Eagle Plains / Prize Mining Complete Mill Modifications and Commence Bulk-Sample Production at Yellowjacket Project, Atlin, B.C.
Cranbrook, B.C., 04 June, 2009: Eagle Plains Resources Ltd. (EPL:TSX-V) and Prize Mining Corp. (PRZ:TSX-V) jointly announce that the Yellowjacket Venture (“Yellowjacket JV”) has now completed modifications on its 350 tonne per day mill at the Yellowjacket Gold Project, located near Atlin, BC, and has begun processing of stockpiled material.
Processing of stockpiled mineralized bulk sample material has now commenced under the existing Bulk Sampling Exploration Permit. Once the remainder of the bulk sample has been processed and the new Mines Act Permit is obtained, full-scale bedrock mining and milling operations will commence.
Samples for head and tail grades from the 2008 bulk sample processing are currently being analysed by ACME Laboratory Ltd. in Vancouver and results are expected in the next few days. During 2008 processing, head grades averaging 9 g/t were back-calculated from gold production values obtained from the weighted mineralized blocks processed. The Yellowjacket JV anticipates 35,000 tonnes of production during 2009. Once in place, the Small Mines Permit will allow for up to 75,000 tonnes of annual production.
Mr. Rino Mihoc, Mill Supervisor and previous Mine Manager at Goldcorp Inc.’s Golden Bear Mine leads the mill commissioning work. Linda Dandy, P.Geo., Mine Manager, is the "Qualified Person" for the purpose of National Instrument 43-101, who has reviewed and verified the contents of this news release.
About Eagle Plains Resources
Eagle Plains Resources plans to commence gold production at the Yellowjacket project in mid-2009 and continues to conduct research, acquire and explore metal projects in western Canada. In addition to holding mining royalties on various projects, the Company controls over 35 gold, base-metal and uranium projects, several with third parties including Waterloo Resources Ltd (TSX-V:WAT.P) and XO Gold Resources Ltd. (a private B.C. company). These agreements expose Eagle Plains to $6.0 million in exploration expenditures over a five year period. 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 53,000m (158,500’) of drilling and over $27.0 million in exploration spending on its projects since 1998.
Expenditures during 2008 on Eagle Plains’ projects were approximately $6,000,000, funded equally between Eagle Plains and third party partners. This work resulted in approximately 6,300m of drilling and extensive ground-based exploration work and facilitated the advancement of numerous projects at various stages of development. In 2009, management anticipates approximately $1.0 million in exploration expenditures funded between Eagle Plains and its partners.
This news release has been reviewed and approved by Tim 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.