Eagle Plains/Slater Mining Execute Option Agreement on Karin Lake REE/Uranium Project, Saskatchewan
Cranbrook, B.C., July 12th, 2010: Eagle Plains Resources (TSX-V:EPL) and Slater Mining Corporation (TSX-V:SLM.P) have executed a formal option agreement whereby Eagle Plains has agreed to grant Slater the option to earn a 60% interest (subject to regulatory approval) in the 15,800 ha Karin Lake property located 40 km east of Cameco’s Key Lake deposit in north-central Saskatchewan, Canada. To earn a 60% interest in the property, Slater will complete $3,000,000 in exploration expenditures, make $500,000 in cash payments and issue 1,000,000 common shares to Eagle Plains over four years.
The Property is underlain by rocks of the Proterozoic Wollaston Domain comprising ortho- and paragneisses, including Archean gneissic domes (basement) and minor younger intrusive rocks including abundant pegmatite bodies. The project area is being explored for its uranium and rare-earth element (“REE”) potential based upon both historical occurrences and on new targets that indicate the potential for identifying structurally-hosted uranium mineralization and/or intrusive (pegmatite) hosted uranium and REE mineralization.
Historical assays from the area returned values up to 8.0% U3O8 (AR 74A14-0023). Uranium mineralization occurs both as low-grade material in granitic pegmatites and associated granites, as well as higher-grade fracture controlled mineralization in pegmatites and metasediments. Additional areas were targeted to cover known uranium and molybdenum showings, including a showing which comprises several trenches in a pegmatite stock containing disseminated and fracture-hosted uranium mineralization.
The property was acquired by Eagle Plains in 2006 following an airborne geophysical survey and ground geological program. The most recent systematic exploration of the property occurred in 2008, when Blue Sky Mining optioned the property from EPL and completed a 757m drilling program. This activity was carried out in conjunction with an extensive program of prospecting, geological mapping, rock, soil and lake bottom-sediment sampling and radon-in-water analysis.
Slater Mining intends to carry out a $200,000 exploration program during 2010, which will include trenching and detailed geological work to further develop existing targets on the Property.
Update on Elsiar Option Agreement
Eagle Plains has been notified by partner Parkside Resources Ltd. (a private B.C. company) that Parkside has agreed to transfer its option interest in and to the Elsiar project (held 100% by Eagle Plains and subject to a 1% NSR) to 0802906 B.C. Ltd.. Under terms of the Agreement, 0802906 B.C. may earn a 60% interest in the Elsiar property located near Terrace, B.C. by completing $3,000,000 in exploration expenditures, issuing 1,000,000 common shares and making $250,000 in cash payments to Eagle Plains over four years (see news release April 15th, 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), Parkside Resources Inc., Waterloo Resources Ltd. (TSX-V:WAT.P), Prize Mining Corp. (TSX-V:PRZ), Windstorm Resources Inc., 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 C.C. Downie, 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.