VANCOUVER, Aug. 9, 2016 /CNW/ - Eureka Resources Inc. ("Eureka" or the "Company") (TSXV: EUK) is pleased to announce results of work programs completed on the Company's FG property in June and July, 2016. The FG property is located in south-central British Columbia, 100 km east of Williams Lake.
An airborne geophysical survey was completed in 2007 covering a large portion of the Eureka Syncline. New claims were acquired in June, 2016 to cover the area of the airborne survey over the southern limb of the syncline (see announcement dated June, 27, 2016). A detailed geophysical interpretation was completed on these new claims by SJ Geophysics Ltd. of Surrey, B.C. in July, 2016. The results of this interpretation have revealed the three conductive/resistive horizons of the sedimentary package that makes up the favourable lithologies of gold mineralization in the Main Zone. These three horizons have been identified within the South Limb. The favourable horizon was found at a much higher elevation than anticipated which required acquiring 2 additional claims (30 cell units, 692 hectares) bringing the total claim package at FG to 30 claims (10,084 hectares).
In the Main Zone, the favourable horizon is interpreted at the contact of the upper resistive zone (Knotted phyllite) and the middle conductive zone (black banded phyllite). This same sequence appears at elevations ranging 1700 – 2000 meters (asl) at the South Limb. Only limited prospecting by geochemistry has been completed in this area of the property. It is intended to sample and prospect this target area in the fall, 2016.
Soil sampling completed in July, 2016 consisted of filling in areas of the northwest extension grid not sampled in 2015. It was completed by a two-man crew who collected 114 soil samples in what is referred to as the northwest "offset" zone. An additional crew completed mapping, sampling and prospecting the "offset" zone to note similar lithologies to the Main Zone. Results indicate a strong correlation of gold anomalies in soil to the favourable, electromagnetic horizon. Values ranged <5 ppb (detection limit) to 1100 ppb gold, the high value coinciding with the interpreted offset zone.
Coincidental soil and electromagnetic anomalies have provided significant drill targets along the northwest projection of the Main Zone. A diamond drill program designed to test the recently delineated targets in the northwest extension "offset" area would include a minimum of five diamond drill holes, each 200 – 300 meters in length, and totalling 1,250 meters.
"We are very pleased with the results of the geochemical program and geophysical interpretation," stated Mike Sweatman, CEO of Eureka. "Results of drilling the northwest extension and "offset" zone may add significant ounces of gold to the established resource in the Main Zone," he added.
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.
Gemini Lithium Project
Eureka owns a 50% participating interest in the Gemini lithium brine project located in the western Lida Valley, Nevada, USA. Gemini is located in Esmeralda County in south central Nevada, approximately 40 kilometres (26 miles) from North America's only producing lithium mine at Silver Peak. The Lida Valley is a flat, desert basin hosting two interpreted sub-basins and with a similar geological setting to the Clayton Valley. North America's only producing lithium mine is from brines located in the Clayton Valley. Gemini currently consists of 247 placer claims totaling 4,940 acres (2,000 hectares).
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 or future exploration plans at the Frasergold Project and the Gemini 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/20160809_C5019_PHOTO_EN_749528.jpg
For further information: 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 protected] or by telephone at (604) 449-2273.