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TORONTO, ONTARIO--(Marketwire
- Jan. 22, 2008) - Eloro Resources Ltd. (TSX
VENTURE:ELO) (the "Company" or "Eloro")
is pleased to announce that a surface diamond drilling program has
commenced on its 100% owned Lemoyne North Property by the Company's
option and joint venture partner NFX Gold Inc. ("NFX").
The 100 km2 Lemoyne North Property is located within the La Grande Belt in
the James Bay district of Quebec and straddles the northern border of
Virginia Mines Inc.'s Poste Lemoyne property
where Virginia Mines Inc. has outlined a 95,000 ounce
gold resource grading 14.5 g/t gold, that included intersections of up
to 43.09 g/t gold over 11.65
m (Source: Virginia Mines Inc. website).
Recent work completed at the Lemoyne North Property has identified felsic volcanic rocks with sulphide mineralization
and accompanying alteration similar to the world-class Doyon-Bousquet-LaRonde Camp of the Abitibi Belt. The work
has identified targets for immediate drilling where the alteration is
strongest, and where Eloro's 2006 drilling
intersected semi-massive sulphides anomalous in gold, silver and zinc. Historic
grab sample assays at Lemoyne North (Virginia Gold Mines, 1996, Boreal
Exploration, 1998), include grades up to 4% copper, 21 g/t gold and 38
g/t silver.
In July 2007, Eloro optioned four mineral
properties located within the La Grande belt to NFX. The properties
involved in the transaction are the Lemoyne North, Horseshoe, Taiga and
Taiga West properties (the "Properties"). Under the terms of
the agreement, NFX has an option to earn a 50% interest in the
Properties by incurring C$ 3 million in exploration related
expenditures on or before July 15, 2011.
NFX has initiated a 2,000
m surface drilling program to test the sulphide
zone associated with alumina and magnesium bearing alteration, typical
of the Doyon-Bousquet-La Ronde
Camp. This wide alteration zone has been delineated
over a 3 km
strike length by geophysics and is more than 200 m wide. Grab
samples from this zone consist of abundant pyrite - pyrrhotite
(iron sulphides) and minor chalcopyrite (copper sulphides) and sphalerite (zinc sulphides).
Property Acquisition
Eloro is also pleased to announce the
acquisition of nine claims in Douglas Township
(the "Douglas Property") adjacent to its wholly-owned
McArthur Lake Nickel Property ("MLNP"). The Douglas Property
is located 2 km
north of the Texmont Nickel Property, and due
east of ground staked by XStrata, 35 km south of Timmins, Ontario.
Eloro has agreed to acquire a 100% interest in the Douglas Property by
issuing 60,000 common shares of Eloro to three arm's length parties
(the "Vendors"). The Vendors retain a 1% Net Smelter Returns
royalty, of which Eloro can purchase 0.5% for C$ 500,000. The Douglas
Property acquisition is subject to receiving all necessary regulatory
and exchange approval, including that of the TSX Venture Exchange.
The Douglas Property is contiguous on the eastern boundary of the MLNP
(refer to Eloro's press release dated May 22, 2007). An airborne
geophysical survey completed this year demonstrated the magnetic
continuity of the Texmont Nickel lithologies and a series of untested
MegaTEM(TM) anomalies on the MLNP (part of the Ontario Geological
Survey MEGATEM II SURVEY - BARTLETT DOME 2007). Previous work by INCO
(1966), Texmont Mines (1970) and Derry, Michener and Booth (1972) on
the adjacent Texmont Nickel Property, to the south of the MLNP,
identified historical resources between 2.99 and 3.80 million tons
grading 0.92% to 1% Nickel (as reported in National Instrument 43-101
technical report by H R. Butler, Fletcher Nickel Inc., 2007).
The MLNP, and the area including the Texmont, has been mapped as containing
ultramafic lithologies similar with other units containing nickel
sulphides in and around the Shaw Dome in Timmins. The nickel sulphides
in this sector have been characterized as Type II - stratabound
internal or Kambalda-type nickel mineralization. Eloro will utilize
this geological model in its Phase 1 exploration program, in order to
determine the potential for significant nickel mineralization.
About Eloro Resources Ltd.
Eloro is a junior exploration company focused on discovering and
developing precious and base metal quality resources in James Bay and
uranium resources in the Otish
Basin districts of northern Quebec, as well as base and precious metals in
the Timmins Camp of northern Ontario.
Eloro currently has eleven gold-copper-silver properties (1062 claims)
covering 548 km2 in the La Grande and Eastmain Greenstone Belts,
proximal to Goldcorp's Eleonore Gold Prospect. Eloro also has an option
to earn a 50% interest in 31 claims held by Virginia Mines Inc.. Additionally, Eloro now owns 90 km2 of
prospective uranium holdings in 10 properties (175 claims). The Timmins area
holdings now include the prospective Silver-Zinc-Gold Hurdman Property,
the 30 km2 McArthur Lake Nickel Property and the Douglas Property.
The technical content of this press release has been reviewed by Martin
Bourgoin, P. Geo., Executive Vice-President, of Eloro, and the
Company's Qualified Person under the guidelines of National Instrument
43-101.
For all Eloro investor relations needs, investors are asked to visit
the Eloro Resources IR Hub at http://www.agoracom.com/ir/eloro where they can post questions and receive answers within the
same day, or simply review questions and answers posted by other
investors. Alternatively, investors are able to e-mail all questions
and correspondence to elo@agoracom.com where they can also request addition to the investor e-mail
list to receive all future press releases and updates in real time.
Statements in this release that are not historical facts are
"forward-looking statements" and readers are cautioned that
any such statements are not guarantees of future performance, and that
actual developments or results, may vary materially from those in these
"forward-looking" statements.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
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