Eagle Plains/Providence Receive Results of 2011 Soil Sample Survey and Strengthens Priority Drill Targets on the Iron Range Project
Vancouver, B.C., January 31, 2012: Eagle Plains Resources Ltd. (TSX-V:EPL) and Providence Resources Corp. (TSX-V: PV) are pleased to announce receipt of results from the 2011 soil sampling program on the Iron Range Project. Results from the extensive program (4,233 samples) validate historical soil anomalies and identify additional prospective areas. Historical anomalies in the Row and Canyon target areas have been confirmed – these targets have been selected for drill testing in 2012. The remainder of the anomalies identified in the 2011 survey will be ranked and field evaluated as part of the 2012 Iron Range exploration program. A map outlining the 2011 soil sampling results is located at: Soil Anomalies 2011
“The 2011 soil sampling program has exceeded our expectations - it has validated the 5 kilometer-long Row soil anomaly and demonstrates that the Iron Range is prospective for both Sullivan style lead-zinc-silver as well as gold mineralization.” Stated Providence Resources Corp.’s President and CEO Vince Sorace. “The combined results from the new and historical sampling campaigns are highly encouraging; our technical team will correlate these anomalies with those obtained from the 2011 geophysical survey as soon as data is available.”
The 2011 soil sampling results build upon historical geochemical surveys by confirming, infilling and/or expanding historical anomalies. The highlights of the program are listed below:
- Confirmation soil sampling on the Row Target has validated the historical dataset by producing a coincident lead-zinc-arsenic anomaly similar in scale and intensity to the historical dataset. This target will be drill tested in 2012.
- Infill soil sampling in the Canyon target area produced a robust arsenic anomaly measuring 1 km by 0.7 km with coincident gold, lead and zinc anomalies. Gold mineralization discovered along the southern margin of this anomaly in 2010 confirms the presence of gold mineralization at this target area. The remainder of the Canyon Anomaly will be drill tested in 2012.
- Three new soil grids (Arrow East, Canyon East and Gap grids) have produced additional gold, arsenic, lead and zinc soil anomalies, which will be the followed up during a systematic surface exploration program in Q2 2012.
The Company intends to execute a full exploration program in Q2 2012 with the objective of systematically evaluating all existing exploration data, utilizing newly acquired geophysical data, field evaluating all resulting anomalies and ultimately drill testing the highest priority targets.
- Geophysical electromagnetic and gravity surveys – it is anticipated that results from this work will be available in February 2012.
- Winter drilling (Phase I) of high-priority geophysical and geochemical anomalies. Two targets have been identified during the evaluation of historical geochemistry and additional targets are anticipated.
- Field work will be completed in summer 2012 with the objective of bringing remaining targets to the drill testing stage for Phase II drilling in late 2012.
The soil sampling program at the iron Range Project was designed and implemented by TerraLogic Exploration of Cranbrook, B.C. (a wholly-owned subsidiary of Eagle Plains). All fieldwork is under the supervision of geologist 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
Field personnel for the project took 4,322 B-horizon soil samples from hand-excavated pits, with samples taken at depths between 20cm and 60cm. Samples were securely labeled and packed before shipping to ALS laboratories. ALS’ quality system complies with ISO 9001:2008. Analytical accuracy and precision are monitored by the analysis of reagent blanks, reference material and replicate samples.
Iron Range Project Summary
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 Resources (“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.
The Iron Range project is owned 100% by Eagle Plains and holds no underlying royalties or encumbrances. 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.
Providence Option Agreement
The Iron Range project is owned 100% by Eagle Plains and holds no underlying royalties or encumbrances. Providence holds the option to earn a 60% interest in the Property by spending $3,000,000 on exploration, making $500,000 in cash payments and issuing 1,000,000 shares to EPL over 4 years.
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.