Bulldog Exploration/Eagle Plains Release Drill Results from Eagle Lake Uranium Property, Saskatchewan
Cranbrook, British Columbia CANADA, December 04, 2012 /FSC/ - Eagle Plains Resources Ltd. (EPL - TSX Venture)
Bulldog Explorations Ltd. (TSX-V:BDG) (formerly SinoGas West Inc.) has recently notified Eagle Plains Resources Ltd. (TSX-V:EPL) that final analytical results have been returned from a drill program carried out on EPL's 14,295 ha Eagle Lake bulk-tonnage uranium project located 45 km southeast of Cameco's Key Lake mining operation in north-central Saskatchewan, Canada. Bulldog currently holds the exclusive right to earn a 60% interest in the property by completing cash and share payments as outlined following. A total of 649.3m in 6 holes was completed in July, 2012 at a cost of approximately $325,000.
* All six holes intersected significant uranium mineralization over 300ppm
* Hole EL12-003 returned 22.01m grading 400ppm U; incl. 2171ppm U over 0.85m
* Hole El 12-005 returned 32.18m grading 252 ppm U; including 1,365 ppm over 1.7m and 4,978ppm U over 0.55m
* Hole EL 12-002 returned 1,258ppm U over 1.35m
Eagle Lake Project Summary
Eagle Plains and its partners have carried out field work on the property continuously since acquiring by staking in 2006. A radioactive boulder train was discovered in 2008 during follow-up prospecting of an airborne geophysical anomaly. This led to the discovery of the Red October showing in 2009. The Red October consists of approximately 400 m of intermittent mineralized outcrop that is part of a larger >1.0 kilometer coincident soil geochemical and ground magnetic anomaly. Samples collected from the showing returned exceptional uranium assays including a 1.0 m chip sample which returned 1.56% U3O8, and a grab sample which returned 2.24% U3O8. Eight trenches completed in the central part of the property in 2010, defined a continuous exposed mineralized zone, 270 m long by 75 m thick. Trench RO2010-03 returned consistent grades with a weighted average of 484 ppm U over 23.1 m.
From surface mapping, trenching, magnetic and soil geochemical surveys, it is known that Red October mineralization is contained within diorite-hosted pegmatite dykes and sills and their associated alteration (hybridization) haloes.
World-class examples of bulk-tonnage uranium deposits include Namibia's Rossing South deposit, with a reported indicated resource of 241 million tonnes of uranium at an average grade of 480 parts per million (ppm) U3O8. In addition, inferred resources for Rvssing South Zones 1 to 4 were 125.5 million tonnes of uranium at an average ore grade of 400 ppm U3O8 (source: World Nuclear News website-2010 data). The parties caution that past results or discoveries on proximate land are not necessarily indicative of the results that may be achieved on the Eagle Lake property.
2012 Program and Significant Results
Exploration activity in 2012 was designed to test the depth potential and continuity of mineralization beneath/between mineralized 2010 Red October trenches, testing a minimum of 100 m of the known mineralized strike-length. Approximately 90% of the projected strike length of the Red October trend remains untested.
Significant 2012 sample results include 400 ppm U over 22.01 m (including 2171 ppm over 0.85 m) in hole EL12-003 (true thickness "T.T." 16.94m), and 252 ppm U over 32.18 m (T.T. 23.70m); including 1365 ppm over 1.7 m (T.T. 1.25m) in hole EL12-005. Significant intercepts by grade (>1000 ppm U) include 1258 ppm U over 1.35 m (T.T. 0.99m) in Hole EL12-002; 1153 ppm U over 0.64 m (T.T. 0.51m) in Hole EL12-003; 2612 ppm U over 0.45m (T.T. 0.42m) and 1399 ppm U over 0.60 m (T.T. 0.56m) in Hole EL12-004, and a best interval of 4978 ppm U over 0.55 m (T.T. 0.41m) in DDH EL12-005.
Drill supervision was provided by Michelle McKeough of TerraLogic Exploration Ltd., a wholly-owned subsidiary of Eagle Plains based out of Cranbrook, B.C. Contract diamond drilling services were provided by FB Drilling Ltd., also of Cranbrook. A total of 473 sample intervals were split and shipped to SRC labs in Saskatoon utilizing the ICP-1 U-exploration package, with U3O8 check assays completed on ICP samples greater than 1000 ppm U. External blanks and standards were included with the sample shipment as part of routine TerraLogic analytical QA/QC. The project was conducted under the overall supervision of Jarrod Brown, P.Geo., hereby identified as the "Qualified Person" under N.I. 43-101.
Eagle Lake Option Terms
Bulldog and Eagle Plains have executed a Property Option Agreement (announced February 2nd, 2012), whereby Bulldog has the right to acquire a 60% interest in the Eagle Lake Property. In order to earn a 60% interest, Bulldog must make staged cash payments to Eagle Plains totaling $300,000, carry out $3,000,000 in aggregate exploration expenditures, and issue to Eagle Plains an aggregate of 1,000,000 common shares of the Company over a period of four years.
Technical aspects of this news release have been reviewed and approved by Jarrod Brown, P.Geo., hereby identified as the "Qualified Person" under N.I. 43-101.
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 $50M in exploration expenditures, $6M cash and 14M shares in partner companies. Completed agreements have yielded over $5M in exploration spending, $900,000 cash to EPL and a total of 12M shares of partner companies including Alexco Resource Corp., NovaGold Resources Inc., Giyani Gold Corp. and numerous others.
Expenditures during 2011 and 2012 on Eagle Plains-related projects were approximately $13M, which was funded by Eagle Plains and third-party partners. This exploration work resulted in approximately 16,000m of diamond drilling and extensive ground-based exploration work facilitating the advancement of more than 15 projects at various stages of development.
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.