Drilling Commences on Copper Canyon Project
Cranbrook B.C., 20 September, 2005: Eagle Plains Resources Ltd. (TSX-V:EPL) has been notified by partner NovaGold Resources Inc. (AMEX, TSX: NG), that drilling activity has commenced on Eagle Plains’ Copper Canyon gold-silver-copper project located in northwestern British Columbia. Exploration at Copper Canyon is being conducted concurrently with work on the contiguous Galore Creek project, controlled 100% by NovaGold.
Two holes are planned at Copper Canyon for the 2005 season, and are designed to provide additional information relating to an inferred resource on the property which was announced on January 10th, 2005. A plan of existing drill-hole locations may be viewed at http://www.copcanyon.com/projects/coppercanyon/
NovaGold may earn a 60% interest in the Copper Canyon project from EPL by completing C$3 million in exploration expenditures, issuing a total of 296,000 shares of NovaGold and making property payments totaling C$250,000. NovaGold may earn an additional 20% interest in the project for a total of 80% by paying Eagle Plains C$1 million and completing a feasibility study by September 2011.
An Inferred Category resource estimate completed by independent engineering firm Hatch Ltd. of Vancouver, B.C., Canada, shows that the Copper Canyon target at the Galore Creek project in Northwestern British Columbia contains over 2.86 million ounces of gold, 37.9 million ounces of silver and 1.16 billion pounds of copper at a 0.35% copper equivalent cut-off grade (CuEq)(1) (See Table 1 below). Copper Equivalent grades are based both on long-term average metal prices and estimated recoveries based on extensive metallurgical data from the adjacent Galore Creek Central/SW deposit. The estimate utilized a geologic model developed from the previously announced drilling at Copper Canyon during 2004 by NovaGold and historic results which had encountered significant widths of gold, silver and copper mineralization.
Table 1 : COPPER CANYON TARGET - INFERRED RESOURCE
|Cutoff||Size||Grade||Million lbs.||Million Ozs||Million Ozs|
Note: (1) Copper equivalent calculations use metal prices of US$375/oz for gold, US$5.50/oz for silver and US$0.90/lb for copper. Copper equivalent calculations (CuEq%) reflect gross metal content that have been adjusted for metallurgical recoveries based on the following criteria: Copper Recovery = (%Cu-0.06)/%Cu with a minimum of 50% and Maximum of 95%; Gold Recovery = (Au g/t – 0.14)/Au g/t with a minimum of 30% and Maximum of 80%; and Silver Recovery = 80%.
The results from 2004 drilling at Copper Canyon, combined with the earlier results, have defined a broad area of precious metal rich mineralization at least 700 meters by 400 meters which is open to expansion in all directions and at depth. The mineralization begins at surface, continuing to as much as 300 meters depth and occurs as a roughly 100+ meter thick zone of disseminated chalcopyrite and pyrite hosted within an intrusive porphyry complex.
The 2005 drill program and sampling protocol will be completed with oversight by qualified person Scott Petsel, Senior Project Geologist for NovaGold. A rigorous quality control and quality assurance protocol will be utilized on the project including blank and reference samples with each batch of assays. All drill samples will be analyzed by fire assay at ALS Chemex Labs in Vancouver, B.C., Canada.
Eagle Plains also reports that drilling activity has been completed on the LCR and Kalum properties located near Terrace, B.C. A total of 2405m in 20 holes were completed on LCR (funded by option partner Northern Continental Resources (TSX:V-NCR)), while approximately 650m in 4 holes were completed on EPL’s 100% owned Kalum project. Results will be issued when they are received, compiled and interpreted.
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 with third parties including NovaGold Inc. (NG:AMEX,TSX), Amarc Resources Ltd. - a Hunter Dickinson Group Company (AHR:TSX-V), Northern Continental Resources Inc. (NCR:TSX-V), and Golden Cariboo Resources Inc. (GCC:TSX-V). These agreements expose Eagle Plains to over $16.5 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 over 27,000m (90,000 ft) of drilling and over $8,000,000 in exploration spending on its projects since 1998.
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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.