Eagle Plains Commences Drilling on Kalum Gold-Silver Project
Cranbrook, B.C., 31 August 2004: Eagle Plains Resources Ltd. (EPL:TSX-V) has commenced a 10,000’ (3000m) diamond drilling program on the Kalum project located 30km northwest of Terrace, near the central coast of British Columbia. The claims consist of 540 units (32,000/13,500 ha) covering an area of approximately 10 km x 12 km, and are 100% owned by Eagle Plains (subject to a 1%NSR). 2004 work programs are budgeted at over $1,000,000, and follow encouraging results obtained during 2003 (see Sept 30, 2003 News Release). 2003-2004 activities included extensive prospecting, geological mapping and the collection of 343 stream-sediment, 3123 soil, and 653 rock samples. A 2000 line-km airborne geophysical program completed in March of this year.
6 target areas have been selected for drilling, and 15-20 individual drill holes are currently planned. Work is expected to take 3-5 weeks to complete. Project supervision is the responsibility of Charles C. Downie, P.Geo., hereby identified as a “Qualified Person” under National Instrument 43-101.
The claims cover numerous high-grade gold-silver vein occurrences related to a Cretaceous-aged intrusive stock that has surface dimensions of approximately 7 x 12 km. The project is accessed by a network of logging roads and transected by a hydro-electric power-line. It is located 90 km by road from port facilities in Kitimat, or 100 km by rail from Terrace to port facilities in Prince Rupert. Extensive logging activity has taken place throughout the project area, with additional road-building and logging activity planned over the next three years.
Results from the 2003 and 2004 exploration programs indicate the potential for a major system or systems of high-grade Au-Ag mineralization in several areas of the property. A detailed plan map of geology, infrastructure and showing areas in PDF format may be viewed on the Eagle Plains website (www.eagleplains.ca) under the “British Columbia Properties” heading.
Eagle Plains Resources continues to conduct research, acquisition and exploration projects in western Canada. The Company controls over 30 gold and base-metal projects, many of which are currently optioned to or joint-ventured with third parties including NovaGold Inc., Kobex Resources Ltd., Northern Continental Resources Inc., Shoshone Silver Mining Co., and Golden Cariboo Resources Inc. These agreements expose Eagle Plains to over $18 million 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 nearly 13,000 m (43,000 ft) of drilling and over $5,000,000 in exploration spending on its projects 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.