Vancouver, British Columbia--(Newsfile Corp. - June 5, 2017) - Eureka Resources Inc. (TSXV: EUK) ("Eureka" or the "Company") is pleased to announce that it has completed an initial diamond drill exploration program at its Gold Creek Property ("Gold Creek" or the "Property") located in the Cariboo Mining District, near Likely, British Columbia.
Gold Creek was acquired by Eureka by way of an option agreement in November 2016. The Property consists of 33 mineral claims covering 9,673 hectares and is accessed via a well-maintained all-weather road.
The 2017 drilling program consisted of 3 holes totalling 331 metres and was focused on a gold-bearing zone containing disseminated and high-grade vein-controlled gold mineralization. The gold is believed to be of orogenic nature and gold values are contained in the same Mesozoic sedimentary package as at Spanish Mountain, and as at the Company's FG property 45 kms to the southeast. Eureka's first drill program served as exploration and verification of the work conducted in 2008 and 2011 and will assist in designing future exploration programs in this area of the Property.
Figure 1. Drill locations located in and around Spanish Mountain Gold Ltd. (TSXV: SPA) core storage area.
Drilling was conducted in previously disturbed areas, thus mitigating environmental disturbance. The program utilized a diamond drill providing HQ diameter core to twin a historical RC drill hole which prematurely terminated in gold mineralization at 45.72 metres due to excessive water.
In 2011, the previous operator drilled hole GC11-27 which has been twinned as part of the current program.
| From (m) | To (m) | Interval (m) | Au g/t | |||
| GC11-27 | 3.1 | 44.2 | 41.2 | 0.893 | ||
| incl. | 3.1 | 32.0 | 29.0 | 1.093 | ||
| incl. | 10.7 | 12.2 | 1.5 | 13.400 |
Samples from Eureka's 3 hole drill program have been sent to ALS Laboratories in North Vancouver for analysis and results will be released when received, compiled and interpreted.
Kristian Whitehead, the Company's VP Exploration stated, "Our initial drill program at Gold Creek was successful in reaching our exploration goals. We were able to effectively obtain important geological information, allowing us to build on previous work and to effectively plan future programs in this area of the Property".
With the completion of this drilling program, Eureka has satisfied its work commitment required to earn a 100% interest in the Gold Creek Property. Eureka will complete the earn-in by issuing 50,000 common shares on or before August 31, 2017 and an additional 100,000 common shares on or before August 31, 2018. The vendor retains a 1% net smelter return royalty, half of which can be acquired by Eureka for $1,000,000.
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 and 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 (TSXV: CCM). 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 percent 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. (TSXV: SPA).
Eureka has the option to earn a 100 percent interest in the CKN property located in the Cariboo Mining Division. The CKN property is adjacent to Taseko's Gibraltar mine and consists of two mineral claims covering 1,356 hectares.
Yukon Territory, Canada
Eureka's 100 percent 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 percent owned TAK property is also located in the Dawson Range Gold Belt and consists of 82 mining claims.
Neighbouring projects include Goldcorp's Coffee project and Kinross' Golden Saddle project.
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., the Company's designated Qualified Person for this news release within the meaning of NI 43-101, has reviewed and approved the technical information contained in this news release.
Further information on Eureka can be found on the Company's website at www.eurekaresourcesinc.com
