
Property located 30km north of Terrace, BC, funded and operated by option
partner Mountain Capital Corp (MCI:TSX-V). Drilling activity is planned
for the property later in the 2008 season.
Detailed
geological mapping has been completed on EPL?s 100% owned Bohan (silver-lead-zinc)
property located 10km north of Creston, BC. Drilling activity is planned
for the property later in the 2008 season.
Preliminary
geochemical surveys have been initiated on EPLs 100% owned Elsiar Property
located 30km north of Terrace, BC, funded by option partner Sandstorm
Resources Ltd. (SSL:TSX-V). Crews commenced sampling activity in early
July, but were restricted to lower elevations due to an unseasonably slow
snow melt this year. Work will resume on the property later in the 2008
season.
About Eagle
Plains
Eagle Plains
Resources continues to conduct research, acquire and explore metal
projects in western Canada. The Company controls over 35 gold, base-metal
and uranium projects, many with third parties including Teck Cominco Limited (TSX:TCK.B),
Alexco Resource
Corp. (TSX-V:AXR), Sandstorm Resources Ltd. (TSX-V:SSL.P),
Mountain Capital
Inc (TSX-V:MCI.P), Blue
Sky Uranium Corp. (TSX-V:BSK) and XO Gold Resources Ltd.
These agreements expose Eagle Plains to over $22.0 million in exploration
expenditures over a five year period. In recent years, Eagle Plains has
completed option agreements with Billiton
Metals, Rio Algom Exploration, NovaGold Resources, Kennecott Exploration and
numerous other junior exploration companies, resulting in over 47,000m
(154,200?) of drilling and over $21,000,000 in exploration spending on
its projects since 1998. Eagle Plains management anticipates
approximately $6,000,000 in expenditures on its projects in 2008, funded
equally between Eagle Plains and third party partners.
This news
release has been reviewed and approved by Tim J. Termuende, P.Geo.,
hereby designated as a ?Qualified Person? under National Instrument
43-101.
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
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.
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