Eagle Plains/Blind Creek Complete Drilling Program at Blende Silver/Base-Metal Deposit, Yukon Territory
Cranbrook, B.C. 02 September, 2008: Eagle Plains Resources Ltd. (EPL:TSX-V) and option partner Blind Creek Resources Ltd. (a private B.C. company) jointly announce that they have successfully completed a 7-hole, 1047m (3400’) diamond drilling program on the Blende property, located in central Yukon approximately 65km NE of Keno. The 2008 program was funded by Blind Creek, with the objectives to: 1) further outline and expand known mineralized zones and 2) provide material from the West and Far West Zones to carry out metallurgical test work. Two holes were completed in the West Zone, while five holes were collared in the Far West Zone (one hole was abandoned).
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||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 2007, 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. Drillhole BE07116, drilled in 2007, returned 8.5% lead/zinc , 67.1 g/t Ag over 8.0m from 8.9 m to 16.9 m. (including 22.8% lead/zinc and 193.0 g/T silver over 1.0m from 10.9m to 11.9m)
The 2008 program was carried out under the supervision of C.C. Downie, P.Geo., hereby identified as the “Qualified Person” under N.I. 43-101. Drilling services have been contracted to Apex Diamond Drilling Ltd. of Smithers, B.C., a company related to Eagle Plains. Results of the program will be released as they are compiled, analyzed and interpreted.
Update on Karin Lake and Eagle Lake Uranium projects, north-central Saskatchewan
Eagle Plains has been notified recently of the decision by Blue Sky Uranium to terminate its option on the Eagle Lake and Karin Lake properties in north-central Saskatchewan. Blue Sky, in its NR of August 25th, explained that “Due to the large land package Blue Sky holds in Argentina and the positive results received to date, the company will focus its efforts exclusively in Argentina. To reflect this focused approach in Argentina, Blue Sky will not proceed with its option to earn a 60-per-cent interest in the Karin and Eagle Lake projects in Saskatchewan”
Eagle Plains intends to continue exploration of the projects and is seeking joint-venture participation in this regard.
About Eagle Plains
Eagle Plains Resources continues to conduct research, acquire and explore metal projects in western Canada. The Company controls over 35 gold, base-metal and uranium projects, many with third parties including Teck Cominco Limited (TSX:TCK.B), Alexco Resource Corp. (TSX-V:AXR), Sandstorm Resources Ltd. (TSX-V:SSL.P), Mountain Capital Inc (TSX-V:MCI.P) and XO Gold Resources Ltd. These agreements expose Eagle Plains to over $27.0 million in exploration expenditures over a five year period. In recent years, Eagle Plains has completed option agreements with Billiton Metals, Rio Algom Exploration, NovaGold Resources, Kennecott Exploration and numerous other junior exploration companies, resulting in over 47,000m (154,200’) of drilling and over $21,000,000 in exploration spending on its projects since 1998. Eagle Plains management anticipates approximately $6,000,000 in expenditures on its projects in 2008, funded equally between Eagle Plains and third party partners.
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.