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Eureka Resources Inc. (TSXV:EUK) has acquired three claim blocks known as the Luxor project located in the heart of the historic Klondike gold fields in the Yukon territory. The project consists of 360 claims (approximately 7,000 hectares) and is located 65 to 80 kilometres southeast of Dawson City. Luxor comprises three non-contiguous claim blocks referred to as Ophir, Sheba and Hav properties.
Eureka Resources Inc. (TSXV:EUK) has acquired three claim blocks known as the Luxor project located in the heart of the historic Klondike gold fields in the Yukon territory. The project consists of 360 claims (approximately 7,000 hectares) and is located 65 to 80 kilometres southeast of Dawson City. Luxor comprises three non-contiguous claim blocks referred to as Ophir, Sheba and Hav properties.
Eureka has entered into an agreement with Heli Dynamics Ltd. and Panarc Resources Ltd., whereby Eureka will purchase a 100-per-cent interest in the properties by issuing 2.5 million common shares. The vendors have agreed to a voluntary pooling arrangement whereby the common shares will be released as follows:
- Six months from closing: 833,333 shares;
- 12 months from closing: 833,333 shares;
- 18 months from closing: 833,334 shares.
Eureka will grant the vendors a 2-per-cent net-smelter-return royalty for gold produced from the properties, which may be purchased for $1-million. The vendors will also have the right to nominate one member to the board of directors. Eureka has agreed to use Aurora Geosciences and Heli Dynamics to perform exploration work over the next four years.
Luxor is located in the White Gold area in the Dawson Range gold belt of the western Yukon, a district of major porphyry, breccia and vein occurrences in a very active area of the Yukon territory. Neighbouring properties include the Coffee deposit recently acquired by Goldcorp, Western Copper and Gold Corp.’s Casino deposit, and Independence Gold projects. The project is accessed via a well-maintained territorial gravel road from Dawson City.
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Placer gold mining in the Klondike area has been active since the late 1890s Yukon gold rush. Bedrock exploration commenced in the area in the 1970s, with the development of the Casino property.
Mineralization in the district is gold, silver, copper and molybdenum porphyry deposits (Casino), mineralized breccia deposits (Coffee), and lode and stockwork veins (Golden Saddle). All three styles of mineralization have been identified near the Ophir, Sheba and Hav properties. Placer mining has produced gold from creeks draining the project, however, there is no documented history of bedrock exploration.
“We are very pleased with this acquisition,” stated Mike Sweatman, president and chief executive officer of Eureka. “This continues the company’s strategy of methodically adding projects that offer the opportunity to quickly add value to our property portfolio. The new relationship established with Aurora Geosciences, an affiliate of the vendors, will augment our technical team and facilitate Eureka’s ability to effectively explore its properties given Aurora’s ability to co-ordinate project logistics and employ local knowledge. We also look forward to working with our new shareholders and their nominee to our board of directors.”
The transaction is subject to TSX Venture Exchange approval.
John R. Kerr, PEng, 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 described in this news release.
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