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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, P.Geo.
President and CEO
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