Eagle Plains Acquires Additional Knife Lake Area Claims and Airborne Geophysical Data
NEWS RELEASE
Eagle Plains Acquires Additional Knife Lake Area Claims and
Airborne Geophysical Data
Cranbrook, B.C., January 31st, 2018: Eagle Plains Resources Ltd. (TSX-V: “EPL”) has acquired by staking
and purchase, a significant block of claims that co ver a regional VMS target area centered approximate ly 50km
NW of Sandy Bay, Saskatchewan. The recently staked claims consist of 76 individual blocks comprising 7 7,789
ha surrounding the Knife Lake VMS deposit, which saw extensive exploration from the late 1960’s to th e 1990’s,
with the last documented work program completed in 2001 (see EPL news release December 6 th , 2017). The
recently-staked claims are 100% owned by Eagle Plains and carry no underlying royalties or encumbrances.
Eagle Plains also purchased 2 dispositions comprising 1821.7 ha located adjacent to and directly west of the Knife
Lake deposit from C. Knudsen, an arms-length third- party. Consideration for this purchase is $1,092.99 cash and
125,000 voting class common shares of Eagle Plains. Mr. Knudsen will retain a 1% NSR which may be purchased
by Eagle Plains at any time.
The property purchase and staking activity followed the acquisition by Eagle Plains of a proprietary d igital
airborne geophysical data package from a regional s urvey flown over the area in 1996 and 1997. The he li-borne
survey was flown with a DIGHEM V multi-coil, multi-frequency electromagnetic system , supplemented by a high
sensitivity Cesium magnetometer and a four-channel VLF receiver. The survey consisted of 11,166 line-k m at a
200 meter line spacing with an additional 1767 line -km of detailed survey flown at between 50–150 mete r line
spacing. Current replacement cost for the data is estimated to be approximately $1.3 million.
Knife Lake Geology and History
The Knife Lake deposit lies within the Scimitar Com plex, which is believed to be the disconnected, nor thwest
extension of the northern Flin Flon domain and the Amisk Volcanic package, which hosts massive sulphid e
mineralization in the Flin Flon–Snow Lake mining di strict, the most prolific greenstone belt in Canada . Since the
initial discovery of mineralization in 1915, the Flin Flon camp has produced over 170 million tons of sulphide ore
from 31 VMS deposits worth in excess of C25 billion dollars. (2002 NRC, Current Research). Exceptionally high
Au contents of many of these deposits, including Flin Flon (62.4 Mt @ 2.6 g Au/t) and Lalor (8.8 Mt @ 4.6 g Au/t
in the Au zone), make them particularly attractive exploration targets. This information is provided only as
historical reference . Management cautions that past results or discoverie s on proximate land are not necessarily
indicative of the results that may be achieved on the subject properties.
Knife Lake is interpreted to be a remobilized VMS deposit. The stratabound mineralized zone is approximately 15
m thick and contains copper, silver, zinc and cobal t mineralization which dips 30° to 45° eastward ove r a strike-
length of 4,500 m, with an average horizontal width of approximately 300 m.
The deposit is hosted by felsic to intermediate vol canic and volcaniclastic rocks which have been meta morphosed
to upper amphibolite facies. The deposit is typical of VMS mineralogy which has been significantly mod ified and
partially remobilized during the emplacement of gra nitic rocks. The mineralization straddles the bound ary
between two rock units and occurs on both limbs of an overturned local fold.
Drilling has outlined a series of stratabound ore l enses which are controlled by complex geological st ructures. In
the copper mineralized zone, significant thickening of the mineralization occurs near the central port ion of the
deposit. Sulphides and rare native copper are visible in outcrop. Massive sulphides consist of 25 to 60% pyrrhotite
and 0.2 to 10% chalcopyrite mineralization. Pyrite is present as irregular disseminations and masses. Locally, up
to 8% sphalerite (zinc mineralization) is present.
The first documented work in the Knife Lake showing area occurred between 1969-1973, consisting of gro und
and airborne geophysical surveys and extensive soil geochemical sampling. The discovery drill-hole, co llared in
September, 1969, returned 2.37% Cu over 4.48m from 19.96-24.44m, including 3.5% Cu over 2.5m from 20.2 7-
22.77m. A total of 96 diamond drill holes (8,232m) were completed between 1969-1971 and in 1973 Straus
Exploration announced a maiden resource on the Knife Lake Deposit.
Hudson’s Bay Exploration and Development Company Lt d. later carried out a regional Airborne EM geophys ical
survey in the Knife Lake – Scimitar Lake area, foll owed up by geological mapping, prospecting, ground
geophysics and diamond drilling. The property was s ubsequently optioned Copperquest Incorporated in 19 89,
which carried out further geophysical and geochemic al surveys and optioned the property to Leader Mini ng
International in 1996. Between 1996 and 2001, Leade r flew various airborne geophysical surveys in the area,
including EM, magnetic, and gravity surveys. This w as followed up with stripping and trenching of the
outcropping deposit area. Ground TEM, magnetic, gro und IP/Resistivity and VLF-EM surveys were complete d
over and adjacent to the main deposit area.
Between 1996 and 1998, Leader completed 315 drill h oles, outlining a broad zone of mineralization occu rring at
less than 100 meters depth (AF 63M-0006, Report 10) . Late in 1998, Leader published the geological res erves of
the deposit, reporting a drill-indicated resource o f 20.3 million tonnes grading 0.6% Cu, 0.1 g/t Au, 3.0 g/t Ag,
0.06% Co and 0.11% Zn. It was suggested that 11.0 m illion tonnes grading 0.95% Cu could be mined using an
open pit. (SMDI 0406) Eagle Plains’ management considers these estimates to be historical in nature and
cautions that a Qualified Person has not done suffi cient work to classify the historical estimates as current
mineral resources or mineral reserves in accordance with National Instrument 43-101. These estimates do not
comply with current definitions prescribed by Natio nal Instrument 43-101 or the Canadian Institute of Mining,
and are disclosed only as indications of the presen ce of mineralization and are considered a target es timate to
help guide additional work. The historical models and data sets used to prepare these historical estimates are not
available to Eagle Plains, nor are any more recent resource estimates or drill information on the Property.
A 357kV powerline has recently been completed to wi thin 16km of the Knife Lake Deposit area, greatly
enhancing the project’s infrastructure.
Future Plans
As well purchasing the adjacent claims and geophysical data, Eagle Plains has secured access to all available drill-
core which was used to calculate the historical resource published by Leader Mining in 2001. Over 400 drill-holes
have been completed in and around the current property boundaries, with much of the drill core stored under cover
and in pristine condition. The company has recently retained an experienced VMS specialist to create a
comprehensive GIS database which will facilitate co mpletion of an updated resource estimate. Resource s will
also be directed toward assessing the exploration p otential of the regional area, with a detailed comp ilation and
targeting exercise planned for the second quarter of 2018.
Charles C. Downie, P.Geo., a “qualified person” for the purposes of National Instrument 43-101 - Stand ards of
Disclosure for Mineral Projects, has prepared, revi ewed, and approved the scientific and technical dis closure in the
news release.
Proposed Plan of Arrangement-Taiga Gold Corp.
As announced on October 23 rd , 2017, Eagle Plains intends to spin-out specific S askatchewan gold exploration
properties in the Seabee/Santoy area, including the Fisher Project, to a new publicly-listed entity na med Taiga
Gold Corp. on a 2:1 ratio (1 share of Taiga for 2 shares of E agle Plains) through a plan of arrangement expected to
be completed in early 2018.
About Eagle Plains Resources
Based in Cranbrook, B.C., Eagle Plains continues to conduct research, acquire and explore mineral proj ects
throughout western Canada. The Company is committed to steadily enhancing shareholder value by advanci ng our
diverse portfolio of projects toward discovery thro ugh collaborative partnerships and development of a highly
experienced technical team. Managements’ current fo cus is to preserve its treasury while advancing its most
promising exploration projects. In addition, Eagle Plains continues to seek out and secure high-qualit y,
unencumbered projects through research, staking and strategic acquisitions. Since 2012, Eagle Plains has added to
its portfolio a number of new projects exceeding 13 0,000 ha targeting mainly gold, uranium and base-me tals 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 Investme nt Attractiveness. Throughout the exploration proc ess, our
mission is to help maintain prosperous communities by exploring for and discovering resource opportuni ties 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 fund ed 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 ex ploration work facilitating the advancement of nume rous
projects at various stages of development.
On behalf of the Board of Directors
“Tim J. Termuende”
President and CEO
For further information on EPL, please contact Mike Labach at
1 866 HUNT ORE (486 8673)
Email: [email protected] or visit our website at http://www.eagleplains.com
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.