Providence/Eagle Plains Iron Range Project Update
Cranbrook, B.C., July 30, 2012: Providence Resources Corp. (TSX-V: PV, OTCQX: PRVSF) (“Providence” or the “Company”) and Eagle Plains Resources Ltd. (TSX-V:EPL) are pleased to announce receipt of drilling results from a six-week, 2,411 meter diamond drill program on the Iron Range JV project located near Creston British Columbia. The 2012 drill program started on April 4, 2012 and has extended the gold-silver-zinc-lead Talon Zone 120 meters along strike to the southwest. Drill hole IR12-035 intercepted a 28-meter alteration zone (213-241 meters) containing elevated gold, silver, zinc, lead and arsenic associated with brittle northeast-trending faults. Assay results from this area range from trace values to the best intercept consisting of 7 meters (214-221 meters) grading 0.19 gpt gold and 1.29 gpt silver, including 2 meters grading 0.24 gpt gold and 2.56 gpt silver.
A total of 6 holes were drilled in the Canyon (Talon Zone), Row, and 6 Mile target areas. The objective of the 2012 drilling program was to test the strike extent of the Talon Zone and to test a series of coincident gravity (Fugro high-sensitivity aeromagnetic and HeliFalcon™ survey – See PVR news release, dated May 2, 2012) and geochemical anomalies. Results from this drilling ranged from trace to anomalous values. The geological information obtained from the 2012 drilling at the Row and Canyon target areas will be incorporated into the geological model and will help to focus future drilling in these areas.
Management of Providence and Eagle Plains feel the Iron Range Project has potential for the presence of gold and Sullivan style lead-zinc-silver mineralization. Talon Zone drilling in 2010 intersected 2 intervals of strong and continuous mineralization including 14.0m @ 5.1g/t gold, 1.86% lead, 2.1% Zinc, 75.3g/t silver (192.0-206 meters) and 7.1m @ 8.13g/t gold, 2.84% lead, 3.07% zinc, 86.6g/t silver (196.9-204.0 meters). In addition, drilling in 2008 by Eagle Plains Resources Ltd. intersected gold mineralization in drill-hole IR08006, which assayed 7.0m grading 51.52g/t(1.50 oz/ton) gold (see EPL news release dated April 20th, 2009).
Iron Range Project
The Iron Range deposits were originally staked in 1897, and were covered by Crown grants held by Cominco Ltd. and the Canadian Pacific Railway. Eagle Plains staked the current claims immediately after the Crown grants reverted in 2000, and it has been exploring the property since then. Exploration work to date includes geological mapping, geochemical surveys, diamond drilling and a 690-line-kilometre airborne geophysical survey. An additional 35,800 hectares of claims were added to the original land package, resulting in a total of 56,200 hectares - an area approximately 11 km by 50 km.
The land package now covers over 30 km of the Iron Range structure, most of it unexplored. The claims also overlie rocks of the Aldridge formation, including the same stratigraphic time horizon that hosts the world-class Sullivan deposit located 70 km to the northeast. Over its 100-year lifetime, Sullivan produced approximately 150 million tonnes of ore including three billion ounces of silver, eight million tonnes of zinc and eight million 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.
Geological exploration contracting services on the Iron Range property during 2012, are being provided by TerraLogic Exploration of Cranbrook, B.C. (a wholly-owned subsidiary of Eagle Plains). Diamond drilling was carried out by F.B. Drilling of Cranbrook, B.C. All fieldwork is under the supervision of geologist Daniel MacNeil (GIT), Agathe Bernard, P.Geo. and J.K. Ryley, while 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 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 $55M in exploration expenditures, $6M cash and 15M shares in partner companies. Completed agreements have yielded over $5M in exploration spending, $900,000 cash to EPL and a total of 12M shares of partner companies including Alexco Resource Corp., NovaGold Resources Inc., Giyani Gold Corp. and numerous others.
Expenditures during 2011 on Eagle Plains-related projects were approximately $9.1M, which was funded by Eagle Plains and third-party partners. This exploration work resulted in approximately 9400m diamond drilling and extensive ground-based exploration work facilitating the advancement of more than 15 projects at various stages of development. Exploration is currently underway for an aggressive 2012 season with many individual exploration programs planned, most of which will be funded by third- parties in relation to ongoing option agreements.
The contents of this news release have been reviewed and approved by Tim J. Termuende, P.Geo.
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.