Eagle Plains Receives 5700 Stream-Sediment Samples from Mackenzie Valley Zinc Project Area, NWT
Cranbrook, B.C. 27 June, 2006: Eagle Plains Resources Ltd. (EPL:TSX-V) has completed an agreement with a private B.C. company whereby EPL has retained maps and sample pulps for an area of approximately 19,000 sq km located in the Mackenzie Mountains of western Northwest Territory, Canada.
EPL has agreed to issue The Cordilleran Group (“TCG”) 100,000 voting class common shares in exchange for exclusive possession of over 5700 stream-sediment sample pulps collected during the 1970s in an area now covered by prospecting permits obtained by EPL during 2004 and 2005. It is estimated that the samples and associated data have a replacement cost of well over $1,000,000 in today’s dollars.
The samples have been sent to Eco Tech laboratories in Kamloops B.C. where they will be analyzed by I.C.P. geochemical procedures. Results are being used to guide a 5-man, $700,000 multi-disciplinary regional reconnaissance program that is now under way under the direction of Mr. Steve Butrenchuk, P.Geo.
The target area controlled by EPL permits consists of an area in excess of 2,400 sq. km. The consolidation of the entire project area provides Eagle Plains with an unprecedented opportunity to explore and develop a world-class metallogenic belt which has been dormant for three decades.
The area now controlled 100% by EPL was once subject to extensive exploration during the 1970s and early 1980s and was the site of numerous drilling programs, dozens of grassroots examinations, and thousands of individual claims held by various junior and major exploration companies including RTZ, Placer Dome Inc., Bethlehem Copper, Cominco, Noranda, Amax, Serem and others.
Eagle Plains has secured the area of past activity, complete with all public data associated with millions of dollars of exploration work. Recent announcements regarding the proposed Mackenzie Valley pipeline and improved base-metal prices suggests that the area must now be viewed in an entirely new economic framework. Exploration technology and the understanding of the occurrence and genesis of carbonate-hosted deposits have also been advanced over the past 30 years, increasing the potential for new discoveries.
Location and Access
The southern boundary of the permit area is located along the North Canol Road, built in the 1940s to supply oil to the south during WW2. The lower project area stretches 65km northward along the Mackenzie Mountains, and encompasses at least 8 drilled prospects and 1 advanced exploration project. The central permit area is located 180km from Norman Wells, NWT while the most northerly permit area is located 190km from Norman Wells, NWT or 240 km from Mayo, Yukon.
The prospecting permits held by Eagle Plains overlie a series of folded and thrusted Proterozoic to Devonian carbonates and shales. These rocks were deposited on a shelf margin near the hinge point between a platform and a shale basin. They are time-equivalent to giant base-metal deposits such as Howard’s Pass (currently controlled by Pacifica Resources Ltd (PAX:TSX-V), with indicated resource of 113 million tonnes grading 5.4% zinc and 2.1% lead with >15 g/t silver plus an additional reported inferred resource in excess of 360 million tones), the Tom (9.283 Mt @ 69.4 g/t Ag, 7.55 Pb and 6.2% Zn using a 7% combined Pb-Zn cutoff) and Jason deposits (14.1 million tonnes grading 7.09% Pb, 6.57% Zn and 79.9 g/t Ag, using a cutoff grade of 8% Pb-Zn).
Dozens of high-grade base metal occurrences exist in EPL’s permit area, highlighted by the following projects:
Gayna River- 27,000m of diamond drilling completed by RTZ in the late 1970s, with drill-holes grading up to 20% combined lead-zinc over 6.0m.
Ice - 9: 8.2% Pb, 12.5% Zn over 9.1m in a representative trench sample;
Drill results: 10.1% combined Pb-Zn over 50.0’ (15.2m) true-thickness.
43.0% Zn over 11.5’ (3.5m)
Trench results: 22’ (6.9m) grading 9.0% Pb and 39.1% Zn
26’ (7.9m) returned 5.48% Pb and 31.4% Zn.
Tap: 27.5% Zn, 3.7% Pb from grab samples taken of 60 x 760m breccia zone;
Keg: 25% combined Pb-Zn in float samples. Best of 3 drill-holes intersected 4.23% Pb- Zn over 20.4m;
Bear/Twit: 24 drill-holes completed, with 4.9% Pb-Zn reported over 13’ (4.0m), 5.1% Pb-Zn over 20’(6m), resource estimate published of 7.3-9.1 MT grading 8% Pb-Zn and 17g/t Ag;
AB-Main: 3 drill-holes (866’) completed in 1974. Surface samples assayed up to 41% zinc, 79.3% lead.
Eagle Plains completed reconnaissance-style exploration of the area in 2005 with a multi-disciplinary group of geological specialists led by Robert Sharp, P.Geol., an expert on carbonate-hosted deposits. The exploration results concluded that “four of the prospects examined have excellent potential for significant carbonate-hosted Pb-Zn-Ag deposits. Of these, three should be evaluated by diamond drilling in 2006. Additional regional work should be carried out exploring for sedex Zn-Pb-Ag deposits on the permit areas underlain by Selwyn Basin black shales, to follow-up showings and stream sediment Zn-Pb-Ag anomalies.” A budget of $700,000 has been tabled for 2006 work.
Eagle Plains Resources continues to conduct research, acquisition and exploration projects in western Canada. The Company controls over 35 gold and base metal projects, many of which are joint-ventured with third parties including NovaGold Inc. (AMEX,TSX:NG), Alexco Resource Corp. (TSX-V:AXR), and Blind Creek Resources. These agreements expose Eagle Plains to over $8,000,000 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 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
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