Eagle Plains Partner Refined Energy Commences Work Programs and Adds Additional Claims at Dufferin Lake Uranium Project, Saskatchewan

Rhea-AI Summary

Eagle Plains Resources (TSXV:EPL) announces that partner Refined Energy Corp (RUU)(RFMCF)(CWA0) has started 2024 work on the Dufferin Project in Saskatchewan. The project, consisting of North and West Dufferin properties, is located near Cameco's Centennial Deposit. Planned work includes an airborne MobileMT geophysical survey at Dufferin North and interpretation of historical geophysical data at both sites.

Refined Energy has the option to acquire a 75% interest in the project. The partners have also acquired an additional 2,837 hectares at Dufferin West, expanding the project to 10,140 hectares. The Dufferin Project is prospective for uranium mineralization near the Virgin River Shear Zone. To exercise the option, Refined must make cash payments, share issuances, and fund exploration expenditures in two phases, potentially granting Eagle Plains a 2% smelter returns royalty.

Positive

• Expansion of Dufferin Project by 2,837 hectares to 10,140 hectares total
• Commencement of 2024 work program including advanced geophysical surveys
• Project's proximity to Cameco's Centennial Deposit with high-grade uranium intersections
• Potential for unconformity- and basement-hosted uranium mineralization

Negative

• Significant exploration expenditures required ($2.6 million by 2026, additional $3 million by 2028)
• Option agreement may result in Eagle Plains losing majority ownership of the project

CRANBROOK, BC / ACCESSWIRE / October 7, 2024 / Eagle Plains Resources Ltd. (TSXV:EPL) or "Eagle Plains" is pleased to announce that partner Refined Energy Corp (RUU)(RFMCF)(CWA0) ("Refined") has commenced 2024 work on Eagle Plains' 100% owned Dufferin Project. Refined holds the exclusive option to a acquire 75% interest in the Project, which is made up of the North and West Dufferin properties, located approximately 18km from Cameco's Centennial Deposit where historic drill hole VR-031W3 intersected 8.78% U308 over 33.9m (SMAF 74G12-0061). The planned work includes an airborne MobileMT geophysical survey at Dufferin North and interpretation and modeling of historical geophysical data at Dufferin West and North. The Dufferin North interpretation and modeling will include 3D inversions. In addition to the above work, Refined and Eagle Plains have acquired a further 2,837 hectares at Dufferin West, further expanding the Dufferin Project to 10,140 hectares.

See Dufferin Project Information & Map here

The Dufferin Project is located on or in close proximity to the known trace of the Virgin River Shear Zone and related splays which are key structures for potential uranium mineralization.

An airborne MobileMT geophysical survey is planned for the Dufferin North property. The MobileMT is an advanced geophysical method that can effectively identify deep seated structures that may be associated with feeder fault systems to uranium mineralization.

The Dufferin West program will initially focus on an advanced interpretation of available geophysical datasets in order to determine the most prospective locations for follow up electromagnetic ("EM") ground surveys to refine drill targeting.

The Dufferin Project is prospective for unconformity- and basement-hosted uranium mineralization in proximity to the Virgin River Shear Zone. Faulted basement contacts and brittlely reactivated structures are the primary locations for mineralization in the area covered by the Dufferin Project. The relatively high concentration of secondary uranium bearing minerals demonstrated by prior exploration work on the Dufferin Project may also indicate uranium mineralization remobilization may play an important role in this region of the Athabasca Basin. Geophysical EM and magnetic anomalies demonstrated by prior exploration work on the Dufferin Project are supported by previous uranium and boron soil and lake sediment anomalies along the inferred fault zones, which are expected to aid in focusing future exploration programs.

Some of the above results were taken directly from the SMDI descriptions and assessment reports (SMAF) filed with the Saskatchewan government. Management cautions that historical results were collected and reported by past operators and have not been verified nor confirmed by a Qualified Person, but form a basis for ongoing work on the subject properties. 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.

Dufferin Option Agreement Details

To exercise the Option, Refined must make a series of cash payments and share issuances to Eagle Plains and fund exploration expenditures on the Project. These payments, share issuance and expenditures are separated into two phases, with the first Option entitling the Company to acquire a 60% interest in the Project by paying CA$275,000, issuing an aggregate of 1,000,000 post-consolidated common shares to EPL and funding CA$2,600,000 in exploration expenditures on the Project by December 31, 2026. Pursuant to the second phase of the Option, the Company may acquire an additional 15% interest in the Project (for a 75% total interest) by paying an additional CA$500,000, issuing an additional 500,000 post-consolidated Shares to EPL and funding an additional CA$3,000,000 in exploration expenditures on the Project by December 31, 2028. The Dufferin project is owned 100% by EPL, which has been appointed as Operator during the first Option period.

If the First Option or the Second Option is exercised, a 2% smelter returns royalty will be granted to the Eagle Plains, 1% of which may be repurchased for CA$2,000,000.

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, with a focus on critical metals integral to an increasingly electrified, decarbonized economy.

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 Taiga Gold Corp. being notable examples. Eagle Plains latest spinout; Eagle Royalties Ltd. (CSE:"ER") was listed on May 24, 2023, and holds a diverse portfolio of royalty assets throughout western Canada.

On October 2, 2024, Eagle Plains announced announce the formation of a separate division within the Company that will give Eagle Plains' shareholders direct exposure to strategic opportunities in Canadian green energy transition. As a wholly-owned subsidiary of Eagle Plains, Osprey Power Inc. ("OP") will focus on identifying and advancing innovative and diverse clean energy project portfolios in target markets throughout Canada, with an initial focus on Western Canada.

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 2010-2023 on Eagle Plains-related projects exceed $38M, the majority of which was funded by third-party partners. This exploration work resulted in approximately 50,000m 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"
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 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.

SOURCE: Eagle Plains Resources Ltd.

View the original press release on accesswire.com

FAQ

What work has Refined Energy Corp started on the Dufferin Project in 2024?

Refined Energy Corp has commenced an airborne MobileMT geophysical survey at Dufferin North and interpretation and modeling of historical geophysical data at both Dufferin West and North properties.

How many hectares were added to the Dufferin Project, and what is its current size?

An additional 2,837 hectares were acquired at Dufferin West, expanding the total Dufferin Project area to 10,140 hectares.

What is the option agreement between Eagle Plains Resources (TSXV:EPL) and Refined Energy for the Dufferin Project?

Refined Energy has the option to acquire up to 75% interest in the Dufferin Project through a two-phase agreement involving cash payments, share issuances, and exploration expenditures totaling $5.6 million by 2028.

What type of uranium mineralization is the Dufferin Project prospective for?

The Dufferin Project is prospective for unconformity- and basement-hosted uranium mineralization in proximity to the Virgin River Shear Zone.