Eagle Plains/Providence Expand Potential of the Talon Zone

Cranbrook, B.C., March 21, 2012: Eagle Plains Resources Ltd. (TSX-V:EPL) and Providence Resources Corp. (TSX-V: PV) are pleased to announce results from a surface Induced Polarization (“IP”) geophysical survey carried out over the Talon Zone (Iron Range JV project) located near Creston British Columbia.


Scott Geophysics conducted an IP and ground magnetic orientation survey over the Talon Zone in order to determine 1.) if disseminated sulphide mineralization can be detected using geophysics and 2,) if the data could be used to guide follow up drilling in Q2, 2012. Known gold-lead-zinc-silver mineralization is coincident with modeled IP chargeability anomalies. Two anomalies from the IP survey will be tested as part of the 2012 drilling program.


Highlights:

Anomaly 1 -- anomaly is coincident with the gold-lead-zinc-silver mineralization intercepted in 2010 – 2011 drilling in the Talon Zone.
Anomaly 2 -- A second anomaly was detected and may represent a previously unknown mineralized zone.
IP survey suggests that the Talon Zone could extend 250 meters beyond previously known mineralization.
Two holes will be drilled in the Talon Zone based on the 2011 IP interpretation.

“Anomalies obtained from the surface IP test-survey show a strong spatial association with gold-lead-zinc-silver mineralization defined by 2010-2011 drilling.” Stated Providence Resources Corp.’s President and CEO Vince Sorace. “The results suggest that the Talon Zone could extend at least 250 meters northeast across the Iron Range Fault. This is potentially a significant increase in strike length and warrants drill testing as part of the 2012 drilling program.”

IP Survey Results


A total of 3.8 line kilometers of IP and magnetic data were collected across 4 individual lines, see map at http://www.eagleplains.com/projects/bc/ironrange/documents/talon_zone_2011_surface_ip_inversion_model.pdf. The purpose of the survey was to determine if disseminated sulphides associated with the Talon Zone and it’s alteration envelope could be detected using IP. The survey produced 2 chargeability anomalies (likely related) that together extend across all 4 survey lines. Anomaly 1 corresponds with Talon Zone mineralization as defined by the 2010-2011 drill programs and provides good evidence that the geophysical method can be relied upon. The second anomaly, present on lines 1 and 2 has not yet been drill tested but could represent an additional northeast-trending mineralized zone. Anomaly 2 was not closed by the survey and is open to the south and the east.

IP Survey Specifications


The pole-dipole array was used for this survey. Readings were collected with an “a” spacing of 50 metres and at “n” separations of 1 to 12. The on line current electrode was located to the east of the potential electrodes. Total field magnetometer readings were taken at 12.5 metre intervals and corrected for diurnal variation against a fixed base station cycling at 10 second intervals. GPS readings were taken at each station subject to satellite reception. Elevation measurements are barometric altimeter readings, calibrated to GPS altitude at the beginning of each line. A total of 3.8 kilometres of surface IP and magnetometer survey were performed.

2012 Exploration Program


The Company intends to execute a full exploration program beginning in April, 2012 (subject to receipt of permits) with the objective of systematically evaluating all existing exploration data, utilizing geophysical data acquired in 2011 (VTEM, ZTEM, IP), field evaluating all resulting anomalies and ultimately drill testing the highest priority targets. The 2012 Iron Range exploration program includes:

Evaluating the 2011 airborne gravity geophysical survey results – it is anticipated that results from this work will be available in late March, 2012.
Commencing a winter drill program of approximately 3500-4500 meters on the Row, Canyon and 6 Mile target areas. It is anticipated that the drill program will commence during or before the first week of April 2012.
Commencing a 60 day field program in the summer of 2012 with the objective of bringing remaining targets to the drill testing stage for Phase II drilling in late 2012.

Qualified Persons


Data acquisition and IP inversion models were carried out under the supervision of Alan Scott, P.Geo. Alan graduated from UBC with a B.Sc. in Geophysics in 1970 and with an MBA in 1982. Alan worked as a geophysicist with Gulf Minerals, Cominco, Anaconda Canada, and as an independent contractor prior to founding Scott Geophysics Ltd. in 1986.


Iron Range Project


The Iron Range deposits were originally staked in 1897, and were covered by Crown grants held by Cominco Ltd. and the Canadian Pacific Railway. Eagle Plains staked the current claims immediately after the Crown grants reverted in 2000, and it has been exploring the property since then. Exploration work to date includes geological mapping, geochemical surveys, diamond drilling and a 690-line-kilometre airborne geophysical survey.


An additional 35,800 hectares of claims were added to the original land package, resulting in a total of 56,200 hectares -- an area approximately 11 km by 50 km. The land package now covers over 30 km of the Iron Range structure, most of it unexplored. The claims also overlie rocks of the Aldridge formation, including the same stratigraphic time horizon that hosts the world-class Sullivan deposit located 70 km to the northeast. Over its 100-year lifetime, Sullivan produced approximately 150 million tonnes of ore including three billion ounces of silver, eight million tonnes of zinc and eight million tonnes of lead, collectively worth over $30-billion at current metal prices. The parties caution that past results or discoveries on proximate land are not necessarily indicative of the results that may be achieved on the Iron Range property.

About Eagle Plains Resources

Eagle Plains continues to conduct research, acquire and explore mineral projects throughout western Canada. Since 1992, EPL has been acquiring and developing early stage projects utilizing an in-house team of geologists, technicians and specialists. Considered a prolific project generator with over 35 properties, EPL invites joint venture participation to expedite development, reduce risk and enhance exposure to discovery.

Current third party agreements if maintained to completion expose EPL to over $55M in exploration expenditures, $6M cash and 15M shares in partner companies. Completed agreements have yielded over $5M in exploration spending, $900,000 cash to EPL and a total of 12M shares of partner companies including Alexco Resource Corp., NovaGold Resources Inc., Giyani Gold Corp., Aben Resources Ltd. and others.

Expenditures during 2011 on Eagle Plains-related projects were approximately $9,100,000 which was funded by Eagle Plains and third party partners. This exploration work resulted in approximately 9400m diamond drilling and extensive ground-based exploration work facilitating the advancement of more than 15 projects at various stages of development. Planning is currently underway for a very aggressive 2012 exploration season, with over 10 individual drilling programs planned, most to be funded by third parties in relation to ongoing option agreements.

On behalf of the Board of Directors

Signed


“Tim J. Termuende”
President and CEO

For further information on EPL, please contact Mike Labach at
1 866 HUNT ORE (486 8673)
Email: mgl@eagleplains.com or visit our website at http://www.eagleplains.com

 

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