Eagle Plains/Northern Continental Receive Encouraging Results from Phase 1 Program on Elsiar (LCR) Copper/Moly Project
A preliminary exploration program including a 3-hole, 490m diamond drilling program has been completed on the Elsiar (LCR) property, currently under option to Northern Continental Resources (NCR:TSX-V) from Eagle Plains Resources Ltd. (EPL:TSX-V). The 200-unit (12,000 acre) claims are located in west-central British Columbia approximately 40 km north of Terrace. The property is situated 2 km north of EPL's 100% owned Kalum project, and shares many geologic similarities. Property infrastructure is excellent; road access is located within claim boundaries and high-voltage hydro-electric power-lines are situated 5km east of the property.
The 2004 field program was carried out under the supervision of C.C. Downie, P.Geo., identified as a "Qualified Person" under National Instrument 43-101. All samples were analyzed by ICP geochemical methods by Acme Analytical Laboratories in Vancouver, B.C., Canada. Ore-grade values were determined by fire-assay.
The claims overlie an area containing numerous prominent airborne geophysical anomalies apparently associated with Cretaceous-aged granitic intrusive stocks hosted by Bowser Basin sedimentary rocks. BC government sampling of streams draining the inferred intrusive bodies show enrichment in gold, silver, copper, molybdenum, bismuth, arsenic and other elements associated with intrusive-related deposits.The 2004 program focused on the most northerly geophysical anomaly, though numerous additional targets currently exist elsewhere on the property. Fieldwork consisted of a 500 line-km airborne geophysical survey, the collection of 864 soil samples, 110 stream-sediment samples and 82 rock samples. The property also saw work by geologist Mitch Mihalynuk of the BC Geological Survey as part of the Geoscience Partnership Initiative. Visit the Elsiar Project page.
Past work in the property area includes a geophysical survey (I.P. and magnetometer) carried out by Rio Tinto Canada Exploration in 1969, and small soil geochemical surveys completed in 1979 and 1980 by Amax Canada. Molybdenite and chalcopyrite mineralization were reported to occur in a 250 meter zone of quartz veins within bleached and sheared argillite and siltstone. Reported grades averaged 0.02 per cent molybdenum and 0.06 per cent copper (BCMPR Assessment Report 8446). The IP survey identified an area underlain by rocks which contain an appreciable content of conductive material which was postulated to extend from surface to at least 76.2 meters. The soil geochemical surveys outlined anomalous copper and molybdenum values coincident with the known exposure of quartz veins. None of the samples were analyzed for gold. 2004
Geophysical survey: The 500 line-km airborne survey outlined a number of magnetic features interpreted to represent sulphide-enriched granitic intrusive bodies. These anomalies are hundreds of square meters to nine square kilometers in size.
Soil geochemical surveys outlined a prominent copper-molybdenum anomaly over an area measuring some 800m x 800m, open to the north and east. Within the anomaly area, all soil values returned from 200 ppm to 2500ppm copper, with elevated molybdenum values up to 773 ppm. Most importantly, these soil anomalies are spatially correlated with a prominent airborne magnetic anomaly.
Prospecting and geological mapping was completed over selected areas of the property, and resulted in the discovery of intense stockwork vein mineralization in sediments overlying the inferred intrusive. Grab samples returned up to 2.5% copper. Geologic mapping in the area of the soil geochemical anomalies resulted in the discovery of replacement style chalcopyrite/pyrrhotite mineralization in float located directly down slope of the anomalies. In addition, the "Shea" mineralized occurrence was discovered 1.5 km east of the soil geochemical anomaly, and is considered to be of particular significance. At the Shea, copper mineralization was located in place and found to be contained within the groundmass of the intrusive rocks. Assay results are pending.
Diamond drilling was completed in late August, and saw three holes drilled from a single set-up designed to test copper-rich stockwork vein mineralization found in rocks exposed in a nearby creek bounding the western margin of the soil anomaly area. Ore-grade copper intercepts were encountered in all holes over narrow widths, with mineralization noted throughout the entire length of the drill-holes. Due to poor ground conditions all holes were terminated in mineralized material.
SUMMARY OF DRILL-HOLE RESULTS:
DDHLCR004-001 005°/-60; length 135.7m
20.8m to 23.4m (2.6m): 990 ppm Cu
38.1m to 44.2m (6.1m): 4312 ppm Cu
Including 38.8m to 40.4m (1.6m): 1.17% Cu
115.8m to 129.5m (13.7m): 463ppm Cu
DDHLCR004-002 345°/-60; length: 212.5m
29.3m to 30.3m (1.0m): 1917 ppm Cu
104.8m to 108.8m (4.0m): 2684 ppm Cu
177.5m to 183.8m (6.3m): 800 ppm Cu
192.8m to 209.4m (16.6m): 767 ppm Cu
DDHLCR004-003 195°/-45; length: 135.6m
18.8m to 21.0m (2.2m): 833 ppm Cu, 229 ppm Mo
31.7m to 33.1m (1.4m): 1002 ppm Cu
38.3m to 39.3m (1.0m): 1520 ppm Cu
54.8m to 56.5m (1.7m): 2878 ppm Cu, 226 ppm Mo
64.6m to 66.2m (1.6m): 716 ppm Mo
108.8m to 112.2 (3.4m): 784 ppm Cu
Management of both Eagle Plains and Northern Continental are very encouraged by results obtained to date on the property. An aggressive program is currently being planned and permitting for road-construction and additional diamond drilling has been initiated. Provided permits are granted in the near future, 4-5km of roadway accessing the core of the soil geochemical anomaly will be completed in late fall of this year. A 10,000' (3000m) diamond drilling program is proposed for the target area during the 2005 field season, and will occur concurrently with reconnaissance-scale work to be conducted in other areas of the property.
EPL currently holds a 100% option (less 2% NSR) on the property. NCR may earn a 60% interest in the property from EPL by issuing 1,000,000 common shares and completing $3,000,000 in exploration expenditures over 5 years. EPL will remain operator of the project up to the completion of $1,000,000 in exploration expenditures.
Eagle Plains Resources continues to conduct research, acquisition and exploration projects in western Canada. The Company controls over 30 gold and base-metal projects, many of which are currently optioned to or joint-ventured with third parties including NovaGold Inc., Kobex Resources Ltd., Northern Continental Resources Inc., Shoshone Silver Mining Co., and Golden Cariboo Resources Inc. These agreements expose Eagle Plains to over $18 million in exploration expenditures over the next five years. In recent years, Eagle Plains has completed option agreements with Billiton Metals, Rio Algom Exploration, Kennecott Exploration, Viceroy Resource Corp. and numerous other junior exploration companies, resulting in over 18,000m (60,000 ft) of drilling and over $6,000,000 in exploration spending on its projects since 1998.
On behalf of the Board of Directors
“Tim J. Termuende”
President and CEO
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