Cranbrook, B.C.,
10 April, 2007: Eagle Plains Resources Ltd. (EPL:TSX-V)
is pleased to
announce that a formal option agreement has been executed with
Wellstar Energy Corporation (WST:TSX-V)
whereby Eagle Plains has agreed to grant an option to Wellstar
to earn a 60-per-cent interest in Eagle Plains'
100-per-cent-owned Kulyk Lake and Jenny Lake
uranium properties (the “Project”), located 30 to 40
kilometers southeast of Cameco's Key Lake mining operation in
north-central Saskatchewan, Canada. Under terms of the agreement, Wellstar has reimbursed EPL $77,500 in acquisition
costs, will commit to $5,000,000 in exploration expenditures
and issue 1,000,000 common shares to EPL by December 31st,
2011.
The partners have
agreed to complete a 2425 line-km MegaTEM airborne geophysical
survey over the entire property area, with work to be
undertaken by Fugro Airborne Surveys Ltd., scheduled to begin
within the next 10 days. This program will be followed up by
geological work on the property in June of this year.
Contingent on favourable results, Diamond drilling will be
scheduled for late in the 2007 season.
The Project
adjoins Eagle Plains 100% owned Eagle Lake Property where an
extensive airborne geophysical survey and follow-up ground
geological program was carried out in the fall of 2006.
The Eagle Lake Property is under option to Blue Sky Uranium
Corp.’s (formerly Mulligan Capital Corp. (MCC-TSX.V)
The Kulyk Lake property covers
approximately 96 square km and was staked to cover known
historical uranium mineral occurrences and uranium lake
sediment anomalies within prospective folded and faulted
basement lithologies of the Wollaston group. Much of the known
uranium mineralization occurs along Wollaston group contacts
and fault intersections, particularly in the presence of
pegmatite. Historical trenching at one such occurrence revealed 0.369 per cent U3O8 over 3.4 meters (SMDI 0993). Grab
sampling from another occurrence returned up to 1.68 per cent
U3O8 (SMDI 0978).
The 50 square km
Jenny Lake area also
covers prospective basement lithologies of the Wollaston
domain at its eastern limit along a major tectonic boundary.
Known uranium mineral occurrences are associated with several
large-scale structures that suggest excellent regional prospecting potential. Historical grab samples of
yellow-stained fractures in gneiss and pegmatite returned
values up to 0.47 per cent U3O8 (SMDI 0981). To the east, a
single historical drill hole near the Needle Falls shear zone
intersected a sulphide and graphite-bearing zone in pelitic
host rock.
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.
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 Alexco Resource
Corp. (TSX-V:AXR), Wellstar
Energy Corp. (TSX-V:WST),
Blue Sky Uranium Corp. (TSX-V:BSK),
Blind Creek Resources. These agreements
expose Eagle Plains to $17.5 million in exploration
expenditures over five years. In recent years, Eagle Plains
has completed option agreements with Billiton Metals,
Rio Algom Exploration, NovaGold Resources, Kennecott
Exploration, Viceroy Resource Corp. and numerous
other junior exploration companies, resulting in over 38,000m
(125,000’) of drilling and over $16,000,000 in exploration
spending on its projects since 1998. During the 2006 season,
EPL and its partners completed over 7,000m (23,000’) of
Diamond drilling on its properties.
On behalf of the
Board of Directors
Signed
“Tim J.
Termuende”
President and
CEO
For
further information, please contact Mike Labach at
1
866 HUNT ORE (486 8673)
Email:
mgl@eagleplains.com
or visit our website at http://www.eagleplains.com
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.
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