Slater Mining Commences Drilling on Eagle Plains’ Karin Lake Uranium/REE Property, Saskatchewan
Cranbrook, B.C., July 5th, 2012: Slater Mining Corporation (TSX-V:SLM) has recently notified Eagle Plains Resources Ltd. (TSX-V:EPL) that drilling activity has commenced on EPL’s 100% owned 15,800 ha Karin Lake uranium project located 40 km southeast of Cameco's Key Lake mining operation in north-central Saskatchewan, Canada. Slater has the option to earn a 60% interest in the property, subject to option terms as outlined following.
The Property is underlain by rocks of the Proterozoic Wollaston Domain comprising meta-sediments and intrusive rocks including abundant pegmatite bodies. The project area is being explored for its uranium and rare-earth element (“REE”) potential based upon both historical occurrences and on new targets that indicate the potential for identifying structurally-hosted uranium mineralization and/or intrusive (pegmatite) hosted uranium and REE mineralization.
Historical assays from the area returned values up to 8.0% U3O8 (AR 74A14-0023). Uranium mineralization occurs both as low-grade material in granitic pegmatites and associated granites, as well as higher-grade fracture controlled mineralization in graphite-bearing meta-sediments.
The property was acquired by Eagle Plains in 2006 following an airborne geophysical survey and ground geological program. The most recent systematic exploration of the property occurred in 2008, when Blue Sky Mining optioned the property from EPL and completed a 757m drilling program. This activity was carried out in conjunction with an extensive program of prospecting, geological mapping, rock, soil and lake bottom-sediment sampling and radon-in-water analysis.
A $270,000, 2-hole, 600m (2,000’) diamond drilling program is planned for the property and will be funded by Slater Mining. Drilling is expected to take 1-2 weeks to complete and will target a strong electromagnetic (“EM”) geophysical anomaly that is coincident with highly anomalous uranium lake-sediment samples. Contracting services will be provided by TerraLogic Exploration Ltd., a wholly-owned subsidiary of Eagle Plains based out of Cranbrook, B.C. Contract diamond drilling services will be provided by F.B. Drilling, also from Cranbrook. The project will be conducted under the supervision of Jarrod Brown, P.Geo., hereby identified as the “Qualified Person” under N.I. 43-101.
Terms of the Karin Lake option agreement
Slater has the exclusive option to acquire a 60% interest in the Karin Lake property by issuing up to one million common shares of the company, making aggregate cash payments of $500,000 and incurring aggregate exploration expenditures of $3-million over the course of four years.
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.