Eagle Plains/Northern Continental Complete Drill Program On “Abo” Gold Project, South-Western B.C.
New Mineralized Zone Discovered
Cranbrook, B.C. 03 May, 2005: Eagle Plains Resources Ltd. (EPL: TSX-V) and option partner Northern Continental Resources (NCR: TSX-V) have completed a 10 hole, 2468m (8095‘) $365,000 diamond drilling program on the Abo Gold Project, located 5 km north of Harrison Hot Springs, approximately 100 km east of Vancouver, British Columbia.
A new mineralized zone has been discovered over approximately 100m (open in all directions) along the north-western border of the Hill Stock, returning the following intersections:
- Hole AB05008: 4.0m to 9.0m (5.0m) @ 2.7 g/T Au
- Hole AB05009: 137.5m to 138.3m (0.8m) @ 39.4 g/T Au,176.0m to 177.0m (1.0m) @ 60.9 g/T Au
- Hole AB05010: 169.0m to 181.0m (12.0m) @ 3.0 g/T Au including 5.0m @ 6.8 g/T Au
The central area of the property consists of 76 units (1900 ha) owned 100% by EPL, and subject to an option agreement whereby NCR may earn a 60% interest in the claims by completing $3,000,000 in exploration expenditures and issuing 1,200,000 shares over 5 years. An additional 84 contiguous claim units were subsequently acquired by staking, and are held 100% by NCR. Hydroelectric power, natural gas and rail service are located within 3km of property boundaries.
The property area has been held or optioned by various operators since the early 1970’s including Abo Resources Ltd., Kerr Addison Mines Ltd. and Bema International Resources Ltd. Exploration work includes mapping, soil sampling, ground-based geophysics, 444m of underground development work and a total of 13,856m (45,448’) of diamond drilling. Barry Price, P.Geo. in 2002 prepared a National Instrument 43-101 compliant resource estimate that outlines an indicated resource on the property of 1.845 million tonnes grading 2.79 g/t Au containing 165,000 ounces of gold and an inferred resource of 0.6 million tonnes grading 2.8 g/t Au containing 55,000 ounces of gold in the Jenner and Portal zones, which are open to depth.
The focus of the 2005 program was to test the Portal zone, explore the subsurface extent of mineralized zones at the Hill and Breccia zones, and test other targets based on previous property assessments. Results are as follows, with a detailed location map shown below, or may be viewed at Figure 1.
Portal Zone (2 drillholes)
Drill hole AB05001 intersected mineralized quartz vein material from 35.0m to 42.0m (7.0m) grading 6.3g/T gold (including 1m @ 39.8g/T)’ and at 103.0m to 106.0m (3.0m) grading 2.74 g/T gold. The new data is being integrated with previous area information to assess future exploration potential.
Hill Stock (5 drillholes)
The Hill Stock continues to be one of the most promising exploration areas on the property and is the locus of a new mineralized zone discovered during the 2005 program. Follow up drilling in the south-eastern area of the Hill Stock encountered values of 3.3g/T Au from146.0m to 148.0m (2.0m) in hole AB05007.
The most encouraging results came from quartz-veined intersections in the last three holes (collared from the same location), in the north-west contact area of the Hill Stock (Figure 1). Positive results from these holes are interpreted to represent a new mineralized zone on the property.
AB05001: 35.0m-36.0m (1.0m): 39.8g/T Au
41.0m-42.0m (1.0m): 3.41 g/T Au
103.0m-104.0m (1.0m): 6.47 g/T Au
105.0m-106.0m (1.0m): 1.67 g/T Au
148.0m-149.0m (1.0m): 4.75 g/T Au
AB05002: 49.5m-50.5m (1.0m): 3.64 g/T Au
148.0-149.0m (1.0m): 3.51g/T Au
AB05003: no significant results
AB05004: 146.0m-147.0m (1.0m): 1.61 g/T Au
AB05005: 127.0m-128.0m (1.0m): 1.37 g/T Au
142.0m-143.0m (1.0m): 2.41 g/T Au
AB05006: 86.0m-87.0m (1.0m): 3.36 g/T Au
AB05007: 87.0m-88.0m (1.0m): 3.62 g/T Au
146.0m-148.0m (2.0m): 3.33 g/T Au
175.0m-176.0 (1.0m): 5.25 g/T Au
AB05008: 4.0m to 9.0m (5.0m): 2.7 g/T Au
AB05009: 5.0m-6.0m (1.0m) 2.88 g/T Au
29.0-30.0m (1.0m) 3.93g/T Au
36.0m-37.1m (1.1m): 7.35g/T Au
137.5m to 138.3m (0.8m): 39.4 g/T Au
176.0m to 177.0m (1m): 60.9 g/T Au
268.6-269.1m (0.5m): 11.9 g/T Au
AB05010 (ended in mineralization):
80.0m-81.0m (1.0m): 6.29 g/T Au
111.0m-112.0m (1.0m): 10.5 g/T Au
169.0m to 181.0m (12m): 3.0 g/T Au (including 5.0m @ 6.8 g/T Au)
199.0m to 207.0m (8m): 1.7 g/T Au (Including 1.0m @ 12.5 g/T Au)
256.0m-257.0m (1.0m): 4.17g/T Au
277.0m to 281.0m (4m): 1.2 g/T Au
Mineralization in the upper portions of holes AB05008 and AB05009 is apparently associated with a 24.7g/t quartz vein grab sample uncovered in trench (T 03-1) to the north northeast in 2003. All holes drilled to date around the southern, western and northwestern perimeter of the Hill Stock are presently being re-evaluated to better define potential gold zone targets for future assessment later in 2005. The current program was carried out between February13 and March 23 under the supervision of C.C. Downie, P.Geo., (the “Qualified Person” under N.I. 43-101)
Eagle Plains expects to have 8-10 drill programs carried out on its properties during the 2005 field season. Up to $CDN 4M is expected to be spent, with much of this funded by option and joint-venture partners. A schedule outlining planned 2005 work programs may be viewed here.
Phase-1 drilling has recently been completed on Eagle Plains’ 100% owned Iron Range project located near Creston, BC. Results will be released once assay results have been 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 are currently optioned to or joint-ventured with third parties including NovaGold Inc., Northern Continental Resources Inc., Shoshone Silver Mining Co., and Golden Cariboo Resources Inc. These agreements expose Eagle Plains to over $18 million 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 21,000m (70,000 ft) of drilling and over $7,000,000 in exploration spending 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.