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 Toronto,
Canada, July 16, 2008 - Eloro Resources Ltd.
(TSX-V: ELO) ("Eloro")
is pleased to announce the
completion of the previously announced acquisition (the
"Acquisition") of 4 oil and gas permits termed the Charlevoix
Property (the "Property"), located in the Charlevoix area (NTS
Map-Sheets 21M08 and 21M09) on the northern shore of the St. Lawrence
River, 75 km NE of Quebec City, Quebec. The Property encompasses an area
of 53,405 hectares or 534.05 km2 along a segment of the same Paleozoic
Basin that hosts the current "gas play" in the Utica Shale.
Pursuant to the terms of the Acquisition the Company acquired a 100%
undivided interest in the Property by making cash payments totalling
C$50,000 to three Vendors, committing to complete C$ 500,000 in
exploration expenditures over a two year period, and issuing an aggregate
total of 1.5 million shares of Eloro to the Vendors, subject to a four
month hold period expiring November 16, 2008. As per the Agreement, the
Vendor would retain a 2.5% Gross Overriding Royalty, of which 1% may be
purchased by Eloro for C$ 1.5 million.
The Charlevoix area was historically explored for hydrocarbons in the
late 1980's and early 1990's by the GHK Corporation ("GHK").
Based on GHK surface sampling, hydrocarbon analysis and extensive
geophysical surveying, hydrocarbon seepage was identified at surface in a
number of areas, in addition to occurrences of tar, anthracite and other
carbon-rich compounds. More than 450 surface sites were
sampled for hydrocarbons. Higher than background values in methane were
also outlined in soils at 22 sites; one occurrence yielding up to 11,161
ppm or 1.12% methane. A Soil Fluorescence survey outlined the seepage of
heavier hydrocarbons. Soils were also anomalous in iron, titanium,
copper, manganese, vanadium, lead, barium and strontium, all known to be
associated with hydrocarbons.
Work completed in 2007 and 2008 on the Property included geological
compilation, field mapping with surface sampling and a ground structural
study that identified the main structural breaks covered by the Property,
and an air-photo and LANDSAT satellite study to identify the main
structures and alterations pertinent to the Shale Gas setting.
Eloro reviewed and compiled the technical information available for the
Property and plans to initiate the first phase of exploration by
mobilizing a crew on site in order to conduct a soil and sampling
geochemical survey covering targets derived from compilation and field
work completed by the Vendors. Based on results of the soil and
geochemical surveys, Eloro plans follow-up drilling.
About Eloro Resources Ltd.
Eloro is a junior exploration company focused on discovering
and developing precious and base metal quality resources in the James Bay
and uranium resources in the Otish Basin districts of northern Quebec,
and base and precious metals in the Timmins Camp of northern Ontario.
Eloro currently has eleven gold-copper-silver properties (1,062 claims)
covering 548 km2 in the La Grande and Eastmain Greenstone Belts, proximal
to Goldcorp's Eleonore Gold Prospect. Eloro owns 90 km2 of prospective
uranium holdings in 10 properties (175 claims). The Timmins area holdings
include both the prospective Hurdman Zinc-Silver Property, and the 30 km2
McArthur Lake Nickel Property.
Eloro's holdings now also include 4 oil and gas permits, the Charlevoix
Property, located in the Charlevoix area along on the northern shore of
the St. Lawrence River, 75 km NE of Quebec City, Quebec. The Charlevoix
Property encompasses 534.05 km2 along a segment of the same Paleozoic
Basin that hosts the current Quebec "gas play" in the Utica
Shale.
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