Eagle Plain's Partner SKRR Completes Drilling at Olson Gold Project, Saskatchewan

Rhea-AI Summary

Eagle Plains Resources has announced the completion of an 18-hole drilling program on its 100%-owned Olson property in Saskatchewan, funded by SKRR Exploration. The drill program totaled 2,981 meters and tested seven target areas. SKRR can earn a 75% interest in the property through substantial exploration expenditures and share payments. Historical data shows promising gold mineralization, including notable grades of 2.07 g/t and up to 105.52 g/t Au. Following favorable results, an expanded drill program is expected in the summer of 2021.

Positive

• Completion of 18-hole drilling program totaling 2,981 meters on the Olson property.
• Potential for significant gold mineralization identified, with historical results showing grades up to 105.52 g/t Au.
• SKRR may earn a 75% interest in the property, indicating strong financial backing for future exploration.

Negative

• None.

CRANBROOK, BC / ACCESSWIRE / November 17, 2020 / Eagle Plains Resources Ltd. (TSX-V:EPL)("Eagle Plains") is pleased to announce that option partner SKRR Exploration Inc. (TSX-V:"SKRR") have funded and successfully completed an 18 hole, 2981m (9,778') drill program on EPL's 100%-owned Olson property (the "Property). The Olson property area covers 5038 ha located within the Trans Hudson Corridor 100 km east of La Ronge, Saskatchewan and 80km south of SSR Mining's Seabee Gold Operation. SKRR may earn a 75% interest in the Property by completing exploration expenditures of $3,000,000, making cash payments of $250,000 and issuing 1,000,000 voting class common shares to EPL over a 4-year period. Details of the option agreement are outlined below. Results from recent drilling activity will be released once they have been received, compiled and interpreted.

Seven separate target areas were tested throughout the course of the 2020 program, including the Jena, Juba, Point, Tuscan, Siskin, Olson and Michael Zones.

Contingent on favourable results, SKRR has indicated to Eagle Plains that they intend to follow up this summer's program with an expanded winter program to be carried out in early 2021. Planning and permitting for this work is currently underway.

The four week, Fall program was supervised by Jarrod Brown, P.Geo. of Terralogic Exploration Services of Cranbrook, B.C. and relied extensively on support services and personnel from the town of Deschambault Lake, SK. Management of Eagle Plains and SKRR would like to extend their thanks to the Peter Ballantyne Cree Nation ("PBCN") for their open communication and input and would like to recognize the Saskatchewan Ministry of Environment and its various agencies and contractors for their efforts in keeping this project moving amidst the challenges that COVID-19 has presented.

Olson Project Summary

See the Olson project map here

The Olson project is host to regionally sheared, highly strained meta-volcanic and adjacent intrusive rocks which are considered to be prospective for orogenic gold mineralization. The Olson project area is host to 29 mineral occurrences defined by historical geological mapping, prospecting, trenching and 4700 m of diamond drilling. Historical drilling at Olson Lake has intersected 7.5 m grading 2.07 g/t Au including 13.00 g/t Au over 0.65 m, and grab samples of up to 105.52 g/t Au have been collected at the Kalix occurrence. The project is considered to be significantly underexplored, with known gold occurrences open at depth and along strike. Results are historical in nature and have not been confirmed by Eagle Plains/SKRR but are considered to be reliable and will form a basis for ongoing work.

In 2018, Eagle Plains and a previous partner completed a detailed compilation of existing data, followed by a 2- Phase, $150,000 field program which consisted of geological mapping and prospecting and the collection of a total of 862 soil samples and 126 rock samples.

The 2018 field program verified the results of historical work and identified additional targets in areas that were previously underexplored. Grid soil geochemistry at the Jena and Point areas returned extensive gold in soil anomalies. Soil geochemical values ranged from below detection to a maximum of 2704.6 ppb Au, with 6 samples returning greater than 1000 ppb Au. In the Jena area, soil geochemistry delineated a 1.4 km strike length of anomalous soil results greater than 80 ppb Au with a maximum of 1346 ppb Au. The Ackbar-Tuscan-Point area also returned promising results, with a 300m by 100m zone returning values greater than 80 ppb Au and a maximum of 2704.6 ppb Au. Despite widespread gold bearing outcrops, soil geochemistry at the Olson and Juba showing areas returned lower values, likely related to thick clay and soil cover in these areas.

Prospecting in the areas of anomalous soil geochemistry identified gold mineralization associated with shear-hosted quartz veins. Analytical results from outcrop ranged from below detection to a maximum of 45.1 g/t Au, with 20 grab samples returning greater than 1000 ppb Au. The Olson area had a maximum assay of 41.0 g/t Au from an outcrop grab sample of sheeted veins. The Jena area had 20 samples in excess of 1000 ppb Au with a maximum assay of 15.7 g/t Au from quartz-arsenopyrite veins. At the Juba occurrence, a grab sample returned 13.1 g/t Au. Mineralization at the Point and Tuscan area returned maximum values of 9.8 g/t Au at the Point and 45.1 g/t Au at Tuscan.

Prior to 2020 exploration, the Olson property has seen 4500 meters of historic diamond drilling in 61 holes with the majority of the drilling in short holes focused on the Olson Lake and Dosco - Siskin Zones, with the last drill program completed in 2008. 2020 drilling will further test historically drilled zones, as well as previously undrilled and underexplored showings based on a new understanding of gold mineralization controls. The drill target modelling was based on a comprehensive integration of historical work in conjunction with results from the 2020 field program. Numerous drill targets have been generated throughout the 5835 hectare property, with the current program focused on the central part of the property.

2020 Field Program

The 2020 Olson field program that preceded drilling activity was completed during the summer of 2020 and was designed to define targets for follow-up diamond drilling. Discovery International Geophysics completed 13 lines (8.6 line kilometers total) of combined IP/ DC Resistivity over the Point, Tuscan and Juba areas. This was followed by a 13 day geological field program carried out by TerraLogic Exploration Services. Soil sampling, prospecting, field mapping, and channel sampling were undertaken to delineate new areas of gold mineralization as well as advance known showings to identify and prioritize drill targets.

The 2020 exploration program defined widespread gold mineralization in both soil samples and in rock channel samples. Assay results include 17 rock samples over 1.0 g/t Au and 35 soil samples values over 0.1 g/t (100 ppb) Au. Each showing inspected in 2020 returned samples with favourable assay results and the fieldwork conducted furthered the geologic vectoring of gold mineralization.

Olson Option Agreement Details

Under the Agreement, SKRR may earn-in up to a 51% interest in the Property by making certain staged cash payments, share payments of common shares in the capital of SKRR to Eagle Plains and exploration expenditures over a period as follows: (i) $10,000 in cash upon execution of a letter of intent in respect of the Transaction (paid); (ii) $20,000 in cash and 200,000 common shares upon TSXV approval of the Transaction (received); (iii) $40,000 in cash, 200,000 common shares and $200,000 in exploration expenditures on or before December 31, 2020; (iv) $80,000 in cash, 200,000 common shares and $500,000 in exploration expenditures on or before December 31, 2021; and (v) $100,000 in cash, 200,000 common shares and $800,000 in exploration expenditures on or before December 31, 2022.

SKRR may earn-in up to a an additional 24% (75% total) interest in the Property by making additional exploration expenditures of $1,500,000 on the Property and issuing 200,000 common shares of SKRR to Eagle Plains on or before December 31, 2023.

Update on Iron Range Drilling

Drilling activity continues at Eagle Plain's 100%-owned Iron Range property (the "Project") located 10km east of Creston, British Columbia. To date, a total of 5 holes totalling 343.2m have been completed of a planned 700-1000m program. The Iron Range property is under option to a private company which holds the exclusive right to earn up to a 60% interest in the Project from Eagle Plains over a five-year period by incurring $3,500,000 in exploration expenditures and making $250,000 in cash payments to Eagle Plains. The Company retains the right to increase its interest to 80% by making a one-time cash payment of $1,000,000 to Eagle Plains.

Drilling activity at Iron Range is focussed on the O-Ray area, where previous drilling by Eagle Plains returned values ranging from trace quantities to up to 7.0m grading 51.52g/t (1.50 oz/ton) gold.

Charles C. Downie, P.Geo., a "qualified person" for the purposes of National Instrument 43-101 - Standards of Disclosure for Mineral Projects and a director of Eagle Plains, 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. 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 projects. In addition, Eagle Plains continues to seek out and secure 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 one of the top 3 jurisdictions in the world in terms of Investment Attractiveness. 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 2011-2019 on Eagle Plains-related projects exceed $20M, most of which was funded by third-party partners. This exploration work resulted in approximately 30,000 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: mgl@eagleplains.com 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.

SOURCE: Eagle Plains Resources Ltd

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FAQ

What are the latest drilling results from Eagle Plains' Olson property (EGPLF)?

Eagle Plains announced the completion of an 18-hole drilling program on the Olson property, with results expected to be released soon.

How does SKRR Exploration's partnership affect Eagle Plains Resources (EGPLF)?

SKRR Exploration may earn a 75% interest in the Olson property by fulfilling financial and exploration commitments, which could enhance Eagle Plains' project funding.

What is the significance of the Olson property for Eagle Plains Resources (EGPLF)?

The Olson property is noted for its potential gold mineralization and has shown historical assay results indicating significant gold presence.

When is the next exploration program planned for the Olson property (EGPLF)?

An expanded winter program is planned for early 2021, contingent on the results of the recent drilling activities.