Eureka Resources Inc Symbol C : EUK Shares Issued 15,416,913 Close 2011-07-04 C$ 0.10 Recent Sedar Documents Eureka appoints Whitehead director, Sinclair resigns
2011-07-04 16:32 ET - News Release
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EUREKA RESOURCES, INC. ANNOUNCES APPOINTMENT OF CHRISTIAN WHITEHEAD AS A DIRECTOR OF EUREKA RESOURCES LTD, AND RESIGNATION OF DR. ALASTAIR SINCLAIR
Christian Whitehead, PGeo, has been appointed a director of Eureka Resources Inc., effective immediately. Mr. Whitehead managed Hawthorne's field project on the Frasergold property, and Eureka believes that his knowledge of Frasergold will be beneficial in allowing Eureka to advance this property.
Summary
Eureka Resources Inc.'s Frasergold property in the historic and mineral-rich Cariboo Mining Division of British Columbia has been an alluring centre of detailed exploration for decades. With the price of gold at an all-time, the 2,866-hectare property was recently the focus of intensive exploratory work carried out on Eureka's behalf by Hawthorne Gold Corp. The release in October 2009 of an independent Mineral Resources estimate only served to increase expectations for this already promising property.
In Detail
Ever since the great Cariboo Gold Rush of 1858-'65, prospectors have looked for the source of the three-to-four million ounces of gold that were recovered by placer miners working the fast-flowing streams and rivers of east-central British Columbia.
A century after the gold rush slowed, B.C. prospector Clifford E. Gunn uncovered some gold in the heart of the old Gold Rush territory, and figured he was onto something. He staked the original claims in the area to cover a panned gold anomaly in Frasergold Creek. And thus the Frasergold property was born.
Vancouver businessman John J. (Jack) O'Neill, chairman and president of Eureka Resources Inc., thought Gunn was onto something too, and Eureka was soon the owner of the Frasergold claims.
Today, nearly a century-and-a-half after the first gold miners flooded into the area in search of instant wealth, Eureka and its associate, Hawthorne Gold Corp., are growing ever more confident that the Frasergold property will once again give the historic region a gold-coloured luster.
Eureka has held the 2,866-hectare Frasergold property since 1982, and currently controls 18 underlying claims. Located about 100 kilometres east of Williams Lake, the property is easily accessible by gravel road---an important asset when considering potential for development, says Mr. O'Neill.
Under Eureka Resources' stewardship, Frasergold has been the site of about $8 million worth of exploratory work, including major programs carried out by ASARCO and AMOCO. The exploration has revealed mineralization that extends along a strike length of approximately 10 kilometres.
One estimate completed in the early 1990s concluded there was a 3.4-million-ton deposit bearing 0.05 ounces of gold per ton; another identified 6.6 million tons at 0.05 ounces of gold per ton. A 1994 report indicated proven reserves of 3.5 million tons and drill-indicated resources of 12.5 million tons with significant geological potential. The grade established at that time was 0.062 ounces of gold per ton. Overall, James Askew Associates estimated the Frasergold Main Zone to contain 363,000 ounces of gold. The estimate was not NI compliant.
On November 28, 2006, Eureka announced it had signed an arms-length option agreement with Hawthorne Gold Corp. of Vancouver to explore and develop the potential-rich Frasergold property.
Eureka announced in September 2007 that Hawthorne had undertaken a 5,000-metre drill program, as part of a 30,000-meter diamond drill commitment. Hawthorne's 2007-'08 exploration and development program also included surface trenching, underground channel and bulk sample, and property-wide aerial surveys, including photogrammetry and geophysics (magnetic, EM and radiometric) as well as initiating a baseline environmental study.
The work led to the completion in October 2009 of an Independent mineral resource estimate on the property. The estimate was published in a National Instrument ("NI") 43-101 Technical Report and Mineral Resource Estimate. It reported that a mineralized system had been traced for 10 kilometres, and estimated that, on just 1.5 km. of that system, there were 614,000 ounces (measured and indicated) of gold, plus 1,193,000 ounces inferred of gold, with a cutoff grade of 0.3 g/tonne.
"This substantial estimate confirms Eureka's historical exploration work on the property in the 1980s and 1990s, and further suggests that the Frasergold property has tremendous potential," Mr. O'Neill says. "The resource estimate tested only a small portion of the mineralized system and we look forward to defining the full potential of this deposit."
With Eureka's focus now clearly on bringing the project to feasibility, Mr. O'Neill believes his long-held faith in Eureka's Frasergold property will soon turn golden. "It's been a long process," Mr. O'Neill says. "But it's been worth it." |
