Eagle Plains Completes 2005 Exploration Work on Kalum Gold Project; West-Central BC
Cranbrook, B.C., 18 January, 2006: Eagle Plains Resources Ltd. (EPL:TSX-V) has completed exploration work and compiled analytical data on the Kalum project located 30km northwest of Terrace, near the central coast of British Columbia. The claims cover an area of approximately 10 km x 12 km, and are 100% owned by Eagle Plains. A total of $330,000 was spent on the property during the 2005 season, with 147 rock samples, 381 soil samples, 82 silt samples, and 1771.2’ (540.0m) of diamond drilling completed.
The 2005 program focused on high-grade gold-silver mineralization in the “Hat” showing area. Recent work in the area by Eagle Plains has shown that a series of precious metal enriched quartz veins associated with an intrusive stock represent a single large-scale mineralized system linked by flat-lying shear zones. Highlights include:
- Discovery of 3 new high-grade Au showings; the BABIT (6.0m @ 7.3 g/T Au-Channel), Upper Hat (9.9 g/T Au + 1500 g/T Ag-Grab); and the TTT (12.2 g/T Au-Grab)
- Detailed geologic mapping has shown that the majority of showings in the area are structurally linked and represent a single large-scale mineralized system over 1 km2 in size;
- Discovery of gold mineralization within m-scale ankerite alteration zones and fractures associated with veins and major shear zones (0.5 g/T Au grab sample);
- Hat area hosts both high-grade shear/vein gold mineralization as well as bulk-tonnage targets.
Analytical work was contracted to Acme Analytical Laboratories Ltd. of Vancouver, B.C., an ISO accredited company. Geochemical and assay analyses of the 147 rock samples collected in 2005 ranged from trace values to the following highlights, with samples collected over a 2.5 km2 area.
|Sample Number||Showing||Channel Length (m)||Au (g/T)||Ag (g/T)|
* Pending Final Assay
Three holes were collared from a single pad to test a single showing in the Hat area but no significant mineralization was encountered.
Further work is recommended by Company geologists to continue to evaluate the potential of the Kalum property. Detailed structural mapping should be carried out to define the relationships between structure and mineralization at both the Hat and Bling-Rico Zones. Soil geochemical coverage, mapping and prospecting should be extended to the west to locate new mineralized zones. High priority drill targets for 2006 have been located based on 2005 work.
The claims cover over 30 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 area 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, and 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. A detailed map of geology, infrastructure and showing areas in PDF format may be viewed at the Kalum Project page.
The 2005 program was operated by Eagle Plains, with fieldwork conducted by Bootleg Exploration Inc., directed by geologist Chris Gallagher, M.Sc., under the supervision of C.C. Downie, P.Geo., identified as a “Qualified Person” under National Instrument 43-101.
Eagle Plains’ management would also like to report that significant progress has been made towards completion of a proposed Plan of Arrangement to divest the Copper Canyon, Abo and Severance properties into a new Company, to be named “Copper Canyon Resources Ltd”. Under the proposed plan, EPL shareholders of record on closing date (yet to be determined) are expected to receive additional shares on a 1 for 1 basis. A special meeting to approve the transaction is tentatively planned for the spring of 2006.
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 with third parties including NovaGold Inc. (AMEX,TSX:NG), Amarc Resources Ltd. (a Hunter Dickinson Group Company;TSX-V:ARC), Northern Continental Resources Inc. (TSX-V:NCR), and Golden Cariboo Resources Inc. (TSX-V:GCC). These agreements expose Eagle Plains to over $12,000,000 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.
This news release has been reviewed and approved by Charles C. Downie, P.Geo., hereby designated as a “Qualified Person” underNational Instrument 43-101.
On behalf of the Board of Directors
“C. C. (Chuck) Downie”, P. Geo
Exploration Manager and Director
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.