Eagle Plains Acquires Zinc Reserves
22 June, 1999 Cranbrook BC., The company has completed staking on two significant base-metal properties in the Northwest Territories and Southeastern British Columbia areas of Western Canada. The properties have been named Gayna River and Coyote Creek, respectively.
The Gayna River property is near the headwaters of the Gayna River on the eastern slope of the MacKenzie Mountains, 170 kilometres west of Norman Wells, NWT. The 49-unit (2,500-acre) property contains zinc deposits outlined by Rio Tinto Canadian Exploration during the mid-1970s. Mineralization in the area consists of carbonate-hosted silver-lead-zinc, similar to that mined at Pine Point from 1970 to 1990. Rio Tinto completed 27,00 metres of diamond drilling on its property, and suggested reserves of over 50 million tons grading 4.7 per cent zinc from individual orebodies, making it one of Canada's largest undeveloped zinc deposits. The best drill intersection reported by Rio Tinto included a six-metre interval which graded 20 per cent combined lead-zinc. When Rio Tinto last worked the property in 1978, company geologists suggested that further exploration would result in additional discoveries hosted by favourable stratigraphy mapped within the property area. Eagle Plains intends to complete a thorough compilation of all existing data, followed by a differential GPS survey of existing drill holes. Following this, the company will commence an induced polarization (IP) geophysical survey over favourable stratigraphy within property boundaries to outline future drill targets.
The Coyote Creek property is 50 kilometres northeast of Kimberley, B.C., and consists of 160 units (9,700 acres) overlying a Devonian shale package. The property is distinguished by its stream geochemistry which includes four streams draining eastward and westward from the property area, each of which returned zinc values in the 95th percentile for the regional area. A single stream-sediment sample collected from the property area by the Geological Survey of B.C. in 1992 was analyzed by instrumental neutron activation analysis (INAA) and returned 5,500 ppm zinc. Eagle Plains intends to carry out a detailed soil geochemical survey over the entire property area, in conjunction with infill stream-sediment sampling and geologic mapping.
Eagle Plains is in the process of completing an $800,000 financing led by Billiton Metals Inc. whereby two million flow-through and non-flow-through shares will be sold from treasury at 40 cents per share with two million 55-cent and 75-cent warrants attached. Eagle Plains has a 100 per cent 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-financed, and expects to realize over $2-million in exploration expenditures on its properties during 1999.
On behalf of the Board of Directors
“Tim J. Termuende”
President and CEO
Cautionary Note Regarding Forward-Looking Statements
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