VANCOUVER, Nov. 29 /CNW/ - Eureka Resources, Inc. (the "Company") is
pleased to announce that it has signed an arms length option agreement (the
"Option Agreement") with Hawthorne Gold Corp. ("Hawthorne") regarding the
Company's Frasergold property located in the Cariboo Division of British
Columbia.
Hawthorne may earn a 51% interest in the property by expending $3,500,000
on the exploration of the property, making payments totaling $175,000 to
Eureka and completing a feasibility study on or before April 30, 2010.
Hawthorne can earn an additional 9% interest in the property by arranging
production financing on completion of a feasibility study. A joint venture
will be formed upon Hawthorne earning its interest and during the earn in
phase an advisory committee will be established. Hawthorne is a private
British Columbia mineral exploration corporation the principals of which are
Michael J. Beley and Richard J.H. Barclay who each have greater than 35 years
experience in the mineral exploration and development industry and who were
instrumental in the formation and growth of several mid tier gold companies
including Bema Gold Corporation and Eldorado Gold Corporation.
The Frasergold Property
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The Frasergold Property is located in the Cariboo Mining Division. Eureka
has held the property since December of 1982. Previous work carried out on the
property by Asarco (1990 and 1991) and others consisted of 35,967 meters of
drilling (both diamond drilling and reverse circulation drilling), some
294 meters of underground adits and 10,000 soil and rock ship samples up to
1992. The work carried out indicated 3.5 million tons drill proven
mineralization grading 0.062 opt gold and 12.5 million tons of drill indicated
mineralization grading 0.060 opt gold. These are historical estimates only and
are not compliant with the CIM classifications as required by NI 43-101 and
should not be relied upon but Eureka believes them to be indicative of
potential economic mineralization. Subsequent to this work in 1992, Eureka
acquired additional adjoining claims and has carried out prospecting and
geochemical exploration on the property.
On behalf of the Company:
"Signed"
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J.J. O'Neill
President
The TSX Venture Exchange has neither reviewed nor accepts responsibility
for the adequacy or accuracy of this report.
