Oct. 7, 2009 (Filing Services Canada) -- Eagle Plains Resources Ltd. (EPL - TSX Venture, EGPLF - OTCBB_Pink_Sheets), and Prize Mining Ltd. (TSX-V:PRZ) have completed mining and milling activity for the 2009 season and have commenced seasonal clean-up and maintenance. The first gold bar was recently poured from concentrate materials milled on-site and weighs 2.284 kg. The project is operated through the Yellowjacket Joint-Venture ("YJV"), jointly owned by Eagle Plains and Prize Mining and operated by Eagle Plains.
About the Yellowjacket Gold Project
The Yellowjacket Project is located 9km east of Atlin, BC and is accessed by all-season road. The project received a Small Mines Act Permit in July, 2009 for the development and production of gold from the British Columbia Ministry of Energy, Mines and Petroleum Resources (see EPL/PRZ news release July 13th, 2009). The Permit allows for the development and operation of an open pit gold mine and onsite concentrator processing up to 75,000 tons per year of ore. The local Taku River Tlingit First Nation ("TRTFN") were active participants in the review and approval of the Permit.
Commissioning and test work on the mill facility was completed earlier this season, and excavation activity took place from mid-August to mid-September. Approximately 40,000 tonnes of material was mined, with approximately 9,000 tonnes of material stockpiled for processing. Milling at a peak daily rate of approximately 350 tonnes per day was achieved at times, but numerous breakdowns, equipment failures and permitting delays hampered production overall. A definitive quantity of gold recovered will be reported when final processing activity has been completed.
Metallurgical test work and plant engineering designs project gravity concentration gold recoveries of between 73% and 80%, with no chemicals used in the extraction process. Mining activity is presently seasonal, but the potential exists for year-round operations.
The JV partners have recently retained an independent geological consultant to review and compile previous drilling and current production data for the project with a goal of producing a formal valuation report and NI 43-101-compliant inferred resource estimate for the property. An extensive drilling program is currently planned this winter to further assess the project not only for its near-term production potential, but also the overall mining potential of the many untested areas of the property. Currently the Yellowjacket Zone is open along strike in both directions and to depth.
Under the terms of the Joint Venture Agreement, Eagle Plains earned an initial 40% interest in the Project from Prize by making a $2,000,000 cash payment.
