Eureka Resources to acquire Gold Creek project in British Columbia

16 November 2016 (Last Updated November 16th, 2016 18:30)

Eureka Resources has announced the purchase of Gold Creek project located in the Cariboo Gold district of central British Columbia, Canada.

Eureka Resources has announced the purchase of Gold Creek project located in the Cariboo Gold district of central British Columbia, Canada.  

The project comprises 33 claims covering 9,673.26ha.

It is located 2km north of the village of Likely, and 6km north-west of the Spanish Mountain Deposit.

Under the agreement with Bullion Gold Resources Corp, Eureka Resources can earn up to 100% interest in the property.

To earn complete interest, Eureka had to pay $30,000 before 14 November and commit to pay $50,000 twice, before 31 August 2017 and again by 31 August 2018.

"This has been part of the strategy of the company methodically adding to our assets projects."

The acquired property is connected with a well-maintained road through, which the Spanish Mountain deposit and rural homesteads are also accessible.

At Gold Creek property, gold is expected to be of orogenic nature and values are contained similar to the Mesozoic sedimentary package at Spanish Mountain and Eureka’s property 45km to the south-east.

There are several soil anomalies over a 12km strike length. Most of the mine has yet to be explored, restricted to percussion drilling in the 1980s, with anomalous values of gold up to 1.1g/t reported over a hole length of 1.5m.

Eureka Resources president and CEO Mike Sweatman said: “We are very pleased with this acquisition. This has been part of the strategy of the company methodically adding to our assets projects, which offer the opportunity to quickly add value.

“We have strategically worked at enhancing our interests in existing assets, while gaining access to other properties in active areas under favorable terms.

“The Gold Creek is located in an area familiar to our technical advisors. The property has similar characteristics and lithologies which are part of our FG property.”

Eureka Resources has planned to organise a soil sampling programme which it intends to complete before the winter snow storms.

The estimated cost for this programme is $25,000 and is part of the initial $30,000 spending obligation.

Over the next few months, the company plans to analyse all existing property to formulate ongoing exploration plans for 2017.