VANCOUVER, Jan. 11, 2016 /CNW/ - Eureka Resources Inc. ("Eureka" or the "Company") (TSXV: EUK) announced today that it has completed an analysis of our 2015 exploration program at the Frasergold deposit, located approximately 100 kilometers east of Williams Lake, British Columbia. The program consisted of geochemical sampling to extend existing grids along trend of the known gold mineralization to the northwest, and a detailed interpretation of data collected from a 2007 airborne geophysical program, which was never subjected to detailed interpretation.
Soil sampling and airborne geophysical interpretation were completed in 2015 over an extension of the Main Zone an additional 6 kilometers to the northwest. This was done to establish the presence and location of the mineralized zone over this projected length.
The recent interpretation of the 2007 airborne EM data over the Main Zone noted the presence of a specific conductive marker horizon believed to be related to the known gold mineralization in the Main Zone. This marker horizon has been projected a distance of 5 kilometers to the northwest, interrupted by at least two offsetting cross-faults, in an area of limited to no exploratory drilling. Soil sampling has confirmed the existence of irregular, but strongly anomalous gold-in-soil anomalies over this same 5 kilometer strike length.
"We are very pleased with these results that reveal the potential for gold mineralization in an area of the property that is underexplored," stated Michael Sweatman, President of Eureka. "From this interpretation, we plan to develop new targets for a future drilling program."
Drilling from 1983 – 2008 in the 3 kilometer strike length of the Main Zone, indicates the Main Zone contains a Measured plus Indicated resource of 15,170,000 tonnes @ .776 grams/tonne gold (376,000 ounces) as well as an Inferred resource of 27,493,000 tonnes @ 0.716 grams/tonne gold (634,000 ounces) at a cut-off of 0.5 grams/tonne. The recent geochemical program and detailed geophysical interpretation has provided an additional 5 kilometer strike length of exploration potential.
The projected zone is in an area of deep overburden (20 – 90 meters), therefore allowance for downhill dispersion of soil values is necessary. The geophysical interpretation has provided the specific targets required for drilling.
The airborne geophysical survey consisted of a total of 1,348.5 line kilometers, with lines spaced at 100 meter intervals. EM and magnetic data were collected over an area of 11,000 hectares, which was the size of the Frasergold project in 2007. Hawthorne Gold Corp. was the operator of the project during this period. In addition to the above, EM interpretation indicates an extension of the mineralized zone to the southeast a distance of 4 kilometers. Soil sampling over this extension is now warranted. Modeling of the magnetic data has resulted in the indication of two strong anomalies indicate the presence of porphyry copper and/or gold mineralization.
About Eureka and the Frasergold Project
Since its incorporation in 1981, Vancouver-based Eureka Resources Inc. has focused on the exploration and development of natural resource properties. Its flagship project, the Frasergold Project, was the subject of a National Instrument 43-101 ("NI 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 Frasergold Project is located 100 kilometres east of Williams Lake, B.C., with good summer/fall access by provincial highways and secondary roads.
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 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/20160111_C4186_PHOTO_EN_594850.jpg
For further information: Further information on Eureka and the Frasergold Project 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.