Eagle Plains/Amarc Resources Execute Letter Agreement on “Acacia” VMS Property, South-Central BC
Cranbrook, BC; 20 December, 2004: Eagle Plains Resources Ltd. (TSXV:EPL) has recently executed a Letter Agreement with Amarc Resources Ltd. (TSX-V:AHR), a Vancouver-based exploration company controlled by the Hunter-Dickinson Group. The parties have agreed in principle (subject to TSXV approval) that AHR may earn up to a 60% interest in EPL’s 100% owned Acacia property by completing $2,500,000 in exploration expenditures, issuing to EPL 350,000 voting class common shares, and making $125,000 in cash payments. AHR may further increase its interest to 75% by carrying the project to feasibility. AHR is required to spend at least $100,000 on the property in 2005 to maintain its option.
The Acacia property is considered to have high potential for hosting Volcanogenic Massive Sulphide (VMS) deposits. These deposits typically contain both base and precious metals, and occur in clusters and/or stacked lenses. The 203 unit (12,000 acre) property is located approximately 45km northeast of Kamloops and covers a stratigraphic assemblage which hosts a number of nearby past-producing base and precious metal deposits including the Samatosum, Rea Gold, and Homestake mines. The property currently has at least three known target areas.
A detailed geological review and compilation map follows as Figure 1 or may be viewed on the Eagle Plains website at www.eagleplains.ca under “British Columbia Projects”
Eagle Plains Resources continues to conduct research, acquisition and exploration projects in western Canada. The Company controls over 30 gold and base-metal projects, many of which are currently optioned to or joint-ventured with third parties including NovaGold Inc., Kobex Resources Ltd., Northern Continental Resources Inc., Shoshone Silver Mining Co., and Golden Cariboo Resources Inc. 18 of these projects have seen exploration work in the past twelve months and Eagle Plains anticipates minimum expenditures of $2.5 million on their projects over the next year. 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 18,000m (60,000 ft) of drilling and over $6,000,000 in exploration expenditures on its projects since 1998.
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.