Kennecott Program Underway on Eagle Plains' Greenland Creek Property
Cranbrook, B.C.: Kennecott Canada Exploration Inc. has notified Eagle Plains Resources Ltd. (EPL:ASE) that it has commenced a first-phase, $200,000 exploration program on Eagle Plains' 100% owned Greenland Creek property located 30 kilometres north of Cominco's Sullivan base metal mine at Kimberley, B. C. Kennecott has the option to earn a 60% interest in the 247 unit (15,000 acre) property by spending $2,000,000 on exploration and making total cash payments of $310,000 to Eagle Plains over a 4 year period, with Kennecott as the project operator. A cash payment of $70,000 was made by Kennecott upon signing of a formal option agreement (see News Release November 13th, 1998).
Kennecott intends to carry out stream-sediment sampling throughout the property area, in conjunction with soil geochemical surveys and geological mapping. Diamond drilling is expected on the property, contingent on favorable results from Phase 1. Eagle Plains, with now amalgamated sister company Miner River Resources Ltd. carried out a 7-hole diamond-drill program totaling 1893 feet (577 metres) on the Greenland Creek property late in 1997 with encouraging results (see News Release January 21, 1998).
The Greenland Creek property adjoins the South Findlay property to the north which Rio Algom Exploration Inc. currently has under option from Eagle Plains. Rio Algom may earn a 60% interest in the 231 claim (14,000 acre) property by carrying out $2,000,000 in exploration expenditures and making cash payments of $310,000 to the companies over 4 years. Over $1,000,000 has been spent to date on the property.
Eagle Plains is in the process of completing an $800,000 financing led by Billiton Metals Inc. whereby 2,000,000 flow through and non-flow through shares will be sold from treasury at $.40/share with 2,000,000 $.55 and $.75 warrants attached. Eagle Plains has a 100% interest in 12 base metal and 10 precious metal properties in western Canada. With partners CanAustra Resources, Kennecott Canada Exploration Ltd., Rio Algom Exploration Ltd., Billiton Metals Inc., and Novagold Resources Inc., the company is well-funded, and expects to realize over $2,000,000 in exploration expenditures on its properties during 1999.
On behalf of the Board of Directors
“Tim J. Termuende”
President and CEO
Cautionary Note Regarding Forward-Looking Statements
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