Eagle Plains Receives Encouraging Exploration Results from Orchid Gold Project, Saskatchewan, Update on Fisher Project
Cranbrook, B.C., August 29th, 2017: Eagle Plains Resources Ltd. (TSX-V:EPL) (“EPL” or “Eagle Plains”) has received rock and soil geochemical results from a 2017 field program conducted on its 100%-owned Orchid project located 120km east of La Ronge, Saskatchewan and 70km south of SSR Mining’s Inc.’s Seabee Gold Operation. The 4205 ha property is situated along the same structural corridor and within rocks similar to those currently being mined at Seabee. The property is considered to have significant potential to host gold mineralization.
The purpose of the 2017 program was: 1) to verify gold grades at historical showings; 2) to follow-up previously underexplored geochemical targets, and; 3) to identify new targets through prospecting and completion of new soil geochemical surveys. A total of 110 rock samples were collected, including 11 channel samples. Twenty-five rock samples returned greater than 1.0 g/t Au, with a best grab sample result of 61.30 g/t Au. Rock sample results included notable accessory metals, with up to 839 ppm Mo, 0.98% Cu and 31.2 g/t Ag. A total of 667 soil samples were taken with results of up to 847 ppb Au in soil providing coherent anomalies for follow-up mapping, prospecting, and soil sampling.
A summary map outlining pertinent features of the property may be found here: http://www.eagleplains.com/projects/orchid
2017 Exploration Highlights:
- Verification grab samples returned up to 61.30 g/t Au from the historical Orchid zone, and 52.43 g/t Au from Tim’s Showing
- Sampling in the eastern portion of the property over an untested tonalite-volcanic contact returned prospective gold-in-soil anomalies up to 170 ppb Au
- High-grade mineralization discovered at the Tiger Lily Showing area returned 6.17 g/t over 1.0 metre including 10.11 g/t over 0.5 metre in channel sampling across a 1.5 metre quartz vein
- Soil geochemical sampling along strike from Tiger Lily Showing contains highly anomalous gold (up to 847 ppb Au) in an area extending approximately 400 m from known exposures
- Additional claims acquired totalling 1952 ha following Summer 2017 work program
- Follow-up work planned for Fall, 2017
Fieldwork was carried out by TerraLogic Exploration Inc. of Cranbrook, BC under the supervision of Jarrod Brown, P.Geo. Work was completed in late June and consisted of geological mapping and sampling, trenching and soil geochemical surveys.
The Orchid project was staked by Eagle Plains in 2014 and was optioned to North Arrow Minerals who explored the property for its diamond potential until relinquishing the option in 2016. The property has historically been explored for its gold potential since the mid-1980s and contains numerous high-grade mineral occurrences grading from trace values to highs of 41.3 g/t (Orchid Au Zone), 19.2 g/t Au (Tim’s Showing), 12.7 g/t (Eureka), and 8.5 g/t (Terra Zone) as well as significant Ag (144.5 g/t), Cu (3.9%), and Mo (2600 ppm).
The 2017 exploration program conducted by Eagle Plains builds on previous work which has indicated certain similarities to those seen at the Seabee Gold Operation, owned by SSR Mining Inc. (“SSRM”, formerly Silver Standard Resources Inc.), including host lithologies and contact relationships, style of mineralization, and presence of multiple fault systems that allowed for high fluid-flow regimes. The Seabee Gold Operation has been in continuous production since 1991 and has produced approximately 1.2M ounces of gold from the Seabee and Santoy deposits. As reported by SSRM in its news release dated February 23, 2017, as at December 31, 2016, the Seabee Gold Operation includes the following estimated Mineral Reserves and Mineral Resources: Proven and Probable Reserves of 360,000 ounces of gold at an average grade of 8.19 g/t; Measured and Indicated Resources of 570,000 ounces of gold at an average grade of 7.99 g/t; and Inferred Resources of 640,000 ounces of gold at a grade of 7.74 g/t. SSRM recently reported uncut drill intercepts grading up to 1,004 g/t gold over 1.6m and 3,887 g/t gold over 0.4m (true widths) at its Santoy Gap deposit. (SSRM news release - May 1, 2017). Management cautions that past results or discoveries on proximate land are not necessarily indicative of the results that may be achieved on the subject properties.
Ore geology at the Seabee Gold Operation consists of high-grade vein mineralization associated with volcanic and mafic intrusive rocks which have been structurally disrupted by splays of the deep-crustal Tabbernor Fault system. Both the Seabee Gold Operation and the Orchid project are underlain by rocks of the Pine Lake greenstone belt.
Update on Fisher Program
Eagle Plains has been notified by SSR Mining that fieldwork activities from the Fisher camp have been suspended three weeks earlier than expected due to recent wildfire activity in the area. Wildfires burned completely through the camp area, which itself was saved through the efforts of Saskatchewan Energy and Resource Management personnel and SSRM mine rescue staff aided by private aviation partners, who maintained pumps and sprinklers over the camp and equipment. No loss of major structures occurred and no injuries were reported.
All the planned till and soil sampling, geological mapping and prospecting for the 2017 season has been completed. Exploration of the northern area of the Fisher property has recently resumed, and will be serviced from the Seabee Gold Operation accommodations complex. SSRM advised that the interruption did not impact the planned work program for 2017, but may defer a 3,000m Fall 2017 drilling campaign until the winter season. This will be determined once a safety assessment can be made of standing dead timber in the target areas due to the wildfire activity.
It is expected that the fire will result in the improved exposure of rock outcrop throughout the entire burn area, which will benefit exploration over the next few summer seasons.
To earn a 60% interest over four years, SSRM paid $100,000 to Eagle Plains on signing of the agreement, and has agreed to complete $4,000,000 in exploration expenditures, and make annual cash payments of $75,000 for each of the four years of the option period. SSRM funded the $400,000 2016 exploration program completed by Eagle Plains (see news releases July 18, 2016 and September 12, 2016), which is included in the $4,000,000 exploration expenditures. Once the 60% earn-in has been completed, SSRM has a 90-day, one-time option to earn an additional 20% interest (for a total of 80%) by making a cash payment of $3,000,000 to Eagle Plains, at which time an 80/20 joint venture will be formed to further advance the property. Eagle Plains will retain a 2.5% Net Smelter Return (“NSR”), subject to reduction on certain claims by underlying NSR agreements. Eagle Plains’ NSR may be reduced by 1% at any time upon payment of $1,000,000 by the joint venture. In addition, Eagle Plains will receive advance royalty payments of $100,000 annually from the joint venture until commencement of commercial production
About Eagle Plains Resources
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.
Technical aspects of this news release have been reviewed and approved by Jarrod Brown, 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.