Eagle Plains Resources Announces Termination of Agreement with Wellstar Energy
Cranbrook, B.C., May 23th, 2008: Eagle Plains Resources (TSX-V:EPL) announces that Wellstar Energy Corporation (WST:TSX.V) has defaulted on the performance requirements of the option agreement between Wellstar and Eagle Plains on the Kulyk and Jenny Lake uranium project in north central Saskatchewan. Eagle Plains has formally notified Wellstar that the option agreement on the 100% Eagle Plains owned property is terminated and that Eagle Plains will be seeking full payment of the outstanding monies owed to its subsidiary Bootleg Exploration Ltd.
The Kulyk - Jenny Lake Project adjoins Blue Sky Uranium Corp.’s (BSK-TSX.V) Eagle Lake and Karin Lake properties (see Eagle Plains NR February 27, 2008).
The Kulyk Lake property covers approximately 96 square km and was staked to cover known historical uranium mineral occurrences and uranium lake sediment anomalies within prospective folded and faulted basement lithologies of the Wollaston group. Much of the known uranium mineralization occurs along Wollaston group contacts and fault intersections, particularly in the presence of pegmatite. Historical trenching at one such occurrence revealed 0.369 per cent U3O8 over 3.4 meters (SMDI 0993). Grab sampling from another occurrence returned up to 1.68 per cent U3O8 (SMDI 0978).
The 50 square km Jenny Lake area also covers prospective basement lithologies of the Wollaston domain at its eastern limit along a major tectonic boundary. Known uranium mineral occurrences are associated with several large-scale structures that suggest excellent regional prospecting potential. Historical grab samples of yellow-stained fractures in gneiss and pegmatite returned values up to 0.47 per cent U3O8 (SMDI 0981). To the east, a single historical drill hole near the Needle Falls shear zone intersected a sulphide and graphite-bearing zone in pelitic host rock.
2007 work on the project included prospecting and reconnaissance geological mapping and a 1651 line-km GEOTEM airborne geophysical. Eagle Plains is actively seeking new joint venture partners for this project.
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 Charles C. Downie, P.Geo, hereby designated as a qualified person under National Instrument 43-101.
“Charles C. Downie”
Vice President Exploration
Cautionary Note Regarding Forward-Looking Statements
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