Providence Resources Corp.

Providence Resources Corp.

April 12, 2012 11:00 ET

Providence Resources and Eagle Plains Commence Drilling on the Iron Range Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 12, 2012) - Providence Resources Corp. (TSX VENTURE:PV) ("Providence" or the "Company") and Eagle Plains Resources Ltd. (TSX VENTURE:EPL) ("Eagle Plains") are pleased to announce that drilling has started on their Iron Range JV project located near Creston, British Columbia. FB Drilling has been retained to complete 8 to 10 diamond drill holes (3,000 meters) in the Canyon, Row, 6 Mile, and Arrow East target areas.

The objective of the drill program is to test high-priority target areas for Sullivan-style lead-zinc-silver mineralization as well as gold mineralization similar to that intersected in the 2010 Talon Zone gold-silver-lead-zinc discovery. Exploration drilling will be executed according to the table below.

No. Holes Meters Target Area Target Type Comments
5 1,100 Canyon Gold-Lead-Zinc-Silver 2km by 2km Arsenic + lead and zinc anomalies.
3 900 Talon Gold-Lead-Zinc-Silver Southern margin of Canyon Zone, drill test IP geophysical anomalies associated with and along strike of Talon Zone.
3 1,100 Row Lead-Zinc-Silver 5 kilometer-long lead+zinc soil anomaly. 3 VTEM geophysical anomalies are slated for drill-testing.

Iron Range Exploration Highlights

  • Talon Zone Gold-Lead-Zinc-Silver Discovery (2010-2011)
  • Talon Zone Surface IP Survey (2011)
  • Historical Soil Survey compilation including over 14,000 soil samples (2011)
  • Geological Compilation, which refined the location of the Aldridge Lower Middle Contact (2011)
  • VTEM and ZTEM Airborne Geophysical Surveys (2012)
  • Completion of Fugro Airborne Gravity Survey (results expected April, 2012)

2012 Exploration Program

The objective of the Phase 1, 2012 program is to systematically evaluate all existing exploration data, including newly-acquired geophysical data, followed by field evaluation of all resulting anomalies, and ultimately drill testing the highest priority targets.

Fieldwork will be completed in summer 2012 with the objective of bringing remaining targets to the drill testing stage for Phase II drilling in late 2012.

Iron Range Project

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 it has 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.

An additional 35,800 hectares of claims were added to the original land package, resulting in a total of 56,200 hectares - an area approximately 11 km by 50 km. The land package now covers over 30 km of the Iron Range structure, most of which is unexplored. The claims also overlie rocks of the Aldridge formation, including the same stratigraphic time horizon that hosts the world-class Sullivan deposit located 70 km to the northeast. Over its 100-year lifetime, Sullivan produced approximately 150 million tonnes of ore including three billion ounces of silver, eight million tonnes of zinc and eight million tonnes of lead, collectively worth over $30-billion at current metal prices. The parties caution that past results or discoveries on proximate land are not necessarily indicative of the results that may be achieved on the Iron Range property.

Qualified Person

Technical work on the Iron Range Project is under the supervision of geologist J.K. Ryley while C.C. Downie, P.Geo., and Dan MacNeil are hereby identified as the overall project supervisors. 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.

About Providence Resources

Providence Resources is a precious and base metal junior exploration company focused on creating shareholder value through acquisition and aggressive exploration in established, highly endowed mineral belts. On March 1st, 2012, Providence exercised its option with Eagle Plains and earned a 60% undivided right, title and interest in and to the Iron Range Project. Providence earned its interest by making aggregate cash payments of $500,000, issuing a total of 1,000,000 common shares and completing exploration expenditures of $3,000,000. The parties have entered into a formal joint venture agreement.

Vince Sorace, President, Providence Resources

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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