Vancouver, British Columbia--(Newsfile Corp. - April 6, 2017) - Eureka Resources Inc. (TSXV: EUK) ("Eureka" or the "Company") is pleased to announce that it has entered into an option agreement dated April 5, 2017 to acquire a 100% interest in the CKN property (the "Property") adjacent to the Gibraltar Mine in the Cariboo Mining Division of British Columbia. The Property consists of two claims, totalling 1,356 hectares, and is accessible by road from Williams Lake.
The claims are located adjacent to the northeast boundary of the operating Gibraltar Copper - Molybdenum mine of Taseko Mines Ltd. Gibraltar commenced operations in 1972 and, to date, has mined in excess of 450 metric tonnes, grading 0.33% copper and 0.008% molybdenum, from four distinct pits. Eureka acquired the claims comprising the Property because they are centered on a very strong magnetic feature along the contact of the Gibraltar host batholith and the Cache Creek sedimentary sequence. The magnetic feature is synonymous with skarn deposits, similar in nature to the Craigmont deposit in the Highland Valley. Exploration to date on the CKN Property identified Copper values in rocks from trace up to 13,967 ppm and Gold values in soils from trace up to 4.8 g/t. Notwithstanding the foregoing, the Property has never been systematically mapped or sampled so readers should not assume that the Property will have the same, or similar, mineralization as the Craigmont or Gibraltar deposits.
The terms of the Option Agreement are as follows:
|
Due Date |
Minimum Expenditure |
Cash |
Shares |
|
Execution Date |
$Nil |
$15,000 |
50,000 |
|
On or before July 1, 2018 |
$40,000 |
$20,000 |
100,000 |
|
On or before July 1, 2019 |
$80,000 |
$30,000 |
100,000 |
|
On or before July 1, 2020 |
$100,000 |
$50,000 |
200,000 |
|
On or before July 1, 2021 |
$Nil |
$100,000 |
250,000 |
The vendor will retain a 2% net smelter return royalty on the Property. The Company will have the right to purchase 1% of this Royalty for $1,000,000 any time prior to commercial production. The Option Agreement is subject to the approval of the TSX Venture Exchange (the "TSXV").
Eureka's President and CEO, Michael Sweatman, stated "This property adds to our land package in the Cariboo and is another of our recent acquisitions that are easily accessible, and close to existing deposits. Our technical group has commenced a review of data acquired as part of the transaction."
ABOUT EUREKA
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 to 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 and currently under option to Canarc Resources Corp. 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 has the option to earn a 100% interest in the Gold Creek property located in the Cariboo Mining Division. Gold Creek is a grassroots gold project neighbouring, and with similar geology to the Spanish Mountain deposit owned by Spanish Mountain Gold Ltd.
Yukon Territory, Canada
Eureka's 100% owned Luxor property consists of three non-contiguous claim blocks totalling 360 mining 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.
Neighbouring properties to Luxor and TAK include the Coffee deposit recently acquired by Goldcorp.
Nevada, USA
Eureka owns a 50 percent 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., and John Kerr, P. Eng., are the Company's designated Qualified Persons within the meaning of NI 43-101 and have reviewed and approved the technical information described in this news release.
