Drilling Commences on Eagle Plains' South Findlay Property, Southeastern British Columbia
Cranbrook, B.C.: Eagle Plains Resources Ltd. (EPL:CDNX) is pleased to announce that it has received notification from optionee Rio Algom Exploration Inc. that diamond drilling has commenced on Eagle Plains' 100% owned South Findlay property, located 35km northwest of Kimberley, B.C..
The focus of exploration by Rio Algom on the South Findlay property is concentrated along the Lower-Middle Aldridge Formation contact ("LMC"), which is the approximate stratigraphic location of the Sullivan deposit. Preliminary fieldwork consisting of geological mapping and selected lithogeochemical sampling was carried out by Rio Algom during the 1999 field season. A stratabound fragmental unit was located on the South Findlay property during the 1999 program, and is interpreted to be the time-stratigraphic equivalent to Sullivan deposit stratigraphy. Sampling and analysis of the fragmental from outcrops and boulders indicates that the unit is anomalous in lead and zinc. The 2000 drilling program will consist of a minimum footage of 2000m (6500') and is designed to test for Sullivan-type base metal mineralization at this important stratigraphic horizon. It is expected that the program will have a duration of approximately two months.
The area is considered highly prospective for the discovery of new zinc sedex deposits located within the Proterozoic Aldridge Formation. The Sullivan deposit, located near Kimberley, is hosted by the same group of rocks and contained reserves of 149,000,000 tonnes grading 6.3% lead, 5.9% zinc, and 69 g/T silver. The mine has seen continuous production for over 100 years and is scheduled for shut-down in December, 2001.
Rio Algom may earn a 60% interest in the 271 claim unit (16,460 acre) property by completing $2,000,000 in exploration expenditures and making cash payments of $310,000 to Eagle Plains over 4 years. The claims are bounded to the south by the 247 unit (15,000 acre) Greenland Creek property, also owned 100% by Eagle Plains and currently under option to Kennecott Canada Exploration Inc.
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.