Eagle Plains Completes Airborne Geophysical Survey, Stakes Additional Uranium Properties
Cranbrook, B.C., October 24th, 2006: Eagle Plains Resources (TSX-V:EPL) has recently completed staking activity in an area near its existing Eagle Lake holdings located 30 km east of Cameco’s Key Lake mining operation in north-central Saskatchewan, Canada.
Some of the new claims fall within an Area of Mutual Interest or “AMI” to Eagle Lake, currently subject to a Letter of Intent to option to Mulligan Capital Corp., as reported August 22nd, 2006. Under terms of the proposed agreement, Mulligan will incur $5,000,000 in exploration expenditures by December 31st, 2010, issue 1,000,000 common shares to EPL, and reimburse EPL all acquisition costs.
Many of the newly acquired claims are located outside the Eagle Lake AMI, and are held 100% by Eagle Plains and carry no underlying royalties or encumbrances. The new claim areas are named “Karin Lake” and “Foster Lake”. The staking follows an airborne geophysical survey and follow-up ground geological program carried out under the supervision of Eagle Plain’s geologist Jarrod A. Brown, P.Geo.
The Karin Lake area was targeted for staking due to the presence of numerous historical base-metal occurrences consistently located near the margin of the Karin Lake granite dome, within structurally disturbed rocks of the Wollaston Group. Uranium mineralization occurs both as a low-grade material in granitic pegmatites and associated granites, as well as higher-grade fracture controlled mineralization in pegmatites and metasediments. Historical assays from the area returned values up to 8.0% U3O8 (AR 74A14-0023).
The Foster Lake area was targeted for acquisition to cover known uranium and molybdenum showings located 20 km SSW of the Karin Lake property. The area is underlain by the same series of host rocks which are interlayered with intrusive material. The best showing at SMDI 0983 comprises several trenches in a pegmatite stock containing disseminated and fracture-hosted uranium and molybdenum mineralization, with historical assays reporting up to 0.226% U3O8, and 0.67% MoS2 (AR 74-A-11-NW-0026). A preliminary scintillometer survey conducted over the area this fall by Eagle Plain’s personnel suggests good size potential.
Eagle Plains now controls over 172,000 acres (70,000 ha) within the Wollaston Domain; the same geologic sequence which hosts most of Saskatchewan’s prolific uranium deposits including Key Lake, Millenium, McArthur River, Cigar Lake, Midwest, Eagle Point, and others. EPL’s focus will be to explore for basement-hosted uranium deposits in north to northwest-trending faults which are interpreted to have formed structural traps where uranium mineralization may have been preserved.
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 with third parties including NovaGold Inc. (AMEX,TSX:NG), Alexco Resource Corp. (TSX-V:AXR), Solomon Resources Inc (TSX-V:SRB), Blind Creek Resources and Golden Cariboo Resources Inc. (TSX-V:GCC). These agreements expose Eagle Plains to over $11.0 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 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
For further information on EPL, please contact Mike Labach at 1 866 HUNT ORE (486 8673)
Email: mgl@eagleplains.com or visit our website at http://www.eagleplains.com
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