EUREKA PROVIDES UPDATE OF ACTIVITY
EUREKA PROVIDES UPDATE OF ACTIVITY
Vancouver BC September 14, 2017 Eureka Resources Inc. (“Eureka”) (TSXV: EUK) is pleased to provide investors with an update on Eureka’s exploration activities primarily focused on mineral properties in the historic gold districts of the Klondike in the Yukon Territory and the Cariboo region of British Columbia.
Summary of recent activity
Recent accomplishments include the following:
- Announced positive results from the drilling program completed at Gold Creek in the Cariboo (News Release July 25,2017)
- Drill Hole #GC 17-035 included 1.25 m at 33.20 g/t Au
- Drill Hole # GC17-034 included 1.50 m at 17.95 g/t Au;
- Announced a follow up geochemical and mapping program for Yukon projects in September 2017 (News Release August 30, 2017);
- Added new claims to Yukon and CKN Properties (News Release July 11, 2017);
- Completed an extensive geophysical program on Yukon properties (News Release (May 1, 2017);
- Our philosophy to date has been to obtain and explore highly prospective mineral properties at various stages of development. Our FG property has a defined resource and a five year drill permit.
- If follow up drilling at our Gold Creek property continues to yield results consistent with the May 2017 results, which were built on the exploration completed by previous operators, management is optimistic about its potential to define a resource. Gold Creek has a 5-year exploration drill permit;
Gold Creek Results
2017 diamond drilling has confirmed the gold mineralized structures in the Camp zone strike E-W to WNW-ESE and extend eastward from the Paquette Valley. Gold mineralization to date has been found either within highly Fe-carbonate, sericite, and silica altered and pyritic fault zones or within fractured quartz-carbonate-pyrite veined greywacke and andesite tuff units in close proximity to larger fault zones. The strongest gold mineralization encountered to date occurs within vertical to near vertical sheeted quartz-carbonate-pyrite veins hosted predominantly within greywacke units which strike along a WNW-ESE trending zone that has currently been traced for approximately 300 metres. This zone remains open towards the east and to depth.
Drilling to date demonstrates that the Camp zone contains multiple high grade, near vertical gold rich zones which range from 1 to several metres of estimated true width. These high grade zones are contained within a similarly-oriented lower grade gold halo of typically of or greater than 5 metres true width, relatively soft, weakly metamorphosed sedimentary rock units which are believed to be amenable to common stope mine extraction techniques.
Yukon Geophysics and Field work
Results of the field program currently underway at our Sheba and Tak properties in Yukon will be analyzed and plans for future work finalized.
Our strategy is to have a suite of highly prospective and strategic projects, focused primarily on the gold commodity at various stages of development. With the recent strengthening in the price of gold and our team’s unique experience and expertise we feel that this is a cohesive and prudent strategy.
- Our Yukon properties, although strategically-located, are at an earlier stage of exploration and future work programs will build on this year’s results.
- 2017 work has included an extensive airborne survey which has allowed us to target follow up with ground surveys.
- Work continues on 3 of the properties with a program of sampling and mapping that is expected to complete the field portion of the work in September, followed by analysis and compilation through the fall and early winter.
- Our CKN property represents an early stage prospect located in an excellent location immediately to the east and adjacent to Taseko’s Gibraltar copper molybdenum mine. This property was acquired because of its prospective location, its proximity to a large anomaly identified in a regional geophysical program and stream and soil samples which have identified anomalous gold and copper results. A recent reinterpretation of the geological setting indicates that the property is potentially located within the highly prospective Quesnellia terrane. The property was previously inferred to be located within the extent of the Cache Creek. Data compilation is currently underway with a soil, silt and outcrop sampling program planned to be conducted and completed in late September or early October, 2017. This property is prospective for potential copper and gold skarn type mineralization .
- Recently our Gemini lithium property in Nevada has been reduced in size to include only the western anomaly. The 50% interest in the property that was subject to an earn-in was recently returned to Nevada Sunrise Gold Corp. (“NEV”) and we are working jointly with NEV to determine next steps.
Plans going forward
Over the coming months we intend to complete a financing and develop a comprehensive plan for the 2018 field work season.
Exploration programs have not been finalized however, our focus, initially, will follow up with drilling successes at the Gold Creek - Camp Zone that was drilled in May 2017. This program may be commenced in October 2017, subject to the availability of exploration funding.
In addition, we will seek joint venture partners to further advance our FG property and our Nevada lithium property.
We believe that the recent strength in commodity prices offers an opportunity to substantially develop our properties and improve and enhance awareness of the Company and our property portfolio.
Eureka is an exploration focused company based in Vancouver, British Columbia, whose strategy is to acquire projects in prospective areas that have the potential to deliver important new discoveries and create value for its shareholders.
British Columbia, Canada
Eureka’s 100% owned FG Gold property is an advanced-stage gold project located in the Cariboo Mining Division. 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. 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 under the Company’s profile on SEDAR or on the Company’s website.
Eureka’s 100% owned Gold Creek property located in the Cariboo Mining Division. Gold Creek is a grassroots gold project neighboring, and with similar geology to the Spanish Mountain deposit owned by Spanish Mountain Gold Ltd. (TSXV: SPA).
Eureka has the option to earn a 100% interest in the CKN property located in the Cariboo Mining Division. The CKN property is adjacent to Taseko’s Gibraltar mine and consists of four mineral claims covering 1,847 hectares.
Yukon Territory, Canada
Eureka’s 100% owned Luxor property consists of four non-contiguous claim blocks totaling 384 mining claims.(the Luxor claims are made up of the Hav, Ophir, Etta and Sheba claims) Luxor is located in the Dawson Range Gold Belt, a district of major porphyry, breccia and vein occurrences.
Eureka’s 100% owned TAK property is also located in the Dawson Range Gold Belt and consists of 82 mining claims.
Neighboring projects include Goldcorp’s Coffee project and Kinross’ Golden Saddle project.
Eureka owns a 50% interest in the Gemini lithium brine project located approximately 40 km (26 miles) south of North America’s only producing lithium mine at Silver Peak, Nevada.
Kristian Whitehead, P.Geo., the Company’s designated Qualified Person for this news release within the meaning of NI 43-101, has reviewed and approved the technical information contained 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, by email at email@example.com or by telephone at (604) 449-2273.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of TSX Venture Exchange) accepts responsibility for the adequacy of accuracy of this release.
Cautionary Statement Regarding Adjacent Properties and 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 2017 Gold Creek drilling program 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: complete exploration programs, 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.