Eureka Resources has announced plans to acquire 82 claims in Klondike Gold Fields of Yukon Territory, Canada.
The contiguous block of 82 claims includes an area of around 1,695ha within the Dawson Mining Division.
The property is approximately 5km north of the Yukon River and around 20km from the Goldcorp’s Coffee project, which is 120km from the Dawson City.
Eureka signed the acquisition agreement with the staking syndicate (vendor). Under the deal, Eureka will issue 500,000 shares to the vendor to acquire complete interest in the property.
The purchaser will issue 125,000 shares at the closing of the deal followed by issuing a further 125,000 shares three times every six months from the agreement closure.
Eureka Resources president and CEO Mike Sweatman said: “This acquisition adds to our Yukon holdings upon, which we intend to commence exploration in the second calendar quarter of 2017.”
Eureka will also provide a 2% NSR royalty to the vendors on the amount of gold recovered from the mine. Half the amount can be purchased by paying $1m.
Gold mining in the Klondike area has been active since the Yukon Gold Rush in 1890s.
In the late-1950s, bedrock exploration started in the area to source placer, which became active two decades later after the development of Casino porphyry deposit.
The area hosts gold, silver, copper and molybdenum mineralisation with orphyry deposits (Casino), mineralised breccia deposits (Coffee), and lode and stockwork veins (Golden Saddle). Ophir, Sheba and Hav properties exhibited all three styles of mineralisation.
The acquisition is subject to TSXV approval.