Eagle Plains Acquires Option on Yukon 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 Severance mineral claims located approximately 125km northwest of Carmacks, in west-central Yukon Territory. The claims consist of 30 units (1500 acres) covering a broad gold-in-soil geochemical anomaly identified in 2002. The property is underlain by granodiorite of the Cretaceous Dawson Range Batholith, which is intruded by Tertiary quartz-feldspar porphyry dykes. The claims are currently accessed by helicopter, with existing winter cat-trails located within 5km of the property.
Eagle Plains has negotiated an agreement with 4763 NWT Ltd. (subject to regulatory approval) whereby EPL may earn a 100% interest in the claims by paying 100,000 common shares and completing $40,000 in exploration expenditures over two years. A 2% NSR is reserved for the vendor, half of which may be purchased at any time for $1,000,000. Eagle Plains will further reserve for a vendors 25% of the proceeds from any subsequent third-party sale or option of the claims, to a maximum of $100,000.
In 1998, Kennecott Canada Ltd conducted reconnaissance stream sediment and soil sampling in the area to follow-up a government-sponsored RGS stream sediment sample that contained 280 ppb gold. Their program returned a number of samples anomalous in gold, bismuth and arsenic. Shortly after the discovery, Kennecott closed it’s Yukon exploration office and curtailed exploration activity in the Territory.
4763 NWT Ltd. staked the Severance Property in January, 2002, covering the area of anomalous soils. In the summer of 2002, the company conducted an exploration program consisting of geological mapping, prospecting and soil sampling. A grid was established to cover an area measuring 1.7 by 1 km and soil samples were collected on lines spaced 100 m apart at a station spacing of 50 m.
The soil program returned some significantly anomalous values with 31 of 344 samples returning greater than 100 parts per billion (ppb) gold, including four samples with 600, 738, 1965 and 2680 ppb gold, respectively. Coincident with the gold is copper, molybdenum and arsenic-all considered key pathfinder elements associated with intrusion-related copper-gold systems (IRCGs). Rock sample results include a grab sample of silicified and quartz-veined granodiorite with 7% disseminated pyrite, which assayed 1.2 g/t gold and 0.35% copper (sample SEV02-014).
Eagle Plains plans to conduct additional fieldwork on the property in 2003 in order to further assess its potential to host economic IRCG mineralization. Soil geochemical sampling will be completed in conjunction with a ground-based geophysical survey and geological mapping.
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.