Eagle Plains Commences Geophysical Program on Yukon Gold Project
Cranbrook, B.C., June 24th, 2004: Eagle Plains Resources Ltd. (EPL:TSX-V) has mobilized a crew to commence geophysical fieldwork on the Dragon Lake Gold Project located 85km northeast of Ross River, YT, 10 km west of the North Canol Road. The claims consist of 40 units (900 ha) covering an area of approximately 6 km x 2 km, and are 100% owned by Eagle Plains with a 1% NSR reserved for Bernie Kreft of Whitehorse, Yukon. Fieldwork on the property during 2004 is budgeted at approximately $60,000 and will be carried out by Aurora Geosciences of Whitehorse.
The project targets skarn/replacement gold mineralization associated with Tombstone-Suite intrusives and a calc-silicate horizon within Hyland Group rocks. Geology and mineralization seen at the Drag property is very similar to that contained on Eagle Plains' McQuesten (Wayne) property, currently under joint venture with SpectrumGold Resources Inc. (SGX:TSX-V). Mineralization at Dragon Lake consists of disseminated and banded to massive fine grained pyrrhotite with associated magnetite, chalcopyrite, scheelite, arsenopyrite and pyrite. Galena, arsenopyrite and stibnite occur in narrow quartz veinlets and a few wider quartz veins. Soil geochemical sampling and limited trenching has been completed by Eagle Plains since 1996 and has indicated that significant gold mineralization is present within property boundaries. Of the 51 trench samples collected in 1997, 18 samples of 1 meter or greater length returned values in excess of 1 gm/t Au. The best interval was from Trench 2 which returned 2815 ppb Au over a 6 meter width. During 1999, Eagle Plains carried out a $100,000 diamond-drilling program on the property and intersected significant skarn mineralization, with erratic gold values grading up to 3.66 g/t Au over 1.2m encountered.
The 2004 program will focus on locating new mineralized zones associated with intersections between NNW striking structures and sulphide rich zones within the calc - silicate horizon. This will be achieved with a 9.5 line-km combined Induced Polarization (IP) and Horizontal Loop Electromagnetic (HLEM) geophysical ground survey.
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 SpectrumGold 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 dollars 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, NovaGold Inc., Viceroy Resource Corp. and numerous other junior exploration companies, resulting in nearly 13,000m (43,000’) 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.