VANCOUVER, Feb. 17, 2016 /CNW/ - Eureka Resources Inc.
("Eureka" or the "Company") (TSXV: EUK) is pleased to provide
the following corporate update including details of the Company's
exploration activities on its gold and lithium properties.
Frasergold Project
Eureka has held the Frasergold property since 1982. To
date over $15.0 million of
exploratory work has been completed on Frasergold by ASARCO, AMOCO
and Hawthorne Gold Corp. The historical exploration has
established a Measured and Indicated (376,000 ounces) gold resource
at an average grade of 0.776 g/t gold, using a cut-off grade of 0.5
g/t, and an Inferred (634,900 ounces) gold resource at an average
grade of 0.718 g/t gold, using a cut-off grade of 0.5
g/t. Mineralization has been outlined over a strike
length of 3 kilometres, and has the potential for additional
mineralization that could extend along an interpreted strike length
of over 10 kilometres (for further information see "NI 43-101
Technical Report, Frasergold Exploration Project, Cariboo Mining
Division, dated July 27, 2015"
available on SEDAR or on the Company's website).
Eureka has received the assay results from its fall 2015
exploration program at the Frasergold property. The
exploration program consisted of geochemical sampling to extend
existing grids an additional six kilometres to the northwest along
trend of the known gold mineralization at the Main Zone. A
total of 510 soil samples were assayed for gold.
Assay highlights included 24 samples which yielded anomalous
grades greater than 50 but less than 100 ppb Au and 13 samples
which yielded grades greater than 100 ppb Au with the highest value
yielding 554 ppb Au.
The Company engaged SJ Geophysics to evaluate data collected in
a 2007 airborne geophysical survey that gathered a significant
amount of magnetic and EM data. This re-examination has
revealed an apparent correlation between a geophysical signature
and the known mineralized zone. This geophysical signature
continues to the northwest of the property and is coincident with
the trend in anomalous gold soil sample results.
The Company has filed the work credits related to the fall 2015
exploration program at Frasergold with the Mineral Titles Office
("MTO"). The Frasergold property is now in good standing with
the MTO until August 15,
2019.
As a result of the information obtained in the fall 2015
exploration program, in February, 2016, the Company staked two
strategic mineral claims expanding the property to 28 claims
covering 3,933.04 hectares which comprise the Frasergold project
area.
Eureka continues to evaluate the historical exploration work to
develop new drill targets at the Frasergold property. The
Company is currently assessing financing options for additional
exploration at Frasergold. The Company is actively seeking a
joint venture partner for the property. Alternatively, the
Company may consider a flow-through equity financing later in
2016.
Gemini Lithium Project
Eureka recently entered into an interim agreement with Nevada
Sunrise Gold Corporation ("Nevada Sunrise") (TSXV: NEV), which
gives it the right to acquire a 50% participating interest in the
Gemini Lithium Project ("Gemini") located in the western Lida
Valley, Nevada. Gemini hosts two sub-basins that have the
potential for lithium-bearing brines similar to the proven lithium
brine deposits located in the Clayton Valley. Lithium occurs in
economic quantities within brines in the Clayton Valley where the
only producing lithium mine in North
America is located. Gemini is situated in a similar geologic
environment and is 40 kilometres southeast of the Clayton
Valley.
Eureka and Nevada Sunrise have commissioned a time domain
electromagnetic ("TDEM") survey to determine if there are
conductive strata present within the two sub-basins at
Gemini. The initial processing of the TDEM data and
determination of possible conductive brines will be available in
late February, 2016.
Kristian Whitehead, P.
Geo., a qualified person under National Instrument 43-101, is in
charge of all exploration programs on behalf of the Company and has
reviewed the technical disclosures contained in this news
release. Mr. Whitehead is Vice-President, Exploration and a
director of the Company.
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 news release.
Cautionary Statement Regarding Forward-Looking
Information
This news release includes certain "forward-looking
statements" under applicable Canadian securities legislation that
are not historical facts. Forward-looking statements involve risks,
uncertainties, and other factors that could cause actual results,
performance, prospects, and opportunities to differ materially from
those expressed or implied by such forward-looking statements.
Forward-looking statements in this news release include, but are
not limited to, statements with respect to the Company's proposed
financings, objectives, goals or future exploration plans at the
Frasergold Project and the Gemini Project, and the business and
operations of the Company. Forward-looking statements are
necessarily based on a number of estimates and assumptions that,
while considered reasonable, are subject to known and unknown
risks, uncertainties and other factors which may cause actual
results and future events to differ materially from those expressed
or implied by such forward-looking statements. Such factors
include, but are not limited to: general business, economic and
social uncertainties; litigation, legislative, environmental and
other judicial, regulatory, political and competitive developments;
delay or failure to receive board, shareholder or regulatory
approvals; those additional risks set out in the Company's public
documents filed on SEDAR at www.sedar.com; and other matters
discussed in this news release. Although the Company believes that
the assumptions and factors used in preparing the forward-looking
statements are reasonable, undue reliance should not be placed on
these statements, which only apply as of the date of this news
release, and no assurance can be given that such events will occur
in the disclosed time frames or at all. Except where required
by law, the Company disclaims any intention or obligation to update
or revise any forward-looking statement, whether as a result of new
information, future events, or otherwise.
SOURCE Eureka Resources, Inc.