Eagle Plains Acquires Knife Lake VMS Copper Deposit, Completes Chico Claims Acquisition
Eagle Plains Acquires Knife Lake VMS Copper Deposit,
Completes Chico Claims Acquisition
Cranbrook, B.C., December 6th, 2017: Eagle Plains Resources Ltd. (TSX-V: “EPL”) has acquired by
staking, a block of claims that cover the majority of the historic Knife Lake Cu -Zn-Au-Ag-Co VMS
deposit. The claims cover an area of 2,470ha centered 74 km north of Pelican Narrows, Saskatchewan
and 131 km northwest of Flin Flon, Manitoba. The Knife Lake area saw extensive exploration from the
late 1960’s to the 1990’s with the last documented work program completed in 2001 . The claims are
100% owned by Eagle Plains and carry no underlying royalties or encumbrances.
Knife Lake Geology and History
The Knife Lake Project is interpreted to be a remobilized VMS deposit. The stratabound mineralized
zone is approximately 15 m thick and contains copper, silver, zinc and cobalt mineralization which dips
30° to 45° eastward over a strike-length of 4,500 m, with an average horizontal width of approximately
300 m. 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 deposit is hosted by felsic to intermediate volcanic and volcanicl astic rocks which have been
metamorphosed to upper amphibol ite facies. The deposit is typical of VMS mineralogy which has been
significantly modified and partially remobilized during the emplacement of granit ic rocks . The
mineralization straddles the boundary between two rock units and occurs on both limbs of an overturned
local fold.
Drilling has outlined a series of stratabound ore lenses which are controlled by complex geological
structures. In the copper mineralized zone, significant thickening of the mineralization occurs near the
central portion 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 following table outlines significant drill intercepts:
Table 1- Significant Drill Intercepts-Knife Lake Project*
Hole ID Width(m) From(m) To(m) Cu(%) Au(ppb) Ag(ppm) Co(ppm) Zn(ppm)
K-96-01 17.12 14.68 31.8 0.78 104 2.59 94 374
K-96-02 60.13 2.37 62.5 1.37 188 5.07 115 1182
K-96-04 14.15 6.85 21 1.25 332 4.05 126 0
K-96-11 17.78 10.35 28.13 1.52 169 4.69 140 0
K-96-16 16.47 25.93 42.4 1.09 159 4.39 93 0
K-96-18 31.2 16 47.2 1.4 188 5.73 94 0
K-96-22 31.98 29.1 61.08 0.98 53 2.85 115 0
K-96-25 25.75 18.52 44.27 0.82 54 2.7 81 531
K-96-27 29.12 11.64 40.76 0.57 109 2.84 59 656
K-96-32 18.02 29.2 47.22 1.08 101 3.65 103 2273
K-96-36 38.83 6.11 44.94 0.99 57 4.73 103 0
K-96-43 20.11 25.57 45.68 0.82 51 5.45 60 0
K-96-46 11.14 12.54 23.68 1.53 82 36.46 132 0
K-96-47 14.42 14 28.42 1.14 100 6.55 116 0
K-96-50 22.65 28.77 51.42 0.76 78 5.33 72 0
K-96-54 8.27 25.28 33.55 1.5 152 7.74 227 0
K-96-60 8.9 36.6 45.5 1.5 132 5.52 116 0
K-97-145 8.5 91.5 100 1.44 263 7.17 37 2281
K-97-167 16 24 40 1.47 117 5.79 110 2457
K-97-190 7.1 29.9 37 1.54 77 5.21 144 0
K-97-197 33.25 12.5 45.75 1.34 120 5.02 111 0
K-97-200 17.3 12.8 30.1 1.27 65 4.45 77 2635
K-97-209 9.3 75.7 85 0.35 1266 3.41 63 4557
K-97-237 4.2 18.7 22.9 1.58 115 6.09 87 1629
K-97-237 10.3 26 36.3 1.3 64 12.12 108 9548
K-97-259A 7.1 38 45.1 1.31 317 5.75 82 1635
K-97-62 10.2 30 40.2 1.17 143 4.73 87 0
K-97-65 16.85 5.8 22.65 1.18 161 4.43 55 0
K-97-97 5.4 4.6 10 1.34 97 4.74 67 0
K-98-274 4.3 3.2 7.5 0.97 42 2.83 17 642
K-98-274 20.5 22.5 43 1.26 58 3.48 108 823
K-98-274 9.4 54.3 63.7 0.57 22 1.64 48 168
K-98-310 10.75 9.25 20 0.5 119 2.36 30 994
K-98-312 5.2 95 100.2 1.06 331 6.41 35 985
TR-001 13 5.5 18.5 1.3 202 4.78 70 0
* intercepts in the above table refer to actual drilled thickness in meters and may not
represent the true thickness of the intercept
The first documented work in the Knife Lake showing area occurred between 1969-1973, consisting of
ground and airborne geophysical surveys and extensive soil geochemical sampling. The discovery drill-
hole, collared i n September, 1969, returned 2.37% Cu over 4.48m from 19.96 -24.44m, including 3.5%
Cu over 2.5m from 20.27 -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 E xploration and Development Company Ltd. later carried out a regional Airborne EM
geophysical survey in the Knife Lake – Scimitar Lake area, followed up by geological mapping,
prospecting, ground geophysics and diamond drilling. The property was subsequentl y optioned
Copperquest Incorporated in 1989, wh ich carried out further geophysical and geochemical surveys and
optioned the property to Leader Mining International in 1996. Between 1996 and 2001, Leader flew
various airborne geophysical surveys in the area , including electromagnetic (“ EM”), magnetic, and
gravity surveys . This was followed up with stripping and trenching of the outcropping deposit area.
Ground TEM, magnetic, ground IP/Resistivity and VLF-EM surveys were completed over and adjacent
to the main deposit area.
Between 1996 and 1998, Leader completed 315 drill holes , outlining a broad zone of mineralization
occurring at less than 100 meters depth (AF 63M-0006, Report 10). Late in 1998, Leader pu blished the
geological reserves of the deposit , reporting a drill-indicated resource of 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 million 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 sufficient
work to classify the historical estimates as current mineral resources or mineral reserves in a ccordance
with National Instrument 43-101. These estimates do not comply with current definitions prescribed by
National Instrument 43-101 or the Canadian Institute of Mining, and are disclosed only as indications of
the presence of mineralization and are considered a target estimate 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.
In 1997, Leader International s hipped a 2.4 tonne bulk sample of mineralized material excavated from
the surface outcrop of the Knife Lake d eposit to Lakefield Research Limited for metallurgical test -work.
Lakefield concluded that the copper metallurgy was straightforward. Following a simple flowsheet,
greater than 90% copper recovery was achieved at a concentrate grade of 28% Cu. Gold recovery in the
copper concentrate was 80%. The cobalt recovery in the copper cleaner concentrate was 13%, with 28%
of the cobalt present in cleaner tailing products. Another 48% of the cobalt was present in the sulphide
concentrate. Recommendations for further test -work included grind optimization and mineralogical
investigation to determine whether or not further upgrading of the cobalt is possible.
A 357kV powerline has recently been completed to within 16km of the Knife Lake Deposit area, greatly
enhancing the project’s infrastructure.
Future Plans
Eagle Plains has recently secured access to all available drill-core which was used to calculate the
historical resource published by Leader Mining in 2001 (see details below). The company intends to
appoint a Qualified Person (as defined by N.I. 43 -101 policy) to review and re -log the core in order to
create a comprehensive GIS database which will facilitate completion of an updated resource estimate.
Knife Lake Data and Core Access Agreement Executed
Eagle Plains has recently executed an agreement with J. Parres of Thunder Bay, Ontario (subject to
regulatory approval) whereby Eagle Plains has secured the 100% undivided right to existing data and
rights to access and sample existing core from approximately 315 holes drilled in 1996-1998 which form
the basis for the most recent resource calculations on the Knife Lake property. Under terms of the
agreement, Eagle Plains will make aggregate payments of $50,000 over a period of 5 years payable in
cash and shares, including an initial payment of 100,000 voting class common shares and $5,000 cash to
Mr. Parres.
Chico Property Acquisition
Further to the news release of November 6th, 2017, Eagle Plains has completed a transaction whereby it
has acquired a 100% interest (less 1% NSR) in claims adjoining its Chico project, located 120km east of
La Ronge, Saskatchewan. Aben Resources Ltd. (TSX -V: “ABN”) holds the exclusive right to earn an
undivided 80% interest in the property by completing $3.5M in exploration expenditures, issuing 2.5M
shares and making $150,000 in cash payments to Eagle Plains. Plans are underway to drill -test high -
priority targets on the property.
Proposed Plan of Arrangement - Taiga Gold Corp.
As announced on October 23 rd, 2017, Eagle Plains intends to spin -out specific gold exploration
properties in the Seabee/Santoy area located south of Knife Lake to a new publicly -listed entity named
Taiga Gold Corp. through a plan of arrangement expected to be completed in early 2018.
Charles C. Downie, P.Geo., a “qualified person” for the purposes of National Instrument 43 -101 -
Standards of Disclosure for Mineral Projects, has pr epared, 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. The Company is committed to steadily enhancing shareholder value
by advancing our diverse portfolio of projects toward dis covery 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 ou t 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, whic h 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
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.