Eagle Plains/49 North Subsidiary Execute Option Agreement for Goatfell Property, South-eastern British Columbia

Cranbrook, B.C., 26 September, 2011: Eagle Plains Resources Ltd. (EPL:TSX-V) reports that it has entered into an agreement with 101191710 Saskatchewan Ltd., a subsidiary of 49 North Resources Inc. (FNR:TSXV), whereby 101191710 Saskatchewan Ltd. may earn an undivided 60% interest in Eagle Plains’ Goatfell Property located 30km east of Creston, British Columbia. Under terms of the agreement, 101191710 will complete exploration expenditures of $3,000,000 make cash payments of $250,000 and issue 1,000,000 common shares to EPL over a four year period. The property has no underlying royalties or encumbrances. 

The claims are well-situated with respect to infrastructure, with a high-pressure gas pipeline, high-voltage hydroelectric line, railway and major highway all located within or near property boundaries.

A $100,000 airborne geophysical survey consisting of 113 line-km of VTEM and 218 line-km of airborne gravity is expected to commence within one week. 

Property Geology and Mineralization

The Goatfell claims overlie rocks of the Aldridge Formation, within the Middle Proterozoic Purcell Supergroup, a thick succession of siliciclastic and lesser carbonate rocks. The Goatfell occurrence includes an extensive area of tourmalinite float, 2.5 kilometres to the south of the Goatfell tourmalinite body. The float contains galena and sphalerite in an intensely brecciated tourmalinized matrix. The tourmalinite zone is cut by a major fault which has associated silicification and muscovite alteration. The tourmalinite alteration and minerals noted on the property are considered by Eagle Plains geologists to be indicative of hydrothermal venting activity which may be potentially associated with a sedimentary-exhalative (“Sedex”) mineralizing system nearby.

Property History

A total of twelve diamond drill holes were completed by White Knight Resources and Ramrod Exploration on the property between 1989 and 1996, in addition to a localised ground-based EM geophysical survey in 1995. Some of the drillholes intersected tourmalinite and fracture-controlled lead and zinc. Following the 1996 drilling program, geologists on the project recommended additional drilling, though this work was never carried out. 

The airborne geophysical work is part of a major (4,000 line-km) airborne geophysical survey being carried out in the region by Eagle Plains and various partners as announced on September 9th, 2011. The airborne geophysical survey is part of an ongoing, systematic exploration approach being carried out by Eagle Plains and its partners within rocks of the Belt-Purcell Supergroup for over a decade. The Belt-Purcell Supergroup is host to the world-class Sullivan Deposit, which over its 100 year lifetime, produced approximately 150,000,000 tonnes of ore including 300,000,000 ounces of silver, 8,000,000 tonnes of zinc and 8,000,000 tonnes of lead, collectively worth over $45 billion at current metal prices. The parties caution that past results or discoveries on proximate land are not necessarily indicative of the results that may be achieved on the Goatfell property.

Increased activity in the area was precipitated by the discovery in late 2010 of gold-rich base-metal mineralization on the Iron Range project by partners Eagle Plains and Providence Resources Corp.

Highlights from drill hole IR10-010 include:

  • 196.9-204.0m: 7.1m @ 8.13g/t Au, 5.91% Pb/Zn, 86.6g/t Ag 
  • 224.0-280.5m: 56.5m @ 1.9g/t Au, 21.5g/t Ag 
  • Also including lowermost 277.5-279.5m: 2.0m @ 12.8g/t Au, 9.24% Pb/Zn, 122.5g/t Ag; elevated Cd, Sb, Sn, Bi, B, Cu.  

The geophysical survey is expected to be completed by late fall, subject to weather conditions and contractor availability.

About Eagle Plains Resources

Eagle Plains continues to conduct research, acquire and explore mineral projects throughout western Canada. Since 1992, EPL has been acquiring and developing early stage projects utilizing an in-house team of geologists, technicians and specialists. Considered a prolific project generator with over 35 properties, EPL invites joint venture participation to expedite development, reduce risk and enhance exposure to discovery. 

Current third party agreements if carried to fruition, expose EPL to over $50M in exploration expenditures, $5.7M cash and 13M shares in partner companies. Completed agreements have yielded over $17M in exploration spending, $1M cash to EPL and a total of 16M shares of partner companies including Alexco Resource Corp., NovaGold Resources Inc., Giyani Gold Corp., Aben Resources Ltd. and others. 

Expenditures during 2011 on Eagle Plains-related projects are expected to be approximately $8,000,000, to be funded by Eagle Plains and third party partners. This exploration work is expected to result in approximately 9400m diamond drilling and extensive ground-based exploration work facilitating the advancement of more than 15 projects at various stages of development.

On behalf of the Board of Directors

“Tim J. Termuende”
President and CEO

For further information on EPL, please contact Mike Labach at 1 866 HUNT ORE (486 8673)
Email: mgl@eagleplains.com or visit our website at http://www.eagleplains.com

 

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.