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Eagle Plains/Miner River Sign Letter
of Intent with Rio Algom Exploration on South Findlay
property in southeastern B.C.
Cranbrook, B.C.:Eagle Plains Resources
Ltd. (EPL:ASE) and Miner River Resources Ltd.
(MRG:ASE) have
signed a Letter of Intent with Rio Algom Exploration
Inc. on a portion of the Eagle Plains/Miner River 50:50
joint venture Findlay Creek project located about 35
km north of Cominco's Sullivan mine in southeast British
Columbia. Rio Algom intends to enter into an option
agreement whereby it may earn a 60% interest in 231
claims (14,000 acres) by carrying out $2,000,000 in
exploration expenditures and making cash payments of
$310,000 to the companies over 4 years. These claims
will be known as the South Findlay property. They comprise
the southern portion of the 425 claim (25,800 acre)
Findlay Creek property and are contiguous with the 247
claim (15,000 acre) Greenland Creek project to the south.
Greenland Creek has recently been optioned to Kennecott
Canada Exploration Inc. under terms similar to the proposed
Rio Algom agreement (see February
2, 1999 News Release).
Background and Recent Exploration: In 1995 Miner River
and Eagle Plains initiated a search for potential
mineral deposits based on the model of Cominco's Sullivan
deposit
in the East Kootenay area of B. C. The companies and
their associates researched and staked over 30,000
acres of land having Sullivan-type mineral potential.
These
properties were subsequently subjected to an extensive
government airborne geophysical survey which indicated
numerous exploration targets. In 1996 the companies
completed follow-up exploration programs including
diamond drilling, with encouraging results. In December,
1996
they optioned 18,000 acres (identified as Findlay
Creek) to Kennecott Canada Exploration Inc. for further
exploration.
In 1997 and 1998 Kennecott carried out exploration
totaling $1,300,000 on the Findlay property culminating
in the
drilling of 5 holes at the end of the 1998 season.
The project area was expanded to 425 claims (25,800
acres)
during Kennecott's tenure. Of the 5 holes drilled,
hole #98-05, located on a feature called Tourmalinite
Ridge,
encountered base-metal enrichment over 105.2 metres.
Within this interval, 46 individual thin stratabound
mineralized horizons were intersected (see News Release
January 12, 1999). At present, Eagle Plains and Miner
River have a 100% interest in the 149 claim (9,000
acre) North Findlay parcel that contains over 10km strike-length
of high-potential stratigraphy defined in drill hole
#98-05. The partners are currently seeking a joint-venture
participant for this property.
In January, 1999 Kennecott elected to direct its exploration
southward and consequently optioned the companies'
adjoining Greenland Creek property. As a result Miner
River and
Eagle Plains regained 100% control of the Findlay
property of which the proposed Rio Algom option is a
part.
In summary, the original 30,000 acre property of 1995
has been expanded, divided and identified as:
- Greenland Creek, 247 claims (15,000 acres) optioned
to Kennecott Canada Exploration Inc.
- South Findlay, 231 claims (14,000 acres) to
be optioned to Rio Algom Exploration Inc.
- North Findlay, 149 claims (9,000 acres) owned
100% by Miner River and Eagle Plains.
The companies also have 50:50 joint venture interest
in 11 gold properties in the Tintina Gold Belt in the
Yukon and joint venture interests in 9 silver-lead-zinc
properties in the Yukon and southeastern B. C. Recently the companies agreed
to amalgamate (see February 25, 1999 News Release). If approved, this amalgamation
is expected to take place in May, 1999.
R. W. Termuende, President
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