Eureka Resources gains three properties at Klondike Gold Fields in Yukon, Canada

13 December 2016 (Last Updated December 13th, 2016 18:30)

Eureka Resources has acquired three properties called the Luxor Project located in the middle of Klondike Gold Fields in Canada’s Yukon territory.

Eureka Resources has acquired three properties called the Luxor Project located in the middle of Klondike Gold Fields in Canada’s Yukon territory.  

Located around 65km-80km from Dawson city, the acquired project comprises 360 claims within an area of around 7,000ha. 

Eureka signed the agreement with Heli Dynamics and Panarc Resources to acquire complete interest in this property by issuing 2.5 million common shares.

The three non-contiguous claim blocks are called Ophir, Sheba and Hav properties. Eureka will provide a 2% NSR royalty for gold produced from the properties to vendors.

Under the deal, Aurora Geosciences and Heli Dynamics will conduct exploration work at the site for the next four years.

"This continues the company’s strategy of methodically adding projects that offer the opportunity to quickly add value to our property portfolio."

Eureka president and CEO Mike Sweatman said: “We are very pleased with this acquisition. This continues the company’s strategy of methodically adding projects that offer the opportunity to quickly add value to our property portfolio.

“The new relationship established with Aurora Geosciences, an affiliate of the Vendors, will augment our technical team and facilitate Eureka’s ability to effectively explore its properties given Aurora’s ability to coordinate project logistics and employ local knowledge. We also look forward to working with our new shareholders and their nominee to our board of directors.” 

Luxor project is situated in the White Gold area of Dawson Range Gold Belt at western Yukon and surrounded by Western Copper and Gold Corporation’s Casino deposit and Independence Gold projects.

It is accessible through a gravel road from Dawson City.

The site hosts gold, silver, copper and molybdenum porphyry mineralisation with mineralised breccia and lode and stockwork veins deposits.

The company claimed that Ophir, Sheba and Hav properties contain all these deposits. The acquisition is subject to TSXV approval.