Mr. Tim Termuende reports
EAGLE PLAINS/PROVIDENCE ADD SECOND DRILL RIG TO IRON RANGE PROJECT AND PROVIDE UPDATE ON CURRENT DRILL PROGRAM
Eagle Plains Resources Ltd. and Providence Resources Corp. have completed five additional diamond drill holes since the re-commencement of drilling on the Iron Range project in January, 2011, for a total of 15 drill holes and 7,165 metres (23,500 feet) of drilling to date. The 2011 holes (IR11-011 to 015), have been systematically testing the Talon zone in which significant gold and base-metal mineralization was reported in Hole IR10-010 by Eagle Plains/Providence. All five holes completed during the 2011 program have intersected base metal and gold-related mineralization.
Highlights from Hole IR10-010 included 14.0m grading 5.1 grams per tonne gold and 75.3 g/t silver from 192.0 to 206.0 m and 8.5 m grading 6.0 g/t gold and 47.8 g/t silver from 272.0 to 280.5 m. Accompanying base metal values include 13.24 per cent combined lead-zinc over 1.6 m from 196.9-198.5 m, and 9.24 per cent combined lead-zinc over 2.0 m from 277.5-279.5 m, the latter of which is interpreted to lie at Sullivan Time.
A total of 450 m of new road has been constructed and a second drill will commence work immediately. The budget for the winter 2011 program is currently $1.6-million, and is planned to consist of 12-16 holes for a estimated 5,000 m (16,000 feet) of drilling. The receipt of permits and construction of new roads will give the partners the ability to utilize step-out drill pad locations, and if warranted, work towards definition of an inferred resource. Additional staff have been added to the project to assist in core-logging and sampling operations. Analytical results will be forthcoming as they are received, compiled and interpreted.
Additional drill targets within a 2.5km radius will continue to test structural features and geochemical signatures for Sullivan-style SEDEX and precious metal mineralization.
The Iron Range project is owned 100 per cent by Eagle Plains and holds no underlying royalties or encumbrances. Providence holds the option to earn a 60-per-cent interest in the property by spending $3,000,000 on exploration, making $500,000 in cash payments and issuing one million shares to EPL over four years. As announced on Nov. 2, an additional 35,800 hectares of claims were added to the existing land package, resulting in a total of 56,200 ha an area approximately 11 km by 50 km.
Iron Range Project Summary
The Iron Range property consists of 56,200 hectares. The claims are well-situated with respect to infrastructure with a high-pressure gas pipeline, high-voltage hydroelectric line, railway and major highway all located within property boundaries.
The Iron Mountain structure has been mapped with widths of up to 150 m and a strike length of over 50 km. Claims held by Eagle Plains cover over 30 km of the structure, with significant iron-oxide mineralization occurring over 15 km. Copper and gold mineralization have been discovered along the structure, highlighting the potential for iron-oxide copper-gold mineralized systems associated with the structure. The claims also overlie rocks of the Aldridge formation, including the same stratigraphic time horizon which hosts the world-class Sullivan deposit located 70 km to the northeast. Over its 100-year lifetime, Sullivan produced approximately 150 million tonnes of ore including 300 million ounces of silver, eight million tonnes of zinc and eight million tonnes of lead, collectively worth over $25-billion at current metal prices. The parties caution that past results or discoveries on proximate land are not necessarily indicative of the results that may be achieved on the Iron Range property.