Eureka Acquires Options to Acquire Strategically Located Property in Cariboo Gold District

- November 15th, 2016

Eureka Resources Inc. (TSXV:EUK) has provided an update on the acquisition of Bullion Gold Resources Corp.’s Gold Creek project located in the historic Cariboo gold district in central British Columbia. The property consists of 33 claims (9673.26 hectares) and is located 2 km north of the village of Likely, B.C. and 6 km northwest of the Spanish Mountain Deposit.

Eureka Resources Inc. (TSXV:EUK) has provided an update on the acquisition of Bullion Gold Resources Corp.’s Gold Creek project located in the historic Cariboo gold district in central British Columbia. The property consists of 33 claims (9673.26 hectares) and is located 2 km north of the village of Likely, B.C. and 6 km northwest of the Spanish Mountain Deposit.
Eureka has entered into an agreement with Bullion Gold Resources Corp. (BGD-TSXV) (“Bullion”), whereby Eureka can earn up to a 100% interest in the property for the following considerations :

   Date                             Work CommitmentShares  issuedInterest earned
On or before Nov 14 2016 complete      $ 30,000 1     nil           49%
On or before Aug 31 2017               $ 50,000       50,000        26%
On or before Aug 31 2018               $ 50,000       100,000       25%
TOTAL                                                150,000       100%

Granting to Bullion a 1% NSR half of which can be acquired by Eureka for $1,000,000.
The property is accessed via a well-maintained all-weather road, 2 km north of Likely, which also provides access to the Spanish Mountain deposit and rural homesteads. The Spanish Mountain deposit 2 is reported to contain:
Measured and Indicated Resource 138 MT at .49g/t Au and0.64 g/t Ag (2.2 M oz AU and 2.8M oz. Ag) Inferred Resource 340 MT of 0.37g/t Au and 0.65 g/t Ag (4.0 M ounces Au and 7.1M Oz Ag
1.Work to include Portable Acquisition credits to maximum allowed under BC regulations 2.Technical Report on an Updated Mineral Resource Estimate on the Spanish Mountain Gold Deposit by G.H. Giroux and A Koffyberg dated April 25, 2014 and filed under Spanish Mountain Gold Ltd, on SEDAR May 7 2014.
On the Gold Creek property, gold is believed of orogenic nature and values are contained in the same Mesozoic sedimentary package as at Spanish Mountain and the Company’s FG property 45 km to the southeast. There are numerous soil anomalies on the property over a 12km strike length. Much of the property is covered by overburden and remains virtually unexplored. Drilling has been limited to percussion drilling in the 1980s, with anomalous values of gold up to 1.1g/t reported over a hole length of 1.5 meters.
“We are very pleased with this acquisition,” stated Mike Sweatman, president and CEO, “This has been part of the strategy of the Company methodically adding to our assets projects which offer the opportunity to quickly add value. We have strategically worked at enhancing our interests in existing assets, while gaining access to other properties in active areas under favorable terms,” adding “The Gold Creek is located in an area familiar to our technical advisors. The property has similar characteristics and lithologies which are part of our FG property.”
The company plans a soil sampling program to commence immediately prior to the initial winter snow storms. The program is estimated to cost $25,000 and is to be part of the initial $30,000 spending obligation. Over the winter, the Company plans to review all existing property to formulate ongoing exploration plans for 2017.
Eureka also has interest in two other projects:
Gemini Lithium Project
Eureka owns a 50% participating interest in the Gemini lithium brine project, located in the western Lida Valley, located in Esmeralda County in south central Nevada, approximately 40 kilometres (26 miles) from North America’s only producing lithium mine at Silver Peak. Gemini currently consists of 247 placer claims totaling 4,940 acres (2,000 hectares). The Gemini project is located in a flat, desert basin hosting two interpreted sub-basins and with a similar geological setting to the Clayton Valley. Recent geophysical work at Gemini has outlined conductive zones interpreted as brine horizons, which the Company plans to test by drilling.
In August 2016, Nevada Sunrise granted Advantage Lithium Corp. (TSXV: AAL, “Advantage”) an option for Advantage to earn a 50% interest in Gemini as part of a transaction involving 5 lithium properties, including Gemini. Upon exercise of the option earn-in by Advantage, Nevada Sunrise would relinquish its 50% interest in Gemini, and retain a 2% gross overriding royalty in the Project.
FG Project
Eureka has held the FG Property (formerly called Frasergold) since 1982. To date, over $15.0 million of exploratory work has been completed by the Company, ASARCO, AMOCO and Hawthorne Gold Corp. The 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. Mineralization has been outlined over a strike length of 3 kilometres, and has the potential for additional mineralization that could extend along an interpreted strike length of over 10 kilometres. 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 on SEDAR or at the Company’s website.
The Company recently granted an option to Canarc Resource Corp (TSX CCM). (“Canarc”) which provides Canarc the ability to earn a 75% interest in the FG project.
Read full press release.
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