Eagle Plains/Prize Mining Form Yellowjacket Joint-Venture
Cranbrook, B.C., 16 April, 2009: Eagle Plains Resources Ltd. (EPL:TSX-V) and Prize Mining Corp. (PRZ:TSX-V) have completed all necessary documentation, received necessary regulatory approvals, and transferred funds to facilitate the production of gold and conduct further exploration and development of the Yellowjacket Zone on the Atlin Gold Property, located 9 kilometers east of Atlin, in north-western British Columbia.
As referenced in a news release dated April 6th, Eagle Plains has purchased a 40% interest in the project by providing $2,000,000 CDN in working capital. These funds will be used to immediately clear existing liens and obligations on the Property in addition to completing upgrades of the existing mill facility and covering costs related to engineering, permitting and environmental compliance. Eagle Plains will in turn receive 60% of all proceeds of production up to $2,000,000, at which time it will revert to a 40/60 working interest. Eagle Plains will have the option of increasing its working interest to 60% by making additional payments to Prize totaling $2,000,000 by the sixth anniversary of the agreement. It is expected that commercial production activity will commence by the third quarter of 2009.
Excavation activity on the property commenced in 2007 under a 10,000 tonne bulk sample permit. A modern milling facility was constructed, and includes a 1000 kW generator, ball mill, SAG mill, feeders, pumps, conveyors, three Knelson concentrators, magnetic separator, Diester and Gemini tables and an on-site assay laboratory. Test work indicated preliminary recoveries of 81%, with ore head-grades of approximately 9.0 g/t gold. Test work done on the rock units excavated from the pit have found them to be non-acid generating.
The Yellowjacket JV intends to meet the following objectives during 2009:
- compile all existing geological, geophysical, environmental and engineering data into a GIS database
- remove liens and encumbrances on the property
- complete application for BC Small Mines Permit (up to 75,000 tonnes per year)
- complete modifications to existing mill facility
- resume milling of stockpiled ore
- dewater existing pit
- commence expansion of existing pit
- commence commercial production with target of 35,000 tonnes throughput during Q3
- explore possibilities for year-round custom milling
- study feasibility of connecting to newly established hydro-electric facility
- design and execute exploration program for future expansion
The Yellowjacket Joint Venture is committed to working on the Yellowjacket project in a sustainable and responsible manner. The project is situated within the traditional territory of the TRTFN, and as such, will only move forward with the trust and support of the TRTFN leadership and membership, and the people of the Atlin community. The project proponents look forward to establishing a strong relationship with all stakeholders, based on responsible economic and environmental stewardship and mutual respect.
About Eagle Plains Resources
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. (a private B.C. company). 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 equally between 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.