Eagle Plains Acquires Additional Exclusive Exploration Rights to NWT Lead-Zinc-Silver Metals District
Cranbrook, B.C., 14 February, 2006: Eagle Plains Resources Ltd (“EPL”) has been granted the exclusive exploration rights to an additional 255,000 acres (1,031 sq. km) of land east of the Yukon/NWT Territorial border, considered to be prospective for the presence of large carbonate-hosted silver-lead-zinc deposits. These rights occur in the form of NWT Government-granted “prospecting permits” which enable the holder to complete exploration activity over entire individual map-sheets for a period of three years, with the exclusive right to acquire formal title within these selected areas. These grants are in addition to existing rights held by EPL (announced March 4th, 2005) making the total control area in excess of 2,387 sq. km. The consolidation of the entire project area provides Eagle Plains with an unprecedented opportunity to explore and develop a world-class metallogenic belt which has been dormant for three decades.
The area now controlled 100% by EPL was once subject to extensive exploration during the 1970s and early 1980s and was the site of numerous drilling programs, dozens of grassroots examinations, and thousands of individual claims held by various junior and major exploration companies including RTZ, Placer Dome Inc., Bethlehem Copper, Cominco, Noranda, Amax, Serem and others. Eagle Plains has secured the entire area of past activity, complete with all public data associated with millions of dollars of exploration work. Recent announcements regarding the proposed MacKenzie Valley pipeline and improving base-metal prices suggest that the entire area must now be looked on in an entirely new economic framework. Exploration technology and the understanding of the occurrence and genesis of carbonate-hosted deposits have also been advanced over the past 30 years, increasing the potential for new discoveries based on these updated models.
Location and Access
The southern boundary of the permit area is located along the North Canol Road, built in the 1940s to supply oil to the south during WW2. The lower project area stretches 65km northward along the MacKenzie Mountains, and encompasses at least 8 drilled prospects and 1 advanced exploration project. The central permit area is located 180km from Norman Wells, NWT while the most northerly permit area is located 190km from Norman Wells, NWT or 240 km from Mayo, Yukon.
The prospecting permits held by Eagle Plains overlie a series of folded and thrusted Proterozoic to Devonian carbonates and shales. These rocks were deposited on a shelf margin near the hinge point between a platform and a shale basin. They are time- equivalent to giant base-metal deposits such as Howard’s Pass (currently controlled by Pacifica Resources Ltd (PAX:TSX-V), with indicated resource of 113 million tonnes grading 5.4% zinc and 2.1% lead with >15 g/t silver plus an additional reported inferred resource in excess of 360 million tones), the Tom (9.283 Mt @ 69.4 g/t Ag, 7.55 Pb and 6.2% Zn using a 7% combined Pb-Zn cutoff) and Jason deposits (14.1 million tonnes grading 7.09% Pb, 6.57% Zn and 79.9 g/t Ag, using a cutoff grade of 8% Pb-Zn).
Dozens of high-grade base metal occurrences exist in EPL’s permit area, highlighted by the following projects:
Gayna River- 27,000m of diamond drilling completed by RTZ in the late 1970s, with drill-holes grading up to 20% combined lead-zinc over 6.0m.
Ice - 8.2% Pb, 12.5% Zn over 9.1m in a representative trench sample;
Drill results: 10.1% combined Pb-Zn over 50.0’ (15.2m) true-thickness.
43.0% Zn over 11.5’ (3.5m)
Trench results: 22’ (6.9m) grading 9.0% Pb and 39.1% Zn
26’ (7.9m) returned 5.48% Pb and 31.4% Zn.
Tap: 27.5% Zn, 3.7% Pb from grab samples taken of 60 x 760m breccia zone;
Keg: 25% combined Pb-Zn in float samples. Best of 3 drill-holes intersected 4.23% Pb-Zn over 20.4m;
Bear/Twit: 24 drill-holes completed, with 4.9% Pb-Zn reported over 13’ (4.0m), 5.1% Pb-Zn over 20’(6m), resource estimate published of 7.3-9.1 MT grading 8% Pb-Zn and 17g/t Ag;
AB-Main: 3 drill-holes (866’) completed in 1974. Surface samples assayed up to 41% zinc, 79.3% lead.
Eagle Plains completed reconnaissance-style exploration of the area in 2005 with a multi-disciplinary group of geological specialists led by Robert Sharp, P.Geol., an expert on carbonate-hosted deposits. The exploration results concluded that “four of the prospects examined have excellent potential for significant carbonate-hosted Pb-Zn-Ag deposits. Of these, three should be evaluated by diamond drilling in 2006. Additional regional work should be carried out exploring for sedex Zn-Pb-Ag deposits on the permit areas underlain by Selwyn Basin black shales, to follow-up showings and stream sediment Zn-Pb-Ag anomalies.” A budget of $700,000 has been tabled for 2006 work.
EPL management has been notified recently by Amarc Resources Ltd (AHR:TSX-V) that the company will not be continuing with work on EPL’s Acacia property, and has terminated its option agreement.
Eagle Plains Resources continues to conduct research, acquisition and exploration projects in western Canada. The Company controls over 35 gold and base metal projects, many with third parties including NovaGold Inc. (AMEX,TSX:NG), Northern Continental Resources Inc. (TSX-V:NCR), and Golden Cariboo Resources Inc. (TSX-V:GCC). These agreements expose Eagle Plains to over $8,000,000 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 30,000m (100,000’) of drilling and over $9,000,000 in exploration spending on its projects since 1998. During the 2005 season, EPL and its partners completed over 11,900m (39,000’) of diamond drilling on EPL properties.
This news release has been reviewed and approved by Tim J. Termuende, P.Geo., hereby designated as a “Qualified Person” under National Instrument 43-101.
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.