Eagle Plains and Blind Creek Execute Purchase Agreement for AB Zinc Property, NWT
Cranbrook, B.C., July 27th, 2017: Eagle Plains Resources Ltd. (TSX-V: “EPL”) and Blind Creek Resources Ltd. (“Blind Creek” or the “Company”) have executed a formal agreement whereby Blind Creek has the exclusive right to purchase a 100% undivided interest in the 3000 ha AB Zinc Property (the “Property”) located 263 km west of Norman Wells, N.W.T. Highly prospective for Mississippi Valley-Type (“MVT”) Lead-Zinc deposition, previous exploration at the AB Property has located coincident geological, geochemical and geophysical features that may represent large buried mineralized systems.
Under the terms of the agreement Blind Creek can acquire a 100% interest in the Property by issuing to Eagle Plains a total of 2,000,000 common shares of Blind Creek, with an initial tranche of 1,000,000 common shares due upon TSX-Venture acceptance of the agreement and the final tranche of 1,000,000 common shares 30 months later. In the event that the Property is placed into Commercial Production Eagle Plains shall be entitled to a royalty of 2% of net smelter returns with a 1% buyback to 1% upon payment of $CDN1,000,000 to Eagle Plains, and a second option to purchase the remaining 1% NSR upon payment of $CDN 7,000,000.
The AB Property acquisition fully compliments Blind Creek’s focus on developing a quality portfolio of 100%-owned properties with geological characteristics and signatures supportive for the potential discovery and development of large tonnage, high-grade Lead-Zinc-Silver deposits. The Company is currently formulating plans to advance the AB property and drill-test known I.P. geophysical anomalies for MVT Lead-Zinc mineralization.
Mississippi Valley-Type Pb-Zn Mineralization Confirmed at AB Property
Historic work by Welcome North Mines first identified carbonate hosted Zinc-Lead mineralization on the AB Property in 1974. Eagle Plains Resources work between 2005-2008 was driven by the carbonate-hosted Mississippi Valley-Type (“MVT”) Zinc-Lead deposit model, with notable northern Canada MVT deposit-type examples that include the Pine Point, Nanisivk and Polaris mines. Eagle Plains successfully improved the geological and geochemical understanding of the AB Property, adding to the number of known mineralization occurrences and locating highly prospective geophysical IP anomalies that could potentially represent large buried mineralization systems.
Welcome North Exploration Work (1974-1977)
Carbonate-hosted Lead-Zinc mineralization at the AB Property was first identified in 1974 by Welcome North Mines as part of the Arctic Red Joint Venture. Welcome North undertook ground based geological exploration between 1974-1977, including soil geochemistry, rock sampling, geological mapping, trenching and a total of 9 short diamond drill holes. Two separate high grade stratabound mineralized horizons were identified at the AB-C area. Blast trenching of the AB-C mineralization in 1976 indicated that the lower horizon was continuous for 225 feet (69m) between trenches. Assay results from grab and trench samples returned values from trace to 30.9% Zinc. Grab samples from the trenches ranged from 5.8% Zinc to 30.9% Zinc. Chip samples collected from the trenches returned values including:
|TRENCH||Chip Distance (metres)||Zinc (%)|
|1||Upper 1.5m vertical||5.76|
|4||Upper 1.8m vertical||5.88|
|7||Lower 1.5m vertical||14.40|
|10||Upper 1.5m vertical||11.88|
|10||Mid 0.9m vertical||10.64|
|10||Lower 1.5m vertical||5.80|
Diamond drilling results in the area of the AB-C trenches indicated that all facies of the Sekwi dolomites intersected were mineralized. (Arctic Red Joint Venture Progress Report 76-3 - Oct.1976)
Neither Eagle Plains nor Blind Creek has been able to independently verify the methodology and results from historical work programs within the property boundaries. However, management of both Companies believe that the historical work programs were conducted in a professional manner and the quality of data and information produced from them are relevant.
Eagle Plains Exploration Programs (2005-2008)
Eagle Plains initiated tenure acquisition in the AB area in 2005, following a reconnaissance field program which verified the potential for a Mississippi Valley Type (MVT) target.
The most recent work on the property was completed by Eagle Plains in 2008. Mapping, prospecting, geochemical surveys and ground-based geophysics were conducted resulting in the discovery of 14 new mineralized occurrences, most notably the Link and Twist. Grid soil geochemistry located several multi-element (Pb-Zn-Fe) anomalous zones, some of which remain open.
An Induced Polarization geophysical survey located two extensive anomalies at the AB-C, with one appearing to be stratigraphically controlled over a 500 m strike length. The other is a 1 km length structurally controlled zone between the AB-C Zone and the Link Showing. The AB-C Zone is interpreted to be an ideal IP target as it is clearly associated with an upper marcasite “cap” consisting of a barite + marcasite +/- sphalerite stockwork hosted in the ooid member of the Sekwi Formation.
AB Property Geology
The dominant regional lithologies are thick-bedded limestone and dolomite beds belonging to the Cambrian Franklin Mountain and Sekwi Formations which overlie similar lithologies in the Proterozoic to Cambrian Backbone Ranges Formation. The Sekwi Formation contains skeletal, oolitic, recrystallized and silty dolomite members. All four members of the Sekwi Formation are mineralized, but the ooid layer appears from geochemical and geophysical analysis to be preferentially mineralized. The Franklin Mountain Formation also contains recrystallized, oolitic and silty dolostone members and mineralization is confined to the oolitic and skeletal members.
Two large E-W trending faults, 2 km apart, occur on the property. The more northern fault located near the center of the property appears to be an important conduit for mineralizing fluids. Many of the mineral showings are located near or on smaller faults splaying off and bounded by the two.
Technical aspects of this news release have been reviewed by Mr. C.C. (Chuck) Downie, P.Geo., Vice President Exploration for Eagle Plains Resources Ltd. and a Qualified Person (Q.P.) as defined by National Instrument 43-101.
About Eagle Plains Resources Ltd.
Based in Cranbrook, B.C., Eagle Plains continues to conduct research, acquire and explore mineral projects throughout western Canada. The Company is committed to steadily enhancing shareholder value by advancing our diverse portfolio of projects toward discovery through collaborative partnerships and development of a highly experienced technical team. Managements’ current focus is to preserve its treasury while advancing its most promising exploration projects. In addition, Eagle Plains continues to seek out and secure high-quality, unencumbered projects through research, staking and strategic acquisitions. Since 2012, Eagle Plains has added to its portfolio a number of new projects exceeding 130,000 ha targeting mainly gold, uranium and base-metals in Saskatchewan, a highly-prospective mining jurisdiction which was recently recognized by the Fraser Institute as the best place in the world in terms of Investment Attractiveness. Throughout the exploration process, our mission is to help maintain prosperous communities by exploring for and discovering resource opportunities while building lasting relationships through honest and respectful business practices.
Expenditures from 2011-2016 on Eagle Plains-related projects were approximately $16.0M, which was funded by Eagle Plains and, for the most part, by third-party partners. This exploration work resulted in approximately 15,000 m of diamond-drilling and extensive ground-based exploration work facilitating 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.