Eagle Plains Resources Announces Craig Bay Drill Results
Cranbrook, B.C., June 27, 2008: Eagle Plains Resources (TSX-V:EPL) has received final assay results from an 8-hole, 2484 ft (757 m) diamond drilling program on the project at the Karin Lake Uranium property in northern Saskatchewan, located 50 kilometers southeast of the Key Lake mine.
The drill program was designed to test a coincident airborne-EM anomaly and topographic lineament with known historical uranium showings in bedrock and associated radon-in-soil anomalies. Six of the eight holes encountered anomalous gamma counts at or near the base of graphite-rich metasediments of the Wollaston Group, in contact with basement granite, pegmatite and gneiss.
Table 1: 2008 DDH holes at Craig Bay with analytical results from SRC. Gamma counts using a 2PGA-1000 downhole scintillometer (except where noted*). *Counts using a RS-125 hand held scintillometer.
|Hole Number||From (m)||To (m)||Best Gamma cnts/sec||SRC Sample #||From (m)||To (m)||Interval (m)||U total ppm||Th total ppm|
The mineralization appears to coincide with pegmatite and fault breccia units located at the metasediment/granite contact. At least one occurrence of U-mineralization hosted in graphite-rich metasediments was noted in the drill core. The contact zones are also overprinted by a moderate to strong hematite with chlorite and clay alteration. This combination of alteration and mineralization straddling multiple lithologies, strongly suggests both a primary and secondary genesis of the U-mineralization.
Field crews have been mobilized to continue exploration of the Karin Lake / Eagle Lake / Kulyk Lake properties (EPL NR 19/06/08). The Craig Bay uranium showing is located along the southeast margin of a 27 kilometer long conductive EM anomaly ring feature, entirely within the Karin Lake property claim area. At least two other uranium mineral occurrences along this ring feature have seen historical drilling which proved graphite dominant horizons to explain the EM-conductor. The focus will be to explore for uranium deposits along the ring EM-conductive feature at intersections with north to northwest-trending faults which are interpreted to have formed structural traps where uranium mineralization may have been preserved.
Eagle Plains management continues to be encouraged by the potential for an economic uranium discovery in the Karin Lake / Eagle Lake / Kulyk Lake area. The 2008 program only tested approximately 800m of the 27km length EM-conductor. Analysis of 2007 fieldwork results and advanced processing of the airborne geophysical data have identified a number of high priority exploration targets throughout 100% EPL controlled 69,000 hectare project area.
Overall project supervision is provided by C.C. Downie, P.Geo., Director and Exploration Manager of Eagle Plains, who is identified as a Qualified Person under National Instrument 43-101.
Eagle Plains anticipates $6M in exploration expenditures in 2008, with 14 individual projects scheduled for work. 6 projects are expected to see diamond drilling this year, with approximately 5500m (18,000’) in total footage planned to date. Approximately ½ of the total expenditures will be incurred by third parties under various option agreements currently in place.
For additional information on these and other Eagle Plains projects, please refer to our website at www.eagleplains.com.
Eagle Plains Resources continues to conduct research, acquire and explore metal projects in western Canada. The Company controls over 35 gold, base-metal and uranium projects, many with third parties including Teck Cominco Limited (TSX:TCK.B), Alexco Resource Corp. (TSX-V:AXR), Sandstorm Resources Ltd. (TSX-V:SSL.P), Mountain Capital Inc (TSX-V:MCI.P), Blue Sky Uranium Corp. (TSX-V:BSK) and XO Gold Resources Ltd. These agreements expose Eagle Plains to over $27.0 million in exploration expenditures over a five year period. In recent years, Eagle Plains has completed option agreements with Billiton Metals, Rio Algom Exploration, NovaGold Resources, Kennecott Exploration and numerous other junior exploration companies, resulting in over 47,000m (154,200’) of drilling and over $21,000,000 in exploration spending on its projects since 1998. Eagle Plains management anticipates approximately $6,000,000 in expenditures on its projects in 2008, funded equally between Eagle Plains and third party partners.
This news release has been reviewed and approved by T.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
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.