VANCOUVER, July 25, 2016 /CNW/ - Eureka Resources Inc.
("Eureka" or the "Company") (TSXV: EUK) is pleased to report
that the Bureau of Land Management has approved the permit for
drilling at the Gemini Lithium Project ("Gemini" or the "Project")
located in the Lida Valley, Nevada.
The Gemini Project consists of 247 placer mining claims
totalling 4,940 acres (2,000 hectares). Gemini hosts two deep
sub-basins that have the potential for lithium-bearing brines
similar to the proven lithium brine deposits located in the Clayton
Valley. Lithium occurs in economic quantities within brines in the
Clayton Valley where the only producing lithium mine in
North America is located. Gemini
is situated in a similar geologic environment and is 40 kilometres
southeast of the Clayton Valley, however that is not necessarily
indicative of the mineralization on the Gemini Project.
The objective of the drilling is to confirm,
first, that the anomalies identified in the TDEM surveys
conducted earlier this year contain brines and second, to determine
the chemical composition of those brines.
About the Gemini Lithium Project
The exploration strategy at Gemini is to target desert
sub-basins, or playas, that exhibit similar geological and
geophysical characteristics to the Clayton Valley basin where
lithium brines are known to accumulate. The Clayton Valley hosts
North America's only producing
lithium mine 40 kilometres (26 miles) to the northwest of Gemini.
Such desert sub-basins can be delineated by gravity surveys that
detect strong gravity lows. A geophysical gravity survey carried
out in 2012 and 2013 indicated strong gravity lows at Gemini West
and Gemini East, two faulted sub-basins located approximately 7
kilometres (4.5 miles) apart and each interpreted to be hundreds of
metres deep. To view maps of Gemini visit:
https://www.eurekaresourcesinc.com/projects/lida-valley
The decision to stake the Gemini claims was made after review of
the geophysical gravity data in conjunction with the favourable
local geology. Specifically, the late Miocene felsic volcanic tuffs
adjacent to Gemini could provide a source of lithium for trapped
ground-waters within the sub-basins.
In February and March 2016, Nevada
Sunrise completed two reconnaissance time domain electromagnetic
("TDEM") surveys totaling 23.3 kilometres (15.1 miles) across
Gemini West and Gemini East. The TDEM surveys each detected
conductive zones within the sub-basins defined by the previous
gravity survey. The results gained from the surveys could be
interpreted to be conductive brines at depth well below the
non-conductive alluvium sediments at surface. A conductive layer
150–250 metres deep appears to cover most of Gemini West and Gemini
East. In addition, several isolated strong conductive zones were
interpreted at depths from 400 to 600 metres. The conductive layers
and zones may be indicative of brine solutions in porous aquifers
and traps within each sub-basin. After the review and
interpretation of the compiled TDEM data was completed, the
companies applied to the U.S. Bureau of Land Management for a
drilling permit. There are no known drill holes at Gemini.
John R. Kerr, P. Eng., is the
Company's designated Qualified Person for this news release within
the meaning of National Instrument 43-101 and has reviewed and
approved the technical information contained in this news
release.
Neither the TSX Venture Exchange nor its
regulation services provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this news release.
Cautionary Statement Regarding Forward-Looking
Information
This news release includes certain "forward-looking
statements" under applicable Canadian securities legislation that
are not historical facts. Forward-looking statements involve risks,
uncertainties, and other factors that could cause actual results,
performance, prospects, and opportunities to differ materially from
those expressed or implied by such forward-looking statements.
Forward-looking statements in this news release include, but are
not limited to, statements with respect to the proposed timing of
the permit submission for the Gemini Project and the business and
operations of the Company. Forward-looking statements are
necessarily based on a number of estimates and assumptions that,
while considered reasonable, are subject to known and unknown
risks, uncertainties and other factors which may cause actual
results and future events to differ materially from those expressed
or implied by such forward-looking statements. Such factors
include, but are not limited to: general business, economic and
social uncertainties; litigation, legislative, environmental and
other judicial, regulatory, political and competitive developments;
delay or failure to receive board or regulatory approvals; those
additional risks set out in the Company's public documents filed on
SEDAR at www.sedar.com; and other matters discussed in this news
release. Although the Company believes that the assumptions and
factors used in preparing the forward-looking statements are
reasonable, undue reliance should not be placed on these
statements, which only apply as of the date of this news release,
and no assurance can be given that such events will occur in the
disclosed time frames or at all. Except where required by law,
the Company disclaims any intention or obligation to update or
revise any forward-looking statement, whether as a result of new
information, future events, or otherwise.
SOURCE Eureka Resources, Inc.