Eagle Plains and Rockridge Execute Option Agreement on the Knife Lake VMS Project in Saskatchewan
Eagle Plains and Rockridge Execute Option Agreement on the Knife
Lake VMS Project in Saskatchewan
Cranbrook, B.C., November 1st , 2018: Eagle Plains Resources Ltd. (“EPL ”:TSX-V, or “Eagle
Plains”) and Rockridge Resources Ltd. (“ROCK” TSX -V, or “Rockridge”) have entered into an
agreement (subject to regulatory approval) whereby Rockridge may earn a 100% interest in Eagle
Plains’ 100% -owned Knife Lake Project , located approximately 50 kilometers northwest of the
community of Sandy Bay, Saskatchewan. The 85,196 ha Knife Lake clai ms cover both the historical
Knife Lake VMS deposit and an extensive, under -explored regional VMS target area. 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.
Link to Knife Lake regional map:
https://www.eagleplains.com/sites/default/files/2018.11.01_Knife_Lake_Region.pdf
To earn a 100% interest, Rockridge has agreed to make a cash payment to Eagle Plains of $150,000
upon regulatory approval, issue up to 5,250,000 common shares of Rockridge and complete $3,250,000
in exploration expenditures over four years. Eagle Plains will retain a 2% net smelter royalty (“NSR”) on
certain claims which comprise the project area. The proposed transaction is subject to the completion of
a National Instrument 43 -101 technical report on the Property, currently being prepared by an
independent consultant.
Knife Lake Geology and History
The Knife Lake deposit lies within the Scimitar Complex, which is believed to be the disconnected,
northwest extension of the northern Flin Flon domain and the Amisk Volcanic package, which hosts
massive sulphide mineralization in the Flin Flon –Snow Lake m ining district, 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 This information is provided on ly as historical reference.
Management cautions that past results or discoveries 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 cobalt mineralization which dips 30° to
45° eastward over a strike-length of 4,500 m, with an aver age horizontal width of approximately 300 m.
The deposit is hosted by felsic to intermediate volcanic and volcaniclastic rocks which have been
metamorphosed to upper amphibolite facies. The deposit is typical of VMS mineralogy which has been
significantly modified and partially remobilized during the emplacement of granitic 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 first documented work in the Knife Lake showing area oc curred between 1969 -1973, consisting of
ground and airborne geophysical surveys and extensive soil geochemical sampling. The discovery drill -
hole, collared in 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 Exploration and Development Company Ltd. later carried out a re gional 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 subsequently optioned by
Copperquest Incorporated in 1989, which 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 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, outl ining a broad zone of mineralization
occurring at less than 100 meters depth (AF 63M -0006, Report 10). Late in 1998, Leader published 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).*
A 357kV powerline has recently been completed to within 16km of the Knife Lake Deposit area, greatly
enhancing the project’s infrastructure.
Tim Termuende, President and CEO of Eagle Plains commented recently on the transaction: “ we are
pleased to be working with Rockridge on the Knife Lake Project. Rockridge brings to the table a solid
management team with strong financial and marketing abilities, while Eagle Plains will maintain
significant upside exposure to the project through its sizeable shareholdings in Rockridge and the
retention of an NSR. By farming-out Knife Lake, Eagle Plains stays true to its proven model as a project
generator and will continue its ’ focus of researching , identifying and acquiring new exploration
opportunities in western Canada without the attendant dilution that invariably accompanies specific
project development.”
Future Plans
The Knife Lake Project has a drill permit in place and Rockridge is planning for an initial diamond drill
program in early 2019.
Charles C. Downie, P.Geo., a “qualified person” for the purposes of National Instrument 43 -101 -
Standards of Disclosure for Mineral Projects, has prepared, reviewed, and approved the scientific and
technical disclosure in the news release.
Other Saskatchewan VMS Projects
As announced on September 12, 2018 Eagle Plains has recently acquired the historic Schotts Lake Cu -
Zn VMS deposit located 40km northwest of Flin Flon, Manitoba . The Schotts Lake property hosts
metamorphic and intrusive rocks whi ch are dominantly volcanic in origin and associated with an island
arc environment. The rocks are folded into an easterly-dipping synform.
Mineralization consists of semi -massive to massive pyrrhotite and pyrite with associated chalcopyrite
(copper) and sphalerite (zinc) mineralization. The Schott’s Lake deposit is interpreted to be a typical
exhalative massive sulphide zone. The mineralized zone has an average thickness of 20.4m, is
overturned and lies on the eastern limb of a major north -easterly plunging fold. The deepest mineralized
intercept is at a vertical depth of 266 meters with mineralization open to depth.
A number of different his torical resources have been estimated for the Schott’s Lake Deposit (SMDI
0320). They range from 925,000 tons averaging 0.64% Cu, 1.16% Zn (Hudson Bay Exploration and
Development 1954) to 4.5 million tonnes of 0.41% Cu, 1.26% Zn (Aur Resources 1998). The m ost
recent resource estimate was by Aur in 2003 who estimated a Geological Resource of 1,985,850 tonnes
grading 0.61% Cu and 1.35% Zn.*
*Eagle Plains’ management considers these estimates to be historical in nature and cautions that a
Qualified Person ha s not done sufficient 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 National Instrument 43 -101 or the Canadian Institute of
Mining, and are disclosed only as indications of the presence of mineralization and are considered to be
a guide for additional work. The historical models and data sets used to prepare these historical
estimates are not avai lable to Eagle Plains, nor are any more recent resource estimates or drill
information on the Property.
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, whi ch 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.