Eureka Resources Announces Assay Results from Diamond Drilling Program at Gold Creek
Vancouver, July 25, 2017 - Eureka Resources Inc. (TSXV: EUK) ("Eureka" or the "Company") is pleased to announce that it has received assay results from its three hole diamond drill program within the "Camp" zone at its Gold Creek Property ("Gold Creek" or the "Property") located in the Cariboo Mining District, near Likely, British Columbia. The best results include 33.20 g/t Au over 1.25 meters in hole 35 and 17.95 g/t over 1.5m in hole 34.
Drill collars located within and adjacent to Spanish Mountain Gold Ltd. core storage area.
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The 2017 drilling program consisted of 3 diamond drill holes totaling 331.00 meters which was focused on a gold-bearing zone, the "Camp" zone, containing disseminated and high-grade vein and fault controlled gold mineralization encountered by recent historical operators. All significant intersections from the 2017 drill program are found in the table below.
Gold Creek was acquired by Eureka by way of an option agreement with Bullion Gold Ltd. in November 2016. The Property consists of 33 mineral claims covering 9,673 hectares and is accessed via a well-maintained all-weather road.
The gold mineralization is believed to be of orogenic in nature and found to be contained within the same Mesozoic sedimentary package as at Spanish Mountain located approximately 8 km to the southeast, and as at the Company's FG property approximately 45 km to the southeast. Eureka's first drill program at Gold Creek serves as verification of the work conducted in 2008 and 2011 by Bullion Gold Ltd. and will assist in designing future exploration programs which will focus on delineating strike, width and depth of this zone as well as other prospective areas on the property.
"The results of this program both met and exceeded our initial expectations," stated Mike Sweatman, President, adding "We designed the program to twin a reverse circulation drill hole that was lost in mineralization, and to infill other areas within the Camp zone that had been previously drilled in the immediate area. We were successful in both duplicating historical results and in determining mineralization continues to depth. We are confident that both careful drilling and sampling techniques combined with rigorous assay procedures will lead us forward towards additional significant gold discovery in this highly prospective property."
A program for ongoing drilling and exploration is currently being planned. Subsequent drilling and exploration programs will focus on determining the extent of strike, depth and width of this prospective zone. Funding for these future programs is yet to be determined, however, initial drilling may utilize existing flow-through funds.
2017 Diamond Drill Results
The assays presented below have been derived using two separate assay methods for the purpose of attempting to accurately represent the samples gold content. These two methods are Screen Metallic and regular fire assay procedures. The reasons for utilizing these two methods are due to the observed nuggety nature of the gold mineralization that has been encountered to date. Nugget effect occurs when two fractions of the same sample can yield radically different results due to the heterogeneity of the gold mineralization placement within a sample. The Company has engaged Gary H. Giroux, MA.Sc., P.Eng. to advise on future sampling protocols in order to assist in providing statistically valid results for future resource calculations. Readers are cautioned that the property is at an early stage and these results are considered the first phase and best efforts of our exploration program to date.
| GC17-035 | FROM (m) | TO (m) | Width (m) | Au g/t | Screen Metallic Au g/t |
| Significant Intersection | 85.85 | 170.50 | 84.65 | 0.96 | 0.71 |
| Including | 88.70 | 89.80 | 1.10 | 3.59 | 5.03 |
| Including | 112.00 | 115.00 | 3.00 | 1.59 | 5.05 |
| Including | 136.25 | 137.50 | 1.25 | 33.20 | 5.76 |
| Including | 143.50 | 145.00 | 1.50 | 8.11 | 1.09 |
| GC17-034 | FROM (m) | TO (m) | Width (m) | Au g/t | Screen Metallic Au g/t |
| Significant Intersection | 10.00 | 28.30 | 18.30 | 2.92 | 1.10 |
| Including | 16.00 | 25.00 | 9.00 | 5.53 | 1.14 |
| Including | 17.50 | 19.00 | 1.50 | 17.95 | 0.33 |
| GC17-033 | FROM (m) | TO (m) | Width (m) | Au g/t | Screen Metallic Au g/t |
| Significant Intersection | 13.00 | 28.00 | 15.00 | 0.71 | 0.97 |
| Including | 21.20 | 25.00 | 3.80 | 1.77 | 1.77 |
| Significant Intersection | 40.00 | 85.00 | 45.00 | 0.64 | 0.39 |
In 2011, the previous operator drilled reverse circulation hole GC11-27 which terminated at 45.70 meters depth due to excessive water which has been twinned as part of the current program.
| From (m) | To (m) | Width (m) | Au g/t | |
| GC11-27 | 3.10 | 44.20 | 41.20 | 0.89 |
| Including | 3.10 | 32.00 | 29.00 | 1.09 |
| Including | 10.70 | 12.20 | 1.50 | 13.40 |
Kristian Whitehead, the Company's VP Exploration stated, "We are very encouraged by these results in that the improved diamond drill core recoveries through the diligent efforts of the Dorado drill crew have enabled an enhanced look at what we believe is a significant zone of disseminated and high-grade vein and fault controlled gold mineralization that warrants aggressive follow up".
The drill core sampling procedure follows rigorous protocol standards established for nuggety gold deposits, as follows:
Once received from the drill and logged, all drill core samples are sawn in half, labelled and bagged. The remaining drill core has been stored at a secure site in Horsefly, BC. The Company conducted a rigorous quality control (QC) program which included the utilization of blanks, standards, duplicates as well as selecting additional samples to be conducted by SGS as an umpire lab. Additionally, upon receiving initial assay results select zones where delineated and samples contained within were re-assayed utilizing the Screen Metallic method. The QAQC program was designed, approved and was overseen by Kristian Whitehead, P.Geo.
Drill core samples were submitted to ALS Minerals' analytical facility in North Vancouver, British Columbia for preparation and analysis. ALS Minerals is accredited to the ISO/IEC 17025 standard for gold assays and all analytical methods include quality control materials at set frequencies with established data acceptance criteria.
Samples submitted for analysis were initially assayed for gold in addition to a 48 multi-elemental geochemical package. Analysis for gold was conducted using 4-acid digestion and a 50g pulp subject to fire assay fusion with atomic absorption (AAS) finish. Select samples were re-analyzed using screen metallic fire assay whereby an approximate 1000g sample of pulp material was screened to 106 um. All coarse material not passing through the 106 um screen was entirely assayed representing the coarse fraction. The fine fraction was determined by assaying two 50g samples and averaging their respective Au values. The final Au value was determined by way of weighted average of the coarse and fine pulp material.
ABOUT EUREKA
Eureka is an exploration focused company based in Vancouver, British Columbia, whose strategy is to acquire projects in prospective areas that have the potential to deliver important new discoveries and 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. 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" available under the Company's profile on SEDAR or on the Company's website.
Eureka has earned a 100 percent interest in the Gold Creek property located in the Cariboo Mining Division. Gold Creek is a grassroots gold project neighbouring, and with similar geology to the Spanish Mountain deposit owned by Spanish Mountain Gold Ltd.
Eureka has the option to earn a 100 percent interest in the CKN property located in the Cariboo Mining Division. The CKN property is adjacent to Taseko's Gibraltar mine and consists of four mineral claims covering 1847 hectares.
Yukon Territory, Canada
Eureka's 100 percent owned Luxor property consists of four non-contiguous claim blocks totalling 384 mining claims. Luxor is located in the Dawson Range Gold Belt, a district of major porphyry, breccia and vein occurrences.
Eureka's 100 percent owned TAK property is also located in the Dawson Range Gold Belt and consists of 82 mining claims.
Neighbouring projects include Goldcorp's Coffee project and Kinross' Golden Saddle project.
Nevada, USA
Eureka owns a 50 percent interest in the Gemini lithium brine project located approximately 40 km (26 miles) south of North America's only producing lithium mine at Silver Peak, Nevada.
Kristian Whitehead, P.Geo., the Company's designated Qualified Person for this news release within the meaning of NI 43-101, has reviewed and approved the technical information contained in this news release.
Further information on Eureka can be found on the Company's website at www.eurekaresourcesinc.com and at www.sedar.com, or by contacting Michael Sweatman, President and CEO, by email at info@eurekaresourcesinc.com 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
This news release includes certain "forward-looking statements" under applicable Canadian securities legislation that are not historical facts. Forward-looking statements involve risks, uncertainties, 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 2017 Gold Creek drilling program and the business and operations of the Company. Forward-looking statements are necessarily based on a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties and 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: complete exploration programs, general business, economic and social uncertainties; litigation, legislative, environmental and other judicial, regulatory, political and competitive 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 Company disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.