Diamond Drilling to Commence Immediately on Abo (Harrison Gold) Project
Cranbrook, B.C.: Eagle Plains Resources Ltd. (EPL:TSX-V) has received notice from Northern Continental Resources Ltd. (NCR:TSX-V) that permits are in place for work on the Abo (Harrison Gold) Project (the Property) on Bear Mountain near Harrison Hot Springs in south-western British Columbia. The work program, currently underway will consist of road maintenance, rehabilitation of the adits (Jenner and Portal) and diamond drilling on the Hill Zone intrusion. Seven zones have been identified on the Property to date, namely the Jenner, Portal, Hill, Breccia, Lake, Bear and Bluff. Previous work was focused mainly on the northern part of the Property in the area of the Jenner and Portal intrusions. Drill results reported from the Portal Zone include 30 meters averaging 3.17 g/t Au in drill hole PT88-88. Drill hole 84-28 from the Jenner Zone assayed 64 meters averaging 3.77 g/t Au. The Property Report by Price (2002) prepared to National Instrument 43-101 guidelines, outlines an indicated resource of 1.845 million tonnes grading 2.79 g/t Au containing 165,000 ounces of gold and an inferred resource of 0.6 million tonnes grading 2.8 g/t Au containing 55,000 ounces of gold in the Jenner and Portal zones, which are open to depth. The Hill, Breccia, Lake, Bear and Bluff zones have had very limited exploration work. The Property Report draws analogies between the mineralization seen the Abo Property with the intrusion related gold deposits (such as Fort Knox in Alaska) in the Tintina gold belt.
Northern Continental’s drill plans will follow on strike and down dip of drill hole intercepts on the Hill Zone intrusion where drill hole intercepts of 27 meters grading 3.3 g/t Au in drill hole 88-130 and 7 meters of 3.09 g/t Au in drill hole 88-127 were obtained from the intrusion and associated Breccia Zone. If warranted, a resource estimate will be made for the mineralization intersected in these zones.
The Property area has been held or optioned by various operators since the early 1970’s including Abo Resources Ltd., Kerr Addison Mines Ltd. and Bema International Resources Ltd. Exploration work included mapping, soil sampling, ground-based geophysics and a total of 13,856m (45,448’) of diamond drilling. Some small-scale underground development has also been completed including mining 643 tons of ore yielding 979 ounces of gold with an average grade of 47.4 g/t Au (1.38 oz/ton Au) from the Portal Zone. New anomalies identified in an airborne geophysical survey flown by Eagle Plains in 2001 will also be followed up and prepared for drilling.
The Abo Gold Project is a joint venture between Eagle Plains and Northern Continental whereby NCR has an option to earn a 60% interest in the Property from EPL by spending $3,000,000 on exploration and issuing 1.7M shares (see News Release August 20th, 2002). The Property is road-accessible year-round with excellent infrastructure. Hydroelectric power, natural gas and rail-service are located within 3km of the Property boundaries. Click here to view the Price Report in pdf format.
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”
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.