Northern Continental Commences Diamond-Drilling on Eagle Plains’ LCR Project
Cranbrook, B.C., 23 August 2004: A 3-hole, 500m diamond drilling program has commenced on the LCR property, currently under option to Northern Continental Resources (NCR:TSX-V) from Eagle Plains Resources Ltd. (EPL:TSX-V). The road-accessible claims are located 40 km north of Terrace, in west-central British Columbia and consist of 200 units (12,150 acres). The property is situated 2 km north of EPL’s 100% owned Kalum project, and shares many geologic similarities. Infrastructure of the property is excellent, with high-voltage hydro-electric power-lines located 5km east of property boundaries.
Drilling follows up a 500 line-km airborne geophysical survey flown over the property in March, and extensive fieldwork underway since early June. 110 stream sediment, 82 rock and 537 soil samples were collected over the summer season. Drilling will target copper-rich stockwork vein mineralization associated with a prominent multi-element soil geochemical anomaly. Grab samples grading to 2.5 % Cu were recovered from abundant mineralized veins exposed in a creek-bed near the soil geochemical anomaly area.
The LCR claims overlie an area containing a prominent airborne geophysical anomaly associated with a 1.5 km x 4.5 km Cretaceous aged granitic intrusive stock hosted by Bowser Basin sedimentary rocks. BC government sampling of streams draining the intrusive body show enrichment in gold, silver, copper, arsenic and other elements associated with intrusive-hosted gold deposits such as Pogo and Fort Knox. Very limited historical exploration has been completed in the area. The most recent was undertaken by Amax Exploration in 1980 who were exploring for porphyry copper- molybdenum deposits. Their work reported that “abundant quartz veins occur over an area of at least 1500 by 1000 meters” with sulphides reported in about 20 per cent of the veins.
NCR may earn a 60% interest in the property by issuing 1,000,000 common shares to EPL and completing $3,000,000 in exploration expenditures over 5 years. EPL will remain operator of the project up to the completion of $1,000,000 in exploration expenditures.
Eagle Plains Resources continues to conduct research, acquisition and exploration projects in western Canada. The Company controls over 30 gold and base-metal projects, many of which are currently optioned to or joint-ventured with third parties including NovaGold Inc., Kobex Resources Ltd., Northern Continental Resources Inc., Shoshone Silver Mining Co., and Golden Cariboo Resources Inc. These agreements expose Eagle Plains to over $18 million in exploration expenditures over the next five years. In recent years, Eagle Plains has completed option agreements with Billiton Metals, Rio Algom Exploration, Kennecott Exploration, Viceroy Resource Corp. and numerous other junior exploration companies, resulting in nearly 13,000 m (43,000 ft) of drilling and over $5,000,000 in exploration spending on its projects since 1998.
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.