Eagle Plains Enters into Agreement with Aben Resources on Two Yukon Properties and Northwest Territories Permits
Cranbrook, B.C., February 1, 2011: Eagle Plains Resources Ltd. (EPL:TSX-V) and Aben Resources Ltd. (TSX-V:ABN) (formerly Consolidated Abaddon Resources Inc.) have entered into an Acquisition Agreement whereby Aben will acquire a 100% interest in two non-contiguous mineral exploration properties known as the Hit and Justin (Sprogge) projects, covering approximately 2,130 hectares located in the eastern Yukon Territory (the “Yukon Claims”).
Pursuant to the terms of the Acquisition Agreement, Aben Resources has also acquired a proprietary database owned by Eagle Plains and the right to certain potential prospecting permits in the Mackenzie Mountain area of the Northwest Territories (the “Permits”). The Permits are subject to an approval process and, if approved, Aben will be granted the exclusive right to stake claims in the Permit areas for up to a period of three years.
Upon receipt of acceptance of the Acquisition Agreement by the TSX Venture Exchange, Aben Resources will issue a total of 5,000,000 common shares to Eagle Plains. Aben will also make a cash payment of approximately $150,000 to reimburse Eagle Plains for the Northwest Territories permitting costs. The approximately $150,000 will be paid upon receipt of confirmation that the Permits have been granted and duly registered in the name of Aben Resources.
The Yukon Claims and any property to be acquired by staking in the Permit areas shall be subject to a three percent (3%) net smelter return royalty (“NSR”) in favour of Eagle Plains. Aben Resources has been granted a right to purchase a 2% NSR at any time prior to commencement of commercial production for the consideration of $2,000,000 (the “Buy Down Option”).
The Justin (Sprogge) Gold Property
The Justin (Sprogge) gold property is located in east-central Yukon Territory about 35 kilometres south of the recently re-opened Cantung Mine. The property consists of 25 claims and is host to numerous styles of intrusive and sediment-hosted gold mineralization located within three main bulk-tonnage target areas. The drill-ready property has the potential to host both high-grade and bulk-tonnage gold mineralization. Historical grab samples from the property reported up to 59.25 g/t Au, in addition to historical chip samples returning an average of 2.38 g/t Au over 22.5 metres. Numerous targets on the property remain to be tested with further exploration planned, including trenching and diamond drilling.
The Hit Gold Property
The Hit gold property is located in central Yukon Territory, 27 kilometres north-northeast of MacMillan Pass. The project targets skarn/replacement gold mineralization associated with Tombstone-Suite intrusives and surrounding carbonate-rich sediments. Property highlights include intrusive-related gold mineralization which returned an average of 7.85 g/t Au over 7.0 metres in trenches.
The above transactions are subject to the acceptance of the TSX Venture Exchange.
About Eagle Plains Resources
Eagle Plains continues to conduct research, acquire and explore metal projects throughout western Canada. In addition to holding mining royalties on various projects, Eagle Plains controls over 35 gold, base-metal and uranium projects, several with third parties including Excelsior Mining Corp (TSX:MIN.P), Sandstorm Resources Ltd. (TSX-V:SSL), Sandstorm Metals and Energy Ltd. (TSX-V:SND), Providence Capital Corp., Waterloo Resources Ltd. (TSX-V:WAT.P), Windstorm Resources Inc., 0802906BC Ltd. (a private B.C. company); Heemskirk Canada Ltd., Touchdown Capital Inc. (TSX-V: TDW), Active Growth Capital (TSX-V:ACK) and 99 Capital Corp. (TSX-V:WDG). In recent years, Eagle Plains has completed option agreements with Teck Limited (TSX:TCK.B), Alexco Resource Corp. (TSX-V:AXR), Billiton Metals, Rio Algom Exploration, NovaGold Resources, Kennecott Exploration and numerous other junior exploration companies, resulting in over 57,100m (187,288’) of drilling and over $31.5 million in exploration spending on its projects since 1998.
Expenditures during 2010 on Eagle Plains’ projects were approximately $3,240,000, funded by Eagle Plains and third party partners. This work resulted in approximately 3,580m of drilling and extensive ground-based exploration work and facilitated the advancement of numerous projects at various stages of development.
“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.