Eagle Plains Resources (TSX-V: EPL) (Pink Sheets: EGPLF) and Clemson Resources Corp. (TSX-V: CRZ) announce that the companies have entered into a formal option agreement whereby Clemson may earn an undivided 60% interest in Eagle Plains’ 100% owned Kalum Property located approximately 35 km northwest of Terrace, British Columbia in the Skeena Mining Division. Under terms of the agreement, Clemson will complete exploration expenditures of $3,000,000, make cash payments of $250,000 and issue 1,100,000 common shares to EPL over a four year period.
The road accessible, 21,000 ha property is centered upon a large Cretaceous-age granodioritic stock of the Coast Crystalline Complex that has intruded Jurassic to Cretaceous-age sedimentary rocks of the Bowser Lake Group. A number of high-grade, vein-type gold occurrences are associated with the contact zone and magnetic signature of the intrusive stock. These occurrences have been explored by various operators and to various degrees over the past 80 years. All previous exploration efforts have been directed toward the discovery of high-grade stand-alone mineralization. The current Eagle Plains tenure package represents the first time that gold occurrences related to the intrusive stock have been consolidated by a single company.
The property had last seen exploration work in 2009-2010 by Windstorm Resources Ltd. who carried out prospecting and soil geochemical work in 2009, followed by 6 drill-holes in 2010 for a total of 412m, testing a high-grade gold occurrence (973 g/t Au) discovered in late 2009. Drilling failed to intersect significant continuous mineralized zones. Windstorm terminated their option in late 2010.
From 2007-2008, Mountain Capital completed geologic mapping, a ground geophysical survey and 1,390m of drilling in 11 holes to target the “Burn” showing (see EPL/MCI news release December 15, 2008). Highlights of the 2008 program included drill-hole HKM 08-01, which returned 10.55m grading 0.973g/t gold from 9.95m to 20.50m (including 0.3m which assayed 28.7 g/t gold from 20.20 to 20.50m) and drill-hole HKM 08-03, which returned 2.30m grading 11.949 g/t gold from 14.0-16.3m. Mountain Capital terminated their option on the property in May, 2009.
Eagle Plains acquired the property in 2003 and completed significant exploration programs on the property in 2003 and 2004. The programs included a VTEM airborne survey, extensive geochemical programs, geologic mapping, and a 19-hole diamond drill program. The best drill results from this work included drill-hole KRC04001, drilled at the Rico showing (discovered by Eagle Plains personnel in late 2003), which returned 35g/t Au over 2.5m from 101.8m to 104.3m; including a 0.5m interval that assayed 107g/t Au (see EPL news release December 9th, 2004). In addition, historical occurrences on the Property were located, sampled and surveyed.
All work to date continues to support the interpreted potential for the Kalum Property to host both high-grade Au - Ag deposits and lower-grade bulk-tonnage type Au mineralization.
About Eagle Plains Resources
Eagle Plains continues to conduct research, acquire and explore mineral projects throughout western Canada. Since 1992, EPL has been acquiring and developing early stage projects utilizing an in-house team of geologists, technicians and specialists. Considered a prolific project generator with over 35 properties, EPL invites joint venture participation to expedite development, reduce risk and enhance exposure to discovery.
Current third party agreements if maintained to completion expose EPL to over $55M in exploration expenditures, $6.5M cash and 20M shares in partner companies. Completed agreements have yielded over $17M in exploration spending, $1M cash to EPL and a total of 16M shares of partner companies including Alexco Resource Corp., NovaGold Resources Inc., Giyani Gold Corp., Aben Resources Ltd. and others.
Expenditures during 2011 on Eagle Plains-related projects were approximately $9,100,000 which was funded by Eagle Plains and third party partners. This exploration work resulted in approximately 9400m diamond drilling and extensive ground-based exploration work facilitating the advancement of more than 15 projects at various stages of development. Planning is currently underway for a very aggressive 2012 exploration season, with over 10 individual drilling programs planned, most to be funded by third parties in relation to ongoing option agreements.
On behalf of the Board of Directors
“Tim J. Termuende”
President and CEO
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