MMG Commences Fieldwork on Eagle Plains’ Findlay Property
Cranbrook, B.C., 11 July, 2013: MMG Limited (“MMG”) has recently notified Eagle Plains Resources Ltd. (EPL:TSX-V) that exploration activity has commenced on Eagle Plains' 100-per-cent-owned Findlay/Greenland Creek properties (the “Project”), located 30 kilometers north of Kimberley, in south-eastern B.C. MMG holds the exclusive right to earn up to a 75% interest in the 33,500 ha property.
2013 exploration work will consist of systematic exploration work including geological mapping, soil geochemical sampling, ground geophysics and water sampling. Work is expected to take four weeks to complete, at a budget of $400,000.
Findlay Project Summary
The Findlay Project overlies Aldridge Formation stratigraphy, considered prospective for sedimentary-exhalative (“sedex”) deposits. Structurally, this area has been identified as an extension of the North Star-Sullivan corridor which hosts the world class Sullivan deposit 30km to the south. The Findlay property displays Sullivan-style exhalative tourmalinite (boron) horizons, massive fragmental sections, anomalous lead, zinc geochemistry and numerous base-metal occurrences. This “Sullivan smoke” occurs throughout the Lower to Upper Aldridge formation and indicates the potential for Sullivan-style mineralization at multiple stratigraphic levels. Fieldwork by Eagle Plains and its partners has identified a number of target including:
|•||North Findlay: 100m-thick, multi-kilometer scale mineralized and tourmaline-altered exhalative horizon related to hydrothermal venting within the Upper Aldridge stratigraphic interval.|
|•||Greenland Creek: Diamond drilling by Eagle Plains in 1997 and MMG in 2012 intersected numerous thin stratabound sulphide bands associated with albite/garnet/chlorite alteration, all features associated with Sullivan. Dating indicates Sullivan-age for lead mineralization in the Greenland Creek area.|
|•||Mid-Fork: Evidence for deep-seated structures including arched gabbros and thickened, mineralized fragmental sequences at or near “Sullivan time”.|
Property scale mapping by Cominco Ltd. and Eagle Plains has established excellent Aldridge marker control and many of the drill targets developed are within the 500 – 1000m range, considered to be shallow for Sullivan type targets in the Purcell Basin.
The Findlay property has been explored sporadically since the 1930’s.Government assessment reports show exploration programs by Cominco (1959-69, 1977, 1984-1988), Texas Gulf Sulphur (1971), Kerr-Addison Mines (1971-1975), Amax (1977-79), Four Tops Mining (1982-1985), Billiton Canada (1983-1984) and Teck Corp. (1990). Commodities sought were skarn-related tungsten from Cretaceous intrusions and base and precious metals from sedex-style deposition. Eagle Plains began acquiring claims in the Findlay - Doctor - Greenland Creek area in 1996 and with its various partners, has been exploring the area continuously.
Between 1997 and 2000, parts of the current Findlay property were under option to Kennecott Canada Ltd. Billiton Canada Ltd. and Rio Algom Ltd. Work by these groups and Eagle Plains included property- scale geological and structural mapping, soil geochemical sampling, prospecting and limited diamond drilling. Total expenditures on the property since 1996 are in the order of $4.7 million.
In 2012, MMG completed a 475line-km airborne geophysical survey, followed by a 4-hole, 1435m diamond-drilling program. Results were sufficiently encouraging that MMG elected to maintain its option on the property.
Findlay Option Agreement Summary
MMG has the exclusive right to earn a 60% interest in the property by making cash payments to EPL of $500,000 and completing $5,000,000 in exploration expenditures over 5 years. MMG may earn an additional 15% interest (for a total of 75%) by delivering a bankable feasibility study by 2018.
About MMG Limited
MMG Limited is a mid-tier global resources company which explores, develops and mines base metal projects around the world. It is headquartered in Melbourne, Australia and listed on the Hong Kong Stock Exchange (Stock Code: 1208).
MMG owns and operates the Century, Golden Grove and Rosebery mines in Australia, the Kinsevere mine in the Democratic Republic of the Congo (DRC) and the LXML Sepon mine in Laos.
Its major development projects include Dugald River project in Queensland, Australia and the Izok Corridor base metals project in Nunavut, north-west Canada. MMG also has significant exploration projects and partnerships in Australia, Africa and the Americas. It is one of the world's largest producers of zinc and also produces significant amounts of copper, lead, gold and silver.
For further information visit www.mmg.com
About Eagle Plains Resources
Based in Cranbrook, B.C., Eagle Plains is on sound financial footing and continues to conduct research, acquire and explore mineral projects throughout western Canada. Since 1992, EPL has been acquiring and developing early stage projects utilizing an in-house team of geologists, technicians and specialists. Considered a prolific project generator with over 35 properties, EPL invites joint venture participation to expedite development, reduce risk and enhance exposure to discovery.
Current third party agreements if maintained to completion expose EPL to over $45M in exploration expenditures, $5M cash and 10M shares in partner companies. Completed agreements have yielded over $17M in exploration spending, $1.8M cash to EPL and a total of 18M shares of partner companies including Alexco Resource Corp., NovaGold Resources Inc., Giyani Gold Corp. and numerous others.
Expenditures during 2011 and 2012 on Eagle Plains-related projects were approximately $14M, which was funded by Eagle Plains and third-party partners. This exploration work resulted in approximately 15,000m of diamond drilling and extensive ground-based exploration work facilitating the advancement of more than 23 projects at various stages of development.
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.