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Eagle Plains Acquires Option on Yukon
Gold Project
Cranbrook, B.C.: Eagle Plains Resources
Ltd. (EPL:TSX-V) announces the acquisition of an option to
earn a 100% interest in the Severance mineral claims
located approximately 125km northwest of Carmacks, in
west-central Yukon Territory. The claims consist of
30 units (1500 acres) covering a broad gold-in-soil
geochemical anomaly identified in 2002. The property
is underlain by granodiorite of the Cretaceous Dawson
Range Batholith, which is intruded by Tertiary quartz-feldspar
porphyry dykes. The claims are currently accessed by
helicopter, with existing winter cat-trails located
within 5km of the property.
Eagle Plains has negotiated an agreement with 4763
NWT Ltd. (subject to regulatory approval) whereby EPL
may
earn a 100% interest in the claims by paying 100,000
common shares and completing $40,000 in exploration
expenditures over two years. A 2% NSR is reserved
for the vendor, half of which may be purchased at any
time
for $1,000,000. Eagle Plains will further reserve
for a vendors 25% of the proceeds from any subsequent
third-party
sale or option of the claims, to a maximum of $100,000.
In 1998, Kennecott Canada Ltd conducted reconnaissance
stream sediment and soil sampling in the area to follow-up
a government-sponsored RGS stream sediment sample
that contained 280 ppb gold. Their program returned
a number
of samples anomalous in gold, bismuth and arsenic.
Shortly after the discovery, Kennecott closed it’s Yukon
exploration office and curtailed exploration activity
in the Territory.
4763 NWT Ltd. staked the Severance Property in January,
2002, covering the area of anomalous soils. In the
summer of 2002, the company conducted an exploration
program
consisting of geological mapping, prospecting and
soil sampling. A grid was established to cover an
area measuring
1.7 by 1 km and soil samples were collected on lines
spaced 100 m apart at a station spacing of 50 m.
The soil program returned some significantly anomalous
values with 31 of 344 samples returning greater than
100 parts per billion (ppb) gold, including four samples
with 600, 738, 1965 and 2680 ppb gold, respectively.
Coincident with the gold is copper, molybdenum and
arsenic-all considered key pathfinder elements associated
with intrusion-related
copper-gold systems (IRCGs). Rock sample results include
a grab sample of silicified and quartz-veined granodiorite
with 7% disseminated pyrite, which assayed 1.2 g/t
gold and 0.35% copper (sample SEV02-014).
Eagle Plains plans to conduct additional fieldwork
on the property in 2003 in order to further assess
its
potential to host economic IRCG mineralization. Soil
geochemical sampling will be completed in conjunction
with a ground-based geophysical survey and geological
mapping.
Eagle Plains Resources continues to conduct research,
acquisition and exploration projects in western Canada.
Through a network of prospectors, consultants and
experienced contractors in addition to seasoned employees
and a
well-rounded Board of Directors, the Company has assembled
a diverse portfolio of gold and base-metal properties.
EPL seeks to attract joint-venture participation on
it’s properties, thereby leveraging exploration
spending to the ultimate benefit of the Company’s
shareholders. In recent years, Eagle Plains has completed
option agreements with Billiton, Rio Algom, Kennecott,
Novagold Resources, Viceroy Resources and numerous other
junior exploration companies, resulting in nearly 10,000m
(33,000’) of drilling and over $5,000,000 in exploration
spending on its properties since 1998.
On Behalf of the Board of Directors
Tim J. Termuende, P.Geo.
President and CEO
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