Eagle Plains and MMG Announce Two Property Option Agreements
Cranbrook, B.C., 04 August, 2011: Eagle Plains Resources Ltd. (EPL:TSX-V) is pleased to announce that it has executed two separate property option agreements with Minerals and Metals Group (“MMG”) relating to the Findlay and Boundary properties.
MMG may earn a 60% interest in Eagle Plains' 100-per-cent-owned Findlay properties, located 30 kilometers north of Kimberley, in south-eastern B.C.. Under terms of the agreement, MMG may earn a 60% interest in the 33,500 ha property by making cash payments to EPL of $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 2018.
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”.
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.
MMG may earn a 60% interest in Eagle Plains' 100-per-cent-owned Boundary (Dode) properties, located along the US border approximately 20km SE of Creston, British Columbia. The claims were acquired by Eagle Plains through staking carried out in December, 2010. Under terms of the agreement, MMG may earn a 60% interest in the property by reimbursing EPL all acquisition costs and completing $3,000,000 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 2018.
MMG is owned by Minmetals Resources Limited (HKSE 1208), an international upstream base metals company. It is one of the world's largest producers of zinc as well as a substantial producer of copper, lead, gold and silver. Minmetals Resources Limited currently has mining operations located in Australia and Asia and a large portfolio of exploration and development projects in Australia, Asia and North America. Its operations include the Century mine in Queensland, Sepon copper and gold operations in Laos, Golden Grove underground base and precious metals mine in Western Australia and the polymetallic Rosebery mine in Tasmania.
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, many with third parties including Minerals and Metals Group (HKSE:1208), Aben Resources Ltd. (TSX-V:ABN), Providence Capital Corp. (TSX-V:PV), Waterloo Resources Ltd. (TSX-V:WAT.P), Blackrock Resources Ltd. (a private B.C. company); Heemskirk Canada Ltd., Drexel Resources Ltd. (TSX-V), Rosedale Resources Ltd (a private B.C. company), Slater Mining Corp (TSX-V:SLM), Olympic Resources Ltd. (TSX-V: OLA.P), Touchdown Capital Inc. (TSX-V: TDW), Bluefire Mining Corp. (a private BC company), 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 2011 are expected 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”
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.