Eagle Plains/Providence Enter into Option Agreement on Kokanee Creek Project, South-Eastern British Columbia
Cranbrook, B.C., May 15th, 2013: Eagle Plains Resources Ltd. (EPL:TSX-V) and Providence Resources Corp. (PV:TSX-V) have entered into an agreement whereby Providence may earn an interest in the Kokanee Creek poly-metallic property, located in south-eastern British Columbia approximately 20km NE of Nelson. Under terms of the agreement, Providence has the option to earn a 60% interest in the property by completing $3M in exploration expenditures, making $260,000 in cash payments and issuing 1.0M common shares to Eagle Plains over 5 years.
The 523 ha property was originally acquired by Eagle Plains in 1996 and showed no documented exploration history. The claims overlie meta-sediments forming an aerially-extensive pendant within intrusive rocks. Mineralization is interpreted to be skarn-type, and is contained within preferentially-replaced sedimentary horizons. A continuous-chip sample collected along a road cut returned 2.26 g/t gold over 5.5m.
In March, 1997, Eagle Plains completed a 5-hole, 1400’ (430m) diamond drilling program which yielded encouraging results including Hole KC97-2 which returned 26.11 g/t gold over 0.7m from 7.0-7.7m and 13.52 g/t gold over 1.4m from 21.8m to 23.2m. All five holes returned encouraging gold, silver, lead or zinc mineralization at shallow depths.
The last systematic exploration of the property occurred in 2005 when Eagle Plains completed an airborne geophysical survey of the property.
About Eagle Plains Resources
Based in Cranbrook, B.C., 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 $50M in exploration expenditures, $6M cash and 14M 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.
Technical contents of this news release have been reviewed and approved by Tim J. Termuende, P.Geo.
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.