Eloro Resources
Ltd. PRESS RELEASE
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Toronto,
Canada, June 12, 2008 - Eloro Resources Ltd.
(TSX-V: ELO) ("Eloro")
is pleased to announce the signing of a Letter of Agreement
(the "LOA") setting the terms for Eloro to acquire four (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.
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.
Mr. Thomas Larsen, Eloro's President and CEO states, "The shale gas
play in Quebec is unique due to its potentially economic viability and
scale. Management believes the Charlevoix Property offers excellent
upside leverage for Eloro in the near term based on the significant gas
play located further to the south in the Utica Shale. Eloro has now
capitalized on the opportunity to acquire a major and strategic land
holding in an area known to contain hydrocarbons, supported by a
substantial and intact database that includes exploratory drilling. Eloro
plans to rapidly evaluate the hydrocarbon potential of the Property,
whether it is gas and/or oil, in light of favourable prices and the
application of today's technology."
The
Charlevoix Property Agreement
Eloro signed the LOA with the BRM Group (the "Vendor"), an
arm's length party, enabling the Company to acquire a 100% undivided
interest in the Property by executing a definitive Option Agreement on or
before June 26, 2008, making cash payments totalling C$ 50,000 to the
Vendor, completing C$ 500,000 in exploration expenditures over a two year
period, and upon receipt of all regulatory approvals, the issuance of 1.5
million shares of Eloro to the Vendor. The Vendor would retain a 2.5%
Gross Overriding Royalty, of which 1% may be purchased by Eloro for C$
1.5 million.
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 is currently
reviewing and compiling the technical information available for the Property
and plans to proceed with a major geochemical survey, geological mapping
and follow-up drilling in 2008.
Quebec's Shale Gas Play in the St. Lawrence River Lowlands
According to a recently released equity research group report from Fraser
Mckenzie on "shale gas" in Quebec (the "Report")
dated May 2, 2008, the "Utica Shale Gas Play" in the St.
Lawrence River Lowlands located between Montreal and Quebec City (Quebec)
is a "sleeping giant" that was recently awakened with the
announcement that Forest Oil Corporation (NYSE: FST) had successfully
fracture-stimulated and tested two vertical wells drilled in the Utica
Shale in Quebec on two of their permits. The Report stated that the Utica
Shale exhibit excellent rock properties comparable to other more established
"shale gas" formations, such as the Barnett Shale in Texas,
which hosts up to 250 trillion cubic feet ("tcf") of
recoverable reserves. The Report also indicated the economics of the
Utica Shale could be more attractive than other similar "shale gas"
discoveries, because of its shallower depth and close proximity to gas
markets, and their "Barnett-type" rock attributes. The Utica
Shale play encompasses a 1.5 million acre area in the St. Lawrence
Lowlands south of the St. Lawrence River between Quebec City and
Montreal. The Utica shale is estimated to contain up to 24 tcf of
recoverable reserves. The Report concludes that although the Utica shale
gas play is still at an early stage of establishing commerciality,
preliminary indications are very encouraging.
Stock
Option Grant
The Company also announces that it has granted 450,000 stock options to
an employee and a consultant to acquire up to 450,000 common shares of
the Company (the "Stock Options"). Each Stock Option entitles
the holder thereof to acquire one (1) common share of the Corporation at
an exercise price of $0.35 per common share prior to the close of
business on June 12, 2013.
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About Eloro Resources
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.
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For further
information please contact:
Thomas G. Larsen,
President and CEO or Jorge Estepa, Vice President
(416)
868-9168 (tel) or (416) 361-1333 (fax)
Further
information is available on the Company's website at www.elororesources.com
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.
ELO - TSX Venture
Exchange
52 week high/low: $0.68 - $0.20
Shares Outstanding: 52,368,570
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