Eagle Plains Reports Diamond Drilling Results Released From Kalum Gold Project
December 15 2008 - 8:30AM
Marketwired
Option partner Mountain Capital Inc. (TSX-V: MCI.P) has recently
notified optionor Eagle Plains Resources (TSX-V: EPL) that final
results have been received from an 11-hole, 1,390m diamond drilling
program completed on the Kalum property in fall 2008. The
road-accessible, 20,762 ha property is located approximately 35
kilometres northwest of Terrace, British Columbia in the Skeena
Mining Division of British Columbia.
Highlights:
Hole HKM 08-01 returned 10.55m grading 0.973g/t gold from 9.95m to
20.50m,
Including 0.3m which assayed 28.7 g/t gold from 20.20 to 20.50m
Hole HKM 08-02 returned high-grade results of 59.60 g/t over .15m
Hole HKM 08-03 returned 2.30m grading 11.949 g/t gold from 14.0-
16.3m
MCI may earn a 60% interest in the property by making cash
payments totaling $500,000, issuing 500,000 common shares and
completing exploration expenditures of $4,000,000 over a period of
five years. To date, MCI has made $25,000 in cash payments and
issued 50,000 shares to EPL. The Property is subject to a 1% net
smelter returns royalty in favour of a third party. MCI has
indicated that the 2008 program was completed at a cost of
$305,000.
The Property is centered upon a Cretaceous-age granodioritic
stock of the Coast Crystalline Complex that has intruded Jurassic
to Cretaceous-age sedimentary rocks of the Bowser Lake Group. A
number of high-grade, vein-type gold occurrences are associated
with the contact zone and magnetic signature of the intrusive
stock. These occurrences have been explored by various operators
and to various degrees over the past 80 years. All previous
exploration efforts have been directed toward the discovery of
high-grade stand-alone mineralization. The current Eagle Plains
tenure represents the first time gold occurrences have been
consolidated by a single company.
2008 Program Results
The initial phase of 2008 work included a 4.1 line km Induced
Polarization geophysical survey and a detailed soil geochemical
program to better define drill targets. Soil geochemical results
indicated a weak correlation and expansion of anomalous gold in
soil area indicated by previous Eagle Plains work. The I.P. survey
was successful in defining an unexpected flat lying orientation to
the targeted granodiorite intrusive that was known to host gold
mineralization. Extremely high chargeabilities of up to 50
milliseconds reflected the pervasive disseminated and shear /
quartz vein hosted pyrite content in the intrusive which is
underlain by black argillite. The presence of widespread
disseminated gold mineralization within the granodiorite intrusive
was confirmed by diamond drilling.
2008 Drill Results
-***-
DDH # INTERVAL INTERVAL INTERSECT GOLD
FROM TO LENGTH g/t
KKM 08-01 9.95 20.50 10.55 0.973
incl 20.20 20.50 0.30 28.700
25.80 27.00 1.20 0.134
33.80 34.80 1.00 0.190
94.55 94.80 0.25 0.261
KKM 08-02 10.85 17.85 7.00 0.148
25.35 25.50 0.15 59.600
33.50 34.00 0.50 0.657
41.90 42.60 0.70 0.834
KKM 08-03 14.00 16.30 2.30 11.949
30.40 35.30 4.90 0.252
40.80 43.60 2.80 1.321
62.10 66.50 4.40 0.248
77.80 81.90 4.10 0.960
KKM 08-04 18.10 23.00 4.90 0.632
35.45 44.25 8.80 0.359
59.40 61.00 1.60 0.269
KKM 08-05 4.60 9.25 4.65 0.543
39.00 39.20 0.20 0.226
84.60 84.80 0.20 2.410
117.20 117.70 0.50 0.861
128.35 129.80 1.45 0.114
147.90 148.48 0.58 0.649
KKM 08-06 7.40 10.00 2.60 0.267
16.00 17.50 1.50 1.000
KKM 08-10 25.00 26.52 1.52 0.134
45.00 46.40 1.40 0.202
KKM 08-11 7.50 13.50 6.00 0.244
28.40 33.20 4.80 0.490
-****-
DDH's KKM 08-07, 08-08, 08-09 intersected barren argillite lying
beneath the granodiorite.
The 2008 exploration work program was under the supervision of
J.W. Murton, P. Eng., a qualified person as defined by National
Instrument 43-101 and a director of MCI.
History
Eagle Plains initiated property acquisition in the Kalum area in
2003 and completed significant exploration programs on the property
in 2003 and 2004. The programs included a VTEM airborne survey,
extensive geochemical programs, geologic mapping, and a 19-hole
diamond drill program. In addition, many of the historical showings
on the Property were located, sampled and surveyed. The program was
successful in consolidating and evaluating all historic showings,
discovering new high-grade Au-Ag occurrences, and developing new
exploration models to help focus exploration in new directions.
About Eagle Plains
Eagle Plains' management would like to take this opportunity to
remind shareholders of the sound financial position of the company.
The company currently has $6 million in cash and securities and is
debt-free. Management has implemented a number of measures to
protect its treasury and reduce overhead expenditures. The Company
is in a strong position to take advantage of opportunities
presented by the current economic downturn, and will be
well-positioned when market conditions improve.
As part of its plans to diversify its activities during the
current industry downturn, Eagle Plains provides competitively
priced contract geological consulting services to both partners and
third party clients, offering a full range of GIS, data management,
data collection, and geological services as well as diamond
drilling support.
Eagle Plains Resources continues to conduct research, acquire
and explore metal projects in western Canada. The Company controls
over 35 gold, base-metal and uranium projects, many with third
parties including Teck Limited (TSX: TCK.B), Alexco Resource Corp.
(TSX-V: AXR), Sandstorm Resources Ltd. (TSX-V: SSL.P), Waterloo
Resources Ltd (TSX-V: WAT.P), Mountain Capital Inc (TSX-V: MCI.P)
and XO Gold Resources Ltd. These agreements expose Eagle Plains to
over $15.0 million in exploration expenditures over a five-year
period. In recent years, Eagle Plains has completed option
agreements with Billiton Metals, Rio Algom Exploration, NovaGold
Resources, Kennecott Exploration and numerous other junior
exploration companies, resulting in over 52,000m (158,500') of
drilling and over $27.0 million in exploration spending on its
projects since 1998. 2008 expenditures on Eagle Plains' projects
were approximately $6,000,000 in 2008, funded equally between Eagle
Plains and third party partners. In 2009, management anticipates
approximately $1.2 million in exploration expenditures funded by
partners.
This news release has been reviewed and approved by Tim J.
Termuende, P.Geo., hereby designated as a "Qualified Person" under
National Instrument 43-101.
On behalf of the Board of Directors
"Tim J. Termuende"
President and CEO
The TSX Venture Exchange has not reviewed and does not accept
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.
Distributed by Filing Services Canada and retransmitted by
Marketwire
For further information, please contact: Mike Labach 1 866 HUNT
ORE (486 8673) Email: Email Contact http://www.eagleplains.com
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