Eagle Plains/99 Capital Release Results of Baska-Eldorado REE/Uranium Project, Northern Saskatchewan

Cranbrook, B.C., January 18th, 2010: Eagle Plains Resources Ltd. (TSX-V:EPL) and 99 Capital Corp. (TSX-V:WDG) are pleased to release results from 2009 exploration work on the Baska-Eldorado property located 55 km southeast of Cameco's Key Lake uranium deposit in north-central Saskatchewan, Canada. As announced previously, Eagle Plains has agreed to sell a 100% interest in the property (less 1% NSR) to 99 Capital, while retaining the option to buy-back a 50% interest.

The focus of the $200,000 fall exploration program was to further delineate rare-earth-elements (REE’s) and uranium occurrences outlined in earlier field programs. Work was funded 100% by 99 Capital.

Highlights

• Grab samples taken from historical trenches (AGKJR 001 and 002) returned Total Rare-Earth Oxides (“tREO”) assays of 55.9% and 30.6%, respectively. 
• Sample AGKJR003, taken over a 0.7 m interval, returned 18.9% tREO. 
• Individual REE contents for grab sample AGKJR001 are as follows: Ce2O3 – 28.1%, Nd2O3 – 9.57%, Eu2O3 – 0.086%, and Tb2O3 – 0.051%. 
• Further work is recommended for the property 

2009 Work Program and Results

Bootleg Exploration Ltd., a wholly-owned subsidiary of Eagle Plains, was engaged to carry out field work, which commenced in late fall of 2009. Work consisted of line-cutting followed by ground geophysics, geochemical sampling, prospecting and geological mapping and sampling.

At the Baska showing, 2 of 7 samples returned anomalous (>300ppm) uranium. Sample AGKJR004 returned 1220 ppm U (0.113% U3O8 assay) from a pegmatite alteration selvedge. Sample JBKJR022 returned 582 ppm U from the margin of a radioactive pegmatite that projected under a highly radioactive swamp. The highest 2009 total rare earth result (tREE) from the Baska showing was 650 ppm (sample AGKJR005).

At the Eldorado showing grid, 4 of 13 samples returned significant (>300 ppm) uranium, with 3 of those samples returning greater than 1000 ppm U. The best sample, a 1 meter chip sample (JBKJR019), returned 2680 ppm U (0.326% U3O8 assay). The other notable assay samples include: grab sample BWKJR003 (0.140% U3O8), and 1 meter chip sample JBKJR020 (0.124% U3O8). All three samples were collected from an historical trench located near Kulyk Lake. 2009 REE results from this uranium-bearing trench returned up to 694 ppm tREE (sample JBKJR019). 

Mapping of the Eldorado grid in 2009 led to the location of a second set of historical trenches. Three heavy, radioactive samples were collected from these trenches. All three samples (AGKJR 001 to 003) returned exceptional tREO assays of 55.9%, 30.6% and 18.9%, respectively. Sample AGKJR003 is a 0.7 m chip sample. Individual rare earth element contents for grab sample AGKJR001 are as follows: Ce2O3 – 28.1%, Nd2O3 – 9.57%, Eu2O3 – 0.086%, and Tb2O3 – 0.051%.

The Property

The Baska-Eldorado project features both uranium and rare earth element (REE) targets. The claims cover an area of approximately 140-square-kilometres and were staked by Eagle Plains in 2006. The Baska area was first worked by Baska Uranium Mines Ltd. in the early 1950s which mapped and sampled a number of radioactive pegmatite occurrences. The Baska dyke system has dimensions averaging 230 metres wide by at least 2,000 metres long and is clearly delineated on airborne geophysical maps. Historical assays over the occurrences returned from 0.47% to 1.68% U3O8 (AR 74A11-0003). None of the early work in the area appreciated the potential for REE mineralization, so no historical REE analyses were completed. Recent work by Eagle Plains included a GEOTEM airborne EM and magnetic survey, followed by prospecting and a radon survey to verify mineralization and dimensions of the host intrusions. Six grab samples were collected in 2007 to assess uranium mineralization. Two of the six grab-rock samples collected returned anomalous REE results with one sample (TMKJR012) returning 0.45 % tREO. 

The Kulyk Lake area comprises two U-Th (+REE) mineralized pegmatite occurrences: the Eldorado Dyke (SMDI 0980), and the Kulyk Lake showing (SMDI 0985). The Eldorado dyke system is up to five metres wide and has returned historical uranium values from trenches up to 0.17 per cent U3O8. At the Kulyk Lake showing, a series of red secondary fracture fillings has returned historical values up to 0.22 per cent U3O8 and 1.28 per cent Th. No historical analyses for REE’s have been reported, but petrographic work indicated the presence of important REE carrier minerals such as monazite and the heavy rare earth element (HREE) carrier mineral Brannerite. Fieldwork completed at the showing in June, 2007, by Eagle Plains included prospecting and grab sampling along the pegmatite dyke margins. Sample TMKJR003 from the Eldorado Dyke returned 0.48 per cent U3O8, 0.43 per cent Th, and 0.23 per cent tREO, also with economically significant Niobium (Nb) (greater than 2,000 parts per million) and Tantalum (Ta) (greater than 300 ppm).

A review of the mineral showings in relation to the 2007 airborne geophysical data indicates similar patterns as the Baska showing. Both showings plot along a continuous magnetic anomaly associated with elevated airborne radiometrics. The Baska-Eldorado prospect area has good potential to host uranium as a high-grade vein deposit or as a bulk-tonnage deposit, and to host REEs associated with pegmatite dyke swarms. More work is recommended for the Baska-Eldorado property including ground-based geophysics, prospecting and mapping.

Eagle Plains/99Capital Purchase Agreement

As announced November 19, 2009, the TSX Venture Exchange accepted for filing a purchase agreement between the 99 Capital and Eagle Plains dated Sept. 17, 2009, under which 99 Capital agreed to purchase from Eagle Plains a 100-per-cent interest in the Baska-Eldorado claims. The entire property comprises three contiguous mineral dispositions which are located approximately 200 kilometres north of La Ronge, Sask. Under the purchase agreement, 99 Capital has acquired a 100-per-cent interest in the property by issuing two million common shares to Eagle Plains, subject to escrow restrictions. 

Eagle Plains has been granted a back-in option entitling it to purchase a 50-per-cent interest in the Baska-Eldorado property at any time between the second and fourth anniversaries of the closing date by paying 99 Capital the sum of $250,000 plus an amount in cash equal to one-half of all amounts spent by the company on exploration of the Baska-Eldorado property and one-half of all other expenditures by the company in relation to the Baska-Eldorado property plus a premium of 150 per cent applied to each expenditure grouping. If Eagle Plains does not exercise its back-in option it will be granted a 1-per-cent net smelter returns royalty on the Baska-Eldorado property to a maximum of $2-million.

In the event that Eagle Plains exercises its back-in option, the parties will be deemed to have formed a joint venture for the further exploration and development of the Baska-Eldorado property with the company holding an initial participating interest of 50 per cent and Eagle Plains holding an initial participating interest of 50 per cent. 

About Eagle Plains Resources 

Eagle Plains continues to conduct research, acquire and explore metal projects in western Canada. In addition to holding mining royalties on various projects, the Company controls over 35 gold, base-metal and uranium projects, several with third parties including Swift Resources Inc. (TSX-V:SWR), Prize Mining Corp. (TSX-V:PRZ), Waterloo Resources Ltd. (TSX-V:WAT.P), Touchdown Capital Inc. (TSX-V: TDW), 99 Capital Corp. (TSX-V:WDG) and XO Gold Resources Ltd. (a private B.C. company). In recent years, Eagle Plains has completed option agreements with Teck Limited (TSX:TCK.B), Alexco Resource Corp. (TSX-V:AXR), Billiton Metals, Rio Algom Exploration, NovaGold Resources, Kennecott Exploration and numerous other junior exploration companies, resulting in over 53,600m (163,370’) of drilling and over $28.3 million in exploration spending on its projects since 1998.

Expenditures during 2008 and 2009 on Eagle Plains’ projects were approximately $7,300,000, funded by Eagle Plains and third party partners. This work resulted in approximately 6,900m of drilling and extensive ground-based exploration work and facilitated the advancement of numerous projects at various stages of development.

This news release has been reviewed and approved by Tim J. Termuende, P.Geo., hereby designated as a qualified person under National Instrument 43-101.

On behalf of the Board of Directors

Signed,
 

“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.