Eagle Plains/Clear Creek Execute Option Agreement on Tarku Property
Cranbrook, B.C.; 04 February, 2014: Eagle Plains Resources (TSX-V:EPL) announces that it has signed a definitive option agreement with Clear Creek Resources Ltd. (a private BC corporation with certain directors common to Eagle Plains), whereby Clear Creek may earn an undivided 60% interest in Eagle Plains’ 100%-owned Tarku Property located approximately 40km southwest of Cameco/Areva’s Centennial uranium deposit in northern Saskatchewan. Under terms of the agreement, Clear Creek will complete exploration expenditures of $5,000,000, make cash payments of $500,000 and issue 1,200,000 common shares to EPL over a five year period. Clear Creek may make a one-time election to earn a further 15% interest in the property (for a total of 75%) by making a $1,000,000 cash payment to Eagle Plains and completing a bankable feasibility study.
As announced January 17th, Clear Creek has signed a letter of intent with Ituna Capital Corp. (TSX-V:TUN.P) whereby the parties have structured a three-way amalgamation between Clear Creek, Itnua and its subsidiary, resulting in a Tier-2 listed, publicly-trading reporting issuer with a total of approximately 15M shares outstanding. The transaction is expected to close in March.
Tarku Property Geology
The Tarku property comprises ten mineral claims totaling 45,055 over a large northeast-trending area in northern Saskatchewan. The property is located along the Virgin River Fault, a major structure which demarcates the boundary between the Virgin River and Lloyd Domains. This feature creates a favorable setting for the deposition of significant structurally-related mineral deposits including the Dufferin Lake and Centennial deposits located 10km and 40km north of Tarku, respectively (management cautions that past results or discoveries on proximate land are not necessarily indicative of the results that may be achieved on the Tarku property).
The area is underlain by mixed metasedimentary units, intermediate volcanics and significant felsic intrusive bodies, all of which have been affected by numerous structural events related to re-activation of the Virgin River Fault. Several poorly to well defined northeast trending geophysical conductors, verified locally by geological mapping, have been identified by historic airborne surveys. All of these features, in conjunction with significant gold values up to 2.26 g/t and anomalous base metal and uranium values throughout the property illustrate the exploration potential of this property for both gold and uranium deposits.
About Eagle Plains Resources
Based in Cranbrook, B.C., Eagle Plains continues to conduct research, acquire and explore mineral projects throughout western Canada. Since 1992, EPL has been acquiring and developing early stage projects utilizing an in-house team of geologists, technicians and specialists. Considered a prolific project generator with over 40 properties, EPL invites joint venture participation to expedite development, reduce risk and enhance exposure to discovery.
Current third party agreements if maintained to completion expose EPL to over $39M in exploration expenditures, $4.0M cash and 9.0M shares in partner companies. Completed agreements have yielded over $17M in exploration spending, $1.8M cash to EPL and a total of 18M shares of partner companies including Alexco Resource Corp., NovaGold Resources Inc., and numerous others.
Expenditures from 2011-2013 on Eagle Plains-related projects were approximately $15M, which was funded by Eagle Plains and for the most part, by third-party partners. This exploration work resulted in approximately 15,000m of diamond drilling and extensive ground-based exploration work facilitating the advancement of more than 23 projects at various stages of development.
Technical aspects of this news release have been reviewed and approved by C.C. (Chuck) Downie, P.Geo.
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.