Eagle Plains Drills Intersect High-Grade Gold at Iron Range

Cranbrook, B.C., 20 April, 2009: Eagle Plains Resources Ltd. (EPL:TSX-V) has received final results from a 20-hole 1,670m (5,500’) drill program completed during 2008 on the Iron Range project, located in the Goat River area 15km NE of Creston, B.C.. The property consists of 9,400 ha owned 100% by Eagle Plains 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 located within property boundaries. 2008 drilling was completed by Apex Drilling of Smithers, B.C., with the program carried out under the overall supervision of C.C. Downie, P.Geo.

Highlights:

Hole IR08006 returned:

  • 7.0m grading 51.52 g/t (1.50 oz/ton) gold from 20.0m to 27.0m
  • Including 4.0m grading 89.96 g/t (2.63 oz/ton) gold from 20.0m to 24.0m
  • Including 3.0m grading 115.20 g/t (3.46 oz/ton) gold from 20.0m to 23.0m 

2008 Program

The objective of the 2008 drill program was to systematically test the prominent Iron Mountain structure over a 3km strike length in order to calculate an inferred resource for known iron mineralization and to test for associated iron oxide copper-gold (“IOCG”) mineralization. Drill-pads were spaced at approximately 500m intervals. 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. 

Though preliminary drilling results indicated that the iron resource was of sub-economic grade, Hole IR08-06 intersected high-grade gold mineralization consistent with IOGC deposit models within altered material of the Iron Mountain structure. Significant results are outlined in Table 1, below. Previous exploration work by Eagle Plains revealed the presence of gold associated with the structure. In 2005 EPL reported 3.82 g/t Au and 46.0 g/t Ag over 2.0m in drill-hole IR05003, located 9 km from the discovery hole (EPL news release June 13, 2005). 

A map outlining pertinent details of the property may be found here: http://www.eagleplains.com/projects/bc/ironrange/documents/Iron_Range_Drill_Map.pdf

It is apparent that the gold mineralization hosted within the Iron Mountain structure has a pronounced “nugget effect” with poor recoveries noted throughout the gold mineralized interval. Therefore, a strict QAQC program was designed under the supervision of EcoTech Laboratories to confirm initial high-grade results. The program consisted of two generations of re-sampling on key mineralized intervals of core which were then processed by two independent labs. Though gold values varied from sample generation to sample generation, internal results from the same sample material were consistent between labs. Statistical analysis of this data confirms the overall gold grades across a 7.0m interval (see discussion of analytical procedures, below). Visible gold was noted in a number of individual grains. True thickness calculations for the mineralized zone are unavailable due to the limited data available at present. Eagle Plains intends to aggressively follow-up the discovery during 2009, with advanced fieldwork and drilling currently being planned.

Tim Termuende, P.Geo., President and CEO of Eagle Plains commented recently “we are excited and encouraged by the discovery of high-grade gold mineralization at Iron Range. The confirmed presence of precious metals in a new district within a prominent regional structure of this size and continuity creates a very attractive exploration target. With its easy access and excellent location relative to major infrastructure, the property will see considerable attention by Eagle Plains in the coming field season”
 

Table 1 - Iron Range 2008 Drilling Results
Hole Number Status Zone  From (m) To (m)  Length (m)

Wt. Avg.*

Au (g/t)

Ag (g/t)
IR08001 to 003 Completed     No Significant Values  
IR08004 Abandoned O-Ray 9.46 9.76 0.30 - 8.10
IR08005 Abandoned O-Ray          
IR08006 Complete O-Ray 20.00 27.00 7.00 51.52 2.39
 Including     20.00 24.00 4.00 89.96 4.17
Also Including     20.00 23.00 3.00 118.45 5.56
IR08007 Completed O-Ray   No Significant Values  
IR08008 Completed Trench E 14.00 15.00 1.00 0.85  
IR08009 to 012 Completed Various   No Significant Values  
IR08013 Completed Keepsake 46.00 49.95 3.95 - 48.96
IR08014 to 016 Completed Various 46.00 49.95 3.95 - 48.96
IR08017 Completed Rhodesia 55.00 56.00 1.00 - 8.80
IR08018 to 020 Completed Various   No Significant Values  

 * Please refer below to the section entitled Sample / Analytical Protocol for a detailed description of calculations utilized to obtain reported Au values

Property History

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. Eagle Plains has been working on the property since acquiring the claims. Exploration work including geological mapping, geochemical surveys and a 690 line-km airborne geophysical survey were used to define targets for drill testing. 

Comparisons to Other IOCG Deposits


Since the acquisition of the Iron Range Property Eagle Plains Resources has focused on evaluating the potential for economic Cu-Au mineralization in addition to assessing the iron-oxide mineralization. The discovery of high-grade gold and anomalous copper mineralization within the Iron Mountain Fault Zone during the 2008 diamond drill program confirms that the Iron Mountain Fault is a highly prospective Iron-Oxide-Gold +/-Cu target. Global analogues for deposits which share similar geology, mineralogy and alteration to the Iron Range Property include: gold/silver/bismuth deposits of the Tennant Creek District, Australia; gold-PGE mineralization of the Serra Pelada deposits, Brazil; and gold-silver mineralization of the Dunrobin Gold Mine, Africa. The key features which these deposits share with the Iron Range are as follows: high-grade gold mineralization; 10’s g/t Au to 100’s g/t Au within or adjacent to zones of iron-oxide alteration and/or mineralization; multi-phase hydrothermal alteration; structurally controlled with in parasitic fold closures or sub-vertical shear zones; enriched in silver, copper, PGE’s, and other accessory metals; spatial association to alkaline lamprophyre dykes and breccia pipes; hematite-magnetite-pyrite mineralization within iron-oxide bodies; spatially located within deep-seated regional fault systems displaying prolonged tectonic activity.


The following Au-Cu-PGE production figures illustrate the diversity among iron-oxide related high-grade gold systems. Tennant Creek District: Juno Deposit: 450 000 tones @ 57 g/t Au, 0.4 % Cu, 0.6 % Bi, 7g/t Ag; Eldorado Deposit: 210 000 tones @ 20 g/t Au; Argo Deposit: 290 000 tones @ 8.6 g/t Au, 4% Cu, 0.2 % Bi, 14 g/t Ag. Lufilian Arc, Zambia, Africa: Dunrobin Gold Mine: 53, 817 oz Au. Carajas Mineral Province, Brazil: Serra Pelada Deposit: 56t Au, 15t Pd, 7t Pt, ore grades 15.20 g/t Au, 4.09 g/t Pd, and 1.89 g/t Pt. 

About Eagle Plains Resources

Eagle Plains Resources continues to conduct research, acquire and explore metal projects in western Canada. The Company controls over 35 gold, base-metal and uranium projects, many with third parties including Teck Limited (TSX:TCK.B), Alexco Resource Corp. (TSX-V:AXR), Sandstorm Resources Ltd. (TSX-V:SSL.P), Waterloo Resources Ltd (TSX-V:WAT.P), Mountain Capital Inc. (TSX-V:MCI.P) and XO Gold Resources Ltd. (a private B.C. company). These agreements expose Eagle Plains to over $10.0 million in exploration expenditures over a five year period. In recent years, Eagle Plains has completed option agreements with Billiton Metals, Rio Algom Exploration, NovaGold Resources, Kennecott Exploration and numerous other junior exploration companies, resulting in over 52,000m (158,500’) of drilling and over $27.0 million in exploration spending on its projects since 1998. 2008 expenditures on Eagle Plains’ projects were approximately $6,000,000, funded equally between Eagle Plains and third party partners. In 2009, management anticipates approximately $1.2 million in exploration expenditures funded by partners. 

*Sample/Analytical Protocol 
(after Marcus Hanemaayer, B.Sc., Lab Manager, EcoTech Laboratories / Stewart Group)

Original Samples (1/2 Core):

Eco Tech Laboratory, Stewart Group analyzed samples IR08006-001->IR08-032, which was a shipment from Bootleg’s (Eagle Plains’) Iron Range project. The samples were digested by aqua-regia for a multi element scan with an ICPMS finish. For the gold analyses, a 15 gram sub-sample was Fire Assayed (as a geo) and ran by AAS. 
Overlimit gold samples from this analysis were routinely run for gold by 30gram FA/AA finish to quantify the overlimits reported by the Geo Au Fire Assay. Two of the samples were in excess of 150-300g/t Au. Eco tech Laboratory then ran a 250g metallic screen assay on the remaining pulps from sample IR08006-001->IR08-032 and IR08007-001->IR08007-021 as requested by Bootleg (Eagle Plains).
The coarse fraction from the original metallic analysis represented 3.64% and 3.99% of the material screened for the two samples with the elevated Au levels. This coarse fraction ran very high for Au, 685 and 1080g/t respectfully, whereas the fine fractions had Au levels ranging from 12-30g/t with good reproducibility. Despite the presence of heterogeneous gold, the metallic screen data compared well with the 30gram FA data on the same pulps.

Check Sample #1 (1/4 Core):

Bootleg (Eagle Plains) sent one quarter of their remaining core to ALS Chemex for a 50g FA/AA finish. The results did not compare well with Eco Tech’s original data on samples 10-15, but compared relatively well with the other samples in the suite. The remaining pulps that were tested by ALS were sent back to Eco Tech. Very little pulps remained but where possible Au was run by fire assay. The results obtained by Eco Tech on these pulps compared well to the results that ALS reported, and since all internal standards were within control limits in both laboratories, the results obtained by both laboratories don’t appear to be in question. From the metallic assay data it is evident that the gold is heterogeneous in this zone and sampling of small pieces of core do not provide reproducible results.

Check Sample #2 (1/8 Core):

Further testing was conducted on the sections of core in question. Another eighth core was sent in for Au Fire Assay. This core spanned the section of samples which did not compare well between the 1/2 core and 1/8 core. Results obtained from the eighth core showed a significant increase in Au (by a factor of 3) for one sample, as compared with the 1/8 core.

Interval Calculation:

  • due to an intense QAQC program which involved two generations of resampling and multiple analytical techniques, calculation of final interval values involved a number of steps
  • step one involved calculating preliminary Au values, on a sample by sample basis, by determining the weighted average of all analytical methods utilized in each round of sampling
  • step two involved calculating the final Au values, on a sample by sample basis, by determining the weighted average of the results from step #1
  • the final step was to calculate the final interval values utilizing the final sample Au values obtained in Step #2

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

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.