Eagle Plains Completes "Abo" Land Acquisition, Plans Airborne Geophysical Survey
Cranbrook, B.C.: Eagle Plains Resources Ltd. (EPL:CDNX) is pleased to announce that it has completed a purchase agreement with an arms-length individual whereby EPL may purchase a 100% interest in the Hot 4 mineral claims located 130km east of Vancouver, near Harrison Lake. The 6-unit (364 acre) property is contiguous with EPLs 100% owned claims containing the Abo (Harrison Gold) deposit, and completes the property package. Gold mineralization on the Hot 4 property was confirmed by diamond drilling in 1988, when hole 88-127 intersected 29m of 1.56 g/t Au, 4.4 g/t Ag, and .56% Zn, including 7 meters which returned 3.5 g/t Au, 9.3 g/t Ag, 1.2% Zn.
Terms of the purchase agreement (subject to regulatory approval) consist of a $10,000 cash payment, 200,000 voting class commons shares of Eagle Plains, and a 2% NSR reserved for the vendor (1% of which can be purchased by EPL for $1,000,000).
Gold mineralization at Abo consists of a number of occurrences associated with a series of intrusive stocks. Accessory minerals include copper, silver, lead, zinc, molybdenum, tungsten and bismuth. The property is road-accessible year-round, with hydroelectric power and rail-service located within 3 kilometers of property boundaries.
The Abo property area has been held or optioned by various operators since the early 1970's including Abo Resources, Kerr Addison Mines Ltd. and Bema International Resources. Exploration work has included mapping, soil sampling, ground-based geophysics and a total of 13,856m (45,448') of diamond drilling in 147 drill-holes. Some small scale underground development has also been completed. Most work was focused on the northern part of the property in the area of the Jenner and Portal Stocks. Drill results from the Portal Zone include 30 meters averaging 3.17 grams per tonne gold. Drill results from the Jenner Stock include 64m averaging 3.77 gm/t . In 1987, Kerr Addison collected a 1053 tonne bulk sample from the Jenner Stock underground workings. Using the metallurgical results from this sample combined with extensive underground sampling and results from diamond drilling, Kerr indicated a grade of 3.2 - 4.1 g/t Au with an inferred tonnage of 1.3 million tonnes from surface to 100m elevation, and 2.2 million tonnes from surface to sea level (EMPR ASS RPT 20144, MINFILE #92HSW092). Other gold-bearing stocks identified on the property include the Breccia, Hill and Lake Stocks. These areas have seen limited exploration in comparison to the Jenner-Portal Stocks areas. Diamond drill intersections from the Hill Stock area include DDH BX88-130 which averaged 3.54 g/t Au and 6.3 g/t Ag over 27 meters, and contained 8m averaging 8.7 g/t Au and 14.2 g/t Ag.
Eagle Plains has contracted Fugro Airborne Surveys Corp. to carry out a 215 line-km airborne geophysical survey which will include DIGHEM( EM, magnetometer, and radiometric instrumentation. The survey is scheduled to commence in early October. Eagle Plains intends to carry out a comprehensive compilation of existing data, re-evaluate reserve calculations, and assess the exploration potential of under-explored areas of the property.
On behalf of the Board of Directors
“Tim J. Termuende”
President and CEO
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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.