Eagle Plains Signs Letter of Intent with Northern Continental Resources on B.C. Gold Project
Cranbrook, B.C.: Eagle Plains Resources Ltd. (EPL:TSX-V) and Northern Continental Resources (NCR:TSX-V) have reached agreement (subject to regulatory approval) whereby NCR may earn an interest in Eagle Plains’ 100% controlled LCR mineral claims located 40 km north of Terrace, in west-central British Columbia. The road-accessible claims consist of 180 units (10,900 acres) and are located 2 km north of EPL’s 100% owned Kalum project, with existing hydroelectric lines situated 5km to the east.
NCR may earn a 60% interest in the property by making a cash payment of $10,000, issuing 1,000,000 common shares (200,000 on regulatory acceptance of a formal agreement) and completing $3,000,000 in exploration expenditures over 5 years. NCR may increase its stake in the project to 75% by making a one-time cash payment of $500,000 and completing all expenditures required to carry the project to bankable feasibility. EPL will remain operator of the project up to the completion of $1,000,000 in exploration expenditures.
The LCR claims overlie an area with geological and geochemical similarities to Eagle Plains’ Kalum property. A prominent airborne geophysical anomaly is associated with a 1.5 km x 4.5 km Cretaceous aged granitic intrusive stock hosted by Bowser Basin sedimentary rocks. BC government sampling of streams draining the intrusive body show enrichment in gold, silver, copper, arsenic and other elements associated with intrusive-hosted gold deposits such as Pogo and Fort Knox. Very limited historical exploration has been completed in the area. The most recent was undertaken by Amax Exploration in 1980 who were exploring for porphyry copper- molybdenum deposits. Their work reported that “abundant quartz veins occur over an area of at least 1500 by 1000 meters” with sulphides reported in about 20 per cent of the veins. None of the Amax samples were analyzed for gold.
Eagle Plains and Northern Continental plan an aggressive program on the LCR property during 2004. An airborne geophysical program is being planned for early February, and will be completed concurrently with a survey on the larger Kalum claim-block. Eagle Plains plans to complete over $1,000,000 in exploration expenditures on Kalum in 2004, which will include a 10,000 foot (3000m) diamond-drilling program later in the field season.
Eagle Plains Resources continues to conduct research, acquisition and exploration projects in western Canada. Through a network of experienced prospectors, consultants and contractors in addition to seasoned employees and a well-rounded Board of Directors, the Company has assembled a diverse portfolio of gold and base-metal properties. Eagle Plains seeks to attract joint-venture participation on its properties, thereby leveraging exploration spending to the ultimate benefit of the Company’s shareholders. In recent years, Eagle Plains has completed option agreements with Billiton, Rio Algom, Kennecott, NovaGold Resources/SpectrumGold Resources, Viceroy Resource Corp. and numerous other junior exploration companies, resulting in nearly 13,000m (43,000’) of drilling and over $5,000,000 in exploration spending on its properties since 1998.
On behalf of the Board of Directors
“Tim J. Termuende”
President and CEO
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