Eagle Plains Completes Geological Compilation at Fisher Gold Project - Identifies High-Priority Targets for 2016 Exploration
Cranbrook, B.C., June 29th, 2016: Eagle Plains Resources Ltd. (TSX-V: “EPL”) has completed a comprehensive geological compilation of all available data for its’ 100%-owned 30,000+ ha Fisher Gold Project, located 125km east of LaRonge, Saskatchewan. The Fisher project is located adjacent to and directly south of Silver Standard Resources’ Seabee/Santoy mining operations, which were recently acquired by Silver Standard from Claude Resources Ltd. for total consideration of $337M.
The 2016 compilation work, including recent EPL reconnaissance surveys, encompasses some 57 years of exploration data consisting of 1600 soil samples, 600 rock samples, 5200+ line-km of geophysical data and 97 drill holes totalling 7700 m. Eagle Plains has also recently acquired property-wide high-resolution satellite imagery and digital elevation model (“DEM”) datasets.
A number of areas of interest were identified as a result of the compilation, including four high-priority target areas. These areas are named Georges Lake, Footprint, Santoy Extension and Kettle Falls and will be the focus of 2016 fieldwork by Eagle Plains. The first phase of fieldwork is scheduled to commence in mid-July, followed by a second phase of detailed work in late summer which will focus on follow-up of results from Phase One.
Georges Lake Target Area Highlights:
- Historic soil-geochemical, geophysical, trenching and drilling programs have defined a 1500m- long mineralized trend; open in 3 directions
- Mineralization is vein and shear-hosted and has seen limited drill testing
- Historic sampling at the volcanic-hosted V.G. showing returned:
- Continuous-chip sample of 12.6 g/t Au over 7.8m including 256 g/t (7.41 oz/t) over 65cm
- 1991 drill program intercepted more than 40 mineralized sub-meter intervals over 1.0 g/t Au with a best interval of 9.0 g/t over 0.7m
- The granite-hosted Georges Lake showing returned:
- Chip sample of 8.8 g/t Au over 1.0m
- Historic drilling intersected 11 - 1m intervals ranging 1.1 to 22.1 g/t Au and a best intercept of 1.8 g/t over 8.94m
Footprint Target Area Highlights:
- Two mineralized trenches and grab-samples define a 500+ m mineralized gold trend that is part of the larger Uskik Lake north-trending fault system that is contiguous with the Santoy trend
- Footprint-1 Trench contained chip samples of sheared gabbro that returned 14.6 g/t Au over 20cm & 18.9 g/t Au over 32cm
- Footprint-2 Trench included chip sample that returned 4.1 g/t Au over 17cm
Santoy Extension Target Area Highlights:
- Directly south of and on-strike with the Santoy-8 deposit located 1.5km north of the Fisher property boundary
- Under-explored: The 2016 field program to focus on intensive grass-roots exploration
Kettle Falls Area Highlights:
- 2013 discovery by Eagle Plains returned a grab-sample result of 9.2 g/t Au
- Showing comprises two trenched zones and open soil anomalies to the north and south
- Channel sampling returned up to 1.4 g/t over 8m including 13.2 g/t Au over 0.5m
Eagle Plains has not been able to independently verify the methodology and results from historical work programs within property boundaries. However, management believes that historical work programs have been conducted in a professional manner and the quality of data and information produced from them are relevant.
The compilation work has identified similar geological and structural features associated with the Seabee/Santoy Mine Complex within the Fisher project area. The Seabee gold operation has been in continuous production since 1991 and has produced 1,200,000 ounces of gold from the Seabee and the Santoy deposits. Total gold resources and reserves within Claude’s property holdings as of April, 2016 are reported to be: Proven and Probable- 239,300oz grading 7.62 g/t, Measured and Indicated-128,800oz grading 6.24g/t; Inferred-1,012,900oz grading 8.76 g/t (CRJ website).
Ore geology consists of structurally-controlled, high-grade vein mineralization associated with volcanic and mafic intrusive rocks which may be traced southward from Seabee/Santoy property boundaries over 30km within Eagle Plains’ tenures. The Tabbernor Fault is a 1500 km-long regional structure which is present in both Seabee/Santoy and EPL tenures and continues both northward and southward into North and South Dakota within the Homestake District. Importantly, rocks which host the 40M oz Homestake gold deposit are similar in age and composition as those found at Seabee/Santoy and will form the focus for Eagle Plains’ ongoing exploration of the area. Management cautions that past results or discoveries on proximate land are not necessarily indicative of the results that may be achieved on the subject properties.
About the Santoy Lake Region
The Seabee/Santoy Mine Complex and adjacent Eagle Plains claims overlie the Pine Lake greenstone belt. Mineralization at Seabee/Santoy is affiliated with the more westerly-oriented Laonil Lake shear zone which is a splay of the north-trending Tabbernor Fault. Field and underground observations at Seabee indicate that shear structures nucleated at contacts between felsic intrusive and mafic intrusive lithologies, with high-grade zones forming at fault intersections.
The Fisher project is well-situated by virtue of straddling both the Tabbernor Fault and upper and lower sequences of the Pine Lake greenstone belt. Furthermore, several westerly-trending splay faults have been identified in the Eagle Plains tenure, some of which are associated with known and under-evaluated gold occurrences.
2016 Exploration Plans
Eagle Plains management has approved a Phase 1 exploration budget of $400,000, which will see aggressive ground-based exploration activity with the primary objective of defining drill-targets. Work is expected to commence in mid-July and will be carried out by TerraLogic Exploration Ltd. of Cranbrook, B.C. (a wholly-owned subsidiary of Eagle Plains) under the direction of Jarrod Brown, P.Geo.
Eagle Plains has entered into agreements with ALX Uranium Corp. whereby ALX has purchased a 100-per-cent interest in several mineral claims with interpreted uranium potential located in the Athabasca basin, Saskatchewan. EPL has retained a 2% NSR on these various dispositions, half of which may be purchased at any time by ALX for $1M. Eagle Plains has in turn purchased a 100% interest (less 2% NSR) from ALX in the “Donna” Property located at the headwaters of the Kettle River in south-central British Columbia approximately 60km east of Vernon. The Donna claims are considered to hold good potential to host skarn-related gold mineralization. The last drilling program to be completed on the property was carried out in 2014 by Alpha Exploration Inc. (a predecessor of ALX) and returned results ranging from trace concentrations to a high of 8.72 g/t gold over 2.0m. Work was carried out by Discovery Consultants, who recommended further exploration on the property including an infill I.P. survey and additional diamond drilling. Claims comprising the property are in good standing until December, 2024.
About Eagle Plains Resources
Based in Cranbrook, B.C., Eagle Plains continues to conduct research, acquire and explore mineral projects throughout western Canada. The Company is committed to steadily enhancing shareholder value by advancing our diverse portfolio of projects toward discovery through collaborative partnerships and development of a highly experienced technical team. Managements’ current focus is to preserve its treasury while advancing its most promising exploration projects. In addition, Eagle Plains continues to seek out and secure high-quality, unencumbered projects through research, staking and strategic acquisitions. Since 2012, Eagle Plains has added to its portfolio a number of new projects exceeding 130,000 ha targeting mainly gold, uranium and base-metals in Saskatchewan, a highly-prospective mining jurisdiction. Throughout the exploration process, our mission is to help maintain prosperous communities by exploring for and discovering resource opportunities while building lasting relationships through honest and respectful business practices.
Expenditures from 2011-2015 on Eagle Plains-related projects were approximately $15.5M, which was funded by Eagle Plains and for the most part, by third-party partners. This exploration work resulted in approximately 15,000 m of diamond-drilling and extensive ground-based exploration work facilitating the advancement of numerous projects at various stages of development.
Technical aspects of this news release have been reviewed by Jarrod Brown, P.Geo..
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.