Eagle Plains/Windstorm Commence Drilling on Kalum High Grade Gold Project
Cranbrook, B.C., August 12th, 2010: Eagle Plains Resources (TSX-V:EPL) and Windstorm Resources Inc. (TSX-V:WSR) are pleased to announce the commencement of drilling at the road-accessible, 21,883 ha Kalum gold-silver project, located approximately 35 kilometres northwest of Terrace, British Columbia in the Skeena Mining Division. Work in 2009, funded by Windstorm, resulted in a new discovery of high grade vein mineralization that assayed, from a grab sample, 983 g/t (28.667 oz/t) gold and 495 g/t (14.44 oz/t) silver within an area of strongly anomalous soil results. This new discovery will be the focus of Windstorm’s 2010 exploration program.
The work program will include prospecting, mapping and sampling in the area of the new high grade showing discovered during Windstorm’s 2009 exploration program, followed by a minimum of 400 m of drilling. The showings on the Kalum property are high-grade gold occurrences associated with a Cretaceous-aged intrusion that has cut sedimentary and volcanic rocks of the Jurassic to Cretaceous aged Bowser Lake sediments.
The original Kalum gold discovery was first prospected in 1919. Since then, eight additional BC Minfile occurrences have been discovered and explored by numerous exploration companies. In 2003, Eagle Plains was the first company to put all the known showings into a single property package. Since that time, over $1.9 million has been spent exploring the property. This work has included the first systematic mapping and exploration over the entire property and has resulted in the discovery of a number of new gold-silver showings.
Windstorm has the right to earn up to a 60% interest in the Kalum Property from Eagle Plains Resources Ltd. (TSX-V: EPL, “Eagle Plains”) by completing $3,000,000 in exploration, making $400,000 in payments, and issuing 500,000 shares to Eagle Plains over four years. Windstorm then has the option to increase its interest to 75% by producing a preliminary feasibility study by December 31, 2016.
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), Parkside Resources Inc., Waterloo Resources Ltd. (TSX-V:WAT.P), Prize Mining Corp. (TSX-V:PRZ), Windstorm Resources Inc., 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.
Technical aspects of this news release have been reviewed and approved by C.C. Downie, 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.