Eagle Plains/Miner River Sign Letter of Intent with Rio Algom Exploration on South Findlay property in southeastern B.C.
Cranbrook, B.C.:Eagle Plains Resources Ltd. (EPL:ASE) and Miner River Resources Ltd. (MRG:ASE) have signed a Letter of Intent with Rio Algom Exploration Inc. on a portion of the Eagle Plains/Miner River 50:50 joint venture Findlay Creek project located about 35 km north of Cominco's Sullivan mine in southeast British Columbia. Rio Algom intends to enter into an option agreement whereby it may earn a 60% interest in 231 claims (14,000 acres) by carrying out $2,000,000 in exploration expenditures and making cash payments of $310,000 to the companies over 4 years. These claims will be known as the South Findlay property. They comprise the southern portion of the 425 claim (25,800 acre) Findlay Creek property and are contiguous with the 247 claim (15,000 acre) Greenland Creek project to the south. Greenland Creek has recently been optioned to Kennecott Canada Exploration Inc. under terms similar to the proposed Rio Algom agreement (see February 2, 1999 News Release).
Background and Recent Exploration: In 1995 Miner River and Eagle Plains initiated a search for potential mineral deposits based on the model of Cominco's Sullivan deposit in the East Kootenay area of B. C. The companies and their associates researched and staked over 30,000 acres of land having Sullivan-type mineral potential. These properties were subsequently subjected to an extensive government airborne geophysical survey which indicated numerous exploration targets. In 1996 the companies completed follow-up exploration programs including diamond drilling, with encouraging results. In December, 1996 they optioned 18,000 acres (identified as Findlay Creek) to Kennecott Canada Exploration Inc. for further exploration. In 1997 and 1998 Kennecott carried out exploration totaling $1,300,000 on the Findlay property culminating in the drilling of 5 holes at the end of the 1998 season. The project area was expanded to 425 claims (25,800 acres) during Kennecott's tenure. Of the 5 holes drilled, hole #98-05, located on a feature called Tourmalinite Ridge, encountered base-metal enrichment over 105.2 metres. Within this interval, 46 individual thin stratabound mineralized horizons were intersected (see News Release January 12, 1999). At present, Eagle Plains and Miner River have a 100% interest in the 149 claim (9,000 acre) North Findlay parcel that contains over 10km strike-length of high-potential stratigraphy defined in drill hole #98-05. The partners are currently seeking a joint-venture participant for this property.
In January, 1999 Kennecott elected to direct its exploration southward and consequently optioned the companies' adjoining Greenland Creek property. As a result Miner River and Eagle Plains regained 100% control of the Findlay property of which the proposed Rio Algom option is a part.
In summary, the original 30,000 acre property of 1995 has been expanded, divided and identified as:
- Greenland Creek, 247 claims (15,000 acres) optioned to Kennecott Canada Exploration Inc.
- South Findlay, 231 claims (14,000 acres) to be optioned to Rio Algom Exploration Inc.
- North Findlay, 149 claims (9,000 acres) owned 100% by Miner River and Eagle Plains.
The companies also have 50:50 joint venture interest in 11 gold properties in the Tintina Gold Belt in the Yukon and joint venture interests in 9 silver-lead-zinc properties in the Yukon and southeastern B. C. Recently the companies agreed to amalgamate (see February 25, 1999 News Release). If approved, this amalgamation is expected to take place in May, 1999.
"R. W. Termuende"
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