Eureka Options Ckn Property Near Gibraltar MINE
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TSXV – EUK
WKN: 875742
ISIN : CA2986551018
EUREKA OPTIONS CKN PROPERTY NEAR GIBRALTAR MINE
Vancouver, British Columbia, April 6, 2017 - Eureka Resources Inc. (“Eureka” or the
“Company”) is pleased to announce that it has entered into an option agreement dated
April 5, 2017 to acquire a 100% interest in the CKN property (the “Property”) adjacent to
the Gibraltar Mine in the Ca riboo Mining Division of Brit ish Columbia. The Property
consists of two claims, totalling 1,356 hectare s, and is accessible by road from Williams
Lake.
The claims are located adjacent to the northeast boundary of the operating Gibraltar
Copper – Molybdenum mine of Ta seko Mines Ltd. Gibralta r commenced operations in
1972 and, to date, has mined in excess of 450 metric tonnes, grading 0.33% copper
and 0.008% molybdenum, from four distinct pits. Eureka acquired the claims comprising
the Property because they are centered on a very strong magnetic feature along the
contact of the Gibraltar host batholith and the Cache Creek sedimentary sequence. The
magnetic feature is synonymous with skarn deposit s, similar in nature to the Craigmont
deposit in the Highland Vall ey. Exploration to date on the CKN Property identified
Copper values in rocks from trace up to 13,967 ppm and Gold values in soils from trace
up to 4.8 g/t. Notwithstanding the foregoing, the Property has never been systematically
mapped or sampled so readers should not assume that the Property will have the same,
or similar, mineralization as the Craigmont or Gibraltar deposits.
The terms of the Option Agreement are as follows:
Due Date
Minimum
Expenditure
Cash
Shares
Execution Date $Nil $15,000 50,000
On or before July 1, 2018 $40,000 $20,000 100,000
On or before July 1, 2019 $80,000 $30,000 100,000
On or before July 1, 2020 $100,000 $50,000 200,000
On or before July 1, 2021 $Nil $100,000 250,000
The vendor will retain a 2% net smelter return royalty on the Property. The Company
will have the right to purchase 1% of this Royalty for $1,000,000 any time prior to
commercial production. The Option Agreement is subject to the approval of the TSX
Venture Exchange (the “TSXV”).
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Eureka’s President and CEO, Michael Sweatman, stated “This property adds to our land
package in the Cariboo and is another of our recent ac quisitions that are easily
accessible, and close to existing deposits. Our technical group has commenced a
review of data acquired as part of the transaction.”
ABOUT EUREKA
Eureka is an exploration focused compan y based in Vancouver, British Columbia,
whose strategy is to acquire projects in prospective areas that have the potential to
deliver important new discoveries to 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” availabl e under the Company’s prof ile on SEDAR or on the
Company’s website.
Eureka has the option to earn a 100% interest in the Gold Creek property located in the
Cariboo Mining Division. Gold Creek is a gr assroots gold project neighbouring, and with
similar geology to the Spanis h Mountain deposit ow ned by Spanish Mountain Gold Ltd.
(TSXV: SPA).
Yukon Territory, Canada
Eureka’s 100% owned Luxor property consis ts 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% owned TAK property is also located in the Dawson Range Gold Belt and
consists of 82 mining claims.
Neighbouring properties to Luxor and TAK include the Co ffee deposit recently acquired
by Goldcorp.
Nevada, USA
Eureka owns a 50 percent interest in the Gemini lithium br ine project located
approximately 40 km (26 miles) south of North America’s only producing lithium mine at
Silver Peak, Nevada.
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Kristian Whitehead, P.Geo., and John Kerr, P. Eng., are the Company's
designated Qualified Persons within the meaning of NI 43-1 01 and have reviewed
and approved the technical information described in this news release.
Further information on Eureka can be found on the Company ’s website at
www.eurekaresourcesinc.com and at www.s edar.com, or by contacting Michael
Sweatman, President and CEO, or Bob Ferguson by email at
[email protected] or by telephone at (604) 449-2273.
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.
Cautionary Statement Regarding Adjacent Properties and Forward-Looking Information
Information in this news release regarding the Gibraltar and Craigmont deposits was derived from June 15 2015 Technical
report in the case of Gibraltar and from QP’s personal knowledge in the case of Craigmont. The Company’s Qualifed Persons
have not independently verified the information with respect to such properties and the information is not necessarily
indicative of the mineralization on the Property.
This news release includes certain “forward-looking statements” under applicable Canadian securities legislation that are not
historical facts. Forward-looking statements involve risks, unc ertainties, and other factors that could cause actual results,
performance, prospects, and opportunities to differ materially from those expressed or implied by such forward-looking
statements. Forward-looking statements in this news release include, but are not limited to, statements with respect to the
terms of the Option Agreement and the business and operat ions of the Company. Forward-looking statements are
necessarily based on a number of estimate s and assumptions that, while considered reasonable, are subject to known and
unknown risks, uncertainties an d other factors which may cause actual results and future events to differ materially from
those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: failure to obtain
TSXV approval for the Option Agreement, general business, economic and social uncertainties; litigation, legislative,
environmental and other judicial, regulatory, political and comp etitive developments; delay or failure to receive board or
regulatory approvals; those additional risks set out in the Company’s public documents filed on SEDAR at www.sedar.com;
and other matters discussed in this news release. Although the Company believes that the assumptions and factors used in
preparing the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which
only apply as of the date of this news release, and no assurance can be given that such events will occur in the disclosed
time frames or at all. Except where required by law, the Co mpany disclaims any intention or obligation to update or revise
any forward-looking statement, whether as a result of new information, future events, or otherwise.