Eagle Plains/Blind Creek Execute Option Agreement for Blende Silver/Base-Metal Deposit
Cranbrook, B.C. 09 August, 2005: Eagle Plains Resources Ltd. (EPL:TSX-V) announces that it has executed an option agreement with Blind Creek Resources Ltd. (a private B.C. company) whereby Blind Creek may earn a 60% interest from EPL in the Blende silver-lead-zinc-copper deposit located in the Wernecke Mountains, approximately 65 NE of Keno in central Yukon Territory. The property is owned 100% by EPL (subject to a 1% NSR), and consists of 73 quartz claims covering approximately 3700 acres. The property has remained dormant since 1994
Blind Creek has agreed to complete a total of $5,000,000 in exploration expenditures, pay EPL a total of $250,000 cash ($15,000 upon TSX-V acceptance) and issue 1,000,000 common shares by December 31st, 2010. EPL will remain operator of the project up to the completion of $1,000,000 in expenditures. A 10% finders fee has been reserved for B. Kreft, and will be paid by the vendor.
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 a resource estimate for the property comprising a total of 19,600,000 tonnes (21,500,000 tons) grading 56.0 g/T silver and 5.84% combined lead-zinc. Within this resource is 15,300,000 tonnes grading 67.5 g/T silver and 6.27% combined lead-zinc.
In terms of contained metals, the Blende property contains at least:
- 35M ounces silver
- 1.3B lbs zinc
- 1.2B lbs lead
Price noted that “Mineralization estimates are considered reliable and relevant, but were prepared prior to National Instrument 43-101 standards. The resource calculations have been examined in detail by the writer and conform with the definition of an Inferred Mineral Resource.”
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 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.
Price estimates total expenditures on the property from 1984 to 2001 to be approximately $4.2 million. In his report, he proposes a 2-phase, $1.3 million exploration program consisting of extensive diamond drilling to outline a higher grade resource which may be amenable to underground development.
Mineralization at the Blende was originally noted by the Geological Survey of Canada in 1961 and was first staked in 1975 by Cyprus Anvil Mining Corp., which carried out mapping and geochemical sampling later that year. Archer Cathro & Associates (1981) Ltd. restaked the property in April 1981 and conducted trenching and rock sampling from 1981 to 1984. NDU Resources Ltd. purchased the property in 1987, and in 1988 drilled 3 holes (718 m) and explored by mapping and hand trenching. In 1989 NDU carried out mapping, road construction, soil sampling, magnetic and VLF-EM surveys. Billiton optioned the property in 1989 and as project operator drilled 15 holes (3659.7 m) in 1990. Billiton’s 1991 work included completion of the soil geochemical and geophysical coverage, drill-testing of the deposit over a 3.3 km strike length, and preliminary metallurgical tests. The 1991 drilling consisted of 62 holes totaling 11,525m, including 15 holes in the West Zone, 34 holes in the East Zone and 13 holes in the central area between the two zones. Billiton elected in 1993 to convert its interest to a 10% net profits royalty. In 1994 NDU drilled 7 step-out holes (596m) which successfully extended the West Zone 150m further westward (the West Zone remains open in this direction). This activity is the last recorded exploration of the property. In March, 1998 NDU merged with United Keno Hill Mines Ltd. (UKHM) and the property came under the control of UKHM, which subsequently went into receivership. Eagle Plains acquired the property by staking in January, 2001, soon after the original claims expired.
Eagle Plains Resources continues to conduct research, acquisition and exploration projects in western Canada. The Company controls over 30 gold and base-metal projects, many with third parties including NovaGold Inc. (NG:AMEX,TSX), Amarc Resources Ltd. - a Hunter Dickinson Group Company (AHR:TSX-V), Northern Continental Resources Inc. (NCR:TSX-V), and Golden Cariboo Resources Inc. (GCC:TSX-V). These agreements expose Eagle Plains to over $16.5 million 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 27,000m (90,000 ft) of drilling and over $8,000,000 in exploration spending on its projects since 1998.
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.