Eagle Plains/Providence Capital Continue Expansion of Drill Program on Iron Range Project, Acquire Additional Lands
Cranbrook, B.C., November 2, 2010: Eagle Plains Resources Ltd. (EPL:TSX-V) and Providence Capital Corp. (TSX-V:PV) have now completed three diamond drill holes and further increased the budget for the Iron Range Project from an initial $200,000 to up to $650,000. In addition, the option partners have recently acquired 35,800 ha of new claims, increasing the total land position from 20,400 ha to 56,200 ha (560 square kilometres – an area approximately 11km x 50km). The partners continue to test the stratigraphic interval known to host the Sullivan deposit, located 70km to the north. Current exploration work is funded by Providence Capital.
The project is owned 100% by Eagle Plains, with Providence holding 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.
The decision to accelerate further exploration follows the intersection in Hole 2 of a significant interval located at or near the Sullivan time horizon containing pervasive tourmaline and albite-altered sediments interlayered with discrete conformable bands of pyrite, pyrrhotite (iron) and chalcopyrite (copper) sulphides. Though relatively narrow (up to 8mm in width), these bands and the associated alteration assemblage are interpreted by Eagle Plains geologists to be indicative of a vent system nearby which may contain more significant mineralized material. The completion of Hole 3 added additional information to aid in the search for a possible vent source. Hole 4 is currently underway, with permitting ongoing for additional drilling.
Iron Range Project Summary
The Iron Range property consists of 20,000 hectares and has no underlying royalties or encumbrances. The claims are well-situated with respect to infrastructure with a high-pressure gas pipeline, high-voltage hydroelectric line, railway and major highway all located within property boundaries.
The Iron Mountain structure has been mapped with widths of up to 150m and a strike length of over 50km. Claims held by Eagle Plains cover over 25km of the structure, with significant iron-oxide mineralization occurring over 15km. Copper and gold mineralization has recently been discovered along the structure, highlighting the potential for iron-oxide copper-gold (“IOCG”) mineralized systems associated with the structure. 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 $25 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.
A map outlining pertinent details of the property may be found at: Iron Range Compilation Map
The Iron Range deposits were originally staked in 1897 and were covered by Crown Grants held by Cominco Ltd. and the Canadian Pacific Railway. Past work on the Iron Range deposits by Cominco focused on the considerable iron oxide resource with trenching and very shallow (20m depth) diamond drilling along the Iron Range Mountain ridge. 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-km airborne geophysical survey.
Eagle Plains completed diamond drilling programs in 2005 and 2008, testing for base-metal mineralization. A number of holes from these programs intersected gold mineralization, including drill hole IR08006, which returned 7.0m grading 51.52 g/t (1.50 oz/ton) gold from 20.0m to 27.0m (see EPL news release dated April 20th, 2009).
Swift Resources optioned the property in late 2009 and completed a total of 580 m of drilling in 7 holes. One hole was drilled in close proximity to IR 08006 and returned 1.0m grading 7.53 g/t gold. (see EPL news release dated March 5th, 2010).
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 Excelsior Mining Corp (TSX:MIN.P), Sandstorm Resources Ltd. (TSX-V:SSL), Sandstorm Metals and Energy Ltd. (TSX-V:SND), Providence Capital Corp., Waterloo Resources Ltd. (TSX-V:WAT.P), Windstorm Resources Inc., 0802906BC Ltd. (a private B.C. company); Heemskirk Canada Ltd., Touchdown Capital Inc. (TSX-V: TDW) and 99 Capital 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 2008 and 2009 on Eagle Plains’ projects were approximately $7,300,000, funded by Eagle Plains and third party partners. This work resulted in approximately 6,900m of drilling and extensive ground-based exploration work and facilitated the advancement of numerous projects at various stages of development.
Technical aspects of this news release have been reviewed and approved by T.J. Termuende, P.Geo., hereby designated as a qualified person under National Instrument 43-101.
On behalf of the Board of Directors
“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.