VANCOUVER, Aug. 9, 2016 /CNW/ - Eureka Resources Inc.
("Eureka" or the "Company") (TSXV: EUK) is pleased to announce
results of work programs completed on the Company's FG property in
June and July, 2016. The FG property is located in south-central
British Columbia, 100 km east of
Williams Lake.
An airborne geophysical survey was completed in 2007 covering a
large portion of the Eureka Syncline. New claims were acquired in
June, 2016 to cover the area of the airborne survey over the
southern limb of the syncline (see announcement dated June, 27,
2016). A detailed geophysical interpretation was completed on these
new claims by SJ Geophysics Ltd. of Surrey, B.C. in July, 2016. The results of
this interpretation have revealed the three conductive/resistive
horizons of the sedimentary package that makes up the favourable
lithologies of gold mineralization in the Main Zone. These three
horizons have been identified within the South Limb. The favourable
horizon was found at a much higher elevation than anticipated which
required acquiring 2 additional claims (30 cell units, 692
hectares) bringing the total claim package at FG to 30 claims
(10,084 hectares).
In the Main Zone, the favourable horizon is interpreted at the
contact of the upper resistive zone (Knotted phyllite) and the
middle conductive zone (black banded phyllite). This same sequence
appears at elevations ranging 1700 – 2000 meters (asl) at the South
Limb. Only limited prospecting by geochemistry has been completed
in this area of the property. It is intended to sample and
prospect this target area in the fall, 2016.
Soil sampling completed in July, 2016 consisted of filling in
areas of the northwest extension grid not sampled in 2015. It was
completed by a two-man crew who collected 114 soil samples in what
is referred to as the northwest "offset" zone. An additional crew
completed mapping, sampling and prospecting the "offset" zone to
note similar lithologies to the Main Zone. Results indicate a
strong correlation of gold anomalies in soil to the favourable,
electromagnetic horizon. Values ranged <5 ppb (detection limit)
to 1100 ppb gold, the high value coinciding with the interpreted
offset zone.
Coincidental soil and electromagnetic anomalies have provided
significant drill targets along the northwest projection of the
Main Zone. A diamond drill program designed to test the recently
delineated targets in the northwest extension "offset" area would
include a minimum of five diamond drill holes, each 200 – 300
meters in length, and totalling 1,250 meters.
"We are very pleased with the results of the geochemical program
and geophysical interpretation," stated Mike Sweatman, CEO of Eureka. "Results of
drilling the northwest extension and "offset" zone may add
significant ounces of gold to the established resource in the Main
Zone," he added.
FG Project
Eureka has held the FG property (formerly called Frasergold)
since 1982. To date over $15.0
million of exploratory work has been completed by the
Company, 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 gold resource (634,900
ounces) 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. Details of the gold resource can be found in
"NI 43-101 Technical Report, Frasergold Exploration Project,
Cariboo Mining Division, dated July 27,
2015" available on SEDAR or at the Company's website.
Gemini Lithium Project
Eureka owns a 50% participating
interest in the Gemini lithium brine project located in the western
Lida Valley, Nevada, USA.
Gemini is located in Esmeralda
County in south central Nevada, approximately 40 kilometres (26 miles)
from North America's only
producing lithium mine at Silver Peak. The Lida Valley is a flat,
desert basin hosting two interpreted sub-basins and with a similar
geological setting to the Clayton Valley. North America's only producing lithium mine is
from brines located in the Clayton Valley. 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 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.