July 25, 2016
Eureka Receives Drill Permit For Gemini Lithium Project
Vancouver, British Columbia, July 25, 2016 – Eureka Resources Inc. (“Eureka” or the “Company”) (TSXV: EUK) is pleased to report that the Bureau of Land Management has approved the permit for drilling at the Gemini Lithium Project ( “Gemini” or the “Project”) located in the Lida Valley, Nevada.
The Gemini Project consists of 247 placer mining claims totalling 4,940 acres (2,000 hectares). Gemini hosts two deep sub-basins that have the potential for lithium-bearing brines similar to the proven lithium brine deposits located in the Clayton Valley. Lithium occurs in economic quantities within brines in the Clayton Valley where the only producing lithium mine in North America is located. Gemini is situated in a similar geologic environment and is 40 kilometres southeast of the Clayton Valley, however that is not necessarily indicative of the mineralization on the Gemini Project.
The objective of the drilling is to confirm first that the anomalies identified in the TDEM surveys conducted earlier this year contain brines and second to determine the chemical composition of those brines.
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 was completed, the companies applied to the U.S. Bureau of Land Management for a drilling permit. 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.
Further information about Eureka can be found on the Company’s website at www.eurekaresourcesinc.com and atwww.sedar.com, or by contacting Michael Sweatman, President and CEO or Bob Ferguson by email at email@example.com or by telephone at (604) 449-2273.
Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
Cautionary Statement Regarding 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 proposed timing of the permit submission for the Gemini Project 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: 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.
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