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Resource Estimate Completed
on Eagle Plains’/Shoshone Silver’s “Blende” Silver-Lead-Zinc
Project
A detailed National Instrument 43-101-compliant
technical report authored by B. Price, M.Sc., P.Geo.
has recently
been received by Eagle Plains Resources Ltd. (EPL:TSX-V)
and option partner Shoshone Silver Mining Co. (SHSH:OTC)
relating to the Blende deposit, located approximately
65 NE of Keno in central Yukon, Canada. Shoshone may
earn a 60% interest in the 72 unit (1587 hectare) property
from EPL by completing US$5,000,000 in exploration
expenditures and issuing 1,000,000 common shares. A
1% NSR has been reserved for B. Kreft.
In his technical report, Price used
calculations prepared in 1991 by Billiton Metals Canada
Ltd., which identified
a resource estimate for the property comprising a
total of 19,600,000 tonnes (21,500,000 tons) grading
56.0
g/T silver and 5.84% combined lead-zinc. Within this
resource is 15,300,000 tonnes grading 67.5 g/T silver
and 6.27% combined lead-zinc.
In terms of contained metals, the
Blende property contains at least:
- 35M ounces silver
- 1.3B lbs zinc
- 1.2B lbs lead
Price noted that “Mineralization
estimates are considered reliable and relevant, but
were prepared
prior to National Instrument 43-101 standards. The
resource calculations have been examined in detail
by the writer and conform with the definition of an
Inferred Mineral Resource.”
Although initially explored as an
open pit target, Eagle Plains and Shoshone management
believe that there
is excellent potential to develop the deposit as
an underground operation, which would allow mining
of
a smaller tonnage with higher grade. By adjusting
the cutoff grade of the blocks calculated previously,
the
resource could be reduced in tonnage, but increased
in grade to 4.1 million tonnes grading 105 g/T (3.1
oz/t) silver, 6.7% lead, and 4.6% zinc. At the completion
of work in 1994, the deposit was found to be open
along strike to the west, and down-dip.
Numerous high-grade intersections
have been reported by past operators, including hole
88-02 which assayed
282 g/t (8.22 oz/t) silver, 12.2% lead, and 4.4%
zinc over 19.8m from a depth of 70.7 to 90.5m. Hole
88-03
returned 8.5m grading 550.1 g/t (16.04 oz/t) silver,
15.3% lead and 4.6 % zinc from 118.0 to 126.5m, and
hole 90-15 intersected 9.5m grading 351.2 g/t (10.24
oz/t) silver, 14.11% lead, and 6.59% zinc from 60.1
to 69.6m. Step-out drilling in 1994 confirmed the
continuation of ore-grade mineralization westward,
with the addition
of significant copper values. Hole 94-81 contained
14.9 m of mineralization which assayed 228.4 g/t
(6.66 oz/t) silver, 9.71% lead, 5.48% zinc, and 0.78%
copper
from 9.2m to 24.1m, while hole 94-84 intersected
8.5m which returned 136.1 g/t (3.97 oz/t) silver, 6.74%
lead, 3.65% zinc and 2.43% copper from 45.5-54.0m.
Prior work also established that
the deposit is non-acid generating and could be mined
by open pit methods with
a stripping ratio of 2.1:1. Preliminary metallurgical
studies indicate no significant concentrations of
deleterious elements, although oxide lead and zinc
interfere to
some extent with recoveries, requiring a more complicated
processing flow-sheet
Mineralization at the Blende was
originally noted by the Geological Survey of Canada
in 1961 and was first
staked in 1975 by Cyprus Anvil Mining Corp., which
carried out mapping and geochemical sampling later
that year. Archer Cathro & Associates (1981) Ltd.
restaked the property in April 1981 and conducted trenching
and rock sampling from 1981 to 1984. NDU Resources
Ltd. purchased the property in 1987, and in 1988 drilled
3 holes (718 m) and explored by mapping and hand trenching.
In 1989 NDU carried out mapping, road construction,
soil sampling, magnetic and VLF-EM surveys. Billiton
optioned the property in 1989 and as project operator
drilled 15 holes (3659.7 m) in 1990. Billiton’s
1991 work included completion of the soil geochemical
and geophysical coverage, drill-testing of the deposit
over a 3.3 km strike length, and preliminary metallurgical
tests. The 1991 drilling consisted of 62 holes totaling
11,525m, including 15 holes in the West Zone, 34 holes
in the East Zone and 13 holes in the central area between
the two zones. Billiton elected in 1993 to convert
its interest to a 10% net profits royalty. In 1994
NDU drilled 7 step-out holes (596m) which successfully
extended the West Zone 150m further westward (the West
Zone remains open in this direction). This activity
is the last recorded exploration of the property. In
March, 1998 NDU merged with United Keno Hill Mines
Ltd. (UKHM) and the property came under the control
of UKHM, which subsequently went into receivership.
Eagle Plains consultants in Whitehorse commenced staking
in January, 2001, soon after the original claims expired.
Price estimates total expenditures
on the property from 1984 to 2001 to be approximately
$4.2 million.
In his report, he proposes a 2-phase, $1.6 million
exploration program consisting of extensive diamond
drilling to outline a higher grade resource which
may be amenable to underground development.
Eagle Plains Resources continues
to conduct research, acquisition and exploration projects
in western Canada.
The Company controls over 30 gold and base-metal
projects, many of which are currently optioned to or
joint-ventured
with third parties including NovaGold Inc., Kobex
Resources Ltd., Northern Continental Resources Inc.,
Shoshone
Silver Mining Co., and Golden Cariboo Resources Inc.
These agreements expose Eagle Plains to over $18
million in exploration expenditures over the next five
years.
In recent years, Eagle Plains has completed option
agreements with Billiton Metals, Rio Algom Exploration,
Kennecott Exploration, Viceroy Resource Corp. and
numerous other junior exploration companies, resulting
in nearly
13,000 m (43,000 ft) of drilling and over $5,000,000
in exploration spending on its projects since 1998.
On
behalf of the Board of Directors
Signed
“Tim J. Termuende”
President and CEO
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