Eagle Plains/XO Gold Complete Option Agreement for Titan Property, Exploration Activity Underway
Cranbrook, B.C. 03 October, 2007: Eagle Plains Resources Ltd. (EPL:TSX-V) announces that it has executed a formal option agreement with XO Gold Resources Inc., (a private British Columbia corporation) whereby XO may earn a 60% interest from EPL in the Titan copper-gold-molybdenum project located 50km west of Atlin in northwestern British Columbia. The property is controlled 100% by EPL (subject to a 1.5% NSR), and consists of approximately 4,300 ha (10,000 acres).
XO has agreed to pay $35,000 cash and issue 50,000 common shares on signing a formal option agreement. To complete its earn-in, XO will carry out $3,000,000 in exploration expenditures, make total cash payments of $150,000 and issue 500,000 voting-class common shares to EPL by the forth anniversary. A $100,000 first-phase program consisting of an airborne geophysical survey and follow-up geochemical and geological surveys are now underway on the property. Diamond drilling is expected to be completed during the 2008 field season.
The Titan claim block covers a high-grade molybdenum-copper porphyry occurrence that has recently been exposed by retreating glacial ice. 2003 fieldwork by Eagle Plains resulted in the discovery of high-grade molybdenum mineralization in float boulders grading up to 1.877% molybdenum. Additional areas of interest exist on the property and will be subject to exploration activity. At the Buchan Creek showing, high-grade gold mineralization is present within quartz vein material that has never been tested by drilling. At Buchan, grades averaging 15.43 grams per tonne gold, 244.8 grams per tonne silver and 9.85 per cent lead were returned from two 1.1m chip samples, taken 2.0 meters apart along the vein.
Interest in the area has increased significantly lately, with activity at the nearby Engineer Gold Mine reported recently by BC Gold Corp. In addition, CZM Capital Inc. reports that drilling is well underway on its TAG gold-silver property located 10km NE of the Titan property.
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 Cominco Ltd (TSE:TCK), Alexco Resource Corp. (TSX-V:AXR), Wellstar Energy Corp. (TSX-V:WST), Blue Sky Uranium Corp. (TSX-V:BSK), Blind Creek Resources and Golden Cariboo Resources Inc. (TSX-V:GCC). These agreements expose Eagle Plains to over $20.0 million in exploration expenditures over the next 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
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.