BC Cariboo Gold

The Cariboo gold district is one of the most prolific mineral regions in western North America. Historically, the Cariboo was the site of a major gold rush in the late 1800’s resulting in the production of over 3 million ounces of alluvial gold and 1.3 million ounces of lode gold. Currently, there are several major gold projects in development that could dwarf this historic production.

The Cariboo gold district also hosts two large producing porphyry copper deposits – one of which, the Mount Polley mine, operated by Imperial Metals Corporation, produces a significant amount of gold (2017 gold production forecast is 60,000 ounces). The much larger, Gibraltar copper mine – operated by Taseko Mines Ltd. is ranked as North America’s 4th largest copper mine, and the 2nd largest in western Canada. Gibraltar, with an ore through put of 85,000 tonnes per day is expected to produce 140 million pounds copper and 2.5 million pounds molybdenum in 2017.

Of more significance is the fact that the Cariboo gold district hosts two of the larger undeveloped gold resources in Canada. The Barkerville Mountain deposit is estimated to have a 4.8 million ounce gold resource and the Spanish Mountain deposit is estimated to have an 8 million ounce gold resource. At the Barkerville Mountain deposit, Barkerville Gold Mines Ltd. is currently engaged in one of the largest gold exploration and development projects in North America. This year they expect to complete 130,000 metres of exploration and resource expansion drilling. Spanish Mountain Gold Ltd. has just released the results of their updated Preliminary Economic Assessment for the Spanish Mountain deposit.

It is against this backdrop that, over the last 8 months, Eureka Resources Inc. (“Eureka”) has quietly expanded its property position in the Cariboo, and furthered exploration of its FG (formerly Frasergold) property.

Eureka entered into an option agreement to acquire a 100% interest in the CKN gold property which lies adjacent to and northeast of the Gibraltar copper mine. Compilation and property work by the vendor of the CKN property has identified a cluster of gold in soil (up to 4.8 ppm) and gold in silt (up to 275 ppb) anomalies lying on and adjacent to a distinct northwesterly trending magnetic anomaly. This anomalous cluster of gold values (with favourable co-incident geo-physical and geological indications) has never been followed up.

Eureka entered into an option agreement to acquire a 100% interest in the Gold Creek property which lies to the east and immediately adjacent to the Spanish Mountain property. This property hosts the immediate strike extensions of the stratigraphy that hosts the Spanish Mountain gold resource. Preliminary drilling by the previous operators of the Gold Creek property intersected gold values and intersections comparable to that which make up the resource base of the Spanish Mountain deposit.

In summary, Eureka has interests in three strategically located projects in one of the most prolific mineral regions in North America. In addition to the potential to expand the resource at its FG project, the likelihood of identifying mineralization at Gold Creek appears probable. Finally, the CKN gold project represents a very intriguing and unusual target, especially considering that it lies adjacent to one of the largest open pit copper mines in North America.