Eagle Plains/ Prize Mining Pour Gold at Yellowjacket Project, Atlin, BC
Cranbrook, B.C., October 7th, 2009: Eagle Plains Resources Ltd (TSX-V:EPL) and Prize Mining Ltd. (TSX-V:PRZ) have completed mining and milling activity for the 2009 season and have commenced seasonal clean-up and maintenance. The first gold bar was recently poured from concentrate materials milled on-site and weighs 2.284 kg. The project is operated through the Yellowjacket Joint-Venture (“YJV”), jointly owned by Eagle Plains and Prize Mining and operated by Eagle Plains.
About the Yellowjacket Gold Project
The Yellowjacket Project is located 9km east of Atlin, BC and is accessed by all-season road. The project received a Small Mines Act Permit in July, 2009 for the development and production of gold from the British Columbia Ministry of Energy, Mines and Petroleum Resources (see EPL/PRZ news release July 13th, 2009). The Permit allows for the development and operation of an open pit gold mine and onsite concentrator processing up to 75,000 tons per year of ore. The local Taku River Tlingit First Nation (“TRTFN”) were active participants in the review and approval of the Permit.
Commissioning and test work on the mill facility was completed earlier this season, and excavation activity took place from mid-August to mid-September. Approximately 40,000 tonnes of material was mined, with approximately 9,000 tonnes of material stockpiled for processing. Milling at a peak daily rate of approximately 350 tonnes per day was achieved at times, but numerous breakdowns, equipment failures and permitting delays hampered production overall. A definitive quantity of gold recovered will be reported when final processing activity has been completed.
Metallurgical test work and plant engineering designs project gravity concentration gold recoveries of between 73% and 80%, with no chemicals used in the extraction process. Mining activity is presently seasonal, but the potential exists for year-round operations.
The JV partners have recently retained an independent geological consultant to review and compile previous drilling and current production data for the project with a goal of producing a formal valuation report and NI 43-101-compliant inferred resource estimate for the property. An extensive drilling program is currently planned this winter to further assess the project not only for its near-term production potential, but also the overall mining potential of the many untested areas of the property. Currently the Yellowjacket Zone is open along strike in both directions and to depth.
Under the terms of the Joint Venture Agreement, Eagle Plains earned an initial 40% interest in the Project from Prize by making a $2,000,000 cash payment. Through the course of operations this season, EPL contributed $1,400,000 in additional funding to the Joint Venture, increasing its initial interest to 54.364% (subject to year-end audit by PRZ). EPL further retains the right to increase its interest by a further 20% by making staged cash payments of $2,000,000 to PRZ over 6 years
About Eagle Plains Resources
Eagle Plains Resources continues to conduct research, acquire and explore metal projects in western Canada. In addition to holding mining royalties on various projects, the Company controls over 35 gold, base-metal and uranium projects, several with third parties including Waterloo Resources Ltd (TSX-V:WAT.P) and XO Gold Resources Ltd. (a private B.C. company). 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 53,000m (158,500’) of drilling and over $27.0 million in exploration spending on its projects since 1998.
Expenditures during 2008 on Eagle Plains’ projects were approximately $6,000,000, funded equally between Eagle Plains and third party partners. This work resulted in approximately 6,300m of drilling and extensive ground-based exploration work and facilitated the advancement of numerous projects at various stages of development.
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.