Eagle Plains/Blind Creek Commence Extensive Drilling Program at Blende Silver/Base-Metal Deposit, Yukon Territory
Cranbrook, B.C. 23 June, 2006: Eagle Plains Resources Ltd. (EPL:TSX-V) and Blind Creek ResourcesLtd. (a private B.C. company) jointly announce that they have mobilized crews and equipment to commence a summer-long diamond drilling program on the Blende property, located in central Yukon approximately 65 NE of Keno. A total of 6,000 - 8,000m of drilling is planned for the project during 2006. Over 50 tons of equipment and 35,000 litres of fuel were placed on the property in March by winter road access. The first-phase budget for the program has been set at $2,000,000.
The 2006 work program follows geological and geophysical surveys and an extensive re-examination, sampling and interpretation of existing drill-core stored on the property since the mid-1980’s.
Blind Creek may earn a 60% interest in the 73-unit (3700 acre) property, which is owned 100% by EPL (subject to a 1% NSR). To earn its 60% interest, Blind Creek has agreed to complete a total of $5,000,000 in exploration expenditures, pay EPL $250,000 cash and issue 1,000,000 common shares by December 31st, 2010.
The Blende is a carbonate-hosted deposit on the south edge of the Mackenzie Platform, hosted by Middle Proterozoic Gillespie Group dolomite. A N.I. 43-101 compliant report was completed on the property in 2004 by B. Price, P.Geo. In his technical report, Price used calculations prepared in 1991 by Billiton Metals Canada Ltd., which identified an inferred resource estimate for the property comprising a total of 19,600,000 tonnes (21,500,000 tons) grading 56.0 g/T silver, 3.04% Zn and 2.80%Pb at a cut-off based on an in-situ gross metal value (“GMV”) of $25 (based on 1990 metal prices and exchange rates)*. Within this resource is 15,300,000 tonnes grading 67.5 g/T silver, 3.04% Zn and 3.23% Pb (note: this inferred resource does not consider metallurgical recoveries).
Table 1-Inferred Resource Summary**
|Inferred Resource||Contained Silver||Contained Zinc||Contained Lead|
|19,600,000 tonnes||38,700,000 oz||1,300,000,000 lbs/td>||1,200,000,000 lbs|
*These resource estimates were prepared by Billiton Canada Explorations Inc., a large integrated international exploration company prior to the introduction of National Instrument 43-101. Nevertheless, in (Price’s) opinion, the estimates are relevant and reliable.
**These figures represent in-situ resources and do not account for mining or metallurgical recoveries.
Although initially explored as an open pit target, Eagle Plains and Blind Creek management believe that there is excellent potential to outline additional resources, and possibly develop the deposit as an underground operation, which would allow mining of a smaller tonnage with higher grade. By adjusting the cutoff grade of the blocks calculated previously, the current inferred resource could be reduced in tonnage, but increased in grade to 4.1 million tonnes grading 105 g/T (3.1 oz/t) silver, 6.7% lead, and 4.6% zinc. At the completion of work in 1994, the deposit was found to be open along strike to the west, and down-dip.
Numerous high-grade intersections have been reported by past operators, including hole 88-02 which assayed 282 g/t (8.22 oz/t) silver, 12.2% lead, and 4.4% zinc over 19.8m from a depth of 70.7 to 90.5m. Hole 88-03 returned 8.5m grading 550.1 g/t (16.04 oz/t) silver, 15.3% lead and 4.6 % zinc from 118.0 to 126.5m, and hole 90-15 intersected 9.5m grading 351.2 g/t (10.24 oz/t) silver, 14.11% lead, and 6.59% zinc from 60.1 to 69.6m. Step-out drilling in 1994 confirmed the continuation of ore-grade mineralization westward, with the addition of significant copper values. Hole 94-81 contained 14.9 m of mineralization which assayed 228.4 g/t (6.66 oz/t) silver, 9.71% lead, 5.48% zinc, and 0.78% copper from 9.2m to 24.1m, while hole 94-84 intersected 8.5m which returned 136.1 g/t (3.97 oz/t) silver, 6.74% lead, 3.65% zinc and 2.43% copper from 45.5-54.0m.
The 2006 program is scheduled to commence in early June, and will be carried out under the supervision of R. Sharp, P.Geol., hereby identified as the “Qualified Person” under N.I. 43-101.
Eagle Plains Resources continues to conduct research, acquisition and exploration projects in western Canada. The Company controls over 35 gold and base metal projects, many of which are joint-ventured with third parties including NovaGold Inc. (AMEX,TSX:NG), Alexco Resource Corp. (TSX-V:AXR), and Blind Creek Resources. These agreements expose Eagle Plains to over $8,000,000 in exploration expenditures over the next five years. In recent years, Eagle Plains has completed option agreements with Billiton Metals, Rio Algom Exploration, Kennecott Exploration, Viceroy Resource Corp. and numerous other junior exploration companies, resulting in over 30,000m (100,000’) of drilling and over $9,000,000 in exploration spending on its projects since 1998. During the 2005 season alone, EPL has seen over 11,900m (39,000’) of diamond drilling on its properties.
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
“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.