Providence Completes Earn-In on Iron Range Option, Enters Joint-Venture with Eagle Plains
Cranbrook, B.C., 12 March, 2012: Providence Resources Corp. (TSX-V: PV) (“Providence” or the “Company”) and Eagle Plains Resources Ltd. (TSX-V:EPL) (“Eagle Plains”) are pleased to announce that Providence has exercised its option with Eagle Plains and earned a 60% undivided right, title and interest in and to the Iron Range Project located near Creston, British Columbia. Providence earned its interest by making aggregate cash payments of $500,000, issuing a total of 1,000,000 common shares and completing exploration expenditures of $3,000,000.
In accordance with the terms of the option agreement, Providence and Eagle Plains are deemed to have formed a joint venture for exploration and development of the Iron Range Project. The parties have recently executed a formal joint venture agreement and are in advanced planning and permitting for a drilling program which is expected to commence on the property by late March.
Tim Termuende, P.Geo, President and CEO of Eagle Plains stated recently “we welcome the opportunity to work as joint-venture partners with Providence in the future exploration of the Iron Range project. We are encouraged by results to date and acknowledge and appreciate the aggressive, systematic approach taken by Providence to date. Together, we hope to unlock the potential of the property”
Iron Range Project Summary
The Iron Range deposits were originally staked in 1897, and were covered by Crown grants held by Cominco Ltd. and the Canadian Pacific Railway. Eagle Plains Resources (“Eagle Plains”) staked the current claims immediately after the Crown grants reverted in 2000, and it has been exploring the property since then. Exploration work to date includes geological mapping, geochemical surveys, diamond drilling and a 690-line-kilometre airborne geophysical survey.
The Iron Range project is owned 100% by Eagle Plains and holds no underlying royalties or encumbrances. An additional 35,800 hectares of claims were added to the original land package, resulting in a total of 56,200 hectares -- an area approximately 11 km by 50 km. The land package now covers over 30 km of the Iron Range structure, most of it unexplored. The claims also overlie rocks of the Aldridge formation, including the same stratigraphic time horizon that hosts the world-class Sullivan deposit located 70 km to the northeast. Over its 100-year lifetime, Sullivan produced approximately 150 million tonnes of ore including three billion ounces of silver, eight million tonnes of zinc and eight million tonnes of lead, collectively worth over $30-billion at current metal prices. The parties caution that past results or discoveries on proximate land are not necessarily indicative of the results that may be achieved on the Iron Range property.
About Eagle Plains Resources
Eagle Plains 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 $55M in exploration expenditures, $6M cash and 15M shares in partner companies. Completed agreements have yielded over $5M in exploration spending, $900,000 cash to EPL and a total of 12M shares of partner companies including Alexco Resource Corp., NovaGold Resources Inc., Giyani Gold Corp., Aben Resources Ltd. and others.
Expenditures during 2011 on Eagle Plains-related projects were approximately $9,100,000 which was funded by Eagle Plains and third party partners. This exploration work resulted in approximately 9400m diamond drilling and extensive ground-based exploration work facilitating the advancement of more than 15 projects at various stages of development. Planning is currently underway for a very aggressive 2012 exploration season, with over 10 individual drilling programs planned, most to be funded by third parties in relation to ongoing option agreements.
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.