MMG Commences Diamond Drilling on Eagle Plains’ Findlay Property

Cranbrook, B.C., 07 August, 2012: Minerals and Metals Group (“MMG”) has recently notified Eagle Plains Resources Ltd. (EPL:TSX-V) that diamond drilling activity has commenced on Eagle Plains' 100-per-cent-owned Findlay/Greenland Creek properties (the “Project”), located 30 kilometers north of Kimberley, in south-eastern B.C. MMG holds the exclusive right to earn up to a 75% interest in the 33,500 ha property.

2012 Exploration work will consist of a 1,800m, 4-hole program to be funded and operated by MMG. Work is expected to take 2-3 weeks to complete. FB Drilling of Cranbrook, BC has been contracted to carry out diamond drilling services. 

Findlay Project Summary

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 Formations and indicates the potential for Sullivan-style mineralization at multiple stratigraphic levels. Fieldwork by Eagle Plains and its partners has identified a number of targets including : 

  • North Findlay: 100m thick multi-kilometer scale mineralized and tourmaline-altered 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 lead 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.

Project History

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.

Findlay Option Agreement Summary

MMG has the exclusive right to earn a 60% interest in the 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.

About MMG

Mineral Metals Group (MMG) is part of the Minmetals Resources Limited group of companies. Minmetals Resources Limited is a mid-tier global resources company that mines, explores and develops base metal projects around the world. The company is headquartered in Melbourne, Australia and listed on the Hong Kong Stock Exchange under Stock Code: 1208. 

About Eagle Plains Resources 

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 $55M in exploration expenditures, $6M cash and 15M shares in partner companies. Completed agreements have yielded over $5M in exploration spending, $900,000 cash to EPL and a total of 12M shares of partner companies including Alexco Resource Corp., NovaGold Resources Inc., Giyani Gold Corp. and numerous others. 

Expenditures during 2011 on Eagle Plains-related projects were approximately $9.1M, which was funded by Eagle Plains and third-party partners. This exploration work resulted in approximately 9400m diamond drilling and extensive ground-based exploration work facilitating the advancement of more than 15 projects at various stages of development. Exploration is currently underway for an aggressive 2012 season with many individual exploration programs planned, most of which will be funded by third- parties in relation to ongoing option agreements. 

The 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

For further information on EPL, please contact Mike Labach at 1 866 HUNT ORE (486 8673)
Email: mgl@eagleplains.com or visit our website at http://www.eagleplains.com

 

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.