Cranbrook, BC, July
6th, 2011: Eagle Plains Resources Ltd. (TSX-V:EPL) and Olympic Resources
Ltd. (OLA.P) announce that drilling activity has commenced
on the 2,300 acre Dragon Lake project (the �?oProperty�?�) located
85km northeast of Ross River, Yukon. Approximately 750m (2500�?T) of drilling is planned for three separate areas of
the Property. The budget for 2011 work is $400,000 and is expected to
take 2-3 weeks to complete.
As
announced June 20th, Eagle Plains and Olympic recently executed a formal
option agreement (subject to TSX-V approval) whereby Olympic has the
exclusive right to earn a 60% interest in the Property. To exercise the
option, Olympic must complete $3,000,000 in exploration expenditures,
issue 1,000,000 common shares and make cash payments of $500,000 to Eagle
Plains over 4 years.
Property Geology and Mineralization
Mineralization
on the property is associated with an elongate Tombstone Suite intrusive
which has intruded sedimentary rocks of the Hyland Group. Contact
metamorphism related to intrusion of the pluton has resulted in a
distinct alteration halo which hosts known mineralization. Work carried
out by Eagle Plains in 2010 on the Main Zone included continuous chip
trench sampling which returned 4.9 g/t gold over 6.0m, including 6.7 g/t
over 4.0m (T-11) and 6.0m grading 2.8 g/t (T-02). A grab sample of
material from a 1.2m wide quartz vein returned 19.8 g/t gold. Exploration
pits dug in 2010 by Eagle Plains in areas of anomalous soil samples from
past programs returned 2.85 g/t gold and 2.25 g/t gold, respectively.
Property History
The
property was first staked in 1966 by Kennco
Exploration, which completed geological and geophysical survey work. Canamax and Welcome north carried out additional
surface work in 1983 and 1988, respectively. Eagle Plains staked the
property in 1996 and have completed 7 separate exploration programs in
the ensuing years. In 2010, Eagle Plains completed rock and soil
geochemical sampling and an airborne geophysical survey.
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 several with third parties including Aben
Resources Ltd. (TSX-V:ABN), Providence Capital Corp. (TSX-V:PV), Waterloo
Resources Ltd. (TSX-V:WAT.P), Blackrock Resources Ltd. (a private B.C.
company); Heemskirk Canada Ltd., Drexel
Resources Ltd. (TSX-V), Rosedale Resources Ltd (a private B.C. company),
Slater Mining Corp (TSX-V:SLM), Olympic Resources Ltd. (TSX-V: OLA.P),
Touchdown Capital Inc. (TSX-V: TDW), Bluefire
Minerals Corp (a private BC company), Active Growth Capital (TSX-V:ACK) and
Giyani Gold Corp. (TSX-V:WDG). In recent years, Eagle Plains has
completed option agreements with Teck
Limited (TSX:TCK.B), Alexco Resource Corp. (TSX-V:AXR),
Billiton Metals, Rio Algom Exploration, NovaGold Resources, Kennecott Exploration
and numerous other junior exploration companies, resulting in over
53,600m (163,370�?T) of drilling and over $28.3 million in exploration
spending on its projects since 1998.
Expenditures
during 2011 are expected 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.
Signed,
J. Termuende�
President and CEO
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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