May 7, 2010
Eureka Resources, Inc. announces Hawthorne Gold Corp.'s termination of the Frasergold Option Agreement and Eureka's intention to seek a new development partner for the Frasergold Property.
Eureka Resources, Inc. (TSX V:EUK) of Vancouver announces today the termination of its Option Agreement with Hawthorne Gold Corp. relating to its Frasergold Property dated October 31, 2006.
Eureka Resources, Inc. intends to seek a new development partner to proceed with ongoing exploration and, ultimately, development of a gold mine at its promising Frasergold Property in BC’s mineral-rich Cariboo region.
Eureka President and CEO, John J. O’Neill made the announcement upon the successful completion of an almost four year relationship with Hawthorne Gold Corp. of Vancouver, a relationship that culminated with Hawthorne’s delivery last fall of a National Instrument (NI) 43-101 Technical Report and Mineral Resource Estimate (dated November 15, 2009) based on a portion of the claims.
This technical report and mineral resource estimate includes results for a gold cutoff grade of 0.3 g/tonne which are as follows
Measured and Indicated
“Hawthorne’s extensive work has solidified our belief that the Frasergold Property has the potential to be a large, low grade, bulk tonnage mine,” Mr. O’Neill said. “We have identified five mineralized zones along a strike length of approximately 10 kilometres. With further drilling, these zones may be determined to be continuous.”
Eureka holds 22 claims in good standing at Frasergold until April 30, 2015. Eureka has held the Frasergold Property, which is easily accessible by road from Horsefly, BC, since 1982. Between 1980 and 1994, 344 holes were drilled to a length of 39,852 metres. In 2007, a further 16 holes were drilled, totalling 3,615 metres. And in 2008, 58 holes, measuring 10,414 metres, were drilled.
In addition, the Property has undergone underground channel sampling, underground bulk sampling, trench sampling, soil sampling, rock outcrop sampling, silt sampling, an airborne geophysical survey and legal surveys.
“I’d like to thank Hawthorne for the time, energy and expense it devoted to fostering the continued advance of our Frasergold Property,” Mr. O’Neill concluded “Eureka Resources is now looking forward to an exciting future with a new development partner.”ABOUT EUREKA RESOURCES, INC.
Since its incorporation in 1981, Vancouver based Eureka Resources, Inc. has focused on the exploration and development of natural resource properties in order to create wealth for investors. Moreover, with renowned British Columbian, John J. O’Neill at the helm, Eureka has long been a steady and trustworthy presence on the British Columbia mineral exploration scene. In addition to Eureka’s fostering of the Frasergold claim, the company holds the rights to the promising Lottie Lake copper claims, which are also in central British Columbia. Shares of Eureka Resources, Inc. trade on the Venture Exchange of the respected Toronto Stock Exchange.
Alastair Sinclair, P.Eng., a director of the Company and a Qualified Person as defined by NI 43-101, has reviewed and approved the technical disclosure contained in this news release.Certain information regarding the Company including management’s assessment of future plans and operations, may constitute forward-looking statements under applicable securities laws and necessarily involve risks associated with mining exploration and development, volatility of prices, currency fluctuations, imprecision of resource estimates, environmental and permitting risks, access to labour and services, competition from other companies and ability to access sufficient capital. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements. A feasibility study has not been completed and there is no certainty the disclosed targets will be reached nor that the proposed operations will be economically viable.
Neither 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 of accuracy of this release.Contacts:
John J. O’Neill
Lawrence B. O’Neill
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