Eagle Plains Resources Ltd. (TSX-V: EPL) announces that it has executed a formal option/purchase agreement with Alexco Resource Corp (TSX: AXR) (AMEX: AXU) whereby Eagle Plains has granted Alexco an option to purchase Eagle Plains' 30% interest in the McQuesten Joint Venture (currently held 70/30% by Alexco and Eagle Plains). The property is located approximately 40km north of Mayo, within the Keno Hill Mining District. The joint venture property consists of 55 quartz mining claims (2,500 acres) that are accessed by the all-weather Yukon Silver Trail highway with an adjacent hydro-electric transmission line. The village of Elsa is located 5km to the north.
Eagle Plains has had an interest in the property since 1995, when it optioned a 100% interest from B. Kreft, a well-known Yukon prospector. In 1997, a 70% interest was optioned to Viceroy Exploration, who in turned transferred its interest to NovaGold Resources, who in turn transferred it to SpectrumGold Resources. In 2006, the 70% interest was again transferred to Alexco.
A number of drilling campaigns have been completed on the property, with the most recent consisting of a 10,000 foot program carried out by SpectrumGold in 2003. Drilling and trenching on the McQuesten property indicates the presence of a large mineralized system hosted within calcareous meta-sediments and intrusive rocks. Mineralization consists of disseminated and semi-massive sulphides (pyrrhotite, pyrite and arsenopyrite) in quartz-sericite and skarn alteration packages of sedimentary rocks.
Drill holes in the West Zone contain up to 18.3 m of 3.74 g/t and 24.4 m of 2.16 g/t Au. Trenches include 16.0 m of 2.67 g/t and 27.0 m of 1.62 g/t Au. Drill holes in the East Zone contain up to 16.3 m of 2.19 g/t and 9.6 m of 2.87 g/t Au. Trenches include 9.2 m of 4.94 g/t and 8.3 m of 2.72 g/t Au. Both zones remain open along strike.
Eagle Plains Resources continues to conduct research, acquire and explore metal projects in western Canada. The Company controls over 35 gold, base-metal and uranium projects, many with third parties including Teck Cominco Ltd (TSE: TCK), Alexco Resource Corp. (TSX: AXR) (AMEX: AXU), Wellstar Energy Corp. (TSX-V: WST), Blue Sky Uranium Corp., Blind Creek Resources and Golden Cariboo Resources Inc. These agreements expose Eagle Plains to over $20 million in exploration expenditures over the next five years. In recent years, Eagle Plains has completed option agreements with Billiton Metals, Rio Algom Exploration, NovaGold Resources, Kennecott Exploration, Viceroy Resource Corp. and numerous other junior exploration companies, resulting in over 38,000m (125,000') of drilling and over $16,000,000 in exploration spending on its projects since 1998. During the 2006 season, EPL and its partners completed over 7,000m (23,000') of diamond drilling on its properties.
On behalf of the Board of Directors
Signed "Tim J. Termuende" President and CEO
The TSX Venture Exchange has not reviewed and does not accept 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.
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