Eagle Plains Completes Land Consolidation in Seabee Gold Mine/Santoy Lake Area, Saskatchewan
Cranbrook, B.C., April 12th, 2016: Eagle Plains Resources Ltd. (TSX-V: “EPL”) has completed a number of individual agreements with third-parties whereby the Company has received title to individual dispositions in the area north and south of Claude Resources’ Seabee Mine property located 125km west of LaRonge, Saskatchewan. Combined with Eagle Plains’ existing tenures in the area, the total project area is 33,460 ha. See map here.
The Seabee Gold Operation has been in continuous production since November 1991 and has produced 1,200,000 ounces of gold from the Seabee mine and the Santoy mine complex. Total gold resources and reserves within Claude’s property holdings 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 Claude property boundaries over 30km within Eagle Plains’ tenures. The Tabbernor Fault is a 1500 kilometer-long regional structure which is present in both Claude 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 age-equivalent with those found at Seabee/Santoy which will form the focus of Eagle Plains’ ongoing exploration of the area. Claude reported recently that it had entered into a definitive agreement with Silver Standard Resources whereby Silver Standard would acquire all of the issued and outstanding shares of Claude at an implied valuation at the time of announcement of $337,000,000 (see CRJ/SSO news release March 7th, 2016). 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 are hosted within the Pine Lake greenstone belt. The belt comprises two distinct arc-derived supracrustal sequences. The lower sequence comprises mainly mafic, intermediate and felsic volcanic rocks, while the upper sequence is dominated by volcaniclastic and clastic sedimentary rocks. Mineralization at the Mine Complex 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 that formed zones of transtension or dilation.
The new land package consolidated by Eagle Plains 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 underevaluated gold occurrences. Eagle Plains has not been able to independently verify the methodology and results from historical work programs within the property boundaries. However, management believes that the historical work programs have been conducted in a professional manner and the quality of data and information produced from them are relevant.
Tim J. Termuende, P.Geo., President and CEO of Eagle Plains stated recently: “Eagle Plains is very pleased to hold a 100% interest in this large, prospective region adjacent a long term, successful and profitable gold mining operation. On a global scale, the rocks present in the area are extremely under-explored given their obvious proven potential. It is in challenging times like we see today that enabled Eagle Plains to acquire the land package that it has, and management looks forward to aggressively exploring its expansive lands.”
2016 Exploration Plans
Eagle Plains intends to immediately carry out a comprehensive compilation of all historical activity in the area and create an efficient GIS database. Following this work, the Company will announce its intended exploration plans and budgets for the 2016 season.
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.