Eagle Plains Resources Gold Project Review
Cranbrook, B.C.: The Board of Directors of Eagle Plains Resources Ltd. (EPL:TSX-V) wishes to provide an update of the Company’s current gold exploration projects in British Columbia and Yukon Territory. During the recent downturn in exploration activity, EPL has been actively researching and acquiring properties with good exploration potential and/or established gold resources, and has positioned itself to take advantage of improving gold prices and new governments in both B.C. and Yukon.
British Columbia gold projects include Abo, Copper Canyon, Kokanee Creek, Bar, Iron Range and others. Yukon gold projects include McQuesten, Sprogge, Hit, Drag, and others.
Abo (Harrison Gold): acquired by staking in October, 2000, the Abo project is located 130km west of Vancouver, near the town of Harrison, BC. The property consists of 76 units (4600 acres) overlying a number of gold occurrences associated with a series of intrusive stocks. The Property is road-accessible year-round, with hydroelectric power, natural gas and rail-service located within 3 kilometers of property boundaries. A formal agreement has been accepted by the TSX Venture Exchange (TSX) whereby Northern Continental Resources Inc. (NCR:TSX-V) may acquire the option to earn a 60% interest (less 2% NSR) by completing $3,000,000 in exploration expenditures and issuing 2,000,000 common shares (including finders’ fee) over an eight year period (see News Release Oct 24/02).
The Property area has been held or optioned by various operators since the early 1970’s including Abo Resources, Kerr Addison Mines Ltd. (Kerr Addison) and Bema International Resources Ltd. Exploration work has included mapping, soil sampling, ground-based geophysics and a total of 13,856m (45,448’) of diamond drilling. Some small-scale underground development has also been completed. In 2001, EPL completed a 215 line-km airborne geophysical survey which resulted in the delineation of a number of untested anomalies. Most of the detailed exploration and development work was focused on the northern part of the Property in the area of the Jenner and Portal Stocks. Drill results reported from the Portal Zone include 30 meters averaging 3.17 g/T Au (EMPR ASS RPT 19584). Drill results reported from the Jenner Stock include 64m averaging 3.77 g/T (EMPR ASS RPT 20144). In 1987, Kerr Addison collected a 1053 tonne bulk sample from the Jenner Stock underground workings. Using the metallurgical results from this sample combined with extensive underground sampling and results from diamond drilling, Kerr Addison reported an indicated grade of 3.2 – 4.1 g/t Au with an inferred tonnage of 1.3 million tonnes from surface to 100m elevation, and an additional 2.2 million tonnes from surface to sea level (EMPR ASS RPT 20144, MINFILE #92HSW092). Other gold-bearing stocks identified on the Property include the Hill and Lake Stocks. These areas have seen limited exploration in comparison to the Jenner-Portal areas. Diamond drill intersections reported from the Hill Stock area include DDH BX88-130 which averaged 3.54 g/t Au and 6.3 g/t Ag over 27 meters, and contained 8m averaging 8.7 g/t Au and 14.2 g/t Ag (EMPR ASS RPT 20144). Eagle Plains management has not confirmed the reliability of the above estimates or reported drill results, but considers the estimates to be reliable and relevant. This existing data will form the basis for advanced exploration activity, including work to confirm historical results.
The Copper Canyon project is held 100% under option by Eagle Plains, and is located near the Stikine River, approximately 65km southwest of Telegraph Creek, in north-western British Columbia (see News Release May 27/02). The claims consist of 71 units (4300 acres) covering the Copper Canyon alkalic porphyry gold-copper occurrence, and are contiguous with claims comprising the Galore Creek mineral resource, which has seen extensive exploration to date.
Mineralization at Copper Canyon is very similar in style to that which occurs at the Galore Creek deposit, reported to contain a number of mineralized zones with total reported reserves of 234mT grading .57% Cu, .35g/T Au, and 7.0g/T Ag (estimated), with an additional gold-rich zone reportedly containing 42.4 mT grading .55% Cu and 1.03 g/T Au (source: BCGS MINFILE). 1990 drilling at Copper Canyon indicates the presence of widespread values in copper similar in grade to Galore Creek, but with significantly higher gold metal values. Mineralization occurs in three distinct areas within the property; namely the Central (formerly Western), North, and Eastern Zones. The largest of these is the Central Zone, where the majority of exploration activity has occurred. Drilling highlights include: 90-DDH-1: 22.0 meters grading 4.11 g/tonne Au, 13.02 g/tonne Ag and 0.71% Cu; 90-DDH-2: 117.0 meters of 2.47 g/tonne Au, 38.39 g/tonne Ag and 1.84% Cu; 90-DDH-4: 13.0 meters of 4.04 g/tonne Au, 33.25 g/tonne Ag and 1.54% Cu; 90-DDH-5: 32.0 meters of 2.37 g/tonne Au, 17.48 g/tonne Ag and 0.77 % Cu. These intersections are within wide lower-grade envelopes such as found in 90-DDH-2 where a 270.8m (898’) intersection averaged 1.92 g/tonne Au, 22.28 g/tonne Ag and 1.05% Cu. (G. Leary, M.Sc., P.Eng. Assessment Report #21062) At the end of 1990 drilling, an inferred resource for a portion of the Central Zone was published as 35.7 million tons grading 1.17 g/tonne gold, 0.75% copper, and 17.1 g/tonne silver (Canamax Resources/ Consolidated Rhodes Resources news release; May 27, 1991). It was further stated that “the Central, North, and Eastern copper zones were also estimated to have the potential to host an additional 100 million tons of reserves”. Though these estimates are considered by Eagle Plains to be relevant, their reliability has not been confirmed, but will constitute a target basis for future exploration work. An inspection of the property was made by Eagle Plains personnel during August , 2001 with resampling of specific core intervals completed, confirming the widespread distribution of gold values, and presence of high grade mineralization within specific intervals.
The Kokanee Creek project is owned 100% by EPL (less NSR), and is located near Nelson, BC. A 1500-foot, 5-hole drilling program completed by EPL in February-March of 1997 resulted in the discovery of near-surface gold mineralization. Hole KC97-02 returned 26.11 g/t gold over 0.7m from 7.0-7.7m, and 13.52 g/t gold over 1.4m from 21.8-23.2m. Fieldwork conducted during 1997 indicated the extension of the mineralized zone to the north, south and west.
In Yukon, major exploration activity is planned during 2003 on the McQuesten property, located approximately 5km south of Elsa. The property is currently under option to Novagold Resources Ltd. (NRI-TSX; NVGLF-US OTC) who will earn a 70% interest upon completion of a 10,000’ drilling program by October 31st, 2003 (see News Release Mar 8/02). The property has excellent infrastructure, with access provided via the all-weather Silver Trail Highway. Drilling and trenching completed to date on the McQuesten property indicate the presence of a large mineralized system hosted within calcareous meta-sediments and intrusive rocks along the McQuesten Mineralized Structural Zone, as defined by surface trenching, auger drilling and a coincident geophysics (magnetics and electro-magnetics). Highlights from previous drill holes located from west to east along the McQuesten Structural Zone include: 18.3 m of 3.74 g/t Au; 24.4 m of 2.16 g/t Au; 16.3 meters of 2.19 g/t; and 9.6 m of 2.87 g/t Au. Highlights from previous trenching along the Mineralized Zone include: 16.0 m of 2.67 g/t Au; 9.2 m of 4.94 g/t Au; and 8.3 m of 2.72 g/t Au. Initial cyanide bottle-roll leach tests have been completed on unoxidized drill core. Up to 84.3% of the gold was recovered in these tests indicating that the ores are amenable to conventional cyanidation methods. Newmont Exploration of Canada completed a five-hole diamond drill core program in 2000, with all five holes intersecting gold mineralization. Highlights include Hole MQ-00-04 with two intersections: 11.5 meters grading 1.5g/t Au and 37 meters grading 1.4g/t Au (including 4.3 meters grading 3.3g/t). Hole MQ-00-01 with 2.5 meters grading 3.2g/t Au and 6.1 meters grading 2.6g/t Au; MQ-00-02 with 13.5 meters grading 0.65g/t Au; MQ-00-03 with 3 meters grading 2g/t Au and 3 meters grading 3g\t Au; and MQ-00-05 with 14 meters grading 1.3g/t Au. The five holes total 883 meters (2900 ft.) and test a 1.2 kilometre (4000 ft.) portion of the 3 kilometre McQuesten Mineralized Structural Zone. These first step-out drill holes demonstrate the continuity of the mineralization along the McQuesten Structural Zone and significantly advance the project towards the resource definition stage. Mineralization consists of disseminated and semi-massive sulphides (pyrrhotite, pyrite and arsenopyrite) in quartz-sericite and skarn alteration packages of sedimentary rocks and felsic sills and dikes intruded along a low angle shear zone.
The Sprogge project is held 100% under option by EPL, and consists of 25 claims located 11 kilometres east of the recently re-activated Cantung road (see News Release Mar 12/02). It is host to numerous styles of intrusive and sediment-hosted gold mineralization located within three main bulk-tonnage target areas. The Kangas Zone consists of a 75m x 400m zone of skarn and replacement style mineralization within calcareous siltstone, which has returned widespread anomalous values of up to 1.6 g/t gold. At the Discovery Zone gold-bearing pyritic mineralization occurs within a quartz monzonite dyke and adjacent calcareous siltstone. Chip sampling across this zone has returned 2.38 g/t gold over 22.5 meters. This zone remains open to the east and along strike to the north into overburden-covered areas. The Confluence Zone consists of a 600m x 250m area of coarse clastics hosting considerable fracture controlled chalcedonic veining. Continuous chip sampling in Confluence Zone trenches returned 4.24 g/T gold over 4.5m while individual veins within this interval returned geochemical analyses of up to 59,250 ppb (approximately 59 g/T gold). Previous operators Viceroy Resources and Battle Mountain Gold recommended drill testing of the Confluence and Discovery Zones, but did not follow-up on this work. The Kangas Zone requires further mapping and sampling to bring it to the drill stage. The property is almost entirely surrounded by claims held by Novagold Resources, with the ground position being well situated to allow for development of the various zones. Eagle Plains completed limited fieldwork on the property in 2002, confirming gold mineralization on the property, and defined future drill targets.
The challenging conditions for the mining industry have been considered by Eagle Plains management to be an unprecedented opportunity to acquire quality exploration projects in known mineralized regions. By seeking joint-venture participation on it’s properties, leveraged exploration spending may be achieved, to the ultimate benefit of the Company’s shareholders. Eagle Plains continues to regard project generation, research and acquisition as its primary functions, and is actively seeking joint-venture partners for its projects.
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.