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Eagle Plains Resources Encounters Bulk Gold Mineralization at Dragon Lake Gold Project

Eagle Plains Resources Ltd. (EPL:TSX-V) has received and compiled analytical results from its 100% owned Dragon Lake project, located within the Tintina Gold Belt approximately 80km northeast of Ross River, Yukon.

The $180,000 program was carried out during the 2010 summer exploration season and consisted of an airborne geophysical survey followed by geological mapping, soil geochemical sampling and trenching.

Highlights

The Dragon Lake property has the potential to host both high-grade and bulk-tonnage gold mineralization. Many targets on the property remain to be tested with further exploration including trenching and diamond drilling. Follow-up exploration work is strongly recommended for the property.

2010 Program:

The 2010 exploration program consisted of a 183 line km airborne geophysical survey and a 17 day field program from June 4th-20th, 2010. The purpose of the airborne geophysical survey was to locate any buried intrusions and/or major structural features that could be controlling and influencing mineralization. The focus of the geological program was to evaluate and re-sample historic trench and diamond drill core as well as complete follow-up exploration pits on anomalous soil samples from the earlier programs. Soil geochemical coverage was also expanded the south and west of the property, where there is little to no rock exposure.

The sampling from the 2010 program confirmed and upgraded the results from historic trenches and diamond drill holes. The Main Skarn zone returned values up to 4.9 g/t Au, 1.1 g/t Ag and 0.1% Cu over 6 m, including 19 g/t Au, 1.9 g/t Ag and 0.12 % Cu over 1 m. A grab sample from DDH99-01 returned 19 g/t Au, representing high-grade Au potential that was previously undiscovered on the property. Grab samples from the Intrusive Contact zone also returned results of up to 1.74 g/t Au and 15.3 g/t Ag.

Exploration pits dug in 2010 were successful in better defining the sources of anomalous values from soil samples at the surface. Results from these pits warrant further investigation with trenching and/or diamond drilling. Soil and till samples from pits DR10P003 and DR10P005 returned up to 2.85 g/t Au, 5.9 g/t Ag, 0.09% Cu and 3.72 g/t Au, 10.3 g/t Ag, 0.11% Cu and 0.11% Pb respectively. These findings show very good potential for high-grade mineralization at depth at these localities and warrant further exploration.

Property Geology

Dragon Lake geology consists of Hyland Group sedimentary rocks interspersed with volcanic flows and dykes intruded by Cretaceous-aged intrusive rocks. Gold mineralization is found in skarn material associated with intrusive rocks and within veins hosted by both intrusive and sedimentary rocks. Accessory minerals including stibnite (antimony), scheelite (tungsten) and arsenopyrite (arsenic) are commonly reported.

Property History

Copper and gold mineralization was discovered on the property by the Geological Survey of Canada in 1945. Sporadic exploration occurred from 1960 to the late 1980s by various operators. Eagle Plains staked the property in 1996 and carried out fieldwork in 1997 followed by a short drill program in 1999 (4 holes totalling 301m). The most significant results from the drill program are 2.1 g/t gold from 49.3 to 59.5 m and 3.66 g/t gold from 106.6 to 107.8 m in hole D99-01; and 0.63 g/t gold from 15.6 to 16.4 m in hole D99-03.

Exploration programs were carried out by Eagle Plains in 2004, 2005 and 2009, consisting of geological mapping, ground-based geophysical surveys, soil geochemical sampling and trenching.

Technical aspects of this news release have been reviewed and approved by T.J. Termuende, P.Geo., hereby designated as a qualified person under National Instrument 43-101.

Source:

Eagle Plains Resources Ltd.

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