Eagle Plains/Blind Creek Release Results from 2008 Drilling Program at Blende Silver/Base-Metal Project, Yukon Territory
Cranbrook, B.C. 22 January, 2009: Eagle Plains Resources Ltd. (EPL:TSX-V) and Blind Creek Resources Ltd. (a private B.C. company) jointly announce that they have completed fieldwork and received final assay results from a 7-hole, 3,435 ft (1,047.3 m) diamond drilling program on the Blende property, located in central Yukon approximately 65km NE of Keno Hill.
- drill hole BE08126 returned 10.55% Pb+Zn , 225.0 g/t Ag over 9.9m from 31.2m to 41.1m (including 26.0% Pb+Zn, 361.9 g/t Ag over 3.4m from 37.7m to 41.1m) and 14.71% Pb+Zn, 215.7 g/t Ag over 8.1m from 94.7m to 102.8m
- drill hole BE08128 returned 17.97% Pb+Zn , 162.7 g/t Ag over 4.8m from 29.4m to 34.2m (including 20.3% Pb+Zn, 201.6 g/t Ag over 2.8m from 31.4m to 34.2m)
- drill hole BE08131 returned 5.98% Pb+Zn , 58.2 g/t Ag over 28.9m from 34.2m to 63.1m (including 12.1% Pb+Zn, 187.0 g/t Ag over 3.0m from 35.7m to 38.7m; also including 12.72% Pb +Zn, 103 g/t Ag over 2.6m from 41.2m to 43.8m)
2008 work follows an 11,191’ (3,411m), 15-hole program completed in 2007 and a 23-hole 13,884’ (4,233m) program completed in 2006. Since acquiring the property in 2000, Eagle Plains and its partners have completed 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.
Diamond drilling in 2008 was focused on exploration of the Far West Zone. The primary goal of the program was to delineate new economically viable targets outside of the current resource.
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. Blind Creek has now completed its expenditure requirements in order to satisfy earn-in requirements. Negotiations are underway between the two parties whereby Blind Creek may increase its ownership in the project to 100%.
TABLE 1 2008 DRILL RESULTS
|Hole Number||Zone||From (m)||To (m)||Length (m)||
Total Pb + Zn (%)
|Also Including||Far West||31.4||34.2||2.8||20.34||201.6||1.1|
|Also Including||Far West||90.5||93.3||2.8||7.58||36.4||0.1|
|BE08129||Far West||Abandoned||- No||significant||intercepts|
|BE08130||Far West||Abandoned||- No||significant||intercepts|
|Also Including||Far West||35.7||38.7||3.0||12.06||187.0||-|
|Also Including||Far West||41.2||43.8||2.6||12.72||103.0||-|
Blende Property Summary
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 In., 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. The deposit is open along strike to the east and west as well as down-dip of the existing zones.
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 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 were carried out by Apex Diamond Drilling Ltd. of Smithers, B.C.
About Eagle Plains
Eagle Plains’ management would like to take this opportunity to remind shareholders of the sound financial position of the company. The company currently has $5.5 million in cash and securities and is debt-free. Management has implemented a number of measures to protect its treasury and reduce overhead expenditures. The Company is in a strong position to take advantage of opportunities presented by the current economic downturn, and will be well-positioned when market conditions improve.
As part of its plans to diversify its activities during the current industry downturn, Eagle Plains provides competitively priced contract geological consulting services to both partners and third party clients, offering a full range of GIS, data management, data collection, and geological services as well as diamond drilling support.
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 Limited (TSX:TCK.B), Alexco Resource Corp. (TSX-V:AXR), Sandstorm Resources Ltd. (TSX-V:SSL.P), Waterloo Resources Ltd (TSX-V:WAT.P), Mountain Capital Inc (TSX-V:MCI.P) and XO Gold Resources Ltd. These agreements expose Eagle Plains to over $15.0 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 52,000m (158,500’) of drilling and over $27.0 million in exploration spending on its projects since 1998. 2008 expenditures on Eagle Plains’ projects were approximately $6,000,000, funded by both Eagle Plains and third party partners. In 2009, management anticipates approximately $1.2 million in exploration expenditures funded by 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.