New gold mineralization discovered at Abo Gold Project, 2003 work program underway

Cranbrook, B.C.: The Board of Directors of Northern Continental Resources Ltd. (NCR:TSX-V) have recently provided Eagle Plains Resources Ltd. (EPL:TSX-V) with an update on the progress of the 2003 exploration program on the Abo Gold Project, located 5 km north of Harrison Hot Springs, approximately 100 km east of Vancouver, British Columbia. NCR currently holds an option to earn a 60% interest in the Property from EPL by completing $3,000,000 in exploration expenditures and issuing 1,700,000 shares over five years (see news release October 24, 2002).

As reported by F. J. Callaghan, President of Northern Continental Resources Ltd.:

  • “ Two new zones of gold mineralization were discovered within the Hill Stock during the process of reopening more than fifteen kilometers of prior road access across the property. Grab samples of quartz vein mineralization from the northern margin of the Hill Stock, which has been extended an additional 100m (400 ft.) to the north, returned assay values of 63.8 g/t (1.86 oz/t) Au with 184 g/t (5.37 oz/t) Ag and 31.8 g/t (0.93 oz/t) Au with 70 g/t (2.04 oz/t) Ag. The second zone occurs in the north-central Hill Stock, 150m (500 ft.) northeast of the collar of ABO 03-01. Quartz stringer mineralization, hosted by the diorite, returned assay values of 36.0 g/t (1.05 oz/t) Au and 51.8 g/t (1.51 oz/t) Ag. Neither zone has been drilled.
     
  • The northerly trending Breccia Zone along the western side of the Hill Stock, which returned values of 1.5 g/t (0.04 oz/t) Au over 29m (94.25ft.) including 7m (22.75 ft.) of 3.5 g/t (0.10 oz/t) Au in drill hole BX88-129, has also been extended over 300m (1,000 ft.) to the south. Quartz stockwork mineralization, hosted by bleached, silicified and sericite altered argillaceous sedimentary rocks, and oxidized sulphide-rich mineralization, containing pyrite, pyrrhotite, chalcopyrite and sphalerite, was discovered southwest of the Hill Stock. Results are pending.
     
  • One drill hole has been completed and a second is in progress on the Hill Stock to test the strike extent of a zone that previously returned 27m (87.75 ft.) grading 3.3 g/t (0.10 oz/t) Au, including 8.8m (29 ft.) of 8.7 g/t (0.25 oz/t) Au in hole HL88-130. Core is currently being logged and complete results are pending.
     
  • An amended Notice of Work is in progress to allow for the tracing of the new zones by trenching and diamond drilling.
     
  • Nine zones or stocks, including the Jenner, Portal, Hill, Slide, Bear, Lake, Breccia, Bluff and Swamp have currently been identified on the Abo Gold Project, seven of which require further exploration and drilling to define their resource. The Jenner and Portal Stocks are the only ones that have had sufficient drilling and underground work to be able to calculate a resource. The combined resource is classed as an indicated resource of 1.8 million tonnes grading 2.8 g/t (0.08 oz/t) Au and an inferred resource of 614,000 tonnes of 2.79 g/t (0.08) Au, as reported by B.J. Price Geological in 2002 to National Instrument 43-101 standards.”

Geologists and prospectors who have assisted in the 2003 NCR program include Godfrey Walton P.Geo., VP Exploration, Jean Pautler P.Geo., Wayne Pickett P.Geo., David Kuran P.Geo. and Gary Polischuk.

The gold mineralization on the property is hosted within quartz diorite stocks and, to a lesser extent, the adjacent dominantly sedimentary country rock. Mineralization is consistent with the intrusive hosted or related gold deposit model for the Tintina Gold Belt, an arcuate belt that extends through Alaska and the Yukon Territory and includes similar style deposits such as Fort Knox, Shotgun and Dublin Gulch.

Eagle Plains acquired the property by staking in October, 2000. The project area consists of 76 units (4600 acres) and is road-accessible year-round. Hydroelectric power, natural gas and rail-service are located within 3km of property boundaries. During 2001, EPL completed a 215 line-km airborne geophysical survey over the entire property area, resulting in a number of new anomalies being delineated. In addition, EPL and NCR have since acquired all pertinent data from past exploration work, and numerous untested geophysical and geochemical anomalies are outlined. Northern Continental has indicated that it intends to continue trenching, prospecting and diamond-drilling operations in order to confirm existing resources and to further delineate under-explored areas of the Abo Gold Project area.

On behalf of the Board of Directors

Signed

“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.