November 29, 2006
Eureka Resources, Inc. Announces Joint Venture of the Frasergold Property, British Columbia, Canada
VANCOUVER, BRITISH COLUMBIA - (Nov. 29, 2006) - Eureka Resources, Inc. (the “Company”) (TSX VENTURE:EUK) is pleased to announce that it has signed an arms length option agreement (the “Option Agreement”) with Hawthorne Gold Corp. (“Hawthorne”) regarding the Company’s Frasergold property located in the Cariboo Division of British Columbia.
Hawthorne may earn a 51% interest in the property by expending $3,500,000 on the exploration of the property, making payments totaling $175,000 to Eureka and completing a feasibility study on or before April 30, 2010. Hawthorne can earn an additional 9% interest in the property by arranging production financing on completion of a feasibility study. A joint venture will be formed upon Hawthorne earning its interest and during the earn in phase an advisory committee will be established. Hawthorne is a private British Columbia mineral exploration corporation the principals of which are Michael J. Beley and Richard J.H. Barclay who each have greater than 35 years experience in the mineral exploration and development industry and who were instrumental in the formation and growth of several mid tier gold companies including Bema Gold Corporation and Eldorado Gold Corporation.The Frasergold Property
The Frasergold Property is located in the Cariboo Mining Division. Eureka has held the property since December of 1982. Previous work carried out on the property by Asarco (1990 and 1991) and others consisted of 35,967 meters of drilling (both diamond drilling and reverse circulation drilling), some 294 meters of underground adits and 10,000 soil and rock ship samples up to 1992. The work carried out indicated 3.5 million tons drill proven mineralization grading 0.062 opt gold and 12.5 million tons of drill indicated mineralization grading 0.060 opt gold. These are historical estimates only and are not compliant with the CIM classifications as required by NI 43-101 and should not be relied upon but Eureka believes them to be indicative of potential economic mineralization. Subsequent to this work in 1992, Eureka acquired additional adjoining claims and has carried out prospecting and geochemical exploration on the property.
On behalf of the Company:
J.J. O’Neill, President
The TSX Venture Exchange has neither reviewed nor accepts responsibility for the adequacy or accuracy of this report.
For more information, please contact
Eureka Resources, Inc.
(604) 602-1989 (FAX)
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