VANCOUVER, June 27, 2016 /CNW/ - Eureka Resources Inc.
("Eureka" or the "Company") (TSXV: EUK) is pleased to announce
that the interpretation of recent geophysical surveys has
identified conductive zones interpreted as lithium bearing brine
targets at its Gemini Lithium Project ("Gemini"). Gemini is
located in Esmeralda County in the
western Lida Valley of south central Nevada, approximately 40 kilometres (26 miles)
from North America's only
producing lithium mine at Silver Peak.
Results of the Geophysical Interpretation
Time-domain electromagnetic ("TDEM") in-loop sounding data was
acquired along four survey lines on the Gemini property in early
2016. Two lines were surveyed by Zonge International Inc. of
Tucson, Arizona and two lines were
surveyed by SJ Geophysics Ltd. of Vancouver, B.C. A total of 23.3
kilometres (15.1 miles) were surveyed in the four lines.
Ten proposed drill sites were selected based on the results of
the TDEM surveys. As noted in Eureka's news release dated
June 8, 2016 these proposed locations
have been submitted to the United States Bureau of Land Management
for their approval.
The model for lithium bearing brines at Gemini is very similar
to the model in the Clayton Valley; lithium occurring in brine
within horizontal to shallow dipping porous ash and/or gravel
horizons. Three zones based on this model can be identified
at Gemini from interpretation of the TDEM surveys: Zone 1 is
along the northwest edge of the basement high; Zone 2 is perched on
the top of the basement high; and Zone 3 is along the southeast
edge of the basement high. All the zones are possibly bounded by
cross-cutting faults.
To view a map of the 2016 TDEM survey results at Gemini, please
visit:
https://www.eurekaresourcesinc.com/projects/lida-valley/maps-and-figures
Michael Sweatman, President of
Eureka stated, "We are pleased that the geophysical surveys have
identified potential lithium bearing brine targets in the Gemini
basins. We expect to drill test the extent of the interpreted
brines in these zones later this summer."
Ownership of the Gemini Lithium Project
Eureka owns a 50% participating interest in Gemini with Nevada
Sunrise Gold Corporation ("Nevada Sunrise") (TSXV: NEV) owning the
other 50% participating interest.
The Company notes the proposed transaction announced
June 20, 2016 between North South
Petroleum Corp. ("North South") (TSXV:NAS.H) and Nevada Sunrise in
which North South can earn a 50% participating interest in Gemini
from Nevada Sunrise. North South has agreed to make
exploration expenditures on behalf of Nevada Sunrise in order for
Nevada Sunrise to maintain its 50% interest in the Gemini project
with Eureka.
Provided that North South expends a total of CDN$1.5 million on Gemini and up to four other
Nevada Sunrise lithium properties within 2 years from the closing
date of the North South – Nevada Sunrise transaction and fulfils
certain other cash and share payment obligations to Nevada Sunrise,
Nevada Sunrise will assign its 50% interest in Gemini to North
South in consideration for a 2% gross overriding royalty on the
North South 50% participating interest.
Upon completion of the earn-in agreement between North South and
Nevada Sunrise, Eureka will become the operator of the Gemini
Lithium Project.
Options Granted
The Company has granted 900,000 stock options to directors,
officers and consultants. The options entitle the holders to
purchase one common share for each option held at a price of
$0.10 per share for a period of 5
years. The options were granted pursuant to the Company's 10%
rolling stock option plan which was approved at the Company's last
Annual General Meeting.
About Eureka
FG Gold Project
Eureka has a 100% interest in the FG Project located 100
kilometres east of Williams Lake, British
Columbia, Canada. The property has good summer/fall
access by provincial highways and secondary roads.
The FG Gold Project ("Frasergold Project") was the subject of a
National Instrument 43-101 ("NI 43-101") compliant technical report
entitled "NI 43-101 Technical Report Frasergold Exploration
Project", dated July 20, 2015 and
amended July 27, 2015, authored by
K. V. Campbell, Ph.D, P.Geo, and
G. H. Giroux, MA.Sc, P.Eng., and
filed on SEDAR.
Gemini Lithium Project
Eureka has a 50% participating interest in the Gemini Project
located in the western Lida Valley, Nevada, USA. The Lida Valley is a flat,
desert basin with a similar geological setting to the Clayton
Valley basin which hosts North
America's only producing lithium mine. Gemini
currently consists of 247 placer claims totaling 4,940 acres (2,000
hectares).
John R. Kerr, P.Eng., is the
Company's designated Qualified Person for this news release within
the meaning of NI 43-101 and has reviewed and approved the
technical information described in this news
release.
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
objectives, goals or future exploration plans at the FG Gold
Project the Gemini Lithium 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.