Cranbrook, B.C., 05 February, 2007: Eagle
Plains Resources Ltd. (EPL:TSX-V) is pleased to
announce that a letter of intent has been executed with
Wellstar Energy Corporation (WST:TSX-V)
whereby Eagle Plains has agreed to grant an option to Wellstar
to earn a 60-per-cent interest in Eagle Plains'
100-per-cent-owned Kulyk Lake and Jenny Lake
uranium properties (the “Project”), located 30 to 40
kilometers southeast of Cameco's Key Lake mining operation in
north-central Saskatchewan, Canada. Under terms of the proposed agreement, Wellstar will make an up-front cash
payment to EPL of $77,500 to cover acquisition costs, commit
to $5,000,000 in exploration expenditures and issue 1,000,000
common shares to EPL by December
31st, 2011.
The Project adjoins
Eagle Plains’/Blue Sky Uranium Corp.’s (formerly Mulligan
Capital Corp. (MCC-TSX.V) Eagle Lake property where an extensive airborne geophysical survey and follow-up ground
geological program was carried out in the fall of
2006.
The Kulyk Lake property covers
approximately 96 square km and was staked to cover known
historical uranium mineral occurrences and uranium lake
sediment anomalies within prospective folded and faulted
basement lithologies of the Wollaston group. Much of the known
uranium mineralization occurs along Wollaston group contacts
and fault intersections, particularly in the presence of
pegmatite. Historical trenching at one such occurrence revealed 0.369 per cent U3O8 over 3.4 meters (SMDI 0993). Grab
sampling from another occurrence returned up to 1.68 per cent
U3O8 (SMDI 0978).
The 50 square km
Jenny Lake area also
covers prospective basement lithologies of the Wollaston
domain at its eastern limit along a major tectonic boundary.
Known uranium mineral occurrences are associated with several
large-scale structures that suggest excellent regional prospecting potential. Historical grab samples of
yellow-stained fractures in gneiss and pegmatite returned
values up to 0.47 per cent U3O8 (SMDI 0981). To the east, a
single historical drill hole near the Needle Falls shear zone
intersected a sulphide and graphite-bearing zone in pelitic
host rock.
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.
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 Alexco
Resource Corp. (TSX-V:AXR), Solomon Resources
Inc (TSX-V:SRB), Mulligan Capital Corp
(TSX-V:MCC.P), Blind
Creek Resources and Golden
Cariboo Resources Inc. (TSX-V:GCC). These
agreements expose Eagle Plains to over $13.5 million in
exploration expenditures over the next five years. In recent
years, Eagle Plains has completed option agreements with
Billiton Metals, Rio Algom Exploration, NovaGold
Resources, Kennecott Exploration, Viceroy Resource
Corp. and numerous other junior exploration
companies, resulting in over 38,000m (125,000’) of drilling
and over $16,000,000 in exploration spending on its projects
since 1998. During the 2006 season, EPL and its partners
completed over 7,000m (23,000’) of Diamond drilling on its
properties.
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. |