Eagle Plains and MMG Announce Letter of Intent on the Findlay Property
Cranbrook, B.C., 04 March, 2011: Eagle Plains Resources Ltd. (EPL:TSX-V) is pleased to announce that a letter of intent has been executed with Minerals and Metals Group (“MMG”) whereby Eagle Plains has agreed to grant an option to MMG to earn a 60-per-cent interest in Eagle Plains' 100-per-cent-owned Findlay/Greenland Creek properties (the “Project”), located 30 kilometers north of Kimberley, in south-eastern B.C.. Under terms of the proposed agreement, MMG may earn a 60% interest in the 33,500 ha property by making staged cash payments to EPL totalling $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 2021.
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, and indicator geochemistry, and 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 has identified a number of target including:
- North Findlay: 100 meter thick multi kilometer scale mineralized / tourmalinized exhalative horizon related to hydrothermal venting within the Upper Aldridge stratigraphic interval.
- Greenland Creek: Diamond drilling by Eagle Plains in 1997 intersected numerous thin stratabound sulphide bands associated with albite / garnet / chlorite alteration, some of which display continuity over 60m, and are open down-dip and along strike. Dating indicates Sullivan age for Pb 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”.
The property also includes the historic Silver Key Mine, which produced 31 tons of selected ore averaging 3431 g/t silver from structurally-controlled narrow quartz veins within the Lower Aldridge Formation. (B.C. Minfile).
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 Resources began acquiring claims in the Findlay - Doctor - Greenland Creek area in 1996.
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 as well as extensive work funded exclusively by 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 million.
Mineral Metals Group (MMG) is part of the Minmetals Resources Limited group of companies (HKEx: 1208); MMG is the third largest zinc producer in the world and operates a portfolio of world-class base metal mining operations, development projects and exploration projects. Operating mines include the Century mine in Queensland, Australia's largest open pit zinc mine; the Golden Grove underground mine in Western Australia and the Rosebery underground mine in Tasmania, both of which produce zinc, copper, lead and precious metals; and the Sepon gold and copper operations in Lao. Development projects include the Dugald River zinc, lead and silver deposit in north western Queensland. In Canada, MMG is focussed on development of the Izok Lake polymetallic deposit in Nunavut, as well as systematic exploration in the area of the High Lake and Izok Lake projects. Target commodities include copper, zinc-lead and nickel.
About Eagle Plains Resources
Eagle Plains continues to conduct research, acquire and explore metal projects throughout western Canada. In addition to holding mining royalties on various projects, Eagle Plains controls over 35 gold, base-metal and uranium projects, several with third parties including Aben Resources Ltd. (TSX-V:ABN), Sandstorm Resources Ltd. (TSX-V:SSL), Sandstorm Metals and Energy Ltd. (TSX-V:SND), Providence Capital Corp., Waterloo Resources Ltd. (TSX-V:WAT.P), Windstorm Resources Inc., Blackrock Resources Ltd. (a private B.C. company); Heemskirk Canada Ltd., Touchdown Capital Inc. (TSX-V: TDW), Active Growth Capital (TSX-V:ACK) and Giyani Gold Corp. (TSX-V:WDG). In recent years, Eagle Plains has completed option agreements with Teck Limited (TSX:TCK.B), Alexco Resource Corp. (TSX-V:AXR), Billiton Metals, Rio Algom Exploration, NovaGold Resources, Kennecott Exploration and numerous other junior exploration companies, resulting in over 53,600m (163,370’) of drilling and over $28.3 million in exploration spending on its projects since 1998.
Expenditures during 2010 on Eagle Plains’ projects were approximately $3,240,000, funded by Eagle Plains and third party partners. This work resulted in approximately 3,580m of drilling and extensive ground-based exploration work and facilitated the advancement of numerous 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.