SpectrumGold/Eagle Plains Execute Copper Canyon Agreement, SpectrumGold Acquires Share Position in Eagle Plains
Cranbrook, B.C.: Eagle Plains Resources Ltd. (EPL:TSX-V) and SpectrumGold Inc. (SGX:TSX-V) have executed a formal option agreement under which SGX can earn a 60% interest in the Copper Canyon project from EPL by completing C$3 million in exploration expenditures, issuing 400,000 shares of SpectrumGold over the next 3 years and making property payments totaling C$250,000. SpectrumGold may earn an additional 20% interest in the project for a total of 80% by paying Eagle Plains C$1 million and completing a feasibility study by September 2011. This agreement supersedes a Letter of Intent between Eagle Plains and Viceroy Resource Corp. announced on February 12th, 2003.
On February 26th, SpectrumGold exercised warrants and purchased 600,000 shares of Eagle Plains at a price of $.30 per share, netting EPL $180,000.
The contiguous Copper Canyon – Galore Creek properties cover one of the largest and highest grade alkalic intrusive-related gold-silver-copper systems in North America. SpectrumGold has engaged Hatch Engineering of Vancouver, British Columbia to complete an updated Resource Estimate and a Preliminary Economic Assessment Study of the Galore Creek Deposit. The Economic Assessment Study will entail a detailed review of mining and recovery methods (both open pit and underground scenarios) and metallurgical studies, as well as power and infrastructure requirements and alternatives. Galore Creek will be the focus of over $5M in exploration expenditures during 2004, including some 20,000m of diamond drilling. SpectrumGold management recently announced its intention to carry out extensive exploration including diamond drilling at Copper Canyon concurrently with work at Galore Creek.
Further to an EPL news release issued on February 9th, 2004, R.K. Netolitzky will postpone his appointment to the Board of Directors at this time. It is intended that Mr. Netolitzky will formally join the Board in the spring of 2004.
Eagle Plains Resources continues to conduct research, acquisition and exploration projects in western Canada. Through a network of experienced prospectors, consultants and contractors in addition to seasoned employees and a well-rounded Board of Directors, the Company has assembled a diverse portfolio of gold and base-metal properties. Eagle Plains seeks to attract joint-venture participation on its properties, thereby leveraging exploration spending to the ultimate benefit of the Company’s shareholders. In recent years, Eagle Plains has completed option agreements with Billiton, Rio Algom, Kennecott, NovaGold/SpectrumGold Inc., Viceroy Resource Corp. and numerous other junior exploration companies, resulting in nearly 13,000m (43,000’) of drilling and over $5,000,000 in exploration spending on its properties since 1998.
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.