Turnberry Commences Diamond Drilling on Eagle Plains’ Wildhorse Gold Project, Southeastern B.C.
Cranbrook, B.C., 27 July, 2012: Turnberry Resources Ltd. (TUR:TSX-V) has recently notified Eagle Plains Resources Ltd. (EPL:TSX-V) that diamond drilling activity has commenced on Eagle Plains' 100-per-cent-owned Wildhorse property, located 30 kilometers northeast of Cranbrook, in south-eastern B.C. Turnberry holds the exclusive right to earn up to a 75% interest in the 355 ha property.
2012 Exploration work will consist of approximately 500m of diamond drilling over 5 holes, targeting the Dardenelles vein-hosted gold system, a historic past-producer. In conjunction with the drilling program, ground-based geological and geochemical work will be completed to develop additional targets on the property, including the Copper Creek and Tit for Tat showing areas. 2012 work is funded 100% by Turnberry, with exploration activity expected to take 2-3 weeks to complete.
The Wildhorse property is located 17 kilometres north of Fort Steele along the Wildhorse River, a significant historic placer-gold-producing area. In the late 1800s, over one million ounces of gold were reported to have been extracted from its gravels. The general location of the claims coincides with the furthest reported upstream placer gold occurrences.
The focus of 2012 drilling will be in the area of the former Dardenelles and Motherlode Crown grants, which were surveyed by the Crown in 1898. An arrastra mill was built on nearby Victoria Creek to process gold-bearing massive quartz from two adits drifted on the Dardenelles claim at the end of the 19th century.
In 2008, a nine-hole, 634m drill program was completed in the Dardenelles and Copper Creek areas, resulting in both lateral and depth extensions to the massive quartz vein occurrence. In part, the southerly-directed drill holes revealed an increase in thickness of the upper quartz vein.
Drill-site supervision will be provided by A.A. Higgs of TerraLogic Exploration Ltd., a wholly-owned subsidiary of Eagle Plains based out of Cranbrook, B.C. Contract diamond drilling services will be provided by FB Drilling Ltd., also of Cranbrook. The project will be conducted under the overall supervision of Tim J. Termuende, hereby identified as the “Qualified Person” under N.I. 43-101.
Wildhorse Option Agreement Summary
Under the terms of the existing option agreement, Turnberry will acquire a 60-per-cent interest in the Wildhorse property in exchange for total payments and share issuances to Eagle Plains of $495,000 and 950,000 common shares over a period of five years, and by incurring expenditures of $4.9-million on the Wildhorse property over the same time period. Upon Turnberry earning a 60-per-cent interest in the Wildhorse property, a joint venture will be formed between the parties. Turnberry is entitled to earn a further 15-per-cent interest in the Wildhorse property, for a total 75-per-cent interest, by making all expenditures required to deliver a bankable feasibility study on the Wildhorse property by no later than the eighth anniversary of the date of regulatory approval of the qualifying transaction.
The Wildhorse property is subject to a 4-per-cent gross metal royalty (GMR), payable to Eagle Plains, of which 2 per cent may be bought out by Turnberry for $2-million within three years of the commencement of commercial production. As well, Turnberry will have the right of first refusal on the sale of the GMR.
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.