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Eagle Plains’ Copper Canyon to
be Advanced Jointly with SpectrumGolds’ Galore
Creek Project
Cranbrook, B.C.: Management of Eagle Plains Resources
Ltd. (EPL:TSX-V) is encouraged by statements issued
on October 31st by SpectrumGold Inc., (TSE:SGX) relating
to preliminary results from a recently-completed drill
program on the Galore Creek Project, located in northwestern
British Columbia. SpectrumGold has confirmed its intention
to drill Eagle Plains’ Copper Canyon gold-silver-copper
project concurrently with exploration at Galore Creek.
Furthermore, SpectrumGold recently announced a $14M
bought deal financing which will provide proceeds for
further exploration drilling on the two projects.
The contiguous Copper Canyon – Galore Creek properties
cover one of the largest and highest grade alkalic intrusive-related
gold-silver-copper systems in North America. SpectrumGold
has engaged Hatch Engineering of Vancouver, British
Columbia to complete an updated Resource Estimate and
a Preliminary Economic Assessment Study of the Galore
Creek Deposit. The Economic Assessment Study will entail
a detailed review of mining and recovery methods (both
open pit and underground scenarios) and metallurgical
studies, as well as power and infrastructure requirements
and alternatives.
As announced on September 18th, Eagle Plains signed
a letter agreement with SpectrumGold whereby SpectrumGold
may earn a 60% interest in the property by issuing
to Eagle Plains 400,000 common shares (100,000 on
signing
a formal agreement), making $250,000 in cash payments,
and completing $3,000,000 in exploration expenditures
by February, 2007. SpectrumGold may increase
its interest to 80% by making a one-time cash payment
of
$1,000,000 to Eagle Plains and completing a feasibility
study on the property. SpectrumGold was listed on
the Toronto Stock Exchange on October 27th and was
trading
at $3.82 at market close on November 03, 2003.
Eagle Plains holds a 100% option (subject to a 2%
NSR to the underlying claim holder) in the Copper
Canyon
property through an arms-length agreement announced
May 27th, 2002. The property has seen intermittent
exploration work from the mid 1950s to 1991 which
indicates the
presence of widespread gold, silver and copper
mineralization similar to the Galore Creek deposit.
To date mineralization
has been identified in three separate areas on
the property and remains open to expansion. Highlights
from drilling
on the project in 1990 are summarized in the table
below.
Table of Significant 1990 Copper Canyon Drill
Results
|
DHID
|
Length (m)
|
Length (ft)
|
Gold (g/t)
|
Silver (g/t)
|
Copper (%)
|
Type
|
|
90-DDH-01
|
22.0
|
72.2
|
4.1
|
13.0
|
0.7%
|
Core
|
|
90-DDH-02
|
270.8
|
888.5
|
1.9
|
22.3
|
1.1%
|
Core
|
|
Including
|
117.0
|
383.9
|
2.5
|
38.4
|
1.8%
|
Core
|
|
90-DDH-04
|
13.0
|
42.7
|
4.0
|
33.3
|
1.5%
|
Core
|
|
90-DDH-05
|
32.0
|
105.0
|
2.4
|
17.5
|
0.8%
|
Core
|
SpectrumGold announced in August 2003 an agreement
to acquire a 100% interest in the Galore Creek project
from subsidiaries of Rio Tinto plc and Anglo American
plc. Based on the extensive historic work carried out
by Rio Tinto and Anglo American from the early 1960's
through 1991, SpectrumGold management believes that
the system remains open. The exploration objective is
to outline a resource of 80-150 million tonnes of material
with grades exceeding 2.5 g/t gold equivalent within
the larger mineralized system. SpectrumGold recently
completed an eight-hole 10,000’ core drilling
program at Galore Creek which confirmed the presence
of higher grade gold and copper zones that substantiate
a new geological model with respect to the controls
on mineralization. (SGX News Release Oct 31, 2003).
Both Eagle Plains and SpectrumGold management believe
that the consolidation of the Galore Creek and Copper
Canyon properties may provide significant economic
synergies for the development of both deposits. SpectrumGold
plans
to explore the projects at the same time, and recently
confirmed a substantial drill program will commence
on both the Galore Creek and Copper Canyon properties
in 2004.
Eagle Plains Resources continues to conduct research,
acquisition and exploration projects in western Canada.
Through a network of experienced prospectors, consultants
and 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.
Eagle Plains seeks to attract joint-venture participation
on its 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, SpectrumGold Resources,
Viceroy Resources and numerous other junior exploration
companies, resulting in nearly 13,000m (43,000’)
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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