Eagle Plains Commences Drilling Program on Sphinx Molybdenum Project
Cranbrook, B.C. 22 September, 2006: Eagle Plains Resources Ltd.(EPL:TSX-V) has commenced a 6,500’ (2,000m) diamond drilling program on it’s 100% controlled Sphinx property, located 60 km west of Kimberley, BC. Two drill rigs will be moved to the property immediately, with drilling activity to occur over the next 2-3 weeks.
Sphinx Project Summary
The Sphinx property area consists of approximately 2500 ha, with 1600 ha acquired by staking by EPL and 900 ha subject to an option to earn a 100% interest (less 1% NSR) from arms-length individuals. The claims are ideally located with respect to local infrastructure. The property is road-accessible, has been logged extensively and is situated along a high-voltage hydro-electric line. Rail facilities are located 60km east of the property.
B. Price, P.Geo. submitted a technical report in May of this year which outlined an Inferred Resource of 62,005,615 tonnes grading .035% Mo, using a cut-off grade of .01% Mo. This current inferred resource represents 47,844,630 lbs of contained molybdenum metal. The estimate is based on 14 holes drilled in 2005 by Eagle Plains and incorporates data from 10 holes drilled in 1980 and 1997 by past operators. The inferred resource is open in two directions and to depth, and is considered to have significant potential for expansion. The project is being advanced as a bulk-tonnage, open-pit target.
Blende Project Update
Drilling activity has been completed on the Blende silver-lead-zinc property located in central Yukon. The property is owned 100% by EPL, subject to an option agreement with Blind Creek Resources Ltd. who may earn a 60% interest in the property by completing $5,000,000 in exploration expenditures, making $250,000 in cash payments, and issuing to EPL 1,000,000 common shares by December 31, 2010.
Extensive exploration activity has been underway on the property since mid-June. Significant advances were made in the development of the project, including base-line environmental monitoring, regional geological mapping and sampling, additional claim staking, and the completion of a total of 13,872’ (4,230m) of diamond drilling in 23 holes. Total expenditures this season are approximately $2,000,000.
Detailed results of the program will be released as they are received, compiled and interpreted.
Eagle Plains Resources continues to conduct research, acquire and explore mineral 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), Mulligan Capital Corp (TSX-V:MCC.P) and Blind Creek Resources. These agreements expose Eagle Plains to over $13,000,000 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, EPL and its partners completed over 11,900m (39,000’) of diamond drilling on its properties.
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.
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.