Yellowjacket Mine Achieves Full Commercial Production, New Gold Zone Discovered
Cranbrook, B.C., 27 August 2009: Yellowjacket Joint Venture (“Eagle Plains Resources Ltd. (EPL:TSX-V) and Prize Mining Corp. (PRZ:TSX-V)”) jointly announce completion of final commissioning and permit compliance requirements to allow for commencement of full production at their Yellowjacket Gold Mine, located in northwestern British Columbia. On July 10, 2009, the Yellowjacket Gold Mine received its BC Mines Act Permit for the development and operation of an open pit gold mine and onsite concentrator processing up to 75,000 tonnes per year of gold ore.
Work completed since receiving permit approvals includes construction of a newly designed tailings storage facility and pipeline, emplacement of environmental monitoring wells, mine pit dewatering, ramp construction, mill commissioning and electrical upgrades.
The 2009 mining plan includes extraction of a minimum of 32,000 tonnes of gold ore from the existing open pit. Pit excavation is anticipated to be completed in about 5 weeks, and milling at a throughput rate of 350 tons per day expected to continue until mid-late October.
New Gold Zone Discovered During Ramp Excavation
During ramp excavation completed earlier this month, a previously undetected six meter-wide gold-mineralized zone was discovered centered around a one metre-wide, visible-gold-bearing silicified breccia. Sampling and excavation of this new zone is currently underway and will provide additional mineralized material for this season’s milling operations.
Linda Dandy, P.Geo., Mine Manager, is the "Qualified Person" for the purpose of National Instrument 43-101, has reviewed and verified the technical contents of this news release.
Updated Ownership Details of Yellowjacket Joint Venture
Due to unexpected lower grades of stockpiled material from 2008 bulk sample work, equipment problems and unforeseen circumstances that resulted from permitting of the Project, additional funding was required to keep the project moving forward and to maintain, as much as possible, a production schedule that was originally envisioned by the JV partners. An emergency interim cash-call of $1,400,000 was made in July by Eagle Plains as operator, and the decision was made by both participants to waive normal cash-call procedures. Prize Mining subsequently agreed to accept dilution of its interest in the project in accordance with a formula established in the Yellowjacket JV agreement. The current JV ownership ratio resulting from this dilution will be announced as final figures are established.
About Eagle Plains Resources
Eagle Plains Resources continues to conduct research, acquire and explore metal projects in western Canada. In addition to holding mining royalties on various projects, the Company controls over 35 gold, base-metal and uranium projects, several with third parties including Waterloo Resources Ltd (TSX-V:WAT.P) and XO Gold Resources Ltd. (a private B.C. company). In recent years, Eagle Plains has completed option agreements with Teck Limited (TSX:TCK.B), Alexco Resource Corp. (TSX-V:AXR), Billiton Metals, Rio Algom Exploration, NovaGold Resources, Kennecott Exploration and numerous other junior exploration companies, resulting in over 53,000m (158,500’) of drilling and over $27.0 million in exploration spending on its projects since 1998.
Expenditures during 2008 on Eagle Plains’ projects were approximately $6,000,000, funded equally between Eagle Plains and third party partners. This work resulted in approximately 6,300m of drilling and extensive ground-based exploration work and facilitated the advancement of numerous projects at various stages of development.
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.