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Eagle
Plains Resources Ltd. (EPL:TSX-V) and Providence
Resources Corp. (TSX-V:PV.v - News) have completed 5 additional diamond drill holes
since the re-commencement of drilling on the Iron Range project in January
2011, for a total of 15 drill holes and 7,165m (23,500’) of drilling to
date. The 2011 holes (IR11-011 to 015), have been systematically testing the
Talon Zone in which significant gold and base-metal mineralization was
reported in Hole IR10-010 by Eagle Plains/Providence (see news release Dec
21, 2010). All 5 holes completed during the 2011 program have intersected
base metal and gold-related mineralization.
Highlights
from Hole IR10-010 included 14.0m grading 5.1g/t gold and 75.3g/t silver from
192.0 to 206.0m and 8.5m grading 6.0g/t gold and 47.8g/t silver from 272.0 to
280.5m. Accompanying base metal values include 13.24% combined lead-zinc over
1.6m from 196.9-198.5m, and 9.24% combined lead-zinc over 2.0m from
277.5-279.5m, the latter of which is interpreted to lie at Sullivan Time.
A
total of 450m of new road has been constructed and a second drill will
commence work immediately. The budget for the winter 2011 program is
currently $1.6M, and is planned to consist of 12-16 holes for a estimated 5,000m (16,000’) of drilling. The
receipt of permits and construction of new roads will give the partners the
ability to utilize step-out drill pad locations, and if warranted, work
towards definition of an inferred resource. Additional staff
have been added to the project to assist in core-logging and sampling
operations. Analytical results will be forthcoming as they are received,
compiled and interpreted.
Additional
drill targets within a 2.5km radius will continue to test structural features
and geochemical signatures for Sullivan-style SEDEX and precious metal
mineralization.
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. As announced
on November 2nd, an additional 35,800 ha of claims were added to the existing
land package, resulting in a total of 56,200 ha – an area approximately
11km x 50km.
Iron
Range Project Summary
The
Iron Range property consists of 56,200 hectares. The claims are well-situated
with respect to infrastructure with a high-pressure gas pipeline,
high-voltage hydroelectric line, railway and major highway all located within
property boundaries.
The
Iron Mountain structure has been mapped with widths of up to 150m and a
strike length of over 50km. Claims held by Eagle Plains cover over 30km of
the structure, with significant iron-oxide mineralization occurring over
15km. Copper and gold mineralization have been discovered along the
structure, highlighting the potential for iron-oxide copper-gold
(“IOCG”) mineralized systems associated with the structure. 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 $25 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.
A
map outlining pertinent details of the property may be found at: http://www.eagleplains.ca/projects/bc/ironrange/documents/iron_range_compilation_map.pdf
Property
History
The
Iron Range deposits were originally staked in 1897 and were covered by Crown
Grants held by Cominco Ltd. and the Canadian Pacific Railway. Past work on
the Iron Range deposits by Cominco focused on the considerable iron oxide
resource with trenching and very shallow (20m depth) diamond drilling along
the Iron Range Mountain ridge. 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-km airborne
geophysical survey.
Drill
programs were carried out by Eagle Plains in 2005 and 2008. Swift Resources
optioned the property in late 2009 and completed a total of 580m of drilling
in 7 holes. One hole was drilled in close proximity to IR 08006 and returned
1.0m grading 7.53 g/t gold. (see EPL news release
dated March 5th, 2010). Swift subsequently relinquished their
option on the property.
Fieldwork
on the Iron Range property is being carried out under the supervision of
geologist J.K. Ryley. C.C. Downie,
P.Geo. is hereby
identified as the overall project supervisor. Technical aspects of this news
release have been reviewed and approved by T.J. Termuende,
P.Geo.,
hereby designated as a qualified person under National Instrument 43-101.
About
Providence Resources
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, several with third parties including Aben
Resources Ltd. (TSX-V:ABN.v - News), Excelsior Mining Corp (TSX:MIN.P.to
- News), Sandstorm Resources Ltd. (TSX-V:SSL.v - News), Sandstorm Metals and
Energy Ltd. (TSX-V:SND.v - News), Providence Resources Corp., Waterloo Resources Ltd.
(TSX-V:WAT.P.v - News), Windstorm Resources Inc.,
Blackrock Resources Ltd. (a private B.C. company); Heemskirk
Canada Ltd., Touchdown Capital Inc. (TSX-V:TDW.v - News), Active Growth Capital
(TSX-V:ACK.v - News) and Giyani Gold Corp.
(TSX-V:WDG.v - News). In recent years, Eagle
Plains has completed option agreements with Teck
Limited (TSX:TCK.B.to |
- News), Alexco Resource Corp.
(TSX-V:AXR.v - News), Billiton Metals, Rio Algom Exploration, NovaGold
Resources, Kennecott Exploration and numerous other junior exploration companies, resulting in over
53,600m (163,370’) of drilling and over $28.3 million in exploration
spending on its projects since 1998.