Providence Resources Corp.
TSX VENTURE : PV

Providence Resources Corp.

March 28, 2011 14:46 ET

Providence Resources/Eagle Plains Provide Analytical Results from Diamond Drill Program at Iron Range Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 28, 2011) - Providence Resources Corp. (TSX VENTURE:PV) and Eagle Plains Resources Ltd. (TSX VENTURE:EPL) have received analytical results from the Iron Range drill program in southeastern British Columbia. Results are from the newly discovered Talon Zone in which significant gold and base-metal mineralization was reported in Hole IR10-010 by Eagle Plains/Providence (see news release Dec 21, 2010). Currently 5,924.0m in 16 holes have been completed since Phase 2 drilling resumed in January, 2011.

Highlights:

  • Hole IR11-015 intersected near-surface precious and base-metal mineralization. The seventy-one metre intercept is characterized by crackle breccia and quartz-carbonate fractures hosting pyrite, lesser arsenopyrite, sulphosalts, and local submetre-scale sections of semi-massive to massive pyrite, galena (lead) and sphalerite (zinc). The interval is the non-oxidized extension of the surface oxide zone. Increasing base-metal values with depth are inferred to reflect diminished surface oxidation.

Selected intervals include:

  • 29.0-100.0m: 71.0m @ 1.28g/t Au, 20.4g/t Ag

Including

  • 30.0-33.0m: 3.0m @ 4.77g/t Au, 55.6g/t Ag
  • 41.0-44.0m: 3.0m @ 5.77g/t Au, 36.5g/t Ag
  • 82.0-90.0m: 8.0m @ 4.13g/t Au, 3.57% Pb/ Zn, 69.5g/t Ag

Including

  • 82.0-85.0m: 3.0m @ 6.16g/t Au, 4.81% Pb/ Zn, 118.3g/t Ag
  • 87.0-90.0m: 3.0m @ 4.83g/t Au, 4.33% Pb/ Zn, 65.7g/t Ag

This intersection represents near surface mineralization approximately 120m southwest of that at depth in IR10-010. The mineralized interval is inferred to lie stratigraphically at the Lower-Middle Aldridge contact. Additional drilling is required to determine the orientation and true thickness of the zone.

IR11-015 was extended and intersected a second zone of sulphide mineralization from 270.0-293.0m, which shares a similar depth horizon to the lower massive sulphide intercept in IR10-010. Results are pending.

Drill holes IR10-006, 008, 009, and IR11-017 were drilled from a shared collar location and did not intersect mineralization. These holes are interpreted to have passed above mineralization.

A drill hole plan and selected cross-sections are available on the Eagle Plains website.

Core textures, mode of sulphide emplacement, and surface lineament expressions indicate a structurally-controlled system. The mineralization in IR10-010 and lowermost in IR11-015 coincide with the sub-vertical projection of these surface lineaments. Exemplifying this is the intercept in IR10-007, not previously reported of:

  • 155.0-156.0m: 1.0m @ 56.3g/t Au, 3.02% Pb/Zn, 51.5g/t Ag.

Dilatant zones developed normal to these lineaments may act to preferentially enrich gold and base metal development. Exploitation of these zones by late stage lamprophyre dykes, as seen in relative abundance in IR11-015 and IR10-010 serve to enrich the system. Holes drilled outboard of this structural setting and depth horizon such as IR11-011, 012, 013, and 014 appear to diminish in tenor. These holes generated the following analytical results:

Hole Number From (m) To (m) Length (m) Au (g/t) Pb (%) Zn (%) Ag (g/t) Intersection
IR11011   251.00 280.00 29.00 1.027 0.03 0.06 4.2 29m @ 1.027g/t Au, 4.2g/t Ag
Including 274.00 280.00 6.00 2.938 0.10 0.13 14.0 6m @ 2.938g/t Au, 14g/t Ag
  372.00 375.00 3.00 1.145 0.05 0.07 5.3 3m @ 1.145g/t Au, 5.3g/t Ag
IR11012                  
  111.00 114.00 3.00 0.946 0.02 0.02 3.1 3m @ 0.946g/t Au, 3.1g/t Ag
  143.00 154.00 11.00 0.684 0.38 0.29 39.3 11m @ 0.684g/t Au, 39.3g/t Ag
  174.00 186.00 12.00 0.949 0.32 1.26 27.0 12m @ 0.949g/t Au, 1.58% Pb/ Zn, 27g/t Ag
Including 182.00 185.00 3.00 2.652 1.14 4.88 95.5 3m @ 2.652g/t Au, 6.02% Pb/Zn, 95.5g/t Ag
  235.00 248.00 13.00 0.692 0.56 0.06 27.8 13m @ 0.692g/t Au, 27.8g/t Ag
Including 245.00 248.00 3.00 0.787 0.13 0.03 10.2 3m @ 0.787g/t Au, 10.2g/t Ag
IR11013                  
  3.00 9.00 6.00 0.395 0.01 0.02 1.6 6m @ 0.395g/t Au, 1.6g/t Ag
  206.00 260.00 54.00 0.469 0.05 0.06 6.0 54m @ 0.469g/t Au, 6g/t Ag
IR11014                  
  30.00 33.00 3.00 2.559 0.15 0.06 2.5 3m @ 2.559g/t Au, 2.5g/t Ag
  99.00 152.00 53.00 0.392 0.10 0.12 7.9 53m @ 0.392g/t Au, 7.9g/t Ag
  161.00 226.00 65.00 0.371 0.03 0.09 4.7 65m @ 0.371g/t Au, 4.7g/t Ag
Including 203.00 206.00 3.00 1.667 0.06 0.83 9.0 3m @ 1.667g/t Au, 9g/t Ag
  256.00 271.00 15.00 0.206 0.02 0.02 4.6 15m @ 0.206g/t Au, 4.6g/t Ag

The orientation of these holes does not allow for determination of thickness of the zone. Additional drilling is planned for this.

Results from IR11-016 are being re-analysed in the lab and will be reported in future news releases.

IR11-018, the northernmost hole drilled at an azimuth of 130°, failed to intersect the northeast linear and is under review for extension.

Drill holes IR11-019, 020, and 022 were drilled northwest along a shared azimuth across the linear, deflecting northward approximately 20 metres to that of IR10-010. Hole angles are -50°, -60°, and -75°, respectively:

Hole Number From (m) To (m) Length (m) Au (g/t) Pb (%) Zn (%) Ag (g/t) Intersection
                   
IR11019   172.00 187.00 15.00 0.213 0.14 0.15 6.5 15m @ 0.213g/t Au, 6.5g/t Ag
  197.00 238.00 41.00 0.568 0.13 0.27 6.7 41m @ 0.568g/t Au, 6.7g/t Ag
IR11020                  
  241.00 302.00 61.00 0.418 0.15 0.19 15.4 61m @ 0.418g/t Au, 15.4g/t Ag
Including 241.00 253.00 12.00 0.720 0.25 0.24 10.0 12m @ 0.72g/t Au, 10g/t Ag
Also Including 246.00 249.00 3.00 1.407 0.81 0.84 19.1 3m @ 1.407g/t Au, 19.1g/t Ag
Including 260.00 267.00 7.00 0.889 0.57 0.83 70.4 7m @ 0.889g/t Au, 70.4g/t Ag
Including 291.00 294.00 3.00 1.095 0.05 0.07 4.4 3m @ 1.095g/t Au, 4.4g/t Ag
  351.00 356.00 5.00 0.3 0.05 0.02 2.4 5m @ 0.304g/t Au, 2.4g/t Ag

IR11-022 did not intersect mineralization at depth. Core and section review suggests the mineralization to be faulted off. The inferred true-thickness across the zone at this locale is approximately 35 metres.

Drill holes IR11-021 and IR11-023 were drilled at 140° and 330°, respectively, to cross the linear approximately 80m north of holes IR11-019, 020, and 022. Both holes intersected weak mineralization spatially related to the linear but above the elevation range noted to host the most well developed mineralization.

IR11-024 was drilled approximately 1.0km east of the Talon Zone to test a soil geochemical anomaly. The hole was terminated at a depth of 331.4m. No mineralization was encountered.

IR11-025 encountered near surface mineralization in proximity to IR11-015. Results are pending.

IR11-026 was completed to a depth of 294.6m. A continuous intercept of pervasive, silicic alteration with accompanying disseminated to variably net-textured mineralization was intersected from 172.6-276.5m (103.9m). The style and tenor of mineralization, on a visual basis, is analogous to the alteration within IR10-010. This hole is being priority sampled and rushed for analysis.

IR11-027 is currently being drilled from the same collar as IR11-026 to determine dip, thickness , and extension of mineralization at depth.

Since September, the partners have now completed 26 diamond drill holes for a total footage of 49,928 feet (15,221m). Current work is targeting both precious and base-metal mineralization.

Analytical Details and QAQC

QAQC: Blank material, standard grade base metal and precious metal standards, and high grade standards were routinely introduced into the sample chain of custody for analysis. Statistical analysis of the QAQC data was completed for Au, Pb, Zn and Ag and the reported results are consistent with all analytic procedures completed by Acme Analytical Labs. Ltd. being within acceptable parameters.

Geological exploration contracting services on the Iron Range property during 2011 are being provided by TerraLogic Exploration of Cranbrook, B.C. (a wholly-owned subsidiary of Eagle Plains). Diamond drilling is being carried out by F.B. Drilling of Cranbrook, B.C. All fieldwork is under the supervision of geologist J.K. Ryley while C.C. Downie, P.Geo. is hereby identified as the overall project supervisor. 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.

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.

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.

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.

About Providence Resources Corp.

Providence Resources 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.

Vince Sorace
President, Providence Resources Corp.

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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