Gold Creek Update
Vancouver, British Columbia February 9, 2017 Eureka Resources Inc. (“Eureka” or the “Company”) is providing a summary of our plans for 2017 at the Gold Creek Property located in the center of the historic Caribou Gold Camp.
Since acquiring the property in 2016 our technical group has commenced a review of the substantial data package that was acquired as part of the Option Agreement.
The Gold Creek project has a number of favorable attributes including the host lithology of the property is similar to both our FG project and the Spanish Mountain deposit. The FG project was one of the first discoveries of this type located in the Quesnel trough. These deposits are of a typical Sediment Hosted Vein (SHV) type deposit. In 2008 a program conducted by previous operators indicated that the mineralization encountered at Gold Creek may include an intrusive related gold source. It is important to note that SHV and Intrusive related deposits are some of the world’s largest Gold Deposits .
Readers are cautioned that the following results should be considered historical in nature as the Company has not performed sufficient work to determine whether these results are compliant with the requirements of National Instrument 43-101.
The Gold Creek project is located approximately 8 km to the Northwest of Spanish Mountain deposit. The Spanish Mountain deposit has reported resources of Measured and Indicated 238 million tonnes grading .46g/t for 3.5 million ounces and an Inferred resource of 311 million tonnes at .35 g/t for a further 3.5 million ounces. (source Spanish Mountain Gold Ltd. Website corporate presentation).
Exploration targets on the property are gold-bearing quartz veins and gold-silver bearing stratabound zones of quartz and carbonate-altered quartz-veins that occur in the basal, black phyllite metasedimentary and greywacke volcanic sequences such as observed in the Spanish Mountain deposit.
There are a number of significant factors that make Gold Creek a very attractive project including:
- Stable political jurisdiction
- Excellent local infrastructure and service centres
- Relatively inexpensive grid power
- Located close to a number of operating mines
Further previous drill results have identified areas with attributes that would support a significant exploration campaign. Past drilling from 2008, and 2011 have been reported as follows:
In 2011 the drilling program consisted of 25 drill holes and 2501 m of which 5 are diamond drill holes (1037 m) and the remaining 16 holes (1464 m) completed using a reverse-circulation drill rig on the Gold Creek prospect 2 kilometres north-east of the town of Likely in Central British Columbia. The drilling program outlined a gold rich zone with sample values up to 13.4 g/t Au.
The purpose of the 2011 drill program was to test numerous gold in soil anomalies as well as expand upon low-grade bulk-tonnage gold mineralization encountered in earlier drill programs. The strongest encountered gold mineralization to date occurs within the sheeted quartz-carbonate-pyrite veins (Hole GC11-15 of 1.5 m @ 3.26 g/t Au and GC11-27 of 1.5 m @13.4 g/t Au) within greywacke units. This style of mineralization appears to occur along an WNW-ESE trending zone that has been traced along strike for ~ 300 m and remains open to the east and to depth.
Analysis of the 2011 and 2008 drilling data has shown that there appears to be an approximately 75-100 m thick and more than 300 m long zone of low-grade gold mineralization that is open along strike to the southeast and to depth. A total of nine drill holes have tested this zone to date, which appears to dip steeply to the NE and has been tested to a maximum vertical depth of ~250 m. The table below summarizes the drilling results from this mineralized zone to date:
The northwest end of the zone appears to be cut by a fault zone but as mentioned above the zone is open to the SE where future drilling has yet to test the gold in soil anomaly (> 50 ppb Au in soil) which extends to the southeast for ~ 900 m on the Gold Creek prospect.
The attached map shows the extent of the gold mineralization on the Gold Creek prospect. The company is very encouraged by these results.
Future exploration will focus on defining the limits of the mineralization with the objective of preparing a 43-101 compliant resource estimate on the Gold Creek prospect.
Gold projects include the FG property in the Cariboo area of central British Columbia having an indicated resource of 376,000 ounces of gold and an inferred resource of 634,900 ounces of gold and the Gold Creek gold property in the gold belt of the Company’s FG project. The FG project is an advanced stage gold project, currently under option to Canarc Resource Corp.
The Gold Creek property is a project located proximal to and with similar geology to the Spanish Mountain deposit.
Eureka has recently concluded the purchase of the Luxor project and the TAK property in the famous and very active Dawson Range Gold belt of western Yukon Territory.
Eureka owns a 50% interest in the Gemini lithium brine project located in the Lida Valley, approximately 40 km (26 miles) south of the Clayton Valley, which contains North America’s only producing lithium deposit. Drilling is anticipated to commence in 2017. The drilling has been delayed because of the success of our partners Nevada Sunrise and Advantage Lithium who have elected to retain the drilling crew at their Clayton Northeast project (see AAL and NEV news releases December 2016).
Kristian Whitehead P.Geo and John Kerr P. Eng. is the Company’s designated Qualified Persons for this news release within the meaning of NI 43-101 and haves reviewed and approved the technical information described in this news release.
Further information on Eureka can be found on the Company’s website at www.eurekaresourcesinc.com and at www.sedar.com, or by contacting Michael Sweatman, President and CEO, or Bob Ferguson by email at email@example.com or by telephone at (604) 449-2273.
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.