Providence Resources/Eagle Plains Resources Conduct Geophysical and Geochemical Surveys on the Iron Range Project
Vancouver, B.C., May 19th, 2011: Providence Resources Corp. (TSX-V:PV) and Eagle Plains Resources Ltd. (EPL:TSX-V) have resumed fieldwork at the Iron Range Project. Scott Geophysics Ltd. and TerraLogic Exploration Inc. have been retained to perform borehole directional and ground based induced polarization (IP) geophysics and soil geochemical surveys.
The IP surveys will target the area of gold-bearing massive sulphide mineralization intersected by diamond drilling in 2010 (see Dec 21, 2010 news release). Highlights included drill hole IR10-010, which included:
- 196.9-204.0m: 7.1m @ 8.13g/t Au, 5.91% Pb/Zn, 86.6g/t Ag
- 224.0-280.5m: 56.5m @ 1.9g/t Au, 1.03% Pb/Zn, 21.5g/t Ag
- Also including lowermost 277.5-279.5m: email@example.com/t Au, 9.24% Pb/Zn, 122.5g/t Ag; elevated Cd, Sb, Sn, Bi, B, Cu.
The lowermost zone is interpreted to lie at or near the lower-middle Aldridge Formation contact (LMC). The LMC is the interval which hosts the world class Sullivan deposit. The structural setting, alteration assemblages and accessory minerals encountered are also consistent with those associated with the Sullivan deposit.
A borehole directional survey will test a number of drill holes to help define the extension and orientation of the semi-massive to massive sulphides encountered in drilling at the Talon zone. A ground based IP survey is currently being conducted over the Talon zone, and the surface lineament extensions to the north and northeast of the Talon zone. Chargeability and resistivity profiles will be reviewed with respect to known mineralization to define targets for drill testing of extensions of mineralization.
A new target area for geochemical soil sampling has been defined through a compilation of recent and historical drill data which places the Lower-Middle Aldridge Formation (LMC) contact topographically lower and hence outside the area of previous soil geochemistry surveys. The current survey has been initiated in the southeastern part of the property and encompasses approximately 25.0 line-km of both contour and grid soil geochemical surveys. Geological mapping within and proximal to the survey area is occurring concurrently.
Both the geophysical and geochemical surveys are expected to be completed near the end of May. This work forms a portion of Phase III which is to include a property wide airborne survey, additional mapping, and soil geochemistry. The estimated budget for this phase is set at $700,000.00. The objective is to develop additional SEDEX and gold drill targets.
Geological exploration contracting services on the Iron Range property during 2011 are being provided by TerraLogic Exploration of Cranbrook, B.C. (a wholly-owned subsidiary of Eagle Plains). All fieldwork is under the supervision of geologist J.K. Ryley while C.C. Downie, P.Geo. is hereby identified as the overall project supervisor, hereby designated as a qualified person under National Instrument 43-101.
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 staked the current claims immediately after the Crown Grants reverted in 2000, and have 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 per cent by Eagle Plains and holds no underlying royalties or encumbrances. An additional 35,800 hectares of claims were added to the existing land package, resulting in a total of 56,200 ha -- 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 which hosts the world-class Sullivan deposit located 70km to the northeast. Over its 100 year lifetime, Sullivan produced approximately 150,000,000 tonnes of ore including 300,000,000 ounces of silver, 8,000,000 tonnes of zinc and 8,000,000 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.
Providence Option Agreement
The Iron Range project is owned 100% by Eagle Plains and holds no underlying royalties or encumbrances. Providence holds the option to earn a 60% interest in the Property by spending $3,000,000 on exploration, making $500,000 in cash payments and issuing 1,000,000 shares to EPL over 4 years.
About Providence Resources Corp
Providence Resources Corp. is a junior mining exploration company focused on delivering shareholder value through project acquisition and development. Currently the company is focused on its Iron Range Project in British Colombia, Canada.
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. Expenditures during 2011 are planned to be approximately $8,000,000 to be funded by Eagle Plains and third party partners. This exploration work will result in approximately 9400m diamond drilling and extensive ground-based exploration work facilitating the advancement of more than 15 projects at various stages of development.
Tim J. Termuende, P.Geo.
President, Eagle Plains Resources Ltd.
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.