Eagle Plains Resources Ltd. and American Eagle Gold Corp. have announced a strategic option agreement permitting American Eagle to earn up to an 80% interest in the Hearne Hill South copper-gold porphyry project and two adjacent properties, Jinx and NAK NW. This agreement takes place within the context of the Babine Porphyry District, one of British Columbia's most actively explored areas.
Dated July 24, 2026, the agreement encompasses a range of financial commitments including cash payments, share issuances, and exploration expenditures. In the first phase, American Eagle must pay CA$400,000, issue 1,200,000 common shares to Eagle Plains, and invest CA$4,850,000 in exploration activities over six years. A subsequent phase allows for an additional 20% interest acquisition, contingent upon a one-time payment of CA$1,000,000, half of which can be paid in shares.
The Hearne Hill South project, spanning 4,656 hectares, is located approximately 70 kilometers northeast of Smithers, BC. It lies 4.5 kilometers from American Eagle's flagship NAK project, which is currently undergoing a significant 55,000-meter drill campaign. The properties, which include 23 mineral claims and one claim application totaling 6,690 hectares, are situated in a well-known porphyry copper-gold belt, suggesting high mineralization potential.
Eagle Plains has previously conducted preliminary exploration at Hearne Hill South, including a high-resolution airborne magnetic survey and soil sampling, revealing geophysical anomalies indicative of porphyry deposits. The agreement also positions American Eagle to execute additional exploration plans that could advance these properties toward drill readiness.
American Eagle’s operations are situated within the traditional territory of the Lake Babine Nation, where the company has established collaborative relationships through a prior exploration agreement. These relationships are expected to enhance community engagement and support for ongoing projects.
The option agreement is subject to acceptance by the TSX Venture Exchange. Eagle Plains will continue to explore further opportunities within the Babine region while American Eagle leverages its financial resources and mining expertise.
Eagle Plains Resources Ltd. (TSXV:EPL)(OTCQB:EGPLF) and American Eagle Gold Corp. (TSXV:AE)(OTCQB:AMEGF) have entered into an option agreement allowing American Eagle to earn up to an 80% interest in the Hearne Hill South copper-gold project, along with the Jinx and NAK NW properties, located in British Columbia. This agreement includes multiple phases of financial commitments related to cash payments, share issuances, and funding of exploration expenditures.
To exercise the option, American Eagle must fulfil a series of cash payments, share issuances, and exploration expenditures. In the first phase, they need to pay CA$400,000, issue 1,200,000 common shares to Eagle Plains, and fund CA$4,850,000 in exploration over six years. To acquire an additional 20% interest, they must pay an additional one-time payment of CA$1,000,000, half of which may be made in shares.
The Hearne Hill South project is part of the Babine Porphyry Belt, underlain by Upper Triassic Takla Group and Lower Jurassic Hazelton Group volcanic and sedimentary rocks. The area is known for mineralization in stockwork porphyry systems, and the geological conditions indicate potential for copper-gold porphyry deposits.
Eagle Plains has conducted significant preliminary exploration, including a high-resolution airborne magnetic survey and soil sampling, which has revealed potential geophysical and geochemical anomalies consistent with porphyry copper exploration. However, the property has not seen modern drilling.
Partnering with American Eagle, which has a proven track record in exploration and substantial cash reserves, provides Eagle Plains with the opportunity to leverage American Eagle's expertise and resources for effective exploration and potential development of the Hearne Hill South project.
While the partnership and the geological setting present opportunities, there are inherent risks. Past results from adjacent sites do not guarantee similar outcomes at Hearne Hill South. Additionally, the success of the exploration efforts depends on the effectiveness of the funded programmes and potential changes in market conditions.
The Hearne Hill South project falls within the traditional territory of the Lake Babine Nation, which necessitates respectful engagement and compliance with local regulations. American Eagle's established relationships with the local community may enhance collaboration, but environmental considerations remain a critical aspect of exploration and development.
American Eagle is currently conducting a drill programme at their nearby NAK project and plans to continue extensive drilling until April 2027. The current activities and findings at NAK may influence subsequent strategies at the Hearne Hill South project.