10,000’ Drilling Program Commences on McQuesten Gold Project
Cranbrook, B.C.: Eagle Plains Resources Ltd. (EPL:TSX-V) announces that a 10,000’ (3,000m) 20-25 hole diamond drilling program has commenced on the McQuesten Gold project, located in the Keno Hill Mining District, 40 kilometres northeast of Mayo, Yukon. Drilling is being carried out by Novagold Resources Inc. (TSE:NRI), through its subsidiary Spectrum Gold, which holds an option to earn a 70% interest in the property from owner Eagle Plains. A 2% NSR is reserved for the underlying vendor. The property consists of 51 quartz mining claims (2,500 acres) that are accessed by the all-weather Yukon Silver Trail highway with an adjacent hydro-electric transmission line. The village of Elsa is located 5km to the north.
In 1999 NovaGold purchased from Viceroy Exploration Ltd. (TSE:VOY) the right to earn a 70% interest in the property from Eagle Plains by making exploration expenditures of C$1,000,000 on the property and assuming cash payments totaling C$320,000. To date all cash payments relating to the option agreement have been settled. The completion of the current 10,000-foot drill program will fulfill the expenditure requirement whereby NovaGold/SpectrumGold will earn its 70% interest and enter into a joint-venture with Eagle Plains.
Drilling and trenching on the McQuesten property indicates the presence of a large mineralized system hosted within calcareous meta-sediments and intrusive rocks. Mineralization consists of disseminated and semi-massive sulphides (pyrrhotite, pyrite and arsenopyrite) in quartz-sericite and skarn alteration packages of sedimentary rocks.
Drill holes in the West Zone contain up to 18.3 m of 3.74 g/t and 24.4 m of 2.16 g/t Au. Trenches include 16.0 m of 2.67 g/t and 27.0 m of 1.62 g/t Au. Drill holes in the East Zone contain up to 16.3 m of 2.19 g/t and 9.6 m of 2.87 g/t Au. Trenches include 9.2 m of 4.94 g/t and 8.3 m of 2.72 g/t Au. Both zones remain open along strike.
A series of priority drill targets based on airborne geophysical anomalies, trenching and auger geochemistry will be drilled as part of the exploration program to test the potential for a multi-million ounce gold system at McQuesten. The entire program is expected to continue for 6-8 weeks and is budgeted at $400,000. Results of the program will be reported after they are finalized.
On behalf of the Board of Directors
“Tim J. Termuende”
President and CEO
Cautionary Note Regarding Forward-Looking Statements
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts 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.