VANCOUVER, Feb. 25, 2016 /CNW/ - Eureka Resources Inc. ("Eureka" or the "Company") (TSXV: EUK) and its joint venture partner, Nevada Sunrise Gold Corporation (TSXV: NEV) are pleased to announce that the companies have received the preliminary results from a time-domain electromagnetic survey ("TDEM") carried out on the Gemini Lithium Project ("Gemini") in Lida Valley, Nevada. A reconnaissance moving-loop TDEM survey over Gemini West and Gemini East has detected conductive zones within the sub-basins defined by recent gravity surveys. The results gained from the TDEM survey are interpreted to be conductive brines at depth located well below the non-conductive alluvium (sediments) at surface.
A conductive layer 150–250 metres deep appears to cover most of Gemini West and Gemini East, and several isolated strong conductive zones were interpreted at depths from 400 to 600 metres. The conductive layers and zones are indicative of brine solutions in porous aquifers and traps within each sub-basin.
Michael Sweatman, President of Eureka stated "we are pleased that the ground survey has detected conductive layers coincident to the gravity lows that were previously located. Gemini appears to be a hidden gem and the next step is to drill into the conductive zones to determine the extent and lithium content of the interpreted brines".
Gemini is currently the subject of an interim agreement with Nevada Sunrise Gold Corporation ("Nevada Sunrise") whereby Eureka can earn a 50% working interest in a joint venture at Gemini with Nevada Sunrise (see Eureka news release dated January 21, 2016). Nevada Sunrise acts as operator of Gemini.
A diagram of the TDEM section pertaining to this release is available on the Company's website: www.eurekaresourcesinc.com
About Gemini and the Lida Valley
Gemini is located approximately 6 miles (10 kilometres) east of the town of Lida, Nevada, and currently consists of 247 placer claims totaling 4,940 acres (2,000 hectares). Gemini flanks the Gold Point Solar Energy Zone, a BLM land reserve for solar power generation. The Lida Valley is a flat, desert basin with a similar geological setting to the established Clayton Valley basin, which hosts North America's only producing lithium mine at Silver Peak, located 40 kilometres (26 miles) to the northwest.
The exploration strategy at Gemini is to target desert basins, or playas, that exhibit similar geological and geophysical characteristics to the Clayton Valley basin where lithium brines are known to accumulate in faulted sub-basins, or "traps". Such sub-basins can be delineated by gravity surveys that detect strong gravity lows.
A detailed gravity survey carried out in 2012 and 2013, indicated strong gravity lows within two, faulted sub-basins approximately 7 kilometres (4.5 miles) apart, each interpreted to be hundreds of metres deep. Nevada Sunrise made the decision to acquire claims covering the available land after reviewing the geophysical results in conjunction with favourable local geology, namely late Miocene felsic volcanic tuffs adjacent to Gemini. These rocks provide the source of lithium for trapped, lithium-rich saline ground-waters (brine) within the sub-basins. On completion of more detailed TDEM surveys, drilling into the conductive zones within the sub-basin for lithium-bearing brines is recommended. There are no known drill holes at Gemini.
John R. Kerr, P. Eng., is the Company's designated Qualified Person for this news release within the meaning of National Instrument 43-101 and has reviewed and approved the technical information contained in this news release.
Since its incorporation in 1981, Vancouver-based Eureka Resources Inc. has focused on the exploration and evaluation of mineral properties. Its flagship project, the Frasergold Project ("FG Project,") was the subject of a National Instrument 43-101 compliant technical report entitled "NI 43-101 Technical Report Frasergold Exploration Project", dated July 20, 2015 and amended July 27, 2015, authored by K. V. Campbell, Ph.D, P.Geo, and G. H. Giroux, MA.Sc, P.Eng., and filed on SEDAR. The FG Project is located 100 kilometres east of Williams Lake, B.C. with good access by provincial highways and secondary roads.
Eureka recently entered into an interim agreement which gives the Company the right to acquire a 50% participating interest in the Gemini Lithium Project located in the Lida Valley, Nevada.
FORWARD LOOKING STATEMENTS
All statements in this release, other than statements of historical fact, are "forward-looking information" with respect to Eureka Resources Inc. ("Eureka") within the meaning of applicable Canadian securities laws, including statements that address future mineral production, reserve potential, exploration drilling, the future price of lithium, potential quantity and/or grade of minerals, potential size of a mineralized zone, potential expansion of mineralization, the timing and results of future resource estimates, or other study, proposed exploration and development of our exploration properties and the estimation of mineral resources. Forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "project", "predict", "potential", "targeting", "intends", "believe", "potential", and similar expressions, or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "should", "could", "would", "might" or "will" be taken, occur or be achieved. These statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievement of Eureka to differ materially from those anticipated in such forward-looking information.
Such factors include, among others, risks related to the interpretation and actual results of historical exploration at the Gemini property, reliance on technical information provided by third parties on any of our exploration properties, including access to historical information on the Gemini property, current exploration and development activities; changes in project parameters as plans continue to be refined; current economic conditions; future prices of commodities; possible variations in grade or recovery rates; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; labor disputes and other risks of the mining industry; delays in obtaining governmental approvals, financing or in the completion of exploration, as well as those factors discussed in the section entitled "Risk Factors" in the Company's Management Discussion and Analysis for the Year Ended October 31, 2015, which is available under Company's SEDAR profile at www.sedar.com.
Although Eureka has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Eureka disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise. Accordingly, readers should not place undue reliance on forward-looking information.
Forward-looking statements are made as of the date hereof and accordingly are subject to change after such date. Except as otherwise indicated by Eureka, these statements do not reflect the potential impact of any non-recurring or other special items or of any dispositions, monetizations, mergers, acquisitions, other business combinations or other transactions that may be announced or that may occur after the date hereof. Forward-looking statements are provided for the purpose of providing information about management's current expectations and plans and allowing investors and others to get a better understanding of our operating environment. Eureka Resources Inc. does not undertake to update any forward-looking statements that are included in this document, except as required by applicable securities laws.
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. The Securities of Eureka Resources Inc. have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to the account or benefit of any U.S. person.
SOURCE Eureka Resources, Inc.
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For further information: Further information about 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 firstname.lastname@example.org or by telephone at (604) 449-2273.