VANCOUVER, May 19, 2016 /CNW/ - Eureka Resources Inc.
("Eureka" or the "Company") (TSXV: EUK) is pleased to provide the
following update of recent developments on its Gemini Lithium
Project ("Gemini"). Gemini is located in the Lida Valley,
Nevada, and consists of 247 placer
claims totaling 4,940 acres (2,000 hectares). On January 20, 2016, Eureka entered into a letter agreement (the
"Agreement") with Nevada Sunrise Gold Corporation ("Nevada
Sunrise") (TSXV: NEV) which gave it the right to acquire a 50%
participating interest in Gemini (see Eureka news release dated January 21, 2016).
On May 4, 2016, Eureka and Nevada Sunrise entered into an
addendum to the Agreement in which they agreed that Eureka had completed its due diligence review
on Gemini and that Nevada Sunrise had confirmed receipt of
approximately CAD$97,000 from
Eureka representing 50% of the
acquisition and evaluation costs on Gemini as provided for in the
Agreement. The companies also agreed that a definitive joint
venture agreement would be entered into on or before September 30, 2016, or such other date as may be
mutually agreed to by the companies. All approvals of the
independent directors of each company have been obtained and the
Agreement and its addendum have been filed with the TSXV. Upon
acceptance by the TSXV, Eureka
will issue 300,000 common shares to Nevada Sunrise and will become
the beneficial owner of a 50% interest in Gemini.
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 is completed,
the companies intend to apply to the U.S. Bureau of Land Management
for a drilling permit which should occur by the end of the second
quarter of 2016. 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.
FORWARD LOOKING STATEMENTS
All statements in this release, other than statements of
historical fact, are "forward-looking information" within the
meaning of applicable Canadian securities laws, including
statements that address future exploration and drilling plans;
potential mineralization; timing of application for drilling
permits; and the intention of Eureka and Nevada Sunrise to enter into a
definitive joint venture agreement. 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: that Eureka and Nevada Sunrise may not obtain TSXV
approval for the Agreement and its addendum thereto; that the
companies may be unable to agree on the terms of the definitive
joint venture agreement in the time expected or at all; that
appropriate drilling targets may not be identified in the time
expected; risks related to the interpretation and actual results of
historical exploration at the Gemini property, reliance on
technical information provided by third parties, 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 Three Months Ended January 31, 2016, 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. 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 the Company's
operating environment. Eureka does
not undertake to update any forward-looking statements that are
included in this news release, 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.
SOURCE Eureka Resources, Inc.