Eagle Plains/Navy Resources Execute Option Agreement on Vulcan Property, South-eastern British Columbia

Cranbrook, B.C., 22 December, 2011: Eagle Plains Resources Ltd. (EPL:TSX-V) and Navy Resources Corp. (a private B.C. company) announce that they have executed a formal option agreement whereby Navy may earn an undivided 60% interest in Eagle Plains’ 100% owned Vulcan Property located 30km northwest of Kimberley, British Columbia. Under terms of the agreement, Navy will complete exploration expenditures of $3,000,000, make cash payments of $250,000 and issue 1,000,000 common shares to Eagle Plains over a fifty-four month period. The partners recently completed a 353 line-km airborne airborne gravity geophysical survey over the property area (see EPL news release Dec 19/2011), with plans underway for drilling next season.

Property Geology and History

The road-accessible property overlies rocks of the Purcell Supergroup, including Aldridge Formation sediments. The principle exploration target on the property is a Sullivan-type stratiform sediment-hosted massive sulfide deposit. The nearby Sullivan Mine produced 144 million tons of ore averaging 6.5% lead, 5.6% zinc and 2.3 opt silver to 1988, representing 300,000,000 ounces of silver, 8,000,000 tonnes of zinc and 8,000,000 tonnes of lead, collectively worth over $45 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 Vulcan property.

At Vulcan the styles of mineralization, host rocks and alteration all show strong similarities to the Sullivan Deposit. The best sulfide mineralization at Vulcan is exposed in a surface showing. Strata-controlled pyrrhotite-galena-sphalerite is interpreted to occur at the Sullivan time horizon in a 7.5 m thick zone which includes 1.5 m averaging 1.6% combined lead-zinc. Grab samples of this zone assay up to 5.5% lead-zinc and 22 opt silver.

The Vulcan property has been tested by historic drilling on separate occasions. The most comprehensive testing occurred in the early 1990’s by Ascot Resources. In 1991 a five-hole 1,003m drill program was completed. In 1992 three holes were drilled totaling 1535m and explored the Lower-Middle Aldridge contact (LMC) to depths of 300m, roughly 600-800m down-dip of 1991 intersections. Though 1992 drilling indicated the presence of Sullivan-type stratigraphy and alteration in all holes, significant base-metal mineralization was not encountered. The down-dip extension of the 1991 holes on the Vulcan property remain untested and provide targets for future work. 

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, $6.5M cash and 20M shares in partner companies. Completed agreements have yielded over $17M in exploration spending, $1M cash to EPL and a total of 16M shares of partner companies including Alexco Resource Corp., NovaGold Resources Inc., Giyani Gold Corp., Aben Resources Ltd. and others. 

Expenditures during 2011 on Eagle Plains-related projects were approximately $9,100,000 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.

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.