Eagle Plains/Prize Mining Receive Small Mines Permit for Yellowjacket Gold Project, Atlin, B.C.
Cranbrook, B.C., 13 July, 2009: Eagle Plains Resources Ltd. (EPL:TSX-V) and Prize Mining Corp. (PRZ:TSX-V) jointly announce that the British Columbia Ministry of Energy, Mines and Petroleum Resources ("BC-MEMPR") has awarded the Yellowjacket Venture (“Yellowjacket JV”) a Small Mines Act Permit for development and production at the Yellowjacket Gold Project in northwestern British Columbia. The Permit allows for the development and operation of an open pit gold mine and onsite concentrator processing up to 75,000 tons per year of ore.
The Yellowjacket JV, Eagle Plains and Prize Mining management teams consider the delivery of the mining and milling permit a major achievement and milestone for the project, its advisors and consultants. The permit is one of only three small mine permits issued by BC-MEMPR since May 2007. The permit process was steered by the Northwest Mine Development Review Committee (NWMDRC).
The Yellowjacket Gold Project is located within the traditional territory of the Taku River Tlingit First Nation (TRTFN) who have been active participants in the review and approval of the Small Mines Act Permit both through their representation on the NWMDRC and in direct consultation with the Yellowjacket JV proponents.
Commissioning and test work on the mill facility at the Yellowjacket Gold Project was recently completed (NR June 29 2009) confirming a mill capacity of 350 tonnes per day. Metallurgical test work and plant engineering designs show that expected gravity concentration gold recoveries will be between 73% and 80%. Using ratios of average gold in tailings compared to average total gold values in conveyor cut assays, it appears that the gold loss to tailings is well within the targeted acceptable recovery range. On-going studies will be conducted to improve recoveries.
On site, modifications will commence on the tailings storage facility, in order to comply with federal and provincial environmental regulations. Tailings facility construction will be followed by dewatering of the existing open pit (previously excavated during the bulk sampling program) and extraction of up to 35,000 tonnes of ore. Processing of ore is expected to commence in August 2009.
Linda Dandy, P.Geo., Mine Manager, is the "Qualified Person" for the purpose of National Instrument 43-101, has reviewed and verified the contents of this news release.
About Eagle Plains Resources
Eagle Plains Resources plans to commence gold production at the Yellowjacket project in mid-2009 and 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.