Eagle Plains Acquires Option on BC Copper-Gold Project
Cranbrook, B.C.: Eagle Plains Resources Ltd. (EPL:TSX-V) announces the acquisition of an option to earn a 100% interest in the LCR mineral claims located approximately 40km northwest of Terrace, near the central coast of British Columbia. The claims consist of 100 units (6075 acres) covering copper occurrences related to Cretaceous-aged granitic intrusive stocks. The property is located near Eagle Plains’ 100% owned Kalum project (see news release February 20, 2002) and is accessed by a network of logging roads. The property is located near a hydro-electric power-line, and is located 90km by road from port facilities in Kitimat, or 100km by rail from Terrace to port facilities in Prince Rupert. Additional road-building and logging activity is planned for the property area over the next three years, as part of a development plan approved by the BC Ministry of Forests in 2000.
Eagle Plains has negotiated an agreement with B. Kreft (subject to regulatory approval) whereby EPL may earn a 100% interest in the claims by paying $5,000 in cash and issuing 300,000 common shares over four years. A 2% NSR is reserved for the vendor, half of which may be purchased at any time for $1,000,000.
The claims overlie Upper Jurassic to Cretaceous black carbonaceous argillites and greywackes of the Bowser Lake Group that are intruded by porphyritic quartz monzonite of probable Eocene age. The sediments trend north-northeast to north-northwest with moderate to steep westerly dips. Abundant quartz veins are reported to occur over an area of at least 1500 by 1000 metres with prominent 104 degree trends and steep dips. Sulphides are reported in about 20 per cent of the veins. Molybdenite and chalcopyrite occur in a 250 metre zone of quartz veins within bleached and sheared argillite and siltstone. Grades average 0.02 per cent molybdenite and 0.06 per cent copper (BCMPR Assessment Report 8446). Past work in the property area includes an Induced Polarization and Magnetometer survey in 1969, and soil geochemical surveys in 1979 and 1980. The IP survey identified an area underlain by rocks which contain an appreciable content of conductive material which was postulated to extend from surface to at least 76.2 meters (250 feet); however due to the lack of supporting geological data on the property it was not possible to distinguish between responses due to sulphide mineralization, magnetite, carbonaceous material or other sources. The soil geochemical surveys outlined anomalous copper and molybdenum values coincident with the known exposure of quartz veins. None of the samples were analyzed for gold.
All exploration work in the LCR-Kalum project area was completed prior to the discovery and recognition of intrusive-related gold system (“IRGS”) models and the development of deposits such as Kinross Gold’s Fort Knox, located near Fairbanks, Alaska (158.3 Mt grading 0.83 g/t, with a contained resource of 4.3 M oz Au) and the Pogo deposit located in the Goodpaster River area of Alaska (currently under development by TeckCominco, containing stated reserves of 10.7 Mt at an average grade of 17.82 g/t, for a contained resource of 5.6 M oz Au). Despite the strong presence of geological, geochemical and geophysical indicators of IRGS mineralization, no exploration efforts have previously been directed towards assessing the occurrences in the LCR-Kalum area for their low-grade, bulk-tonnage potential.
Eagle Plains Resources continues to conduct research, acquisition and exploration projects in western Canada. Through a network of prospectors, consultants and experienced 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. EPL seeks to attract joint-venture participation on it’s 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, Novagold Resources, Viceroy Resources and numerous other junior exploration companies, resulting in nearly 10,000m (33,000’) 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.