Drilling Intersects Widespread, High-Grade Gold Mineralization on Eagle Plain’s Kalum Project
Cranbrook, B.C., 09 December, 2004: Eagle Plains Resources Ltd. (TSX-V:EPL) has received analytical results for a 19-hole, 6,421’ (1,958m) diamond drilling program which commenced in late August on the Kalum project, located 30km northwest of Terrace near the central coast of British Columbia. The claims consist of 540 units (32,000/13,500 ha) covering an area of approximately 10 km x 12 km, and are 100% owned by Eagle Plains (subject to a 1% NSR).
Prior to drilling, fieldwork on the property consisted of a 2000 line-km airborne geophysical program, extensive prospecting, geological mapping and collection of 3123 soil, 343 streamsediment, and 935 rock samples.
- Drill-hole KRC04001, drilled at the Rico showing (discovered by Eagle Plains personnel in late 2003), returned 35g/t Au over 2.5m from 101.8m to 104.3m; including a 0.5m interval that assayed 107g/t Au.
- Results from 2003 and 2004 exploration programs indicate the potential for a major system or systems of high-grade Au-Ag mineralization in several areas of the property.
- Numerous high-grade showings and soil geochemical anomalies remain untested on the property and will be the focus of an aggressive work program scheduled to commence inearly June, 2005.
The claims cover numerous high-grade gold-silver vein occurrences related to a Cretaceous-aged intrusive stock that has surface dimensions of approximately 7 x 12 km. The project is accessed by a network of logging roads and transected by a hydro-electric power-line. Extensive logging activity has taken place throughout the project area, with additional road-building and logging planned over the next three years.
Complete drill-hole results are as follows. A detailed map showing drill-hole locations may be viewed at Figure 1:
KRC04001: 42.4-47.9m; (5.5m) @ 4.6 g/t Au
Including (3.0m) @ 6.9 g/t Au
71.7-73.5m; (1.8m) @ 17.6 g/t Au
including (0.8m) @ 28.1 g/t Au
74.7-75.3m; (0.6m) @ 2.1 g/t Au
101.8-104.3m; (2.5m) @ 33.5 g/t Au
including (0.5m) @ 106.7 g/t Au, >1% Pb*, >1% Zn*
(* final analyses pending)
KRC04002: No positive results
KRC04003: No positive results
KRC04004: 2.4-4.7m; (2.3m) @ 2.0 g/t Au
KRC04005: 0.9-1.8m; (0.9m) @ 11.6 g/t Au
Including (0.6m) @ 17.2 g/t Au
KMY04001: 38.4-39.0m; (0.6m) @ 29.7 g/t Au, 91.5 g/t Ag and >1% Pb*
(* final analyses pending)
KMY04002: No positive results
KMY04003: Scattered anomalous values > 150 ppb Au
KKM04001: 158.3-158.8m; (0.5m) @ 2.4 g/t Au
157.4-158.8m; (1.4m) @ 1.1 g/t Au
KKM04002: 69.0-70.1m; (1.1m) @ 16.6 g/t Au
KKM04003: 126.9-127.1m; (0.2m) @ 7.8 g/t Au
158.5-159.6m; (1.1m) @ 6.0 g/t Au
KKM04004: Scattered anomalous values > 500 ppb Au
KKM04005: 112.9-113.7m; (0.8m) @ 7.7 g/t Au
122.3-122.7m; (0.4m) @ 7.2 g/t Au
131.9-133.1m; (1.2m) @ 3.0 g/t Au
138.0-139.2m; (1.2m) @ 2.0 g/t Au
KCS04001: No positive results
KCS04002: 29.5-29.8m (0.3m) @ 16.3 g/t Au, >100g/t Ag*, >1% Pb*, >1% Zn*
(* final analyses pending)
KCS04003: No positive results
KCS04004: 35.0-35.6m; (0.6m) @ >1% Pb*, >1% Zn*
(*final analyses pending)
KCS04005: No positive results
KCS04006: No positive results
Drilling at the Kalum property occurred from late August to late October; drill targets were defined by results of 2003 and 2004 fieldwork. A total of 4 showing areas were tested by drilling; all of which returned high-grade mineralization, confirming the widespread existence of high grade gold systems over the ~120 km2 property.
Phase 1 work on property, conducted from June 1st to July 31st, consisted of detailed soil grids and geologic mapping, including two weeks of geological mapping by Mitch Mihalynuk of the B.C. Geological Survey (“BCGS”). Mihalynuks’s work is part of a geoscience partnership between Eagle Plains and the BCGS to study the geology and mineral occurrences in the Terrace area.
Highlights of the Phase 1 field program included:
1) Misty Area Discoveries
Delineation of a 100 m by 150 m Au soil geochemical anomaly with values reaching 0.7g/t Au and 4.7 g/t Ag. Follow up trenching in the anomalous area revealed a series of sub-parallel shear zone hosted quartz veins; one shear zone reaches a thickness of 2.5 m. Results from rock and channel samples included values up to 15.8 g/t Au and > 100 g/t Ag (awaiting further analysis).
2) Delineation of Chris Vein
Results from infill soil sampling (10 m spacing) within the Chris soil anomaly are consistent with the subsurface extension of the Chris vein along strike for at least another 300 m to the ENE; soil values as high as 11.6 g/t Au were returned from the survey area.
3) Encouraging Results from Hat Area
Reconnaissance mapping and prospecting was conducted in the relatively unexplored “Hat” area of the property. Results from the Hat area are very encouraging, with results as high as 39.8 and 30.0 g/t Au; EPL is still awaiting final analytical results for silver, but two sub-parallel veins returned 5 samples grading > 100 g/t Ag.
4) Identification of Bling/Rico Structural Zone
Thought to represent a complex NNW trending structural zone; the main sub-vertical fault zone is 5 to 10 m in width and is locally heavily pyritized and silicified. Follow up prospecting and mapping has revealed high grade Au bearing quartz veins (grab samples up to 12.1 g/t Au) as much as 400 m along strike from the main Rico vein. These new discoveries are interpreted to be part of the high-grade Bling/Rico Structural Zone.
Project supervision is the responsibility of Charles C. Downie, P.Geo., hereby identified as a “Qualified Person” under National Instrument 43-101. Quality control procedures including standards and duplicate assays were routinely conducted throughout the course of the drilling program. Diamond drilling services were provided by FB Drilling, of Cranbrook, BC
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 over 18,000m (60,000 ft) of drilling and over $6,000,000 in exploration spending on its projects 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.