Eureka Metals (CSE:ERKA) has entered a definitive option agreement to acquire up to an 80% interest in the KM98 Titanium Project in Québec, Canada, expanding its footprint in the Havre-Saint-Pierre region.
KM98 is located approximately 45km southwest of Eureka’s flagship Tyee Titanium Project. It sits within the same anorthosite complex that hosts Rio Tinto’s (ASX:RIO) Lac Tio Mine — one of the world’s largest hard-rock titanium deposits.
The project is permitted for trenching and diamond drilling, with direct access via the Romaine IV government service road.
Historical exploration has outlined a district-scale titanium-bearing magnetite-ilmenite oxide system extending approximately 5km. Previous campaigns reported outcrops to contain 30–90% magnetite and ilmenite.
Bench-scale metallurgical testing using conventional magnetic and gravity separation techniques produced an iron concentrate grading up to 68.5% iron with associated vanadium values. These results include a titanium-rich ilmenite concentrate grading up to 48.4% titanium oxide.
“Our objective is to build one of Canada’s leading titanium-focused exploration companies, and KM98 is an excellent strategic fit,” CEO Danny Matthews says.
“[KM98] expands our footprint in Québec’s HSP region, complements our flagship Tyee Project, and broadens our titanium exploration strategy by adding a second highly prospective project with distinct geological characteristics.”
To earn an initial 50% interest, Eureka must pay C$80,000 in cash, issue 1.5 million shares. This includes an exploration expenditure of C$2 million ($2.04 million) over three years and a minimum 2,000m diamond drilling program.
To earn an additional 30% interest, the company must pay C$100,000 and issue a further 2 million shares. ERKA must also incur an additional $2.5 million in exploration over the subsequent two-year period.
Eureka expects to commence its inaugural exploration program at KM98 later this summer. The program includes diamond drilling of the high-priority Hook Target and trenching of road-accessible target areas.
This acquisition complements Eureka’s ongoing work at Tyee. Ongoing work includes a high-resolution airborne geophysical survey, and the continued advancement of the Cabin Lake Silver-Lead-Zinc-Gold Project in British Columbia.
Eureka Metals is a Canadian mineral exploration company focusing on titanium, vanadium, and polymetallic projects in Québec and British Columbia.
Write to JC Villarba at Mining.com.au
Images: Eureka Metals
