Eagle Plains/Olympic Announce Drill Results from Dragon Lake Gold Project, Yukon

Yukon Territory |

Cranbrook, BC, November 22, 2011: Eagle Plains Resources Ltd. (TSX-V:EPL) and Olympic Resources Ltd. (TSX-V:OLA) announce that drill results have been compiled and interpreted from a drill program conducted during the summer on the 2,300 acre Dragon Lake project (the “Property”) located 85km northeast of Ross River, Yukon. A total of 660m was completed in 6 holes which tested three separate zones of mineralization on the property. Total cost of the program was $450,000.

2011 Program Highlights

  • Precious metal mineralization was reported in all 6 drill holes of the program. 
  • Results of up to 5.70 g/t gold over .25m (DR11001) and 1.57 g/t gold over 3.0m (DR11004) were reported in drill holes.
  • Numerous exploration targets remain untested on the property, with additional work planned for next year. 

Property Geology and Mineralization

Mineralization on the property is associated with an elongate Tombstone Suite intrusive which has intruded sedimentary rocks of the Hyland Group. Contact metamorphism related to intrusion of the pluton has resulted in a distinct alteration halo which hosts known mineralization. Work carried out by Eagle Plains in 2010 on the Main Zone included continuous chip trench sampling which returned 4.9 g/t gold over 6.0m, including 6.7 g/t over 4.0m (T-11) and 6.0m grading 2.8 g/t (T-02). A grab sample of material from a 1.2m wide quartz vein returned 19.8 g/t gold. Exploration pits dug in 2010 by Eagle Plains in areas of anomalous soil samples from past programs returned 2.85 g/t gold and 2.25 g/t gold, respectively.

2011 Program Results

Significant results from the program are summarized in the table below:

Hole Number From(m) To(m) Interval Length (m) Au g/t Ag ppm
DR11001 22.45 27.27 4.82 0.68 0.3
including 26.2 27.27 1.07 1.55 0.5
also including 26.2 26.45 0.25 5.70 1.4
also including 27.15 27.27 0.12 1.52 0.3
DR11003 13.0 17.0 4.0 0.46 1.1 
including 13.0 15.0 2.0 0.65 0.3
DR11004 60.0 71.54 11.54 0.56 0.7
including 65.0 68.0 3.0 1.57 1.2
DR11004 79.0 80.0 1.0 1.26 1.2
DR11004 93.85 94.9 1.05 0.96 2.1
DR11005 21.55 22.0  0.45 2.18 0.5
DR11005 47.91 49.13 1.22 1.75 1.2
including 47.91 48.5 0.59 3.24 1.6
DR11005 78.0 79.0 1.0 1.59 0.2
DR11005 91.13 91.34 0.21 1.73 1.0
DR11006 21.7 22.36 0.66 0.19 90.2

Diamond Drilling was performed by Apex Drilling of Smithers, BC.. Geological services were provided by TerraLogic Exploration of Cranbrook, British Columbia, an independently operated, wholly-owned subsidiary of Eagle Plains Resources Ltd. Overall project supervision was provided by C.C. Downie, P.Geo., hereby identified as a “Qualified Person” under N.I. 43-101.

Property History

The property was first staked in 1966 by Kennco Exploration, which completed geological and geophysical survey work. Canamax and Welcome North carried out additional surface work in 1983 and 1988, respectively. Eagle Plains staked the property in 1996 and have completed 7 separate exploration programs in the ensuing years. In 2010, Eagle Plains completed rock and soil geochemical sampling and an airborne geophysical survey.

Olympic has the exclusive right to earn a 60% interest in the Property by completing $3,000,000 in exploration expenditures, issuing 1,000,000 common shares and making cash payments of $500,000 to Eagle Plains over 4 years.

About Eagle Plains Resources 

Eagle Plains continues to conduct research, acquire and explore mineral projects throughout western Canada. Since 1992, EPL has been acquiring and developing early stage projects utilizing an in-house team of geologists, technicians and specialists. Considered a prolific project generator with over 35 properties, EPL invites joint venture participation to expedite development, reduce risk and enhance exposure to discovery.

Current third party agreements if maintained to completion, expose EPL to over $50M in exploration expenditures, $5.7M cash and 13M shares in partner companies. Completed agreements have yielded over $17M in exploration spending, $1M cash to EPL and a total of 16M shares of partner companies including Alexco Resource Corp., NovaGold Resources Inc., Giyani Gold Corp., Aben Resources Ltd. and others. 

Expenditures during 2011 on Eagle Plains-related projects are expected to be approximately $8,000,000, to be funded by Eagle Plains and third party partners. This exploration work is expected to result in approximately 9400m diamond drilling and extensive ground-based exploration work facilitating the advancement of more than 15 projects at various stages of development.

On behalf of the Board of Directors

“Tim J. Termuende”
President and CEO

For further information on EPL, please contact Mike Labach at 1 866 HUNT ORE (486 8673)
Email: mgl@eagleplains.com or visit our website at http://www.eagleplains.com

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.

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