Eagle Plains Commences Drilling on Coyote Creek Gypsum Project
Cranbrook, B.C., 2 June, 2006: Eagle Plains Resources Ltd. (EPL:TSX-V) has commenced a 10 hole, 2000 foot diamond drilling program on the Coyote Creek gypsum project located in the Lussier River/Coyote Creek area 50km NE of Cranbrook, BC. The drilling program is a follow-up of a successful drilling campaign completed during the fall of 2005 on the property.
The objective of the 2006 program is to define an inferred resource on the property of 6-8 million tonnes of mineable material.
The property consists of 1300 hectares owned 100% by Eagle Plains and holds no underlying royalties or encumbrances. The property is road-accessible and has seen extensive logging activity in recent years. Hydro-electric power and rail transportation is located 24 km by existing road from property boundaries. The Coyote Creek claims cover gypsum occurrences hosted within the Burnais Formation. The Branch F (Minfile 082GNW071), Branch F West (Minfile 082GNW077) and Coyote (Minfile 082GNW078) showings are exposed over widths of 25 – 30 meters, vertical heights of up to 60 meters, and contain gypsum in excess of 87% purity. Eagle Plains plans to focus on developing the known gypsum occurrences on the property, with an aim to eventually extracting material for use in wallboard production.
The 2005 drilling program consisted of 433.7m in 10 drill-holes. 9 holes cored the gypsum deposit through to the underlying anhydrite formation. Hole CY05-010 was abandoned in a sinkhole. All drill holes were oriented to represent true-thickness intersections. The thickest gypsum intercept was 40.70 meters in hole CY05-006 and the thinnest intercept was 21.14 meters in hole CY05-007. In nine holes the gypsum material has an average true thickness of 31.0 meters. The deposit is open to the east, north and south. Results from holes CY05-001, CY05-006 and CY05-008 and visual estimates suggest the Branch F West deposit is for the most part high-purity gypsum. As with the 2005 drill program, core samples will be split and sent to ALS Chemex Labs in Vancouver, B.C. for analysis. The current 2006 program is expected to take 2 weeks to complete, and will be supervised by Mr. Steve Butrenchuk, P.Geol., hereby identified as the “Qualified Person” under N.I. 43-101.
This news release has been reviewed and approved by Tim J. Termuende, P.Geo., hereby designated as a “Qualified Person” under National Instrument 43-101.
Eagle Plains Resources continues to conduct research, acquisition and exploration projects in western Canada. The Company controls over 35 gold and base metal projects, many of which are joint-ventured with third parties including NovaGold Inc. (AMEX,TSX:NG), Alexco Resource Corp. (TSX-V:AXR), and Blind Creek Resources. These agreements expose Eagle Plains to over $8,000,000 in exploration expenditures over the next five years. In recent years, Eagle Plains has completed option agreements with Billiton Metals, Rio Algom Exploration, Kennecott Exploration, Viceroy Resource Corp. and numerous other junior exploration companies, resulting in over 30,000m (100,000’) of drilling and over $9,000,000 in exploration spending on its projects since 1998. During the 2005 season alone, EPL has seen over 11,900m (39,000’) of diamond drilling on its properties.
On behalf of the Board of Directors
“Tim J. Termuende”
President and CEO
Cautionary Note Regarding Forward-Looking Statements
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