Eagle Plains/Blind Creek Complete Winter Mobilization to Blende Silver/Base Metal Deposit; Accelerated Warrant Expiry Triggered
Cranbrook, B.C. 11 April, 2006: Eagle Plains Resources Ltd. (EPL:TSX-V) and Blind Creek Resources Ltd. (a private B.C. company) jointly announce that they have successfully completed the winter mobilization of lumber, diamond drilling equipment, fuel and other supplies to the Blende property, located in central Yukon approximately 65 NE of Keno. Over 50 tons of equipment and 35,000 litres of fuel have been placed on the property in preparation of a 10,000m (33,000’) drilling campaign to be completed on the property during the 2006 field season. The first-phase budget for this work has been set at $1,500,000. This season’s work follows geological and geophysical surveys and an extensive re-examination, sampling and interpretation of existing drill-core stored on the property since the mid-1980’s.
Blind Creek may earn a 60% interest in the 73-unit (3700 acre) property, which is owned 100% by EPL (subject to a 1% NSR). To earn its 60% interest, Blind Creek has agreed to complete a total of $5,000,000 in exploration expenditures, pay EPL $250,000 cash and issue 1,000,000 common shares by December 31st, 2010. The Blende is a carbonate-hosted deposit on the south edge of the Mackenzie Platform, hosted by Middle Proterozoic Gillespie Group dolomite. A N.I. 43-101 compliant report was completed on the property in 2004 by B. Price, P.Geo. In his technical report, Price used calculations prepared in 1991 by Billiton Metals Canada Ltd., which identified a resource estimate for the property comprising a total of 19,600,000 tonnes (21,500,000 tons) grading 56.0 g/T silver and 5.84% combined lead-zinc. Within this resource is 15,300,000 tonnes grading 67.5 g/T silver and 6.27% combined lead-zinc. In terms of contained metals, the Blende property contains at least:
- 35M ounces silver
- 1.3B lbs zinc
- 1.2B lbs lead
Although initially explored as an open pit target, Eagle Plains and Blind Creek management believe that there is excellent potential to outline additional resources, and possibly develop the deposit as an underground operation, which would allow mining of a smaller tonnage with higher grade. By adjusting the cutoff grade of the blocks calculated previously, the current resource could be reduced in tonnage, but increased in grade to 4.1 million tonnes grading 105 g/T (3.1 oz/t) silver, 6.7% lead, and 4.6% zinc. At the completion of work in 1994, the deposit was found to be open along strike to the west, and down-dip. Numerous high-grade intersections have been reported by past operators, including hole 88-02 which assayed 282 g/t (8.22 oz/t) silver, 12.2% lead, and 4.4% zinc over 19.8m from a depth of 70.7 to 90.5m. Hole 88-03 returned 8.5m grading 550.1 g/t (16.04 oz/t) silver, 15.3% lead and 4.6 % zinc from 118.0 to 126.5m, and hole 90-15 intersected 9.5m grading 351.2 g/t (10.24 oz/t) silver, 14.11% lead, and 6.59% zinc from 60.1 to 69.6m. Step-out drilling in 1994 confirmed the continuation of ore-grade mineralization westward, with the addition of significant copper values. Hole 94-81 contained 14.9 m of mineralization which assayed 228.4 g/t (6.66 oz/t) silver, 9.71% lead, 5.48% zinc, and 0.78% copper from 9.2m to 24.1m, while hole 94-84 intersected 8.5m which returned 136.1 g/t (3.97 oz/t) silver, 6.74% lead, 3.65% zinc and 2.43% copper from 45.5-54.0m. The 2006 program is scheduled to commence in early June, and will be carried out under the supervision of R. Sharp, P.Geol., hereby identified as the “Qualified Person” under N.I. 43-101. Accelerated Warrant Expiry:Pursuant to a news release issued by the Company on December 19th, 2005, the common share purchase warrants issued as part of a $.70 unit financing which closed December 17th, 2005 are subject to an accelerated expiry if the published closing trade price of the common shares on the TSX Venture Exchange is greater than or equal to $1.00 for any 10 consecutive trading days, in which event the holder will be given notice that the warrants will expire 30 days following the date of such notice. The share price of Eagle Plains has been trading above $1.00 per share since March 29th, triggering the accelerated expiry. The common share purchase warrants may be exercised by the holder during the 30-day period between the notice and the expiration of the common share purchase warrants.Employee Options Granted:Eagle Plains has granted incentive stock options to an employee of the company for the purchase of a total of 100,000 shares at the exercise price of $1.40 per share, expiring April 11th, 2011.
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
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.