Eagle Plains/Providence Capital Resume Diamond Drill Program at Iron Range Project, Southeastern BC
Cranbrook, B.C., January 18, 2011: Eagle Plains Resources Ltd. (EPL:TSX-V) and Providence Capital Corp. (TSX-V:PV) report that drilling has now recommenced on the Iron Range Project. A $1.5M budget has been approved and will consist of approximately 5000m in 12-16 holes. The partners continue to test structural features and the stratigraphic interval known to host the Sullivan deposit, located 70km to the north. Current drilling will target both precious-metal and base-metal mineralization, following up on recent work which intersected two intervals of gold-bearing massive sulphide mineralization, the lower interval which resides at a stratigraphic position interpreted to be at or near the same interval which hosts the Sullivan deposit (see EPL/PV news release December 21st, 2010).
A complete data package from the previous drill program including analytical results, drill-hole sections, strip-logs, collar locations and drill-hole orientations, geophysical data and drill-core photographs is available on the Eagle Plains website at: Iron Range
TerraLogic Exploration Services of Cranbrook, BC (a wholly-owned subsidiary of Eagle Plains) has been contracted to carry-out fieldwork, with FB Drilling, also of Cranbrook, providing diamond drilling services. J.K Ryley, Project Geologist, is responsible for drill-hole planning, permitting and logistics, with C.C. Downie, P.Geo. the overall Project Supervisor. David Pighin, P.Geo. and Paul Ransom, P.Geo. have been retained to provide geological consulting services to the project. Both have extensive backgrounds with the former Cominco Ltd. and are considered experts in the geology, mineralogy and exploration of the Sullivan and similar deposits in the Purcell Basin.
Iron Range Project Summary
The Iron Range property is located 15km NE of Creston, BC. The property hosts numerous iron deposits which were originally staked in 1897 and were covered by Crown Grants held by Cominco Ltd. and the Canadian Pacific Railway for over 100 years. Past work on the deposits by Cominco Ltd. 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 systematically 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. Drilling 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). This intercept is located approximately 10km north of 2010/2011 drilling locations. 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.
The Iron Mountain structure has been mapped with widths of up to 150m and a strike length of over 50km. Copper and gold mineralization has been discovered previously 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 $30 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.
Providence Option Agreement
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 2, 2010, 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. The land package now covers over 30km of the Iron Range structure- most of it unexplored.
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), Active Growth Capital (TSX-V:ACK) 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.
“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.