Eagle Plains/Mulligan Capital Corp Commence Airborne Geophysical Survey on Eagle Lake, Saskatchewan Uranium Property
Cranbrook, B.C., September 13th, 2006: Eagle Plains Resources Ltd. (TSX-V:EPL) and Mulligan Capital Corp (TSX-V:MCC.P) announce that an airborne geophysical survey will commence immediately on EPL’s 100% owned Eagle Lake uranium project located 28 km southeast of Cameco's Key Lake mining operation in north-central Saskatchewan, Canada.
As announced August 8th, Eagle Plains has agreed to grant Mulligan the option to earn a 60% interest in the 20,000 acre (8,000 ha) property by incurring $5,000,000 in exploration expenditures by December 31st, 2010, issuing 1,000,000 common shares to EPL, and reimburse EPL all acquisition costs. A 1% royalty has been reserved for a third-party individual, and may be purchased at any time for $1,000,000.
Fugro Airborne Surveys has been contracted to complete the 858 line-km magnetometer and Geotem electromagnetic survey over the entire property area. Follow-up prospecting and geologic mapping will take place immediately following the survey, and will be guided by preliminary results provided by Fugro. Project supervision is provided by Eagle Plains’ geologist Jarrod Brown, M.Sc., P.Geo.
Contingent on favourable results from the current program, an aggressive diamond drill program is planned for the property during the winter months.
Uranium mineralization on the property was first discovered in 1969 by Great Plains Development Company of Canada Ltd. during the 1969 Athabasca Basin uranium rush. The 1969 work program was carried out under the supervision of R.W. (Bob) Termuende, later a founding director of Eagle Plains.
Exploration in the area now covered by the Eagle Lake property by Great Plains reportedly identified a float boulder train 1.5 kilometers in length. The boulders reportedly consisted of white pegmatite with uranium stain as well as uranium/copper mineralization in sheared graphitic material. Historical records document that four boulders collected from the float train assayed 0.19, 0.32, 0.56, and 0.50% U3O8 (note these are historical results and cannot be confirmed by Mulligan or EPL). The boulders were collected from an area adjacent to a prominent north-south trending fault structure visible on government aeromagnetic surveys. Great Plains reported high radon gas values from both water and soil samples collected near the uraniferous boulder train. Notably, the bedrock source for these float boulders was not located.
Subsequent work on the property in 1979 and 1980 by Bonn Energy Corporation resulted in the discovery of pitchblende mineralization in veins associated with fault structures. Reportedly this mineralization was visually distinct from the uraniferous pegmatite boulders discovered by Great Plains in the late 1960s, and therefore their source remains undetermined. Following the 1979-80 program, the project geologist concluded in his technical report that “considerable uranium mineralization is present on the property” and that “The probability that this mineralization reflects the presence of a uranium deposit is sufficiently high that work should continue”. A comprehensive program was recommended to further assess the property, but was never carried out.
The Eagle Lake property lies within the Wollaston domain and consists of Aphebian metasedimentary gneisses and schists, including pelitic schists and gneisses with graphitic horizons. Mulligan and EPL will focus on exploring for uranium deposits in north to northwest-trending faults which are interpreted to have formed structural traps where uranium mineralization may have been deposited and preserved.
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 $13,000,000 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, EPL and its partners completed 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.