Eagle Plains/Wellstar Execute Option Agreement on Kulyk Lake Uranium Project, Airborne Geophysical Survey to Commence Immediately
Cranbrook, B.C., 10 April, 2007: Eagle Plains Resources Ltd. (EPL:TSX-V) is pleased to announce that a formal option agreement has been executed with Wellstar Energy Corporation (WST:TSX-V) whereby Eagle Plains has agreed to grant an option to Wellstar to earn a 60-per-cent interest in Eagle Plains' 100-per-cent-owned Kulyk Lake and Jenny Lake uranium properties (the “Project”), located 30 to 40 kilometers southeast of Cameco's Key Lake mining operation in north-central Saskatchewan, Canada. Under terms of the agreement, Wellstar has reimbursed EPL $77,500 in acquisition costs, will commit to $5,000,000 in exploration expenditures and issue 1,000,000 common shares to EPL by December 31st, 2011.
The partners have agreed to complete a 2425 line-km MegaTEM airborne geophysical survey over the entire property area, with work to be undertaken by Fugro Airborne Surveys Ltd., scheduled to begin within the next 10 days. This program will be followed up by geological work on the property in June of this year. Contingent on favourable results, diamond drilling will be scheduled for late in the 2007 season.
The Project adjoins Eagle Plains 100% owned Eagle Lake Property where an extensive airborne geophysical survey and follow-up ground geological program was carried out in the fall of 2006. The Eagle Lake Property is under option to Blue Sky Uranium Corp.’s (formerly Mulligan Capital Corp. (MCC-TSX.V)
The Kulyk Lake property covers approximately 96 square km and was staked to cover known historical uranium mineral occurrences and uranium lake sediment anomalies within prospective folded and faulted basement lithologies of the Wollaston group. Much of the known uranium mineralization occurs along Wollaston group contacts and fault intersections, particularly in the presence of pegmatite. Historical trenching at one such occurrence revealed 0.369 per cent U3O8 over 3.4 meters (SMDI 0993). Grab sampling from another occurrence returned up to 1.68 per cent U3O8 (SMDI 0978).
The 50 square km Jenny Lake area also covers prospective basement lithologies of the Wollaston domain at its eastern limit along a major tectonic boundary. Known uranium mineral occurrences are associated with several large-scale structures that suggest excellent regional prospecting potential. Historical grab samples of yellow-stained fractures in gneiss and pegmatite returned values up to 0.47 per cent U3O8 (SMDI 0981). To the east, a single historical drill hole near the Needle Falls shear zone intersected a sulphide and graphite-bearing zone in pelitic host rock.
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.
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 Alexco Resource Corp. (TSX-V:AXR), Wellstar Energy Corp. (TSX-V:WST), Blue Sky Uranium Corp. (TSX-V:BSK), Blind Creek Resources. These agreements expose Eagle Plains to $17.5 million in exploration expenditures over five years. In recent years, Eagle Plains has completed option agreements with Billiton Metals, Rio Algom Exploration, NovaGold Resources, Kennecott Exploration, Viceroy Resource Corp. and numerous other junior exploration companies, resulting in over 38,000m (125,000’) of drilling and over $16,000,000 in exploration spending on its projects since 1998. During the 2006 season, EPL and its partners completed over 7,000m (23,000’) of diamond drilling on its properties.
On behalf of the Board of Directors
“Tim J. Termuende”
President and CEO
Cautionary Note Regarding Forward-Looking Statements
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