|
Cranbrook, B.C. 03 October, 2007: Eagle Plains
Resources Ltd. (EPL:TSX-V) announces that it has
executed a formal option agreement with XO Gold
Resources Inc., (a private British Columbia
corporation) whereby XO may earn a 60% interest from EPL in
the Titan copper-gold-molybdenum project located 50km west of
Atlin in northwestern British Columbia. The property is
controlled 100% by EPL (subject to a 1.5% NSR), and consists
of approximately 4,300 ha (10,000
acres).
XO
has agreed to pay $35,000 cash and issue 50,000 common shares
on signing a formal option agreement. To complete its earn-in,
XO will carry out $3,000,000 in exploration expenditures, make
total cash payments of $150,000 and issue 500,000 voting-class
common shares to EPL by the forth anniversary. A $100,000
first-phase program consisting of an airborne geophysical
survey and follow-up geochemical and geological surveys are
now underway on the property. Diamond drilling is expected to
be completed during the 2008 field
season.
The
Titan claim block
covers a high-grade molybdenum-copper porphyry occurrence that
has recently been exposed by retreating glacial ice. 2003
fieldwork by Eagle Plains resulted in the discovery of high-grade molybdenum mineralization in float boulders grading
up to 1.877% molybdenum. Additional areas of interest exist on
the property and will be subject to exploration activity. At
the Buchan Creek showing, high-grade gold mineralization is
present within quartz vein material that has never been tested
by drilling. At Buchan, grades averaging 15.43 grams per tonne
gold, 244.8 grams per tonne silver and 9.85 per cent lead were
returned from two 1.1m chip samples, taken 2.0 meters apart
along the vein.
Interest in the area has increased significantly
lately, with activity at the nearby Engineer Gold Mine reported recently by BC Gold Corp. In addition, CZM Capital
Inc. reports that drilling is well underway on its TAG gold-silver property located 10km NE of the Titan
property.
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 Cominco Ltd
(TSE:TCK), Alexco Resource Corp.
(TSX-V:AXR), Wellstar Energy
Corp. (TSX-V:WST), Blue Sky
Uranium Corp. (TSX-V:BSK), Blind Creek
Resources and Golden Cariboo Resources Inc.
(TSX-V:GCC). These agreements expose Eagle
Plains to over $20.0 million in exploration expenditures over
the next 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.
|