Vancouver,
B.C., May 19th, 2011: Providence Resources Corp. (TSX-V:PV)
and Eagle Plains Resources Ltd.
(EPL:TSX-V) have resumed fieldwork at the Iron Range
Project. Scott Geophysics Ltd. and TerraLogic
Exploration Inc. have been retained to perform borehole directional and
ground based induced polarization (IP) geophysics and soil geochemical
surveys.
The IP surveys will target the area of
gold-bearing massive sulphide mineralization
intersected by diamond drilling in 2010(see Dec 21, 2010 news release). Highlights included
drill hole IR10-010, which
included:
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196.9-204.0m: 7.1m @
8.13g/t Au, 5.91% Pb/Zn, 86.6g/t Ag
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224.0-280.5m: 56.5m @
1.9g/t Au, 1.03% Pb/Zn, 21.5g/t Ag
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Also including lowermost 277.5-279.5m: 2.0m@12.8g/t Au, 9.24% Pb/Zn, 122.5g/t Ag; elevated Cd,
Sb, Sn, Bi, B, Cu.
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The lowermost zone is interpreted to lie at or
near the lower-middle Aldridge Formation contact (LMC). The LMC is the
interval which hosts the world class Sullivan deposit. The structural
setting, alteration assemblages and accessory minerals encountered are
also consistent with those associated with the Sullivan deposit.
A borehole directional survey will test a number
of drill holes to help define the extension and orientation of the
semi-massive to massive sulphides encountered
in drilling at the Talon zone. A ground based IP survey is currently
being conducted over the Talon zone, and the surface lineament extensions
to the north and northeast of the Talon zone. Chargeability and
resistivity profiles will be reviewed with respect to known mineralization
to define targets for drill testing of extensions of mineralization.
A new target area for geochemical soil sampling
has been defined through a compilation of recent and historical drill
data which places the Lower-Middle Aldridge Formation (LMC) contact topographically
lower and hence outside the area of previous soil geochemistry surveys.
The current survey has been initiated in the southeastern part of the
property and encompasses approximately 25.0 line-km of both contour and
grid soil geochemical surveys. Geological mapping within and proximal to
the survey area is occurring concurrently.
Both the geophysical and geochemical surveys are
expected to be completed near the end of May. This work forms a portion
of Phase III which is to include a property wide airborne survey,
additional mapping, and soil geochemistry. The estimated budget for this
phase is set at $700,000.00. The objective is to develop additional SEDEX
and gold drill targets.
Geological exploration contracting services on
the Iron Range
property during 2011 are being provided by TerraLogic
Exploration of Cranbrook, B.C. (a wholly-owned
subsidiary of Eagle Plains). All fieldwork is under the supervision of
geologist J.K. Ryley while C.C. Downie, P.Geo. is hereby identified as the overall project
supervisor, hereby designated as a qualified person under National
Instrument 43-101.
Iron Range
Project Summary
The Iron
Range deposits were
originally staked in 1897, and were covered by Crown Grants held by
Cominco Ltd. and the Canadian Pacific Railway. Eagle Plains staked the
current claims immediately after the Crown Grants reverted in 2000, and
have been exploring the property since then. Exploration work to date
includes geological mapping, geochemical surveys, diamond drilling and a
690-line-kilometre airborne geophysical survey. The Iron
Range project is owned
100 per cent by Eagle Plains and holds no underlying royalties or
encumbrances. An additional 35,800 hectares of claims were added to the
existing land package, resulting in a total of 56,200 ha -- an area
approximately 11 km by 50 km. The land package now covers over 30 km of
the Iron Range
structure, most of it unexplored. The claims also overlie rocks of the
Aldridge Formation, including the same stratigraphic
time horizon which hosts the world-class Sullivan deposit located 70km to
the northeast. Over its 100 year lifetime, Sullivan produced
approximately 150,000,000 tonnes of ore
including 300,000,000 ounces of silver, 8,000,000 tonnes
of zinc and 8,000,000 tonnes of lead,
collectively worth over $30 billion at current metal prices. The parties
caution that past results or discoveries on proximate land are not
necessarily indicative of the results that may be achieved on the Iron
Range property.
Providence
Option Agreement
The Iron
Range project is owned
100% by Eagle Plains and holds no underlying royalties or encumbrances.
Providence holds the option to earn a 60% interest in the Property by
spending $3,000,000 on exploration, making $500,000 in cash payments and
issuing 1,000,000 shares to EPL over 4 years.
About Providence Resources Corp
Providence Resources Corp. is a junior mining
exploration company focused on delivering shareholder value through
project acquisition and development. Currently the company is focused on
its Iron Range Project in British Colombia, Canada.
About Eagle Plains Resources
Eagle Plains continues to conduct research,
acquire and explore metal projects throughout western Canada.
In addition to holding mining royalties on various projects, Eagle Plains
controls over 35 gold, base-metal and uranium projects. Expenditures
during 2011 are planned to be approximately $8,000,000 to be funded by
Eagle Plains and third party partners. This exploration work will result
in approximately 9400m diamond drilling and extensive ground-based
exploration work facilitating the advancement of more than 15 projects at
various stages of development.
Vince Sorace
President, Providence Resources Corp.
Tim J. Termuende, P.Geo.
President, Eagle Plains Resources Ltd.
For further information, please
email info@providenceresources.ca
or visit our website at www.providenceresources.ca
For further
information on EPL, please contact Mike Labach
at
1 866 HUNT ORE
(486 8673)
Email: mgl@eagleplains.com or visit our website at http://www.eagleplains.com
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.
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