Eagle Plains/Northern Continental Complete 2005 Exploration Work on Elsiar (LCR) Project, West-Central B.C.
Cranbrook, B.C., 10 January, 2006: Eagle Plains Resources Ltd. (TSX-V:EPL) and Northern Continental Resources Ltd. (TSX-V:NCR) have completed diamond drilling activity on the Elsiar (LCR) project, located 40 km north-west of Terrace, B.C., and 2km north of EPL’s Kalum project. A total of 7,888’ (2,405m) of drilling was completed in 20 holes at a cost of $850,000.
When originally staked in 2003, the Elsiar project was a relatively unexplored property. Eagle Plains/Northern Continental have since developed it into an advanced Cu-Mo-Au porphyry target.
Highlights of the 2005 program include:
- high-grade gold mineralization (up to 1m @ 14.0 g/T Au) encountered in drill-holes
- 16 of 20 holes encountered Cu + Mo ± Au mineralization
- numerous targets discovered in 2005 remain untested
- additional drilling recommended for the property
The property hosts widespread mineralization in surface occurrences over a 3.5 sq. km. area. Both surface and drillhole data suggest the presence of a well-developed copper-molybdenum porphyry system with high-grade Au mineralization present in shears and veins. Shallow drilling was completed on many of the newly discovered showing areas; the 2005 drill program was considered by Eagle Plains to be a success. Drilling intersected high-grade Au mineralization with values ranging from trace quantities to up to 14.0g/T Au over 1.0m (DDH LC05018). Molybdenum mineralization was encountered in most holes, with assay values ranging from trace quantities to .01% Mo over 50.0 m, including 0.4% Mo over 6.0m (DDH LCO5016). Cu mineralization ranged from trace quantities to 0.1% Cu over 15.0m (DDH LC05004). Additional work including a 5,000’ (1,500m) drill program has been recommended for the property by Eagle Plains geologists.
The property was originally acquired due to the presence of a strong multi-element geochemical signature in stream sediments and similar geology / geophysics to the nearby Kalum property. It benefits from excellent infrastructure including logging roads, hydroelectric power lines and close proximity to rail and deep-water international ports in Kitimat and Prince Rupert.
The claims cover a number of intrusive plugs, sills and dykes hosted in sediments of the Bowser Basin. Initial exploration on the property completed in 2004 included a 500 line-km geophysical survey. Geochemical surveys completed in 2004 and 2005 delineated a strong Cu-Mo soil geochemical anomaly some 800m x 800m in area, coincident with a prominent magnetic geophysical anomaly. Prospecting and geologic mapping completed in 2005 resulted in the discovery of numerous mineralized showings within the anomaly area, many of which were tested by drilling later in the season.
The 2005 program was operated by Eagle Plains, with fieldwork directed by geologist Chris Gallagher under the supervision of C.C. Downie, P.Geo., identified as a “Qualified Person” under National Instrument 43-101.
Management of Eagle Plains is very encouraged by results from the 2005 program, though Northern Continental has formally notified the Company that it does not intend to participate in future exploration on the property. Eagle Plains plans to continue exploration on the property during the 2006 season, and is actively seeking joint-venture opportunities in this regard.
Eagle Plains and Northern Continental have recently completed a two-hole, (1722’) 525m drill program on the Abo project located 130km east of Vancouver, B.C. Results will be issued as they are received, compiled and interpreted.
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 with third parties including NovaGold Inc. (AMEX,TSX:NG), Amarc Resources Ltd. (a Hunter Dickinson Group Company;TSX-V:ARC), Northern Continental Resources Inc. (TSX-V:NCR), and Golden Cariboo Resources Inc. (TSX-V:GCC). These agreements expose Eagle Plains to over $12,000,000 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.