CanAustra to Drill Eagle Plains' Rusty Springs Property
Cranbrook, B.C.: Eagle Plains Resources Ltd. (EPL:ASE) Crews have been mobilized to an area north of Dawson City, Yukon to commence a $250,000 diamond drilling project on the Rusty Springs base-metal property, owned 100% by Eagle Plains Resources Ltd. (EPL:ASE). CanAustra Resources Ltd. (CTA:ASE) has an option to earn a 60% interest in the 541 unit (27,000 acre) property by completing $2,000,000 in exploration expenditures, and making $70,000 in cash payments to Eagle Plains over 4 years.
Mineralization at Rusty Springs consists of Mississippi Valley Type silver-lead-zinc mineralization hosted within a 25-40m thick replacement horizon. Some 35 showings are present within the property area and consist of both high grade vein occurrences and lower grade replacement mineralization. Since staking the property in 1992, Eagle Plains has defined mineralization over a 6 square kilometer area. Drilling highlights from the property include hole 77-08 (1977) which was reported to have returned 33.27 oz/t silver, 4.72 % lead, and 2.30 % copper over 37.5m (123') from surface to a depth of 37.5m. Hole 95-07, drilled by Eagle Plains in 1995 was located 1.5 km from hole 78-07 and tested the same stratigraphic interval, returning 15.1 oz/t silver, 3.0% copper, and 1.3% zinc over 15.3m from 28.6m to 43.9m.
Eagle Plains is in the process of completing an $800,000 financing led by Billiton Metals Inc. whereby 2,000,000 flow through and non-flow through shares will be sold from treasury at $.40/share with 2,000,000 $.55 and $.75 warrants attached. Eagle Plains has a 100% interest in 12 base metal and 10 precious metal properties in western Canada. With partners CanAustra Resources, Kennecott Canada Exploration Ltd., Rio Algom Exploration Ltd., Billiton Metals Inc., and Novagold Resources Inc., the company is well-funded, and expects to realize over $2,000,000 in exploration expenditures on its properties during 1999.
On behalf of the Board of Directors
“Tim J. Termuende”
President and CEO
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