Eagle Plains partner begins Uranium City surveys

Executive Summary

• Eagle Plains Resources Ltd. has commenced airborne geophysical surveys on its six 100%-owned uranium projects in the Uranium City area of Saskatchewan, following notification from option partner Xcite Resources Inc.
• The survey involves 697 line kilometres of helicopter-borne data collection using the VTEM Plus system, targeting both infill areas and new extensions across the Beaver River, Black Bay, Don Lake, Gulch, Lorado, and Smitty projects.
• The projects are located in the historic Beaverlodge district, with strong geological indicators for Beaverlodge-style and basement-hosted uranium mineralization, including anomalous geochemistry and hydrothermal alteration.

Key Details

• Survey Scope: 697 line kilometres of helicopter-borne geophysical surveying.
• Contractor: Geotech Airborne Geophysical Surveys.
• Technology: Geotech's proprietary VTEM Plus system.
• Target Projects: Beaver River, Black Bay, Don Lake, Gulch, Lorado, and Smitty projects (100% owned by Eagle Plains).
• Geological Targets: Potential for Beaverlodge-style and basement-hosted uranium mineralization.
• Key Geological Features Identified:
  • Outcropping, largely northeast-southwest-trending tectonic fabric.
  • Electromagnetic conductors confirmed as graphite-rich pelites within or near major faults.
  • Anomalous uranium geochemistry and radioactivity associated with graphitic faults.
  • Compelling property-wide evidence for hydrothermal alteration.
  • Uranium mineralization with corresponding elevations in pathfinder elements.
• Historical Context: The Beaverlodge district was Canada's first uranium producer (1950–1982), producing ~70.25 million pounds of U3O8 with average grades of 0.23% U3O8.
• Option Agreement Terms (Xcite Resources Inc.):
  • Xcite may earn an 80% interest in the projects.
  • Earn-in requirements: Complete $3.2 million in exploration expenditures, issue 750,000 common shares, and make cash payments of $55,000 over four years.
  • Total earn-in value: $19.2 million in exploration expenditures, 4.5 million shares, and $330,000 in cash.
  • Upon fulfillment, an 80/20 joint venture is formed; Eagle Plains retains a carried interest until a bankable feasibility study is delivered.
  • Eagle Plains retains an underlying 2% NSR royalty on each property.
• Qualified Person: C.C. Downie, PGeo, Director and Officer of Eagle Plains.

Notable Quotes

• "These factors, along with the presence of a substantial uranium endowment in both basement rocks and Athabasca basin cover rocks, indicate excellent potential for economic uranium mineralization within the project."
• "The mineralization, structures and alteration identified on the claims to date are strong indicators of the possibility of a nearby source for the uranium mineralization."