November 9, 2009
Taku River Tlingit First Nation, Eagle Plains and Prize Mining Sign
Impact & Benefit Agreement for Yellowjacket
Gold Project
CALGARY, ALBERTA - The Taku River
Tlingit First Nation ("TRTFN"), Eagle Plains Resources Ltd. (TSX
VENTURE:EPL) and Prize Mining Ltd. (TSX VENTURE:PRZ) jointly announce
that the parties have completed and executed a formal Impact and Benefit
Agreement ("IBA") relating to mineral exploration and gold
production activities at the Yellowjacket Gold
Project ("Yellowjacket Project")
located near Atlin, British Columbia. The
project is operated through the Yellowjacket
Joint-Venture ("YJV") comprised of Eagle Plains and Prize Mining.
The completion of this document is a very important event and may signify
a new era of Aboriginal participation in mineral resource exploration and
extraction in British Columbia. The TRTFN is hopeful that the signing of
this IBA will pave the way for future relationships with third party
interests in the TRTFN traditional territory.
TRTFN Clan
Director for Land and Resources, Bryan Jack stated that, "The TRTFN
is supportive of responsible mineral exploration and mine development in
the TRTFN Territory. In addition, the TRTFN are keen to ensure that the
benefits from all responsible development ought to be realized by the
TRTFN and Atlin community residents."
The
Agreement recognizes that the Yellowjacket
Project is located within the TRTFN Territory; and, the YJV holds certain
interests and rights granted by British Columbia to extract gold
resources. Furthermore, the parties recognize that they have a mutual and
beneficial interest in cooperating with each other to advance and
complete the Yellowjacket Project in a timely,
environmentally responsible and orderly manner.
The
Agreement provides employment and training opportunities to TRTFN members
and contracts for fuel purchases and other services necessary for mining
and exploration activities, including a contract to conduct environmental
monitoring at the Project.
In addition,
Yellowjacket has agreed to contract TRTFN to
study the feasibility of supplying power to the Project from a
hydroelectric facility nearby that is owned and operated by the Atlin Tlingit Development Corporation. In turn, TRTFN
has agreed to provide to support the Project and grant access, use and
occupation to the joint venture to conduct the project within its
traditional territory.
The
agreement sets out a clear understanding between the parties of the
opportunities and benefits that may result from such an undertaking,
while taking into consideration the challenges relating to economic
sustainability and responsible environmental stewardship. The document
itself reflects the clear and forthright communication present throughout
the negotiating process and further underscores the mutual respect of all
parties.
Spokesperson
for Taku River Tlingit First Nation, John Ward,
stated that, "It is important that when a mining company comes into
Tlingit territory to explore and develop mineral resources, that they
first come and talk to us about the proposed activity, and get our
consent. The Tlingit people need to be assured that a mining project can
and will be carried out in a manner that contributes to, and does not
undermine, the sustainability of the Tlingit culture and land-based
economy. Negotiating this agreement with the Yellowjacket
joint venture shows that this goal can be achieved in a fair and
responsible manner with all parties benefiting. We look forward to a
productive relationship with Yellowjacket."
Tim Termuende, President and CEO of Eagle Plains
Resources stated recently, "The Agreement marks an important
milestone for the Yellowjacket Project and the
British Columbia mining industry as a whole. It demonstrates clearly that
cooperation and mutually beneficial relationships between First Nations
and the mining industry are both possible and preferable. I would like to
thank the TRTFN Leadership and members of the negotiating team for this
rewarding experience, and look forward to working further with
TRTFN".
"It is
a great pleasure to announce the signing of the IBA," stated Feisal Somji, chairman of Prize Mining. "I look forward
to working alongside the Taku River Tlingit
First Nations as we develop the Yellowjacket
Project. The TRTFN have been invaluable advisors during this process and
I am proud of our joint commitment to environmental responsibility and
the local community. Our negotiations have been amicable and beneficial
for all parties involved and I look forward to our continued work with
the TRTFN."
About
the Yellowjacket Gold Project
The Yellowjacket Project received a Small Mines
Act Permit in July of 2009 for the development and production of gold
from the British Columbia Ministry of Energy, Mines and Petroleum
Resources (see EPL/PRZ news release dated July 13, 2009). The Permit
allows for the development and operation of an open pit gold mine and
onsite concentrator processing up to 75,000 tons per year of ore. The
TRTFN were active participants in the review and approval of the Permit.
Commissioning and test work on
the mill facility was completed earlier this season, and excavation
activity took place from mid-August to mid-September. Approximately
50,000 tonnes of material was mined, with approximately 11,000 tonnes of
material stockpiled for processing. Mining and milling activity for the
2009 season was completed in early October. Metallurgical test work and
plant engineering designs show that expected gravity concentration gold
recoveries will be between 73% and 80%, with no chemicals used in the
extraction process. Production activity is presently seasonal, but the
potential exist for year-round operations.
A detailed history of the
project and recently updated photo-gallery may be found here.
About TRTFN
The Taku River Tlingit
First Nation are the indigenous people who have Aboriginal title and
rights to some 40,000 square kilometers in
northwest corner of British Columbia, comprising the Taku
watershed and a major portion of the Atlin
plateau. The area is largely unroaded, and is
rich in wildlife and fish resources upon which the Tlingit depend. The
main place of residence for Tlingit citizens is Atlin,
British Columbia, located 9km west of the Yellowjacket
gold mine. The TRTFN are currently in the BC treaty process to resolve
the outstanding issues of ownership and jurisdiction in the Tlingit territory.
The TRTFN are supportive of mining activity in the territory if it can be
done in a sustainable fashion and in a way agreeable to TRTFN government.
Prize Mining Corporation
(TSXV: PRZ) is dedicated to the exploration, discovery and development of
precious metal deposits. Prize is exploring for gold in the Atlin area of northwestern
British Columbia, Canada and for nickel-copper-palladium and platinum on
the Muskox Layered Intrusion in Nunavut, Arctic
Canada.
About
Eagle Plains Resources
Eagle Plains
continues to conduct research, acquire and explore metal projects in
western Canada. In addition to holding mining royalties on various
projects, the Company controls over 35 gold, base-metal and uranium
projects, several with third parties including Waterloo Resources Ltd.
and XO Gold Resources Ltd. (a private B.C. company). In recent years,
Eagle Plains has completed option agreements with Teck
Limited, Alexco Resource Corp., Billiton
Metals, Rio Algom Exploration, NovaGold Resources, Kennecott Exploration and
numerous other junior exploration companies, resulting in over 53,000m
(158,500') of drilling and over $27.0 million in exploration spending on
its projects since 1998.
Expenditures
during 2008 on Eagle Plains' projects were approximately $6,000,000,
funded equally between Eagle Plains and third party partners. This work
resulted in approximately 6,300m of drilling and extensive ground-based
exploration work and facilitated the advancement of numerous projects at
various stages of development.
ON BEHALF OF THE BOARD OF
PRIZE MINING CORPORATION
"Jim
Glass"
Jim Glass
President & CEO
FOR FURTHER INFORMATION PLEASE CONTACT:
Jamie Mathers, Investor Relations
Phone:
604.684.4743 ext. 236
Toll Free:
1.866.684.4743 ext. 236
Email: info@prizemining.com
Website: www.prizemining.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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