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10,000’ Drilling Program Commences
on McQuesten Gold Project
Cranbrook, B.C.: Eagle Plains Resources
Ltd. (EPL:TSX-V) has commenced fieldwork on the Company’s
100% owned 489-unit (29,700 acre) Kalum project located
30km northwest of Terrace, near the central coast of
British Columbia. The claims cover a number of high-grade
gold occurrences related to a Cretaceous-aged granitic
intrusive stock with kilometer-scale dimensions. The
project is accessed by a network of logging roads, transected
by a hydro-electric power-line, and is located 90km
by road from port facilities in Kitimat, or 100km by
rail from Terrace to port facilities in Prince Rupert.
Extensive logging activity has taken place throughout
the project area, with additional road-building and
logging activity planned over the next three years.
The claims cover an area approximately 10km x 12km
that is underlain by sedimentary rocks which host a
large
intrusive stock. Seven documented high-grade gold
occurrences are located at or near the contact zone
of the intrusive,
while a single poorly-documented copper/molybdenum
occurrence is known to exist within its core. Detailed
assay results
were presented in an EPL news release dated February
20th, 2003 which is available on our website.
B.C. Government stream-sediment surveys of creeks
draining the Kalum intrusion and sedimentary-intrusive
contact
area reveal the presence of highly anomalous values
(many in the 95th percentile) for the elements gold,
silver, arsenic, tungsten, copper, molybdenum - all
considered key pathfinder elements for intrusion-related
gold systems (“IRGS”). Review of existing
airborne geophysical data for the area confirms the
existence of a pronounced magnetic anomaly coincident
with the intrusive material, and suggests the presence
of a much larger system than is currently outlined.
Many of the documented mineral occurrences are located
within the halo of the magnetic anomaly, which appears
to correspond with the sedimentary-intrusive contact
area. These individual occurrences have been the focus
of limited exploration efforts since the early 1900s,
but were worked individually and targeted for development
as low-tonnage, high-grade producers. Many high-grade
veins which saw work were documented as occurring
within a series of veins or within stockwork swarms,
many of
which remain un-sampled.
All exploration work in the project area was completed
prior to the discovery and recognition of IRGS models
and the development of deposits such as Kinross Gold’s
Fort Knox, located near Fairbanks, Alaska (158.3 Mt
grading 0.83 g/t, with a contained resource of 4.3 M
oz Au) and the Donlin Creek deposit currently under
development by Novagold/Placer Dome, containing measured
and indicated resources of 9.9 million ounces Au grading
3.0 g/t with an additional inferred resource of 17.9
million ounces grading 3.0 g/t using a 1.5 g/t cut-off
grade.
Despite the presence of strong geological, geochemical
and geophysical indicators of IRGS mineralization,
no exploration efforts have previously been directed
towards
assessing the occurrences in the Kalum area for their
low-grade, bulk-tonnage potential, nor has any exploration
activity been documented over the roughly 25km of
projected contact area. At the time of staking by
Eagle Plains,
all previously-held mineral tenures within the mapsheet
area had forfeited, allowing the Company the opportunity
to secure the complete intrusive package including
the entire contact zone.
Eagle Plains has mobilized a field-crew to the area,
and prospecting, stream-sediment and soil-sampling
activity is now underway. A Phase 1 budget of $200,000
has been
committed to the project, with work expected to continue
throughout the field season. Exploration efforts will
be directed to assessing the project area and identifying
similarities to known IRGS deposits such as Fort Knox,
Pogo, Donlin Creek, Kidston, and other recently recognized
deposits of this type located around the world. Work
will be completed under the supervision of Charles
C. Downie, P.Geo., identified as a “Qualified Person” in
accordance with current securities regulations.
Eagle Plains Resources continues to conduct research,
acquisition and exploration projects in western Canada.
Through a network of prospectors, consultants and
experienced contractors in addition to seasoned employees
and a
well-rounded Board of Directors, the Company has assembled
a diverse portfolio of gold and base-metal properties.
EPL seeks to attract joint-venture participation on
it’s properties, thereby leveraging exploration
spending to the ultimate benefit of the Company’s
shareholders. In recent years, Eagle Plains has completed
option agreements with Billiton, Rio Algom, Kennecott,
Novagold Resources, Viceroy Resources and numerous other
junior exploration companies, resulting in nearly 10,000m
(33,000’) of drilling and over $5,000,000 in exploration
spending on its properties since 1998.
On Behalf of the Board of Directors
Tim J. Termuende, P.Geo.
President and CEO
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