Eureka Receives Drill Permit For Gemini Lithium Project

Vancouver, British Columbia, July 25, 2016 – Eureka Resources (TSXV:EUK) is pleased to report that the Bureau of Land Management has approved the permit for drilling at the Gemini Lithium Project ( “Gemini” or the “Project”) located in the Lida Valley, Nevada.
The Gemini Project consists of 247 placer mining claims totalling 4,940 acres (2,000 hectares). Gemini hosts two deep sub-basins that have the potential for lithium-bearing brines similar to the proven lithium brine deposits located in the Clayton Valley. Lithium occurs in economic quantities within brines in the Clayton Valley where the only producing lithium mine in North America is located. Gemini is situated in a similar geologic environment and is 40 kilometres southeast of the Clayton Valley, however that is not necessarily indicative of the mineralization on the Gemini Project.
The objective of the drilling is to confirm first that the anomalies identified in the TDEM surveys conducted earlier this year contain brines and second to determine the chemical composition of those brines.
About the Gemini Lithium Project
The exploration strategy at Gemini is to target desert sub-basins, or playas, that exhibit similar geological and geophysical characteristics to the Clayton Valley basin where lithium brines are known to accumulate. The Clayton Valley hosts North America’s only producing lithium mine 40 kilometres (26 miles) to the northwest of Gemini. Such desert sub-basins can be delineated by gravity surveys that detect strong gravity lows. A geophysical gravity survey carried out in 2012 and 2013 indicated strong gravity lows at Gemini West and Gemini East, two faulted sub-basins located approximately 7 kilometres (4.5 miles) apart and each interpreted to be hundreds of metres deep. To view maps of Gemini visit:https://www.eurekaresourcesinc.com/projects/lida-valley
The decision to stake the Gemini claims was made after review of the geophysical gravity data in conjunction with the favourable local geology. Specifically, the late Miocene felsic volcanic tuffs adjacent to Gemini could provide a source of lithium for trapped ground-waters within the sub-basins.
In February and March 2016, Nevada Sunrise completed two reconnaissance time domain electromagnetic (“TDEM”) surveys totaling 23.3 kilometres (15.1 miles) across Gemini West and Gemini East. The TDEM surveys each detected conductive zones within the sub-basins defined by the previous gravity survey. The results gained from the surveys could be interpreted to be conductive brines at depth well below the non-conductive alluvium sediments at surface. A conductive layer 150–250 metres deep appears to cover most of Gemini West and Gemini East. In addition, several isolated strong conductive zones were interpreted at depths from 400 to 600 metres. The conductive layers and zones may be indicative of brine solutions in porous aquifers and traps within each sub-basin. After the review and interpretation of the compiled TDEM data was completed, the companies applied to the U.S. Bureau of Land Management for a drilling permit. There are no known drill holes at Gemini.
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