Eagle Plains’ Copper Canyon to be Advanced Jointly with SpectrumGolds’ Galore Creek Project
Cranbrook, B.C.: Management of Eagle Plains Resources Ltd. (EPL:TSX-V) is encouraged by statements issued on October 31st by SpectrumGold Inc., (TSE:SGX) relating to preliminary results from a recently-completed drill program on the Galore Creek Project, located in northwestern British Columbia. SpectrumGold has confirmed its intention to drill Eagle Plains’ Copper Canyon gold-silver-copper project concurrently with exploration at Galore Creek. Furthermore, SpectrumGold recently announced a $14M bought deal financing which will provide proceeds for further exploration drilling on the two projects.
The contiguous Copper Canyon – Galore Creek properties cover one of the largest and highest grade alkalic intrusive-related gold-silver-copper systems in North America. SpectrumGold has engaged Hatch Engineering of Vancouver, British Columbia to complete an updated Resource Estimate and a Preliminary Economic Assessment Study of the Galore Creek Deposit. The Economic Assessment Study will entail a detailed review of mining and recovery methods (both open pit and underground scenarios) and metallurgical studies, as well as power and infrastructure requirements and alternatives.
As announced on September 18th, Eagle Plains signed a letter agreement with SpectrumGold whereby SpectrumGold may earn a 60% interest in the property by issuing to Eagle Plains 400,000 common shares (100,000 on signing a formal agreement), making $250,000 in cash payments, and completing $3,000,000 in exploration expenditures by February, 2007. SpectrumGold may increase its interest to 80% by making a one-time cash payment of $1,000,000 to Eagle Plains and completing a feasibility study on the property. SpectrumGold was listed on the Toronto Stock Exchange on October 27th and was trading at $3.82 at market close on November 03, 2003.
Eagle Plains holds a 100% option (subject to a 2% NSR to the underlying claim holder) in the Copper Canyon property through an arms-length agreement announced May 27th, 2002. The property has seen intermittent exploration work from the mid 1950s to 1991 which indicates the presence of widespread gold, silver and copper mineralization similar to the Galore Creek deposit. To date mineralization has been identified in three separate areas on the property and remains open to expansion. Highlights from drilling on the project in 1990 are summarized in the table below.
Table of Significant 1990 Copper Canyon Drill Results
|DHID||Length (m)||Length (ft)||Gold (g/t)||Silver (g/t)||Copper (%)||Type|
SpectrumGold announced in August 2003 an agreement to acquire a 100% interest in the Galore Creek project from subsidiaries of Rio Tinto plc and Anglo American plc. Based on the extensive historic work carried out by Rio Tinto and Anglo American from the early 1960's through 1991, SpectrumGold management believes that the system remains open. The exploration objective is to outline a resource of 80-150 million tonnes of material with grades exceeding 2.5 g/t gold equivalent within the larger mineralized system. SpectrumGold recently completed an eight-hole 10,000’ core drilling program at Galore Creek which confirmed the presence of higher grade gold and copper zones that substantiate a new geological model with respect to the controls on mineralization. (SGX News Release Oct 31, 2003).
Both Eagle Plains and SpectrumGold management believe that the consolidation of the Galore Creek and Copper Canyon properties may provide significant economic synergies for the development of both deposits. SpectrumGold plans to explore the projects at the same time, and recently confirmed a substantial drill program will commence on both the Galore Creek and Copper Canyon properties in 2004.
Eagle Plains Resources continues to conduct research, acquisition and exploration projects in western Canada. Through a network of experienced prospectors, consultants and contractors in addition to seasoned employees and a well-rounded Board of Directors, the Company has assembled a diverse portfolio of gold and base-metal properties. Eagle Plains seeks to attract joint-venture participation on its properties, thereby leveraging exploration spending to the ultimate benefit of the Company’s shareholders. In recent years, Eagle Plains has completed option agreements with Billiton, Rio Algom, Kennecott, SpectrumGold Resources, Viceroy Resources and numerous other junior exploration companies, resulting in nearly 13,000m (43,000’) of drilling and over $5,000,000 in exploration spending on its properties 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.