Eagle Plains and Silver Standard Complete 2016 Exploration Program on Fisher Gold Project and Outline 2017 Exploration Plans
Eagle Plains and Silver Standard Complete 2016 Exploration Program
on Fisher Gold Project and Outline 2017 Exploration Plans
Cranbrook, B.C., January 9th, 2017: Eagle Plains Resources Ltd. (TSX-V:EPL) (“EPL” or “Eagle
Plains”) has recently received and interpreted final assays and geophysical data from the $400,000 2016
exploration program funded by Silver Standard Resou rces Inc. (TSX: SSO) (NASDAQ: SSRI) (“Silver
Standard”) on EPL’s 100%-owned Fisher project located 125km east of La Ronge, Saskatchew an and
contiguous to the north, south and east with Silver Standard’s Seabee Gold Operation. Silver Standard
holds an exclusive option to earn up to an 80% inte rest in the 34,000 ha property by completing $4M in
exploration expenditures, including the $400,000 for the 2016 exploration program, and making $3.3M in
cash payments (see details below). Fieldwork for 20 16 included a 3,590 line-km airborne geophysical
survey, geological mapping, trenching and till and soil geochemical surveys designed to define high-
grade gold targets for upcoming drilling activity.
Highlights
• Two new showings discovered at the George Lake Grid:
o Mineralization at the un-drilled BC-trench returned up to 143 g/t Au (grab) and 30.1 g/t Au
over 30cm (chip);
o The new King Fisher showing returned 1.4 g/t Au in quartz vein grab sample
• Footprint Grid:
o 2016 resampling of historical trench returned 11.6 g/t Au
o Follow-up prospecting of soil geochemical anomaly l ed to discovery of new vein system
with grab sample result of 19.4 g/t Au
• Kettle Falls Grid:
o 32 soil samples returned over 95 th percentile Au with best to 2300 ppb Au
o Soil results and three 2016 anomalous grab samples (2.6 g/t, 1.5 g/t, and 0.6 g/t Au) extend
the known strike-length of the Fisher mineralized zone to over 1100m
• Spark Lake/Santoy Extension: a 47-sample till surve y covering the southeastern strike-extension
of the Santoy mine fault has identified a 5 sample-cluster anomaly
• Other significant results verified at historical showings in 2016, include: 15.2 g/t Au (George Lake
Showing); 13.4 g/t Au (WEK Showing); and 4.1 g/t Au (Wilbert Showing)
See Fisher Project Exploration Highlight Map
The overall objective of the 2016 exploration program was to identify mineralization similar to that of the
nearby Seabee and Santoy deposits. The 2016 Fisher field program verified certain similarities to thos e
seen at the Seabee Gold Operation, including host l ithologies and contact relationships, style of
mineralization, and presence of multiple fault syst ems that allowed for high fluid flow regimes. The
Seabee Gold Operation has been in continuous produc tion since 1991 and has produced approximately
1.2M ounces of gold from the Seabee and Santoy depo sits. Ore geology at the Seabee Gold Operation
consists of high-grade vein mineralization associat ed with volcanic and mafic intrusive rocks which ha ve
been structurally disrupted by splays of the deep-crustal Tabbernor Fault system. The Tabbernor Fault is a
1500 km-long regional structure which has been trac ed from as far north as the Rabbit Lake uranium
mine in northern Saskatchewan to as far south as th e Black Hills of South Dakota, the latter of which
hosts the 40M oz Homestake gold deposit. The shared proximity to the Tabbernor fault and similarities in
terms of age and tectonic history to the Homestake and Seabee deposits was the main driving force
behind EPL’s interest in acquiring the Fisher property.
The Seabee Gold Operation and the Fisher Project ov erlie the Pine Lake greenstone belt. Mineralization
at the Seabee Gold Operation is affiliated with the more westerly-oriented Laonil Lake shear zone whic h
is a splay of the north-trending Tabbernor Fault. F ield and underground observations at Seabee indicat e
that shear structures nucleated at contacts between felsic intrusive and mafic intrusive or volcanic
lithologies, with high-grade zones forming at fault intersections. Management cautions that past results
or discoveries on proximate land are not necessaril y indicative of the results that may be achieved on the
subject properties.
2017 Exploration Plans
Permitting is underway to mobilize heavy equipment to the property via winter road access in preparati on
for 2017 spring and summer exploration. Exploration plans include detailed geological mapping,
extensive soil geochemical sampling, trenching and diamond drilling. The goal of the 2017 work program
is to identify gold mineralization in geological se ttings similar to those recognised at the Seabee Go ld
Operation.
Details of the Fisher Option Agreement
To earn a 60% interest over four years, Silver Stan dard has agreed to complete $4,000,000 in explorati on
expenditures, make an initial cash payment to Eagle Plains of $100,000 and make annual cash payments
of $75,000 for each of the four years of the option period. Silver Standard funded the $400,000 2016
exploration program completed by Eagle Plains (see news releases July 18, 2016 and September 12,
2016), which is included in the $4,000,000 explorat ion expenditures. Once the 60% earn-in has been
completed, Silver Standard has a 90-day, one-time option to earn an additional 20% interest (for a tot al of
80%) by making a cash payment of $3,000,000 to Eagl e Plains, at which time an 80/20 joint venture will
be formed to further advance the property. Eagle Pl ains will retain a 2.5% Net Smelter Return (“NSR”),
subject to reduction on certain claims by underlying NSR agreements. Eagle Plains’ NSR may be reduced
by 1% at any time upon payment of $1,000,000 by the joint venture. In addition, Eagle Plains will receive
advance royalty payments of $100,000 annually from the joint venture until commencement of
commercial production.
Additional Eagle Plains Projects in the Area
Eagle Plain’s 100%-owned Chico and Orchid projects are located south of the Fisher property and
contain similar geology and mineralization as the F isher project (see location map). Both properties
overlie significant strike-lengths of the Tabbernor structure in addition to hosting mineralized splay
structures interpreted to be related to Tabbernor.
As announced by EPL on December 13 th, Eagle Plains and Aben Resources Ltd. (TSX-V-ABN)
(“Aben”) have executed an agreement whereby Aben ho lds the exclusive right to earn up to an 80%
interest in the Chico property by completing $3.5M in exploration expenditures, issuing 2.5M shares of
Aben and making $150,000 in cash payments to Eagle Plains (subject to TSX-V approval).
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 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 exploration proj ects. In addition, Eagle Plains continues to seek o ut
and secure high-quality, unencumbered projects through research, staking and strategic acquisitions. Since
2012, Eagle Plains has added to its portfolio a num ber of new projects exceeding 130,000 ha targeting
mainly gold, uranium and base-metals in Saskatchewa n, 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, the Company’s mission is to help maintain prosper ous
communities by exploring for and discovering resour ce opportunities while building lasting relationshi ps
through honest and respectful business practices.
Expenditures from 2011-2015 on Eagle Plains-related projects were approximately $15.5M, which was
funded by Eagle Plains and, for the most part, by t hird-party partners. This exploration work resulte d in
approximately 15,000 m of diamond-drilling and exte nsive ground-based exploration work facilitating th e
advancement of numerous projects at various stages of development.
Technical aspects of this news release have been reviewed by Jarrod Brown, P.Geo.
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.