VANCOUVER, Feb. 25, 2016 /CNW/ - Eureka Resources Inc.
("Eureka" or the "Company") (TSXV: EUK) and its joint venture
partner, Nevada Sunrise Gold Corporation (TSXV: NEV) are pleased to
announce that the companies have received the preliminary results
from a time-domain electromagnetic survey ("TDEM") carried out on
the Gemini Lithium Project ("Gemini") in Lida Valley, Nevada. A reconnaissance moving-loop
TDEM survey over Gemini West and Gemini East has detected
conductive zones within the sub-basins defined by recent gravity
surveys. The results gained from the TDEM survey are
interpreted to be conductive brines at depth located 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, and several isolated strong conductive
zones were interpreted at depths from 400 to 600 metres. The
conductive layers and zones are indicative of brine solutions in
porous aquifers and traps within each sub-basin.
Michael Sweatman, President of
Eureka stated "we are pleased that the ground survey has detected
conductive layers coincident to the gravity lows that were
previously located. Gemini appears to be a hidden gem and the next
step is to drill into the conductive zones to determine the extent
and lithium content of the interpreted brines".
Gemini is currently the subject of an interim agreement with
Nevada Sunrise Gold Corporation ("Nevada Sunrise") whereby Eureka
can earn a 50% working interest in a joint venture at Gemini with
Nevada Sunrise (see Eureka news release dated January 21, 2016). Nevada Sunrise acts as
operator of Gemini.
A diagram of the TDEM section pertaining to this release is
available on the Company's website: www.eurekaresourcesinc.com
About Gemini and the Lida Valley
Gemini is located approximately 6 miles (10 kilometres) east of
the town of Lida, Nevada, and
currently consists of 247 placer claims totaling 4,940 acres (2,000
hectares). Gemini flanks the Gold Point Solar Energy Zone, a BLM
land reserve for solar power generation. The Lida Valley is a flat,
desert basin with a similar geological setting to the established
Clayton Valley basin, which hosts North
America's only producing lithium mine at Silver Peak,
located 40 kilometres (26 miles) to the northwest.
The exploration strategy at Gemini is to target desert basins,
or playas, that exhibit similar geological and geophysical
characteristics to the Clayton Valley basin where lithium brines
are known to accumulate in faulted sub-basins, or "traps". Such
sub-basins can be delineated by gravity surveys that detect strong
gravity lows.
A detailed gravity survey carried out in 2012 and 2013,
indicated strong gravity lows within two, faulted sub-basins
approximately 7 kilometres (4.5 miles) apart, each interpreted to
be hundreds of metres deep. Nevada Sunrise made the decision to
acquire claims covering the available land after reviewing the
geophysical results in conjunction with favourable local geology,
namely late Miocene felsic volcanic tuffs adjacent to Gemini. These
rocks provide the source of lithium for trapped, lithium-rich
saline ground-waters (brine) within the sub-basins. On completion
of more detailed TDEM surveys, drilling into the conductive zones
within the sub-basin for lithium-bearing brines is recommended.
There are no known drill holes at Gemini.
John R. Kerr, P. Eng., 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 contained in this news
release.
About Eureka
Since its incorporation in 1981, Vancouver-based Eureka Resources Inc. has
focused on the exploration and evaluation of mineral properties.
Its flagship project, the Frasergold Project ("FG
Project,") was the subject of a National Instrument 43-101
compliant technical report entitled "NI 43-101 Technical Report
Frasergold Exploration Project", dated July
20, 2015 and amended July 27,
2015, authored by K. V.
Campbell, Ph.D, P.Geo, and G. H.
Giroux, MA.Sc, P.Eng., and filed on SEDAR. The FG Project is
located 100 kilometres east of Williams
Lake, B.C. with good access by provincial highways and
secondary roads.
Eureka recently entered into an interim agreement which gives
the Company the right to acquire a 50% participating interest in
the Gemini Lithium Project located in the Lida Valley, Nevada.
FORWARD LOOKING STATEMENTS
All statements in this release, other than statements of
historical fact, are "forward-looking information" with respect to
Eureka Resources Inc. ("Eureka") within the meaning of applicable
Canadian securities laws, including statements that address future
mineral production, reserve potential, exploration drilling, the
future price of lithium, potential quantity and/or grade of
minerals, potential size of a mineralized zone, potential expansion
of mineralization, the timing and results of future resource
estimates, or other study, proposed exploration and development of
our exploration properties and the estimation of mineral resources.
Forward-looking information is often, but not always, identified by
the use of words such as "seek", "anticipate", "plan", "continue",
"estimate", "expect", "project", "predict", "potential",
"targeting", "intends", "believe", "potential", and similar
expressions, or describes a "goal", or variation of such words and
phrases or state that certain actions, events or results "may",
"should", "could", "would", "might" or "will" be taken, occur or be
achieved. These statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievement of Eureka to differ materially from
those anticipated in such forward-looking information.
Such factors include, among others, risks related to the
interpretation and actual results of historical exploration at the
Gemini property, reliance on technical information provided by
third parties on any of our exploration properties, including
access to historical information on the Gemini property, current
exploration and development activities; changes in project
parameters as plans continue to be refined; current economic
conditions; future prices of commodities; possible variations in
grade or recovery rates; failure of equipment or processes to
operate as anticipated; the failure of contracted parties to
perform; labor disputes and other risks of the mining industry;
delays in obtaining governmental approvals, financing or in the
completion of exploration, as well as those factors discussed in
the section entitled "Risk Factors" in the Company's Management
Discussion and Analysis for the Year Ended October 31, 2015, which is available under
Company's SEDAR profile at www.sedar.com.
Although Eureka has attempted to identify important factors
that could cause actual actions, events or results to differ
materially from those described in forward-looking information,
there may be other factors that cause actions, events or results
not to be as anticipated, estimated or intended. There can be no
assurance that such information will prove to be accurate as actual
results and future events could differ materially from those
anticipated in such statements. Eureka disclaims any intention or
obligation to update or revise any forward-looking information,
whether as a result of new information, future events or otherwise.
Accordingly, readers should not place undue reliance on
forward-looking information.
Forward-looking statements are made as of the date hereof and
accordingly are subject to change after such date. Except as
otherwise indicated by Eureka, these statements do not reflect the
potential impact of any non-recurring or other special items or of
any dispositions, monetizations, mergers, acquisitions, other
business combinations or other transactions that may be announced
or that may occur after the date hereof. Forward-looking statements
are provided for the purpose of providing information about
management's current expectations and plans and allowing investors
and others to get a better understanding of our operating
environment. Eureka Resources Inc. does not undertake to update any
forward-looking statements that are included in this document,
except as required by applicable securities laws.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of TSX Venture
Exchange) accepts responsibility for the adequacy of accuracy of
this release. The Securities of Eureka Resources Inc. have not been
registered under the United States Securities Act of 1933, as
amended, and may not be offered or sold within the United States or to the account or benefit
of any U.S. person.
SOURCE Eureka Resources, Inc.