Eagle Plains’ Partner Aben Resources Commences Winter Drill Program at Chico Gold Project, Saskatchewan
Cranbrook, B.C., March 1st, 2018: Eagle Plains Resources Ltd. (TSX-V: “EPL”) has received notice from Aben Resources Ltd. (TSX-V: “ABN”) confirming that permits are in place and camp construction has commenced on EPL’s 100%-owned, 4,656 ha Chico Gold Project located 125km east of La Ronge, Saskatchewan and 40km south of SSR Mining’s (formerly Silver Standard Resources) Seabee Gold Operation. Details of the option agreement are outlined below. Chico drilling activity is planned to commence on or about March 9th and will consist of 1,200-2,000m of drilling in a minimum of 4-5 holes at various locations. Chico drilling is expected to be conducted concurrently with an 18,000m drill program to be carried out on Eagle Plain’s Fisher Property by partner SSR Mining, expected to commence in early March. The Fisher property is located 6km north of Chico (see EPL news release January 8th, 2018). Both drill programs are operated and funded by EPL’s partners.
Drill locations at Chico have been chosen based on strong coincident geophysical and geochemical anomalies within geologic units that are considered to be highly prospective for precious metal mineralization. A recently completed Induced Polarization (“I.P”) Geophysical Survey has revealed numerous high-priority drill targets including a strong and relatively shallow chargeability anomaly that has never been drill tested.
Links to a geophysical model displaying the Chico geophysical features may be found here:
https://www.youtube.com/watch?v=vQPSgr-g0Vg and https://www.youtube.com/watch?v=zBen-X8HFzI.
Chico Property Highlights
Extending in excess of 1400 metres strike length and up to 150 meters width, the Chico structural corridor hosts three distinct and parallel zones that host high grade gold mineralization in both surface samples and historic drill intercepts. All three gold-bearing zones will be tested during the upcoming drill program. Highlights include:
- High grade intercepts from historic drilling include 14.5 grams/tonne (g/T) (0.424 oz/ton) gold over 0.4m at Chico showing and 9.6 g/T (0.281 oz/ton) gold over 2.0m at Royex showing
- Hole MW93-20 returned five significant intercepts ranging from 0.51 g/T gold over 1.5 metres, to 9.6 g/T gold over 2 metres, including 36.3 g/T gold over 0.5 metres (AR 63M06-0041)
- Surface sampling on the project has produced hand samples that contained 113.5 g/T gold (3.31 oz/ton) and 76.5 g/T gold (2.23 oz/ton)
Mineralized shear zones with quartz veining that define the Chico Zone are hosted in diorite and granite rocks, especially along the sheared contact between these two units. The Chico and adjacent parallel Ed and Western structural zones are splay structures related to the larger Tabbernor fault system. Despite the significant surface discoveries of gold along these structural trends, mineralization remains largely untested at depth and along strike extensions. The Tabbernor fault is a 1,500 kilometre-long regional structure which has been traced from as far north as the Rabbit Lake uranium mine in northern Saskatchewan to as far south as the 40-million-ounce Homestake gold deposit in South Dakota. The shared proximity to the Tabbernor structure and similarities in terms of age and tectonic history to the Homestake and Seabee/Santoy deposits was the main driving force behind Aben's interest in the Chico property. SSR Mining Inc.’s (formerly Silver Standard Resources) nearby Seabee and Santoy deposits, located 40 kilometres to the north of Chico, have been in continuous production since 1991, producing 1.2 million ounces of gold from the two deposits. SSRM recently reported: “At the Seabee gold operation, proven and probable mineral reserves total 437,000 ounces of gold, … Average mineral reserve grade has increased to 9.88 g/t gold due to the addition of higher-grade mineral reserves from Santoy 8 and Santoy Gap. …Measured and indicated mineral resources (inclusive of mineral reserves) total 681,000 gold ounces at year-end 2017…As at Dec. 31, 2017, inferred mineral resources total 674,000 gold ounces (2.26 million tonnes at an average gold grade of 9.29 g/t). (SSRM news release Feb 22, 2018). Management cautions that past results or discoveries on proximate land are not necessarily indicative of the results that may be achieved on the subject properties. Aben has not been able to independently verify the methodology and results from historical work programs within the property boundaries. However, management believes that the historical work programs have been conducted in a professional manner and the quality of data and information produced from them are relevant.
Chico Option Agreement
Aben may earn an initial 60% interest in the Chico property by incurring $1,500,000 in exploration expenditures, issuing 1,500,000 common shares and making cash payments totalling $100,000 over 4 years. Upon earning this 60% interest, Aben may elect to exercise a second option to earn a further 20% interest by incurring an additional $2,000,000 in exploration expenditures, issuing 1,000,000 common shares, and making $50,000 cash payments within two years of the date of election.
Proposed Plan of Arrangement-Taiga Gold Corp.
As announced on October 23rd, 2017, Eagle Plains intends to spin out specific Saskatchewan gold exploration properties in the Seabee/Santoy area of Saskatchewan, including the Fisher project. Eagle Plain’s shareholders will receive shares of Taiga Gold Corp. (“Taiga”) on a 2:1 basis (1 share of Taiga for each 2 shares of Eagle Plains) through a plan of arrangement expected to be completed in Q2 2018. Pending regulatory and shareholder approvals, shares of Taiga are expected to be listed on the CSE under the symbol “TGC” in late April.
A map showing the location of Taiga projects may be found here:
Charles C. Downie, P.Geo., a “Qualified Person” for the purposes of National Instrument 43-101 - Standards of Disclosure for Mineral Projects, has reviewed and approved the scientific and technical disclosure in the news release.
About Eagle Plains Resources
Based in Cranbrook, B.C., Eagle Plains continues to conduct research, acquire and explore mineral projects throughout western Canada. EPL is committed to steadily enhancing shareholder value by advancing our diverse portfolio of projects toward discovery through collaborative partnerships and development of a highly experienced technical team. Managements’ current focus is to preserve its treasury while advancing its most promising exploration projects. In addition, Eagle Plains continues to seek out and secure high-quality, unencumbered projects through research, staking and strategic acquisitions. Since 2012, Eagle Plains has added to its portfolio a number of new projects exceeding 130,000 ha targeting mainly gold, uranium and base-metals in Saskatchewan, a highly-prospective mining jurisdiction which was recently recognized by the Fraser Institute as the second best place in the world in terms of Investment Attractiveness. Throughout the exploration process, our mission is to help maintain prosperous communities by exploring for and discovering resource opportunities while building lasting relationships through honest and respectful business practices.
Expenditures from 2011-2017 on Eagle Plains-related projects were approximately $16.5M, which was funded by Eagle Plains and for the most part, by third-party partners. This exploration work resulted in approximately 15,000 m of diamond-drilling and extensive ground-based exploration work facilitating the advancement of numerous projects at various stages of development.
On behalf of the Board of Directors
“Tim J. Termuende”
President and CEO
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.