ELORO ACQUIRES OTISH URANIUM PROPERTIES
NEAR STRATECO'S MATOUSH DISCOVERY
Toronto, Canada, July 5, 2007 - ELORO RESOURCES LTD. ("Eloro" or the "Company") (TSX-V: ELO) is pleased to announce the acquisition of two claim blocks, totaling 61.4 km2, termed the Otish North and South Uranium Properties (the "Properties"), in the Otish Basin Uranium Camp, located 330 km N-NE of Chibougamau, Quebec (refer to the Eloro website at www.elororesources.com for a detailed location map of the Properties).
The 35.3 km2 Otish North and 26.1 km2 Otish South Properties are situated approximately 20 km NE of Strateco Resources Inc.'s Matoush Uranium Discovery, where Strateco has uncovered a significant uranium based mineralization system from surface Diamond drilling.
Mr. Tom Larsen, Eloro's President and CEO stated, "The Otish Uranium Properties straddle the unconformity contact with the underlying granites and offer potential for classic unconformity-type uranium mineralization both below and above the unconformity surface. The litho-structural package is similar to Strateco's Matoush Discovery, and is surrounded by key active players in the district, such as Cameco, Areva, Golden Valley Mines/Lexam, and Ditem. Eloro is well positioned for uranium exploration with its four OtishBasin and six James Bay uranium properties, all hosting or proximal to significant uranium mineralization with upside potential." Eloro is planning to proceed with an initial airborne radiometric, magnetic and EM survey, which will be followed by ground prospecting, mapping and assaying. Priority targets will be immediately drill tested.
The Company purchased a 100% interest in the Otish North and South Properties by paying C$60,000 and, subject to all required regulatory approval, the issuance of 450,000 common shares of the Company to a Quebec-based arm's length party.
The OtishBasin Uranium Mineralization
The Otish Basin is being actively explored for uranium, most notably at the Matoush Uranium Discovery where Strateco Resources Inc. drilled up to 2.13% U3O8 over 15.2 m (MT-06-35; refer to the Strateco Resources Inc.'s press release dated February 20, 2007). Also actively exploring in the area is Cameco and Areva, the world's largest uranium producers. Eloro's Otish Uranium Properties were acquired for their potential to host fault-controlled uranium mineralization similar to that discovered by Strateco and high-grade uranium deposits similar to those currently mined in the Athabasca Basin, Saskatchewan, the world's largest producing Uranium Camp.
Unconformity-type uranium deposits found in the AthabascaBasin account for more than 30% of the global uranium production and 15% of global reserves. The uranium mineralization is epigenetic and occurs near the basal contact of sandstone overlying crystalline basement rocks. Uranium is not confined to the sandstone but may also be concentrated in fractured basement rocks below the unconformity. Mineralization is typically found within 200 m above and below the unconformity surface. The Matoush Uranium Discovery is closely linked to a regional fault that appears to have acted as a conduit for uranium-bearing fluids. The uranium mineralization found at Matoush lies well above the basin rim and resembles perched bodies found above the McArthurRiver and CigarLake uranium deposits in the Athabasca basin.
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