Eagle Plains/Providence Capital Provide Update on Drill Program at Iron Range Project, Southeastern BC

British Columbia |

Cranbrook, B.C., December 1st, 2010: Eagle Plains Resources Ltd. (EPL:TSX-V) and Providence Capital Corp. (TSX-V:PV) have now completed ten diamond drill holes for a total footage of 10,945 feet (3,337m). Drilling activity has been suspended pending receipt of analytical results, but is expected to resume following the Christmas holidays. The partners continue to test the stratigraphic interval known to host the Sullivan deposit, located 70km to the north. Current work is targeting both precious metal and base metal mineralization and is funded by Providence Capital under terms of an option agreement.

The partners are encouraged by observations made to date of existing drill-cores. Hole IR10-05 encountered wide, intermittent intervals from surface to a depth of 278m containing breccia textures and intensive silica and albite alteration. Associated sulphide mineralization includes iron sulfides and arsenopyrite (a mineral often associated with gold). Intervals 148.0m to 163.0m (15.0m) and 270.0m to 278.0m (8.0m) were particularly enriched with lead-zinc sulphide mineralization. Hole IR10-07 returned similarly altered and mineralized material from 142.0m to 155.0m. Hole IR10-10 hosted the most intensely-altered and mineralized material, with semi-massive to massive sulphide mineralization including galena (lead) and sphalerite (zinc) reported over two intervals from 191.0m to 202.0m and from 276.0m to 279.0m. The lower massive sulphide interval is overlain by a 55m zone of disseminated to net-textured mineralization within intensely altered rock. The base of the lowermost massive sulphide appears to be truncated by a fault. Significant in the lower interval was the location of the massive sulphide mineralization, which is interpreted to be at or near the Lower-Middle Aldridge contact, the stratigraphic horizon which hosts the Sullivan deposit. The hole was terminated in rocks interpreted to be of the Lower Aldridge Formation. 

A portion of the altered material from Hole IR10-05 was sent for rush assay analysis in order to confirm the presence of suspected gold mineralization. The interval from 62.5m-89.5m returned 0.64 g/t over 27m, including:

  • 74.5m to 78.5m: 1.49 g/t gold and 22.5 g/t silver over 4.0m 
  • 86.5m to 87.5m: 6.05 g/t gold and 33.9 g/t silver over 1.0m 

The interval from 144.0m to 163.0m returned .84g/t gold over 19.0m, including

  • 148.0m to 155.0m: 1.80 g/t gold and 15.7 g/t silver over 7.0m, including 3.17 g/t gold and 22.9 g/t silver over 3.0m 

Widths of altered and mineralized intervals are apparent thicknesses only. True thicknesses will be established with the completion of additional drilling. 

Drilling by Eagle Plains on the property in 2008 intersected gold mineralization including drill hole IR08006, which returned 7.0m grading 51.52 g/t (1.50 oz/ton) gold from 20.0m to 27.0m (see EPL news release dated April 20th, 2009). DDH IR05-03, drilled in 2005, was collared 175m away from DDH IR10-10 and returned values of 3.82 g/t Au and 46g/t Ag over a 2 m interval (see EPL NR June 13, 2005). The mineralization encountered in this hole was associated with a silicified, veined and altered breccia unit with associated galena, sphalerite and arsenopyrite, and appears to be similar to material observed in the current drill-holes as described above.

Additional staff have been added to the project crew to assist in core-logging and sampling operations. Analytical results will be forthcoming as they are received, compiled and interpreted.

The Iron Range project is owned 100% by Eagle Plains and holds no underlying royalties or encumbrances. Providence holds the option to earn a 60% interest in the Property by spending $3,000,000 on exploration, making $500,000 in cash payments and issuing 1,000,000 shares to EPL over 4 years. As announced on November 2nd, an additional 35,800 ha of claims were added to the existing land package, resulting in a total of 56,200 ha – an area approximately 11km x 50km.

Iron Range Project Summary

The Iron Range property consists of 56,200 hectares. The claims are well-situated with respect to infrastructure with a high-pressure gas pipeline, high-voltage hydroelectric line, railway and major highway all located within property boundaries. 

The Iron Mountain structure has been mapped with widths of up to 150m and a strike length of over 50km. Claims held by Eagle Plains cover over 30km of the structure, with significant iron-oxide mineralization occurring over 15km. Copper and gold mineralization have been discovered along the structure, highlighting the potential for iron-oxide copper-gold (“IOCG”) mineralized systems associated with the structure. The claims also overlie rocks of the Aldridge Formation, including the same stratigraphic time horizon which hosts the world-class Sullivan Deposit located 70km to the northeast. Over its 100 year lifetime, Sullivan produced approximately 150,000,000 tonnes of ore including 300,000,000 ounces of silver, 8,000,000 tonnes of zinc and 8,000,000 tonnes of lead, collectively worth over $25 billion at current metal prices. The parties caution that past results or discoveries on proximate land are not necessarily indicative of the results that may be achieved on the Iron Range property.

A map outlining pertinent details of the property may be found at: Iron Range Compilation

Property History

The Iron Range deposits were originally staked in 1897 and were covered by Crown Grants held by Cominco Ltd. and the Canadian Pacific Railway. Past work on the Iron Range deposits by Cominco focused on the considerable iron oxide resource with trenching and very shallow (20m depth) diamond drilling along the Iron Range Mountain ridge. Eagle Plains staked the current claims immediately after the Crown Grants reverted in 2000 and have been exploring the property since then. Exploration work to date includes geological mapping, geochemical surveys, diamond drilling and a 690 line-km airborne geophysical survey. 

Drill programs were carried out by Eagle Plains in 2005 and 2008. Swift Resources optioned the property in late 2009 and completed a total of 580 m of drilling in 7 holes. One hole was drilled in close proximity to IR 08006 and returned 1.0m grading 7.53 g/t gold. (see EPL news release dated March 5th, 2010). Swift subsequently relinquished their option on the property.

Fieldwork completed on the Iron Range property during 2010 is being carried out under the supervision of geologist J.K. Ryley. C.C. Downie, P.Geo. is hereby identified as the overall project supervisor. Technical aspects of this news release have been reviewed and approved by T.J. Termuende, P.Geo., hereby designated as a qualified person under National Instrument 43-101.

About Providence Capital

Providence Capital Corp. is a junior mining exploration company focused on delivering shareholder value through project acquisition and development. Currently the company is focused on its Iron Range Project in British Colombia, Canada.

About Eagle Plains Resources 

Eagle Plains continues to conduct research, acquire and explore metal projects throughout western Canada. In addition to holding mining royalties on various projects, Eagle Plains controls over 35 gold, base-metal and uranium projects, several with third parties including Excelsior Mining Corp (TSX:MIN.P), Sandstorm Resources Ltd. (TSX-V:SSL), Sandstorm Metals and Energy Ltd. (TSX-V:SND), Providence Capital Corp., Waterloo Resources Ltd. (TSX-V:WAT.P), Windstorm Resources Inc., 0802906BC Ltd. (a private B.C. company); Heemskirk Canada Ltd., Touchdown Capital Inc. (TSX-V: TDW) and 99 Capital Corp. (TSX-V:WDG). In recent years, Eagle Plains has completed option agreements with Teck Limited (TSX:TCK.B), Alexco Resource Corp. (TSX-V:AXR), Billiton Metals, Rio Algom Exploration, NovaGold Resources, Kennecott Exploration and numerous other junior exploration companies, resulting in over 53,600m (163,370’) of drilling and over $28.3 million in exploration spending on its projects since 1998. 

Expenditures during 2008 and 2009 on Eagle Plains’ projects were approximately $7,300,000, funded by Eagle Plains and third party partners. This work resulted in approximately 6,900m of drilling and extensive ground-based exploration work and facilitated the advancement of numerous 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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