VANCOUVER, Oct. 17, 2016 /CNW/ - Eureka Resources Inc.
("Eureka" or the "Company") (TSXV: EUK) is pleased provide an
update to our shareholders and interested stakeholders.
Eureka has made excellent progress over the last several months
on both the Gemini Lithium Project ("Gemini") and the FG Gold
Project ("FG Project"). In addition, the Company is currently
reviewing potential acquisitions.
Gemini Lithium Project
Completion of pre-exploration work; significant achievements
include the following:
- Execution of a Definitive Joint Venture Agreement with Nevada
Sunrise Gold Corporation ("Nevada Sunrise") (TSXV: NEV);
- Selection of drill targets;
- Placement of a reclamation bond;
- Completion of an archaeological survey;
- Receipt of final exploration permit received from the Nevada
Bureau of Land Management;
The exploration program for Gemini is estimated to cost
approximately US$400,000. Eureka is
required to contribute 50% of these costs (US$200,000). The Company is in the process
of completing a private placement of up to 3,500,000 units at
$0.10 per unit, with each unit
consisting of one common share and one-half of a share purchase
warrant. Each whole warrant will entitle the holder to
purchase an additional common share for 15
cents per share for two years from the date of issuance of
the warrant. There is no minimum number of units being offered.
The proceeds of the private placement will be used for the
drilling program at Gemini. The timing of the drill program
is dependent on the availability of a drill rig and required
staffing.
Eureka owns a 50% participating interest in the Gemini Project,
located in the western Lida Valley,
Esmeralda County, in south central
Nevada, approximately 40
kilometres (26 miles) from North
America's only producing lithium mine at Silver Peak. Gemini
currently consists of 247 placer claims totaling 4,940 acres (2,000
hectares). The Gemini Project is located in a flat, desert
basin hosting two interpreted sub-basins and with a similar
geological setting to the Clayton Valley. Recent geophysical work
at Gemini has outlined conductive zones interpreted as brine
horizons, which the Company plans to test by drilling.
In August 2016, Nevada Sunrise
granted Advantage Lithium Corp. (TSXV: AAL) ("Advantage") an option
to earn a 50% interest in Gemini as part of a transaction involving
5 lithium properties, including Gemini. Upon exercise of the option
by Advantage, Nevada Sunrise would relinquish its 50% interest in
Gemini to Advantage, and retain a 2% gross overriding royalty on
the Advantage 50% participating interest. Eureka will retain
a 50% interest and will then become the operator of exploration at
Gemini.
FG Gold Project
Completion of 2016 exploration program and option agreement;
significant achievements include the following:
- Staking of additional strategic mineral claims;
- Completion of geophysical interpretations;
- Geochemical exploration following up on the geophysical
interpretations;
- Conclusion of an Option Agreement with Cararc Resource Corp.
for the advancement of the FG Project in 2017.
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.
Commencement of Project Reviews for Acquisitions
The Company's management, technical advisors and geologists are
in the process of reviewing several projects for potential
additions to the portfolio.
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 and future exploration plans at the
Gemini Project and the FG Project, the costs related to the
Company's proposed exploration programs, 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 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.