Eagle Plains/Drexel Commence Airborne Geophysical Survey on Titan Gold Project, NW British Columbia
Cranbrook, B.C., August 11, 2011: Eagle Plains Resources Ltd. (EPL:TSX-V) and Drexel Resources Ltd. (DX:TSX-V) have commenced a 500 line-km airborne geophysical (magnetometer and electromagnetic) survey on the Titan gold-copper property, located in northwestern British Columbia. Following the survey, the partners intend to complete follow-up geological work including geological mapping, prospecting and soil sampling to define specific target areas for diamond drilling. The survey is being conducted by SkyTEM Canada Inc.
The Titan property consists of 5100 hectares located 40 kilometers south west of Atlin British Columbia, and 200 kilometers south of Whitehorse, Yukon. The east side of the property borders the Taku Arm and may be accessed via barge from Teslin. The White Pass Railroad, with direct access to the port of Skagway, is located approximately 60 kilometres northwest of the property.
The project area covers portions of the prospective Llewellyn Fault, a >150 kilometre long crustal-scale fault system, which hosts numerous gold, silver and base metal properties, including BC Gold’s nearby Engineer Mine Project. Mineralization on the Titan property includes a number of historic base and precious metal BC Minfile occurrences associated with quartz veins and quartz shears hosted by both metasediments and intrusives, as well as a high grade molybdenum occurrence. Since acquiring the project in 2002, Eagle Plains and partners have carried out prospecting, mapping, soil geochemical sampling, and ground-based and airborne geophysics. Limited diamond drilling has been carried out on the molybdenum occurrence.
The focus of the current program is to define the relationship of the Llewellyn Fault to known mineralization and multi-element precious and base-metal soil geochemical anomalies. Work by Eagle Plains in 2008 resulted in the discovery of a new showing in the northwestern part of the property which returned 64 g/t Au from a grab sample of strongly altered quartz material. Compilation work by Eagle Plains indicates that that some of the precious-metal showings and soil geochemical anomalies may lie along common controlling structures.
Under terms of an option agreement announced December 09, 2010, Drexel holds the exclusive right to earn a 60% interest in the property by completing $3M in exploration expenditures, making $500,000 in cash payments and issuing 1.0M common shares to Eagle Plains over 4 years. Part of the property has an underlying 1.5% NSR in favour of a third party, unrelated to either Eagle Plains or Drexel, of which two thirds may be purchased for $1M.
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), 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.