Eagle Plains Announces Metals Discovery in Mackenzie Mountains, NWT

Cranbrook, B.C. 29 January, 2007: Eagle Plains Resources Ltd. (EPL:TSX-V) is pleased to announce the discovery of significant mineralization on tenures held 100% by the company in the Mackenzie Mountain region near the Yukon/NWT border. Previously undetected high-grade silver with associated copper, lead and zinc mineralization was located in outcrop over significant widths in an area within 70km of the Canol Road. Named “Bronco”, the occurrence consists of sedimentary-hosted mineralization that appears to be part of a larger mineralized system some 7km in length. The discovery area has been subjected to virtually no historic exploration activity, and presents an unprecedented opportunity for Eagle Plains to head a district-scale exploration campaign in a highly prospective region. 

Highlights

• Bronco showing returns continuous-chip assay results of 420g/T silver, 0.9% copper and 2.8% lead over 13m,  including 3.0m grading 1313g/T silver, 2.7% copper, 10.2% lead, and 1.1% zinc.
• grab samples from three separate float occurrences up to 2km from Bronco occurrence return assay results of 14.4%, 12.7% and 24.4% zinc.
• rock samples taken 7km along strike of the Bronco occurrence return assay results of 17.5%, 19.8%, 12.7%, 25.4%, 21.3%, 18.5% zinc over an area of 300m x 700m
• surrounding permit area consists of 2,400 square kms, with application made recently for an additional 4,200 sq/km.
•  proprietary geochemical data held by EPL covers regional area of over 19,000 sq/km.

History

The general area now controlled 100% by EPL was once subject to extensive exploration during the 1970s and early 1980s and was the site of numerous drilling programs, dozens of grassroots examinations, and thousands of individual claims held by various junior and major exploration companies including RTZ, Placer Dome Inc., Bethlehem Copper, Cominco, Noranda, Amax, Serem and others. No exploration activity has been recorded in the permit area which contains the Bronco discovery.

Eagle Plains has secured the area of past exploration activity, complete with all public data associated with millions of dollars of exploration work. Recent announcements regarding the proposed MackenzieValley pipeline and dramatically improved base-metal prices dictate that the area must now be viewed in an entirely new economic framework. Exploration technology and the understanding of the occurrence and genesis of carbonate-hosted deposits have also been advanced over the past 30 years, increasing the potential for new discoveries. 

On June 27th, 2006, EPL announced that it had completed an agreement with Cordilleran Engineering Group whereby EPL was granted exclusive possession of over 5700 stream-sediment sample pulps collected during the 1970s in an area covering some 19,000 square kms, a portion of which is now covered by prospecting permits obtained by EPL during 2004 and 2005. The samples and associated data have a replacement cost of well over $1,000,000. 

The data has been integrated into a GIS database which provided targets for preliminary work carried out in the 2006 field season, and guided the selection of additional permits. On December 1st, 2006, EPL representatives filed application with the NWT government to secure an additional 4,200 sq kms of lands (total area of 5,600 sq/km). Results of the permit application process are expected to be made public in February, 2007.

Location and Access

The southern boundary of the permit area is located along the North Canol Road, built in the 1940s to supply oil to the south during WW2. The lower project area stretches 65km northward along the Mackenzie Mountains, and encompasses at least 8 drilled prospects and 1 advanced exploration project (GaynaRiver). The central permit area is located 180km from Norman Wells, NWT while the most northerly permit area is located 190km from Norman Wells, NWT or 240 km from Mayo, Yukon.

Geology and Mineralization

The prospecting permits held by Eagle Plains overlie a series of folded and thrusted Proterozoic to Devonian carbonates and shales.  These rocks are time-equivalent to giant base-metal deposits in the region such as Howard’s Pass, currently controlled by Pacifica Resources Ltd (PAX:TSX-V), with an inferred resource of 115 million tonnes grading 5.4% zinc and 2.1% lead with >15 g/t silver plus an additional reported potential resource in excess of 360 million tonnes.

Other significant historical lead-zinc deposits exist in the area including Tom and Jason. Dozens of high-grade base metal occurrences are documented in EPL’s permit area, highlighted by the following projects*:

Gayna River: 27,000m of diamond drilling completed by RTZ in the late 1970s, with drill-holes grading up to 20% combined lead-zinc over 20.0’ (6.0m). 

Ice: 9: 8.2% Pb, 12.5% Zn over 9.1m in a representative trench sample;

Art-Ekwi: 

Drill results:    10.1% combined Pb-Zn over 50.0’ (15.2m) true-thickness.

                         43.0% Zn over 11.5’ (3.5m)

Trench results: 22’ (6.9m) grading 9.0% Pb and 39.1% Zn 

                          26’ (7.9m) returned 5.48% Pb and 31.4% Zn.  

Tap: 27.5% Zn, 3.7% Pb from grab samples taken of 60 x 760m breccia zone;

Keg: 25% combined Pb-Zn in float samples. Best of 3 drill-holes intersected 4.23% Pb- Zn over 20.4m;

Bear/Twit: 24 drill-holes completed, with 4.9% Pb-Zn reported over 13’ (4.0m), 5.1% Pb-Zn over 20’ (6.0m), 

AB-Main: 3 drill-holes (866’) completed in 1974. Surface samples assayed up to 41% zinc, 79.3% lead.   

* (Note: reported results are excerpted from publicly-accessed reports whose accuracy cannot be confirmed, however EPL management considers the reported results to be relevant and reliable).

During 2006, Eagle Plains conducted a $700,000 reconnaissance program under the supervision of S. Butrenchuk, P.Geo.  Due to the extensive area covered by the Cordilleran stream samples, only a small proportion of the anomalies were followed up with 2006 fieldwork. This fieldwork generated encouraging results, including the Bronco discovery, and an aggressive exploration program is planned for 2007. Fieldwork will focus on detailed evaluation of targets defined by 2005-2006 fieldwork, preliminary investigation of numerous geochemical anomalies generated by stream sample database, and drill testing of the Bronco occurrence.

Eagle Plains Resources continues to conduct research, acquire and explore metal projects in western Canada. The Company controls over 35 gold, base-metal and uranium projects, many with third parties including Alexco Resource Corp. (TSX-V:AXR), Solomon Resources Inc (TSX-V:SRB), Mulligan Capital Corp (TSX-V:MCC.P), Blind Creek Resources and Golden Cariboo Resources Inc. (TSX-V:GCC). These agreements expose Eagle Plains to over $11.0 million in exploration expenditures over the next five years. In recent years, Eagle Plains has completed option agreements with Billiton Metals, Rio Algom Exploration, NovaGold Resources, Kennecott Exploration, Viceroy Resource Corp. and numerous other junior exploration companies, resulting in over 38,000m (125,000’) of drilling and over $16,000,000 in exploration spending on its projects since 1998. During the 2006 season, EPL and its partners completed over 7,000m (23,000’) of diamond drilling on its properties.

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.