Eagle Plains Options Pine Channel Gold Project to Tri Capital
Eagle Plains Options Pine Channel Gold Project to Tri Capital
Cranbrook, B.C., May 12th, 2021: Eagle Plains Resources Ltd. (TSX-V:EPL) (“EPL”
or “Eagle Plains”) and Tri Capital Opportunities Corp (“TCAP”, TCAP.P:TSX -V)
have executed a formal option agreement (the “Option Agreement”) whereby TCAP may
acquire up to a n 80% interest in EPL’s 6,500 ha, 100% -owned Pine Channel project
located 43 km west of Stony Rapids, Saskatchewan (the “Property”). Limited drilling has
been completed in and around the property area by past operators, which resulted in the
successful delineation of mineralization to shallow depths. Potential to test for further
continuity at depth is considered to be excellent.
To earn a n 80% interest in the property, TCAP will complete $3 ,000,000 in ex ploration
expenditures, issue 2,000,000 voting class common shares to Eagle Plains and make
$150,000 in cash payments over a 4-year period (see details below). EPL will retain a 2.0%
net smelter returns royalty on the Property (subject to underlying royalties on certain areas
of the Property ), which royalty may be purchased by TCAP at any time for
CDN$1,000,000. TCAP will be operator of the project.
Eagle Plains acquired the project in 2018 -2020 by staking and in part, by purchase from
third-party vendors. In 2019 and 2020 EPL completed field programs designed to evaluate
and confirm the nature of mineralization previously documented at historical showings.
See Pine Channel Project Map here
Pine Channel Gold Property Summary
The Pine Channel Property consists of 28 mineral dispositions covering 6,502.63 hectares
located approximately 40 km west of Stony Rapids, Saskatchewan -the logistics/business
hub for northern Saskatchewan. The property can be accessed year-round by float- or ski-
equipped aircraft from Stony Rapids , S K. or Fort MacMurray, AB. The eastern and
northern part of the property is transected by a high -voltage powerline. Most geological
fieldwork is limited to late May to October but other operations such as geophysical
surveys and diamond drilling can be completed year-round.
Highlights from documented historical work include:
▪ North Norite Bay (SMDI 2183): 407.96 g/t (14.39 oz/T) Au over 0.5 m (drill hole)
▪ ELA (SMDI 1574): 39.96 g/t (1.41 oz/t) Au over 0.55 m (drill hole)
▪ Holes G-1 and G-3 (SMDI 2329): 3.20 g/t Au over 1 m (drill hole)
▪ Occurrence No. 6/Occurrence No. 8 (SMDI 1581): 90.6 g/t (3.20 oz/T) Au over 0.2 m
(trench)
▪ Cole Lake Ni-Cu (SMDI 1583): 0.45% Ni over 7.0 m (drill hole), 6.2 g/t Au, 0.01% Ni
and 0.06% Cu over 3.0 m (trench)
The main deposit type that is being explored for at Pine Channel is structurally controlled
vein-quartz (lode) gold deposits. Mineral occurrences on the Pine Channel Property contain
predominantly gold, with rare base -metal occurrences. Within the Pine Cha nnel tenures
there are eighteen historical showings reported by the Saskatchewan Mineral Deposit Index
(SMDI).
Government mapping in the Pine Channel area dates from 1913, with the first industry
work reported in 1950. A total of 51 assessment reports have been filed within the current
Pine Channel tenure area. Past operators include Golden Rule Resources Ltd. and Colchis
Resources Ltd. who were both active on the project during the 1980’s, the last sustained
period of exploration in the area. The most recent work prior to Eagle Plains acquiring the
claims in 2018 was in 2013 when the area was flown with an airborne Variable Time
Domain Electromagnetic (“VTEM”) survey focused on locating targets for diamond
exploration. There has been a total of 6,066 meters of diamond drilling in 115 historic holes
completed within the current Pine Channel property claim boundaries with the majority of
the holes completed less than 100 meters in length. Although the wide-spaced drilling did
intersect significant gold minera lization in places, much of the drilling was completed
using thin diameter core which is considered in effective for assessing the high -grade
“nuggety” gold shears and veins found at Pine Channel.
The first recorded systematic exploration work on the Pine Channel property was in 1950
by Goldfields Uranium Mines. The first significant program on the property was in 1980
by Golden Rule Resources who completed 246 line -km of airborne EM (INPUT) and
magnetic surveying. Fo llow-up ground work located 11 significant occurrences. From
1985-1988 Colchis Resources completed VLF -EM geophysics, biogeochemical surveys,
prospecting, soil sampling and trenching followed by shallow diamond drill testing of
selected targets.
The Pine Channel project lies within the Tantato Domain which is composed of highly
deformed gneisses which form the eastern margin of the Archean Rae Craton.
Metamorphic rocks which have been subject to varying degrees of strain form the majority
of the property area.
The above results were summarized from 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 confi rmed by a
Qualified Person, but form a basis for ongoing work in the Pine Channel property area.
In 2019-2020, Eagle Plains completed field programs focused on prospecting and mapping
in areas of known mineral occurrences. The work confirmed the widespread occurrences
of auriferous quartz veins and associated shear systems in the Pine Channel property.
Analytical results from the seventy-two rock samples collected in 2020 range from 6 ppb
Au to 68,400 ppb Au. Twenty-three of the samples returned greater than 1 g/t Au, and eight
returned greater than 10 g/t Au. The most encouraging of the known showings are the ELA
Shaft showing (SMDI 1574) and Occurrence No. 6 and No. 8 (SMDI 1581), which both
demonstrate anomalous gold geochemical results and pote ntial for extension of known
mineralization along strike.
Pine Channel Option Details
Pursuant to the terms of the Option Agreement, upon and subject to receipt of Exchange
acceptance for TCAP’s Qualifying Transaction, TCAP will have the right to acqu ire an
80% interest in the Pine Channel Property by:
paying to EPL an aggregate of CDN $150,000 in cash according to the
following schedule:
(i) $25,000 on the Effective Date (date of execution of the formal
agreement);
(ii) an additional $25,000 in cash on or before December 31st, 2021;
(iii) an additional $50,000 in cash on or before December 31st, 2022; and
(iv) an additional $50,000 in cash on or before December 31st, 2023;
issuing to EPL an aggregate of 2,000,000 Shares, according to the following
schedule:
(i) 200,000 Shares on the Bulletin Date;
(ii) an additional 300,000 Shares on or before December 31st, 2021;
(iii) an additional 300,000 Shares on or before December 31st, 2022;
(iv) an additional 500,000 Shares on or before December 31st, 2023; and
(v) an additional 700,000 Shares on or before December 31st, 2024; and
incurring aggregate Exploration Expenditures on the property of:
(i) $500,000 on or before June 30th, 2022;
(ii) an additional $500,000 on or before June 30th, 2023;
(iii) an additional $800,000 on or before June 30th, 2024; and
(iv) an additional $1,200,000 on or before June 30th, 2025.
Upon the exercise of the Option and the acquisition of an 80% interest in the Pine Channel
Property by TCAP, the Optionor will retain a 2.0% net smelter returns royalty on the Pine
Channel Property, and 1.0% of the net smelter returns royalty may be purchased by TCAP
at any time for CDN$1,000,000. TCAP will be Operator of the project throughout the term
of the option.
Charles C. Downie, P.Geo., a “qualified person” for the purposes of National Instrument
43-101 - Standards of Disclosure for Mineral Project s and a Director of Eagle Plains
Resources Ltd., has prepared, reviewed, and approved the scientific and technical
disclosure in this 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 discovery through collaborative
partnerships and development of a highly experie nced technical team. Eagle Plains also holds
significant royalty interests in western Canadian projects covering a broad spectrum of
commodities. Management’s focus is to advance its most promising exploration projects. In
addition, Eagle Plains continues to seek out and secure high -quality, unencumbered projects
through research, staking and strategic acquisitions. 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 2011-2020 on Eagle Plains-related projects exceed $22M, the majority of which
was funded by third-party partners. This exploration work resulted in approximately 37,000 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 there fore, involve inherent risks and uncertainties. Actual results may differ materially from those currently
anticipated in such statements.