Eagle Plains signs Letter of Intent with Rio Algom Exploration on Bootleg base-metal Property, southeastern B.C.
Rio Algom Exploration Inc. has signed a Letter of Intent with Eagle Plains Resources Ltd. (EPL:CDNX) on its 100% owned Bootleg project located 1.5 km west of Kimberley, British Columbia. The property is situated just 5 km from Cominco's world-class Sullivan deposit, and is contiguous with the Sullivan crown grants. Rio Algom intends to enter into an option agreement whereby it may earn a 60% interest in the 184 unit (11,200 acre) property by carrying out $2,000,000 in exploration expenditures and making cash payments of $310,000 to the company over 4 years ($30,000 of which will be paid to Eagle Plains on signing of a formal option agreement).
In 1995 Eagle Plains Resources and partner Miner River Resources (now merged) initiated a search for base-metal mineral deposits based on the Sullivan deposit model. The companies researched and staked over 40,000 acres of land in the East Kootenay region which had Sullivan-type mineral potential, based on favorable geology and stratigraphy. These properties were subsequently subjected to an extensive government airborne geophysical survey which outlined several high-priority exploration targets. Grassroots exploration on the Bootleg property revealed elevated geochemical values in stream-sediment and soil samples from within property boundaries, in addition to alteration indicative of hydrothermal venting activity. The property has never been drilled, and to date, has seen only limited exploration activity.
Eagle Plains has a 100% interest in over twenty base metal and precious metal properties in western Canada. Its properties are currently under option to Canadian and international corporations including Kennecott Canada Exploration Ltd., Rio Algom Exploration Ltd., Billiton Metals Canada Inc., CanAustra Resources, and Novagold Resources Inc. Through existing agreements, the company is carried for $11,000,000 in exploration expenditures, and stands to receive $1,000,000 in cash payments. Eagle Plains is well-funded, and is aggressive in its efforts to carry out responsible, effective exploration activities throughout its theatre of operation.
On behalf of the Board of Directors
“Tim J. Termuende”
President and CEO
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