Eagle Plains’ Partner Aben Resources Makes Cash and Share Payments, Plans Winter Drill Program for Chico Gold Project, Saskatchewan
Eagle Plains’ Partner Aben Resources Makes Cash and Share Payments,
Plans Winter Drill Program for Chico Gold Project, Saskatchewan
Cranbrook, B.C., January 11th, 2018: Eagle Plains Resources Ltd. (TSX-V: “EPL”) has received a
$25,000 cash payment and 250,000 common shares from Aben Resources Ltd. (TSX -V: “ABN”)
confirming Aben’s intention to maintain the existing option agreement on EPL’s 100%-owned, 4,657 ha
Chico Gold Project located 125km east of La Ronge, Saskat chewan and 40km south of SSR Mining’s
(formerly Silver Standard Resources ) Seabee Gold Operation. Details of the option agreement are
outlined below. Aben has indicated that it intends to carry out diamond drilling on the Chico property in
late-February, 2018. Permitting and detailed planning for the program is currently underway. Chico
drilling activity is expected to be conducted concurrently with a 10,000m winter drill program to be
carried out and funded by partner SSR Mining Inc. on Eagle Plain’s Fis her Property, located 6km north
of Chico (see EPL news release January 8th, 2018).
Chico Property Highlights and Exploration Activity
Chico property highlights include the presence of a 1.5 km-long mineralized structural corridor which is
confirmed by geological mapping geophysical and soil geochemical surveys. Sporadic historical drilling
has been completed in the area and has returned high-grade gold intercepts of up to 9.6 g/T (0.424
oz/ton) gold over 2.0m and 36.3 g/T gold over 0.3 metres.
Eagle Pl ains in 2016 contracted TerraLogic Exploration of Cranbrook, B.C. to complete systematic
fieldwork on the property including a 661 line-km airborne magnetometer geophysical survey, mapping,
trenching and soil geochemical surveys . Rock samples collected along this along this structural corridor
ranged from trace quantities to 20.2 g/t Au. Soil sample results include numerous highly -anomalous
samples ranging to 4.5 g/t gold. During 2017, Eagle Plains and Aben conducted a detailed Induced
Polarization (“I.P.”) geophysical survey designed to define high -grade gold targets. This work resulted
in numerous high-priority drill targets being identified, many of which will be tested during the planned
winter program.
The overall objective of the 2016 and 2017 programs was to identify mineralization , alteration and
structural features similar to those at the nearby Seabee and Santoy deposits. The Seabee Gold Operation
has been in continuous production since 1991 and has produced 1 .2M ounces of gold from the Seabee
and the Santoy deposits. Ore geology at the Seabee Gold Operation consists of high -grade vein
mineralization associated with shear zones that transect mafic meta -volcanic and intrusive rocks, as well
as granitic rocks emplaced during the region al deformation events impacting the Pine Lake greenstone
belt during the Proterozoic. The Seabee Gold Operation and the Chico Project occur within the Pine
Lake greenstone belt. Mineralization at the Seabee Gold Operation occurs at the Seabee and Santoy
mines, which are located approximately 14kms apart. The former is affiliated with the more westerly -
oriented Laonil Lake shear zone , while the latter is hosted on a regional north -trending shear zone
associated with the Tabbernor Fault, which has been trace d over much of the property. Field and
underground observations at the Seabee Gold Operation suggest that shear structures nucleated at
contacts between granodiorite and meta -volcanic lithologies, with high -grade zones forming at minor
flexures.
The Tabbernor Fault is a 1500 km-long regional structure which has been traced from as far north as the
Rabbit Lake uranium mine in northern Saskatchewan to as far south as the Black Hills of South Dakota,
the latter of which hosts the 40M oz Homestake gold d eposit. The shared proximity to the Tabbernor
structure and similarities in terms of age and tectonic history to the Homestake and Seabee /Santoy
deposits was the main driving force behind both Eagle Plains’ and Aben’s interest in the Chico property.
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 and Aben recently acquired 6 additional mineral dispositions for a total area of 1, 799 ha
located adjacent to the original holdings through a combination of staking and the completion of a
purchase agreement with an unrelated third-party (see news release November 6th, 2017).
Chico Option Agreement
Aben may earn an initial 60% interest in the Chico property by incurring $1,500,000 in exploration
expenditures, issuing 1,500,000 common shares and making cash payments totalling $100,000 over 4
years. Upon earning this 60% interest, Aben may elect to ex ercise a second option to earn a further 20%
interest by incurring an additional $2,000,000 in exploration expenditures, issuing 1,000,000 common
shares, and making $50,000 cash payments within two years of the date of election.
Proposed Plan of Arrangement-Taiga Gold Corp.
As announced on October 23 rd, 2017, Eagle Plains intends to spin -out specific Saskatchewan gold
exploration properties in the Seabee/Santoy area, including the Fisher and Chico Projects, to a new
publicly-listed entity named Taiga Gold Corp. through a plan of arrangement expected to be completed
in early 2018.
A map showing the location of Taiga projects may be found here:
Charles C. Downie, P.Geo., a “Qualified P erson” for the purposes of National Instrument 43 -101 -
Standards of Di sclosure for Mineral Projects, has prepared, reviewed, and approved the scientific and
technical disclosure in the 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. EPL is committed to steadily enhancing shareholder value by
advancing our diverse portfolio of projects toward discovery t hrough 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 out and se cure 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 exp loration 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, which 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.