Providence Capital Corp.

Providence Capital Corp.

January 18, 2011 08:00 ET

Providence Capital / Eagle Plains Resume Diamond Drill Program at Iron Range Project, Southeastern BC

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 18, 2011) - Providence Capital Corp. (TSX VENTURE:PV) and Eagle Plains Resources Ltd. (TSX VENTURE:EPL) report that drilling has now recommenced on the Iron Range Project. A $1.5M budget has been approved and will consist of approximately 5000m in 12-16 holes. The partners continue to test structural features and the stratigraphic interval known to host the Sullivan deposit, located 70km to the north. Current drilling is targeting both precious metal and base metal mineralization, following up on the recent program which intersected two intervals of gold-bearing massive sulphide mineralization, the lower interval which resides at a stratigraphic position interpreted to be at or near the same interval which hosts the Sullivan deposit (see EPL/PV news release December 21st, 2010).

A complete data package from the previous drill program, including analytical results, drill-hole sections, strip-logs, collar locations and drill-hole orientations, geophysical data and drill-core photographs is available on the Eagle Plains website at:

TerraLogic Exploration Services of Cranbrook, BC (a wholly-owned subsidiary of Eagle Plains) has been contracted to carry-out fieldwork, with FB Drilling, also of Cranbrook, providing diamond drilling services. J.K Ryley, Project Geologist, is responsible for drill-hole planning, permitting and logistics, with C.C. Downie, P.Geo. the overall Project Supervisor. David Pighin, P.Geo. and Paul Ransom, P.Geo. have been retained to provide geological consulting services to the project. Both have extensive backgrounds with the former Cominco Ltd. and are considered experts in the geology, mineralogy and exploration of the Sullivan and similar deposits in the Purcell Basin. 

Iron Range Project Summary

The Iron Range deposits were originally staked in 1897, and were covered by Crown Grants held by Cominco Ltd. and the Canadian Pacific Railway. Eagle Plains staked the current claims immediately after the Crown Grants reverted in 2000, and have been exploring the property since then. Exploration work to date includes geological mapping, geochemical surveys, diamond drilling and a 690-line-kilometre airborne geophysical survey. The Iron Range project is owned 100 per cent by Eagle Plains and holds no underlying royalties or encumbrances. An additional 35,800 hectares of claims were added to the existing land package, resulting in a total of 56,200 ha -- an area approximately 11 km by 50 km. The land package now covers over 30 km of the Iron Range structure, most of it unexplored. The claims also overlie rocks of the Aldridge Formation, including the same stratigraphic time horizon which hosts the world-class Sullivan deposit located 70km to the northeast. Over its 100 year lifetime, Sullivan produced approximately 150,000,000 tonnes of ore including 300,000,000 ounces of silver, 8,000,000 tonnes of zinc and 8,000,000 tonnes of lead, collectively worth over $30 billion at current metal prices.

Providence Option Agreement

The Iron Range project is owned 100% by Eagle Plains and holds no underlying royalties or encumbrances. Providence holds the option to earn a 60% interest in the Property by spending $3,000,000 on exploration, making $500,000 in cash payments and issuing 1,000,000 shares to EPL over 4 years. As announced on November 2nd, an additional 35,800 ha of claims were added to the existing land package, resulting in a total of 56,200 ha – an area approximately 11km x 50km. The land package now covers over 30km of the Iron Range structure; most of it unexplored.

About Providence Capital

Providence Capital Corp. is a junior mining exploration company focused on delivering shareholder value through project acquisition and development. Currently the company is focused on its Iron Range Project in British Colombia, Canada.

About Eagle Plains Resources

Eagle Plains continues to conduct research, acquire and explore metal projects throughout western Canada. In addition to holding mining royalties on various projects, Eagle Plains controls over 35 gold, base-metal and uranium projects


Steve Bajic, President and CEO

Cautionary Note Regarding Forward-Looking Statements

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.

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.

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