Eagle Plains and Partners Launch Aggressive Exploration Season with Wildhorse Drill Program
Cranbrook, B.C., 02 June, 2010: Eagle Plains Resources (TSX-V:EPL) has mobilized field crews to embark on aggressive mineral exploration programs in British Columbia, Yukon and Saskatchewan. Exploration programs will be carried out on projects in various stages of development. Over $2.2M in exploration expenditures are budgeted for the year, with fourteen individual projects scheduled for work. At least three projects are expected to see diamond drilling, with approximately 1600m - 2100m (5250' - 6890') in total footage planned to date. Approximately ½ of the total expenditures will be incurred by third parties under various option agreements currently in place.
Fieldwork will be carried out by TerraLogic Exploration Services Ltd (formerly Bootleg Exploration) of Cranbrook, a wholly-owned subsidiary of Eagle Plains. www.TerraLogicExploration.com
British Columbia Projects
Wildhorse (Au, Cu)
A 500-700m, 6-hole diamond drilling program is now underway at the Wildhorse (Cu, Au) Project located 40km north of Cranbrook, in south-eastern B.C. This $200,000 program is being funded by option partner Excelsior Mining Corp (TSX-V:MIN) subject to option terms as announced in a news release dated Mar 11/2010.
Iron Range (Au, Ag, Pb, Zn)
A $200,000, 2-3 hole program is planned to test prominent geophysical conductors apparently associated with the Iron Range Fault system. Work will be funded by Providence Capital Corp. (TSX-V:PV), subject to an option agreement as announced on May 18th, 2010.
Results from previous exploration work including drilling, geological mapping, geochemical surveys and a 690 line-km airborne geophysical survey have been used to define a potential SEDEX target that is the focus of this years exploration program.
Elsiar (Au, Cu, Mo)
A $200,000 geological and soil geochemical program is being funded by option partner Parkside Resources Ltd. (a private BC company), subject to an option agreement as announced on April 15th, 2010.
A $200,000 diamond drilling program is being funded by option partner Windstorm Resources Inc. (a private B.C. company), subject to an option agreement as announced November 4th, 2009. Drilling activity is a continuation of fieldwork completed on behalf of Windstorm during 2009 and previous programs. Work this season will also follow-up on a high-grade gold occurrence which was discovered in 2009 as summarized in a news release dated November 4th, 2009.
Project plans to be announced shortly
Acacia (Pb, Zn, Ag) and Black Diamond (Ag, Au, Pb, Zn)
Soil geochemical and geological programs have recently been completed. Both projects are located in Southern B.C. and are 100% owned by EPL.
Baska Eldorado (Kulyk Lake) (U, REEs)
Crews are now on site to conduct a $130,000 trenching, geological mapping, prospecting and soil geochemical program on the property, with work funded by 99 Capital (TSX-V:WDG). EPL earlier sold a 100% interest in the property to 99 Capital for 2M common shares, and maintains an option to buy-back a 50% interest in the claims.
At the Kulyk Lake occurrence, mapping and sampling of the Eldorado grid during 2009 led to the re-sampling of 2 sets of historical trenches located 600m apart, namely the Eldorado (U) and Kulyk (REE) trenches. Samples collected from these trenches in 2009 returned significant values of Uranium and REE's, notably from the Kulyk trench exceptional Total Rare Earth Oxides (TREO) assays of 55.9%, 30.6% and a 0.7 m chip sample of 18.9%. Soil geochemical results and geological/geophysical mapping from this program indicate the potential for continuous mineralization along strike between the two trenches (see news release January 18th, 2010).
Eagle Lake (U, REEs)
A $200,000 exploration program to consist of trenching and other geological work is planned for the Eagle Lake property, funded by Sandstorm Metals and Energy Ltd. (TSX-V:SND). Sandstorm can earn a 60% interest in the property by completing $3M in exploration expenditures, making $495,000 in cash payments and issuing 850,000 common shares to EPL over 5 years.
At Eagle Lake, a radioactive boulder train was discovered in 2008 as a result of prospecting an airborne geophysical anomaly. This led to the discovery of the Red October showing in 2009. The Red October consists of approximately 400m of intermittent mineralized outcrop otherwise covered by overburden. Samples collected from the showing returned exceptional uranium assays including a 1.0 m yellow-stained chip sample which returned 1.56% U3O8 and a grab sample of a yellow-stained black alteration selvage which returned 2.24% U3O8. (see news release January 13, 2010).
Karin Lake (U, REEs)
A $50,000 program is planned for the property in 2010, to be funded by EPL. Work will consist of ground-based exploration to follow up on targets generated by an airborne geophysical survey conducted in late 2007. An 8-hole, 757m diamond drilling program was carried out on the property in early 2008 and yielded encouraging results (see news release June 27th, 2008).
Dragon Lake (Au)
Work will commence within the week on a $200,000 airborne geophysical, trenching and geological program on the Dragon Lake property. The claims have been held by Eagle Plains since the mid-1990s and have seen exploration activity including drilling, trenching and limited ground geophysical work. The best trenching results to date include 6.0m grading 2.8g/t Au and 15.3m grading 1.2 g/t Au. 2010 work will be funded by EPL, with a portion of the expenditures to be offset by Yukon Mineral Incentive Program (YMIP) grants.
A $200,000 geological program is planned for 2010 on this project located in south-east Yukon. Work will include an airborne geophysical survey, geologic mapping and soil geochemical work. The claims have been held by EPL since the late 1990s and have seen sporadic exploration since their acquisition by EPL. Trenching carried out in 1997 returned gold values of 2.38 g/t over 22.5m and 4.24 g/t Au over 4.5m. Both of these targets remain untested by drilling. Work in 2010 will be funded by EPL, with a portion of the expenditures to be offset by YMIP grants.
Yukon Grassroots Exploration Programs
Eagle Plains has scheduled crews to carry out additional reconnaissance-style grassroots exploration work on various targets throughout the Yukon during 2010. This work will be funded by EPL, with a portion of the expenditures to be offset by YMIP grants.
For further details and regular updates on these and other Eagle Plains’ mineral exploration projects, please visit our website here at www.eagleplains.com
About Eagle Plains
Eagle Plains continues to conduct research, acquire and explore metal projects throughout western Canada. In addition to holding mining royalties on various projects, Eagle Plains controls over 35 gold, base-metal and uranium projects, several with third parties including Excelsior Mining Corp (TSX:MIN.P), Sandstorm Resources Ltd. (TSX-V:SSL), Sandstorm Metals and Energy Ltd. (TSX-V:SND), Parkside Resources Inc., Waterloo Resources Ltd. (TSX-V:WAT.P), Prize Mining Corp. (TSX-V:PRZ), Windstorm Resources Inc., Heemskirk Canada Ltd., Touchdown Capital Inc. (TSX-V: TDW) and 99 Capital Corp. (TSX-V:WDG). In recent years, Eagle Plains has completed option agreements with Teck Limited (TSX:TCK.B), Alexco Resource Corp. (TSX-V:AXR), Billiton Metals, Rio Algom Exploration, NovaGold Resources, Kennecott Exploration and numerous other junior exploration companies, resulting in over 53,600m (163,370’) of drilling and over $28.3 million in exploration spending on its projects since 1998.
Expenditures during 2008 and 2009 on Eagle Plains’ projects were approximately $7,300,000, funded by Eagle Plains and third party partners. This work resulted in approximately 6,900m of drilling and extensive ground-based exploration work and facilitated the advancement of numerous projects at various stages of development.
This news release has been reviewed and approved by T.J. Termuende, P.Geo., hereby designated as a “Qualified Person” under National Instrument 43-101.
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.