Eureka Announces Corporate Changes to Board of Directors and Management Team

VANCOUVER, June 12, 2015 /CNW/ - Eureka Resources Inc. ("Eureka" or the "Company") (TSXV: EUK) announced today that significant changes have been made to the Board of Directors (the "Board") and to the management team of the Company. Concurrent with these administrative changes, on June 11, 2015, a significant shareholder of Eureka and certain of his associates divested a total of 10,000,000 shares of the 20,047,239 issued and outstanding common shares of the Company in a private sale to independent investors.

On June 11, 2015, Eureka accepted the resignations of John J. ("Jack") O'Neill as President and director, Lawrence O'Neill and Mark Rozenberg as directors of the Company, and Sheryl A. Jones and Terence O'Neill as Chief Financial Officer and Corporate Secretary, respectively. Kristian Whitehead, P.Geo., and John R. Kerr, P.Eng. (previously appointed as a director on May 11, 2015) remain as directors of the Company, and have appointed Michael D. Sweatman, CPA, and Warren W. Stanyer to the Board. The Board also appointed Michael Sweatman as President and Chief Executive Officer, Brent Petterson, CPA, as Chief Financial Officer in place of Sheryl Jones, and Christina Boddy as Corporate Secretary, in place of Terence O'Neill. Kristian Whitehead was appointed Vice-President, Exploration, for the Company.

The Board wishes to thank the previous directors and officers for their long and dedicated service to the shareholders of the Company. With corporate policies established under the leadership of former Chairman and President Jack O'Neill, Eureka remains committed to the highest and best levels of corporate and environmental responsibility, and to maintaining strong relationships with shareholders and investors.

Eureka's new management team is poised to build on the extensive exploration carried out on the Frasergold Project since its acquisition by the Company in 1983. Michael Sweatman, President and CEO said: "The outstanding work and standards set over the past three decades by Jack O'Neill and his team have provided a solid foundation for Eureka's future. We look forward to unlocking the tremendous potential of the Frasergold Project."

John Kerr and Kristian Whitehead have each gained extensive personal experience on the Frasergold Project from their involvement in historical exploration programs, and are jointly planning a summer/fall 2015 exploration program for implementation over the coming months, dependent on financing. A modest soil sampling program carried out by Eureka in late April 2015 showed anomalous gold values ranging from 20 to 1,525 ppb in an area northwest of the Main Zone of the Frasergold deposit that could become a compelling drill target. With a report of the results of the April 2015 soil sampling program fully in hand, the Company intends to update the National Instrument 43-101 ("NI 43-101") compliant technical report entitled "Report on the 2007 and 2008 Drill Programs on the Frasergold Project", dated November 18, 2009, authored by K. V. Campbell, Ph.D, P.Geo, and G. H. Giroux, MA.Sc, P.Eng., and filed on SEDAR by Hawthorne Gold Corp. ("Hawthorne", TSXV: HGC, now China Minerals Mining Corp., TSXV: CMV).

New Directors and Officers

Michael D. Sweatman, President, Chief Executive Officer and director, is a Chartered Professional Accountant and has operated MDS Management Ltd., a Vancouver-based management consulting company, since November 1992. He obtained his Bachelor of Arts degree in economics and commerce from Simon Fraser University, gained his CA designation in 1982, and is a member of the Institutes of Chartered Accountants of both British Columbia and the Yukon Territory. He has served as a director and officer of a number of public companies over the past 20 years and is currently a director and Chairman of Nevada Sunrise Gold Corp. (TSXV: NEV), Mega Precious Metals Inc. (TSXV: MGP), which was recently announced as an acquisition target of Yamana Gold Inc. (TSX: YRI), and Cortez Gold Corp. (TSXV: CUT), which recently announced its agreement to be acquired by Starcore International Mines Ltd. (TSX:SAM)

Kristian Whitehead, B.Sc., P.Geo., continuing director and newly appointed Vice President, Exploration, has served as a director of Eureka since July 2011, and has over 11 years of exploration experience, including over 2 years of minesite exploration. He has most recently worked as a consulting geologist for Kootenay Silver Inc. (TSXV: KTN), Copper Creek Gold Corp. (TSXV: CPV), has served as an officer of Fortunate Sun Mining Ltd. (TSXV: FSM) in 2012, and has consulted for Taseko Mines Ltd. (TSX: TKO) at the Gibraltar Mine, and for Fire River Gold Corporation (TSXV: FAU.H) at the Nixon Fork Mine during 2010-2011. Mr. Whitehead worked on the Frasergold Project during Hawthorne's exploration programs of 2007-2008. He owns and operates Infiniti Drilling Corp., servicing clients with remote drill services in the Yukon and NWT, B.C., Alberta, Saskatchewan, Manitoba, and Mexico.

Warren Stanyer, director, has served in public companies since 1996, beginning his career in mineral exploration as an officer of Pioneer Metals Corporation (TSX: PSM), which was acquired by Barrick Gold Corporation in 2006, and later as an officer until 2007 of UEX Corporation (TSX: UEX). Mr. Stanyer served as President, CEO and a director of Northern Continental Resources Inc. (TSXV: NCR), which was acquired by Hathor Exploration Ltd. in November 2009, and in recent years as director of Alpha Minerals Inc. (TSXV: AMW), which was acquired in 2013 by Fission Uranium Corp. He is currently President, CEO and a director of Nevada Sunrise Gold Corp. (TSXV: NEV), and a director of Alpha Exploration Inc. (TSXV: AEX).

Brent Petterson, Chief Financial Officer, is a Chartered Professional Accountant and operates his own private consulting company, MBP Management Ltd. Mr. Petterson spent 20 years in public practice with Wolrige Mahon, Chartered Accountants, and Amisano Hanson, Chartered Accountants, both based in Vancouver, B.C. He has extensive experience working with public mineral exploration companies and is currently the Chief Financial Officer of Nevada Sunrise Gold Corp. (TSXV: NEV). He has served as a director and/or officer of several TSX Venture Exchange listed mineral exploration companies since 2007.

Christina Boddy, Corporate Secretary, is a member of the Canadian Society of Corporate Secretaries and has acted as Corporate Secretary for a number of public companies in recent years, including Nevada Sunrise Gold Corp. (TSXV: NEV), Levon Resources Ltd. (TSX: LVN), Alexander Nubia International Inc. (TSXV: AAN), Resinco Capital Partners (TSXV: RIN), and Teslin River Resources (TSXV: TLR). Ms. Boddy acts as a consultant to public and private companies through Rhodanthe Corporate Services, a B.C.-based private company.

About Eureka and the Frasergold Project

Since its incorporation in 1981, Vancouver-based Eureka Resources, Inc. (TSX-V: EUK) has focused on the exploration and development of natural resource properties. Its flagship project, the Frasergold deposit,  
was the subject of a NI 43-101 compliant technical report entitled "Report on the 2007 and 2008 Drill Programs on the Frasergold Project", dated November 18, 2009, authored by K. V. Campbell, Ph.D, P.Geo, and G. H. Giroux, MA.Sc, P.Eng., and filed on SEDAR by Hawthorne. The Frasergold Project is located about 100 kilometres east of Williams Lake, B.C., Canada, with good summer/fall access by B.C. provincial highways and secondary roads.

In 2007 and 2008, Hawthorne spent approximately $8.8 million on exploration programs that included 14,029 meters of diamond drilling, and later published a Technical Report entitled "Report on the 2007 and 2008 Drill Programs on the Frasergold Project", dated November 18, 2009, authored by K. V. Campbell, Ph.D, P.Geo, and G. H. Giroux, MA.Sc, P.Eng., and filed on SEDAR by Hawthorne. The technical report describes Mineral Resource Estimates, consisting of a Measured resource of 145,000 ounces grading 0.812 grams/tonne ("g/t") gold, and an Indicated resource of 231,000 ounces grading 0.755 g/t gold, for total Measure and Indicated resources of 379,000 ounces of gold grading 0.776 g/t gold estimated at a cut-off grade of 0.50 g/t gold. An Inferred resource of 634,900 ounces of gold grading 0.718 g/t gold was also calculated at a cut-off grade of 0.50 g/t gold. The Measured, Indicated and Inferred resources are summarized below for cutoff values of 0.50 g/t and 0.30 g/t gold:

  Frasergold Deposit - 2009 Measured, Indicated and Inferred Resource Estimates

Zone

Class

Au Cutoff (g/t)

Tonnes> Cutoff (tonnes)


Grade > Cutoff

Au (g/t)

Au (grams)

Au Ounces




Using 0.50 g/t Au Cutoff


Main

Measured

0.50

5,600,000

0.812

4,500,000

145,000

Main

Indicated

0.50

9,570,000

0.755

7,200,000

231,000

Main

M+I

0.50

15,170,000

0.776

11,800,000

379,000

Main

Inferred

0.50

8,270,000

0.670

5,500,000

177,000

NW

Inferred

0.50

19,180,000

0.740

14,200,000

457,000

SE

Inferred

0.50

43,000

0.632

27,000

900

Total

Inferred

0.50

27,493,000

0.718

19,727,000

634,900




Using 0.30 g/t Au Cutoff


Main

Measured

0.30

11,470,000

0.595

6,800,000

219,000

Main

Indicated

0.30

22,610,000

0.540

12,200,000

392,000

Main

M+I

0.30

34,080,000

0.559

19,100,000

614,000

Main

Inferred

0.30

26,530,000

0.473

12,500,000

402,000

NW

Inferred

0.30

45,790,000

0.538

24,600,000

791,000

SE

Inferred

0.30

2,990,000

0.343

1,000,000

32,000

Total

Inferred

0.30

75,310,000

0.507

38,100,000

1,225,000

 

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 financing, objectives, goals or future exploration plans at the Frasergold 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.

Image with caption: "Eureka Resources, Inc. (CNW Group/Eureka Resources, Inc.)". Image available at: http://photos.newswire.ca/images/download/20150612_C8976_PHOTO_EN_17991.jpg

For further information: Further information on Eureka and the Frasergold Project can be found on the Company's website at www.eurekaresourcesinc.com or at Eureka's listing at www.sedar.com, or by contacting Michael Sweatman, President and CEO by email at sweatman@telus.net or by telephone at (604) 449-2273.

RELATED LINKS
www.eurekaresourcesinc.com

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