Eagle Plains Commences North Findlay Program
Cranbrook, B.C.:Eagle Plains Resources Ltd. (EPL:ASE) announces that it has commenced a two-phase exploration program on its' 100% owned North Findlay property located 40 kilometres north of Cominco's Sullivan base metal mine at Kimberley, B. C. Phase 1 objectives are to carry out property-wide geological mapping in conjunction with soil-geochemical sampling. Phase 2 work will consist of a 5-7 hole, 6000' (1800m) diamond drilling program, and is expected to commence in late August. A single drill hole was collared on the property in 1998, and encountered significant alteration and base-metal enrichment over 105.2m from a depth of 171.8m to 277.0m. Within this interval, 46 individual thin stratabound mineralized horizons were intersected (see News Release January 12, 1999).
Billiton Exploration Canada Limited has provided funding for the project by way of private placement, in exchange for the right to enter into an option agreement on the property with Eagle Plains. Terms of the agreement include the right to earn a 50% interest in the 208 unit (12,600 acre) property by spending a further $2,000,000 on exploration over four years. Billiton may secure another 20% interest (for an aggregate 70% interest) by providing Eagle Plains with project financing to the start of commercial production from the property. Billiton will also hold a right of first refusal on any future financings by Eagle Plains (see News Release May 20th, 1999).
The North Findlay property adjoins the South Findlay property to the south which Rio Algom Exploration Inc. currently has under option from Eagle Plains. Rio Algom may earn a 60% interest in the 231 claim (14,000 acre) property by carrying out $2,000,000 in exploration expenditures and making cash payments of $310,000 to the companies over 4 years. Over $1,000,000 has been spent to date on the property. The South Findlay property is contiguous with the Greenland Creek property further to the south, also owned 100% by Eagle Plains, and currently under option to Kennecott Canada Exploration Inc. Kennecott may earn a 60% interest in this 247 unit (15,000 acre) property by spending $2,000,000 on exploration and making total cash payments of $310,000 to Eagle Plains over a 4 year period, with Kennecott as the project operator.
Eagle Plains has a 100% interest in 12 base metal and 10 precious metal properties in western Canada. With partners CanAustra Resources, Kennecott Canada Exploration Ltd., Rio Algom Exploration Ltd., Billiton Metals Inc., and Novagold Resources Inc., the company is well-funded, and expects to realize over $2,000,000 in exploration expenditures on its properties during 1999.
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.