November 22, 2011
Eureka Resources signs agreement with Teslin River on Frasergold property
VANCOUVER, B.C. — Eureka Resources Inc. (TSX-V: EUK) (“Eureka”) has announced the signing of a definitive agreement with Teslin River Resources Corp. (TSX-V: TLR) (“Teslin”) which provides Teslin with an option to acquire up to 75% of Eureka’s Frasergold property, located 100 kilometres east of Williams Lake in the Cariboo area of central B.C.
The two Vancouver-based companies explained that, under the terms of the agreement, Teslin has the right to earn a 51% interest by spending $3,550,000 on the property and providing payments to Eureka totaling $200,000 over a three-year period. Teslin can earn an additional 24% interest (totaling 75%) by completing a feasibility study.
Under the terms of an earlier binding Letter of Understanding, Teslin completed a preliminary soil geochemical program to evaluate the potential of extending the existing historic resource to the southeast. An audit of the historic resource leading to a Preliminary Economic Assessment (PEA) has now commenced and is to be completed during the first quarter of 2012. This work is being done by Roscoe Postle Associates Inc.
The Frasergold Project has a prior NI 43-101 compliant resource report—-“Report on the 2007 and 2008 Drill Programs on the Frasergold Project,” prepared by K.V. Campbell and G.H. Giroux for Hawthorne Gold Corp.
—-completed in November 2009.
“This is a major step forward in our plans for the Frasergold property,” says John J. O’Neill, President and CEO, Eureka Resources Inc. “Eureka has been a longtime proponent of Frasergold’s potential.”
Identified by Eureka three decades ago, the Frasergold property now comprises 23 mining claims totalling approximately 3,350 hectares, all in good standing through April, 2015. Historical expenditures on the property total $16 million, which has funded 450 drill holes totaling 50,000 meters and a 300-meter-long underground tunnel.About Eureka Resources Inc.
Since its incorporation in 1981, Eureka Resources Inc. has focused on the exploration and development of natural resource properties in order to create wealth for investors. With successful B.C. entrepreneur John J. O’Neill at the helm, Eureka has long been a steady and trustworthy presence on the province’s mineral-exploration scene. In addition to Eureka’s fostering of the Frasergold claim, the company holds the rights to the Lottie Lake copper claim, which is also in central British Columbia. Shares in Eureka Resources Inc. trade on the Venture Exchange of the Toronto Stock Exchange.
Contact: John J. O’Neill, President and CEO, Eureka Resources Inc., 604.608.6154
You can view the Next News item:January 16th, 2012, Teslin River Delineates Potential Copper Porphyry Mineralization in the Eureka Bowl Zone During 2011 Soil Sampling Program at the Frasergold Project
You can view the Previous News item:September 12th, 2011, Eureka Resources signs LOI with Teslin River on Frasergold property
Back to the main News page, or press the Back button on your browser.