Eagle Plains and Xcite Execute Option Agreement for Multiple Athabasca Basin Uranium Projects
Eagle Plains and Xcite Execute Option Agreement for Multiple
Athabasca Basin Uranium Projects
Cranbrook, B.C., December 14, 2023: Eagle Plains Resources Ltd. ( “EPL”:TSX-V, or “Eagle
Plains”) has executed six individual option agreements with Xcite Resources Inc. (“XRI”: TSX -V, or
Xcite) a BC corporation, whereby Xcite may earn up to an 80% interest in six individual uranium projects
totalling 5905 ha located near Uranium City in northern Saskatchewan.
Under the terms of the agreement, Xcite may earn an 80% interest in each individual property by
completing CDN$3,200,000 in explo ration expenditures, issuing 750,000 common shares of Xcite and
making cash payments to Eagle Plains of CDN$55,000 over four years, for an aggregate of
CDN$19,200,000 in exploration expenditures, 4,500,000 shares and $330,000 in cash to Eagle Plains.
Upon Xcite fulfilling the terms of any or all of the earn -in agreements, an 80/20 joint venture will be
formed, with Eagle Plains retaining a carried interest in all expenditures until delivery by Xcite or its
assigns of a bankable feasibility study. During the option earn in period, XRI will be appointed as operator,
and EPL will manage the exploration programs under the direction of a joint technical committee. The
projects are owned 100% by EPL, who will retain an underlying 2% NSR royalty on the each of the
properties.
Tim Termuende, P.Geo. President and CEO of Eagle Plains commented recently on the transaction: “We
are excited to partner with Xcite to accelerate exploration of the Uranium City projects. Considering the
rich production history of many of the individual projects, we welcome the opportunity to conduct modern
exploration methods combined with continually advancing geological understanding of the genesis and
controls of uranium mineralization known to exist there.”
Chris Cooper, Xcite ’s Chairman of the Board commented, “We are pleased to enter the world’s best
uranium district with a premier portfolio of properties that have demonstrated high -grade surface
showings with a strong potential for a world-class discovery. This transaction will lead us to the forefront
of the energy metal arena and allow our shareholders to capitalize on the emerging uranium market.”
Athabasca Basin History and Mineralization
The Beaver River , Black Bay , Don Lake , Gulch, Larado, and Smitty projects are located in t he
Beaverlodge District near Uranium City in the Lake Athabasca region of Saskatchewan. Occurrences of
uranium mineralization are abundant in the Uranium City area and have been explored and documented
since the 1940s. The Beaverlodge camp was the first uranium producer in Canada, with historic production
of approximately 70.25 million pounds of U3O8 between 1950-1982, from ore grades averaging 0.23%
U3O8. The two largest producers were the Eldorado Beaverlodge (Ace-Fay-Verna) mine and the Gunnar
uranium mine. The Beaverlodge area has seen limited uranium focused exploration since the early 1990’s.
Eagle Plains’ 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.
Beaverlodge-style uranium deposits host structurally controlled, high grade mineralization in veins and
breccia-fills within basement rocks. Mineralization often occurs at geological contacts and consists of
structures filled with hematite , chlorite and graphite associated with pitchblende (an ore mineral of
uranium).
See Athabasca Basin Area Map here
Athabasca Basin Project Summaries
Beaver River (1455 ha)
• four SMDI occurrences
• grab samples from VIC U-Cu-Ni occurrence (SMDI 1553) returned from trace values up to 27.62%
U3O8, 36.30% U3O8 and 29.70% U3O8 (AF 74O05-0051); mineralized zone approximately 1097m
in length (AF 74O05-0066)
• Rock chip samples at SMDI 1994, 800m southeast of VIC occurrence, returned U3O8 values of
29.89% over 29.2cm, 18.09% over 15.2 cm and 3.09% over 60.9 cm (AF 74O05-0077)
Black Bay (1114 ha)
• six SMDI occurrences
• Black Bay Uranium Mine (SMDI 1296) discovered in 1953; mineralization developed in three
main shoots discovered along a strike length of approximately 152.4m (500’) and a down -dip
distance of 731.5m (2400’); 1355 tons produced at 0.17% U3O8
• Grab samples from drill core at Bluegrass U Zone (SMDI 1295), located 600m northwest of Black
Bay Mine, returned 16.74% U3O8 and 9.64% U3O8 at a depth of 12.8m
Don Lake (524 ha)
• six Saskatchewan Mineral Deposit Index (“SMDI”) occurrences
• discovered in 1950 by Eldorado Mining and Refining
• drilling at Don Lake A,B, and C Zones (SMDI 1393) returned values of 10.7% U3O8 over 0.3m in
DDH No. 23 and 2.14% U3O8 over 0.67m in DDH No.6 from a sheared and brecciated granite (AF
74N10-0422)
• A Zone mineralization continuous over approximately 213m
Gulch (1685 ha)
• 20 km SW of Uranium City
• four SMDI occurrences
• uranium mineralization associated with regional Black Bay structure
• 1953-57 underground development at Gulch Uranium Mine (SMDI 1221) outlined 11 mineralized
shoots
• 1954 trenching at Lucy (SMDI 1223) returned values from below detection to up to 0.37% U 3O8
over 3m
• Duvex Oils and Mines Radioactive Zones (SMDI 1224) grab samples returned values from trace
up to 2.23% U3O8
• Last documented work in 2015 concluded that anomalous U mineralization was structurally
controlled similar to the past -producing Gulch uranium mine and further work, including deeper
drilling, was recommended for the property
Larado (245 ha)
• 10km S of Uranium City along Saskatchewan Provincial Highway 962
• 3 SMDI occurrences
• Larado Uranium Mine (SMDI 1228) saw extensive underground development and production from
1953-1960; structurally controlled uranium mineralization associated with graphite and pyrite
• Pitchie Uranium Zone (SMDI 1229) is located 850m southwest of the Larado Mine; main
zone uranium mineralization exposed on surface for 91m; historical work includes
approximately 50 diamond drill holes, the majority of which were less than 100m in
length
Smitty (849 ha)
• 2 SMDI occurrences
• uranium mineralization first discovered in 1950
• underground development started in 1952 with a shaft and a number of sublevels
• in 1954 the Smitty became the first privately owned uranium producer in Canada with
mineralized material shipped to the nearby Eldorado mill
Rock grab samples are selective samples by nature and as such are not necessarily representative of the
mineralization hosted across the property.
The above results were taken directly from the SMDI descriptions and assessment reports filed with the
Saskatchewan government. Management cautions that historical results were collected and reported by
past operators and have not been verified nor confir med by a Qualified Person, but form a basis for
ongoing work on the subject properties. 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.
Eagle Plains currently holds a 100% interest in 19 individual projects comprising a total of 36,350 ha of
mineral dispositions in Saskatchewan covering both basement and unconformity hosted uranium targets .
The projects range from early-stage grassroots to drill ready and are distributed throughout the prospective
Athabasca Basin including the Patterson Lake South (PLS), Beaverlodge, and Dufferin-Centennial camps.
A detailed compilation and interpretation of available data from historical work programs has begun and
will lead to recommendations for future work.
See EPL Saskatchewan U Project Map here
Qualified Person
Technical information in this News Release has been reviewed and approved by C.C. Downie, P.Geo., a
director and officer of Eagle Plains, hereby identified as the “Qualified Person” under N.I. 43-101.
About Eagle Plains Resources
Based in Cranbrook, B.C., Eagle Plains is a well -funded, prolific project generator that continues to
conduct research, acquire and explore mineral projects throughout western Canada. The Company was
formed in 1992 and is the ninth-oldest listed issuer on the TSX-V (and one of only three that has not seen
a roll-back or restructuring of its shares). Eagle Plains has continued to deliver shareholder value over the
years and through numerous spin -outs has transferred over $100,000,000 in value directly to its
shareholders, with Copper Canyon Resources and recently Taiga Gold being notable examples. Eagle
Plains latest spinout, Eagle Royalties (CSE:ER) was listed on May 24, 2023, and holds a diverse portfolio
of royalty assets.
Eagle Plains’ core business is acquiring grassroots critical- and precious-metal exploration properties. 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.
Expenditures from 2011-2022 on Eagle Plains-related projects exceed $30M, the majority of which was
funded by third -party partners. This exploration work resulted in approximately 45,000m of diamond -
drilling and extensive ground-based exploration work facilitating the advancement of numerous projects
at various stages of development.
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.
On behalf of the Board of Directors of Eagle Plains
“C.C. (Chuck) Downie, P.Geo”
Vice President, Exploration and Director
For further information on EPL, please contact Mike Labach at
1 866 HUNT ORE (486 8673)
Email: [email protected] or visit our website at https://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.