Eagle Plains and Blind Creek Execute Purchase Agreement for AB Zinc Property, NWT
Eagle Plains and Blind Creek Execute Purchase Agreement
for AB Zinc Property, NWT
Cranbrook, B.C., July 27th, 2017: Eagle Plains Resources Ltd. (TSX-V: “EPL”) and Bl ind Creek
Resources Ltd. (“Blind Creek” or the “Company”) have executed a formal agreement whereby Blind
Creek has the exclusive right to purchase a 100% un divided interest in the 3000 ha AB Zinc Property
(the “Property”) located 263 km west of Norman Well s, N.W.T. Highly prospective for Mississippi
Valley-Type (“MVT”) Lead-Zinc deposition, previous exploration at the AB Property has located
coincident geological, geochemical and geophysical features that may represent large buried mineralize d
systems.
Under the terms of the agreement Blind Creek can ac quire a 100% interest in the Property by issuing to
Eagle Plains a total of 2,000,000 common shares of Blind Creek, with an initial tranche of 1,000,000
common shares due upon TSX-Venture acceptance of th e agreement and the final tranche of 1,000,000
common shares 30 months later. In the event that th e Property is placed into Commercial Production
Eagle Plains shall be entitled to a royalty of 2% o f net smelter returns with a 1% buyback to 1% upon
payment of $CDN1,000,000 to Eagle Plains, and a sec ond option to purchase the remaining 1% NSR
upon payment of $CDN 7,000,000.
The AB Property acquisition fully compliments Blind Creek’s focus on developing a quality portfolio of
100%-owned properties with geological characteristi cs and signatures supportive for the potential
discovery and development of large tonnage, high-gr ade Lead-Zinc-Silver deposits. The Company is
currently formulating plans to advance the AB prope rty and drill-test known I.P. geophysical anomalies
for MVT Lead-Zinc mineralization.
Mississippi Valley-Type Pb-Zn Mineralization Confirmed at AB Property
Historic work by Welcome North Mines first identifi ed carbonate hosted Zinc-Lead mineralization on
the AB Property in 1974. Eagle Plains Resources wor k between 2005-2008 was driven by the carbonate-
hosted Mississippi Valley-Type (“MVT”) Zinc-Lead de posit model, with notable northern Canada MVT
deposit-type examples that include the Pine Point, Nanisivk and Polaris mines. Eagle Plains successful ly
improved the geological and geochemical understandi ng of the AB Property, adding to the number of
known mineralization occurrences and locating highl y prospective geophysical IP anomalies that could
potentially represent large buried mineralization systems.
Welcome North Exploration Work (1974-1977)
Carbonate-hosted Lead-Zinc mineralization at the AB Property was first identified in 1974 by Welcome
North Mines as part of the Arctic Red Joint Venture. Welcome North undertook ground based geological
exploration between 1974-1977, including soil geoch emistry, rock sampling, geological mapping,
trenching and a total of 9 short diamond drill hole s. Two separate high grade stratabound mineralized
horizons were identified at the AB-C area. Blast tr enching of the AB-C mineralization in 1976 indicate d
that the lower horizon was continuous for 225 feet (69m) between trenches. Assay results from grab and
trench samples returned values from trace to 30.9% Zinc. Grab samples from the trenches ranged from
5.8% Zinc to 30.9% Zinc. Chip samples collected from the trenches returned values including:
TRENCH Chip Distance (metres) Zinc (%)
1 Upper 1.5m vertical 5.76
3 1.1m vertical 11.60
4 Upper 1.8m vertical 5.88
7 Lower 1.5m vertical 14.40
8 2.7m horizontal 12.96
9 1.5m horizontal 12.56
9 1.2m horizontal 10.52
10 Upper 1.5m vertical 11.88
10 Mid 0.9m vertical 10.64
10 Lower 1.5m vertical 5.80
Diamond drilling results in the area of the AB-C tr enches indicated that all facies of the Sekwi dolom ites
intersected were mineralized. (Arctic Red Joint Venture Progress Report 76-3 - Oct.1976)
Neither Eagle Plains nor Blind Creek has been able to independently verify the methodology and results
from historical work programs within the property b oundaries. However, management of both
Companies believe that the historical work programs were conducted in a professional manner and the
quality of data and information produced from them are relevant.
Eagle Plains Exploration Programs (2005-2008)
Eagle Plains initiated tenure acquisition in the AB area in 2005, following a reconnaissance field
program which verified the potential for a Mississippi Valley Type (MVT) target.
The most recent work on the property was completed by Eagle Plains in 2008. Mapping, prospecting,
geochemical surveys and ground-based geophysics wer e conducted resulting in the discovery of 14 new
mineralized occurrences, most notably the Link and Twist. Grid soil geochemistry located several multi-
element (Pb-Zn-Fe) anomalous zones, some of which remain open.
An Induced Polarization geophysical survey located two extensive anomalies at the AB-C, with one
appearing to be stratigraphically controlled over a 500 m strike length. The other is a 1 km length
structurally controlled zone between the AB-C Zone and the Link Showing. The AB-C Zone is
interpreted to be an ideal IP target as it is clear ly associated with an upper marcasite “cap” consist ing of
a barite + marcasite +/- sphalerite stockwork hosted in the ooid member of the Sekwi Formation.
AB Property Geology
The dominant regional lithologies are thick-bedded limestone and dolomite beds belonging to the
Cambrian Franklin Mountain and Sekwi Formations whi ch overlie similar lithologies in the Proterozoic
to Cambrian Backbone Ranges Formation. The Sekwi Fo rmation contains skeletal, oolitic, recrystallized
and silty dolomite members. All four members of the Sekwi Formation are mineralized, but the ooid
layer appears from geochemical and geophysical anal ysis to be preferentially mineralized. The Franklin
Mountain Formation also contains recrystallized, oo litic and silty dolostone members and mineralizatio n
is confined to the oolitic and skeletal members.
Two large E-W trending faults, 2 km apart, occur on the property. The more northern fault located near
the center of the property appears to be an importa nt conduit for mineralizing fluids. Many of the
mineral showings are located near or on smaller faults splaying off and bounded by the two.
Technical aspects of this news release have been re viewed by Mr. C.C. (Chuck) Downie, P.Geo., Vice
President Exploration for Eagle Plains Resources Lt d. and a Qualified Person (Q.P.) as defined by
National Instrument 43-101.
About Eagle Plains Resources Ltd.
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 towa rd 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 explora tion projects. In addition, Eagle Plains continues to
seek out and secure high-quality, unencumbered proj ects 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 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 resour ce opportunities while building lasting relationshi ps
through honest and respectful business practices.
Expenditures from 2011-2016 on Eagle Plains-related projects were approximately $16.0M, which was
funded by Eagle Plains and, for the most part, by t hird-party partners. This exploration work resulted in
approximately 15,000 m of diamond-drilling and exte nsive 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.