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Eloro OpTIONS OTISH
URANIUM PROPERTIES, ANNOUNCES SALE
OF ADDITIONAL URANIUM PROPERTIES
Toronto,
Canada, January 30, 2008 - ELORO RESOURCES LTD. (ELO: TSX-V) ("Eloro") is
pleased to announce that it has signed a Letter Agreement (the
"Agreement") with Northfield Metals Inc. ("Northfield")
allowing Northfield to earn a 50% interest and operatorship in Eloro's
wholly-owned Otish Uranium North and South properties located in the
Otish Mountains, Quebec ("Otish Uranium Properties"). Eloro is
also pleased to announce the sale ("Sale"), to Northfield, of
six wholly-owned uranium properties located in the James Bay District of
Quebec (the "James Bay Uranium Properties").
The Otish Uranium Properties Agreement
Under the terms of the Agreement, Northfield has an option to earn
a 50% interest and operatorship in the Otish Uranium Properties by
incurring C$3 million on exploration related expenditures on or before
January 31, 2012, as follows:
- C$300,000 on or before
January 31, 2009;� �
- an additional
C$500,000 on or before January 31, 2010;
- an additional
C$1,000,000 on or before January 31, 2011; and
- an additional
C$1,200,000 on or before January 31, 2012
Pursuant
to the Agreement, Northfield has agreed to issue 1,000,000 common shares
of Northfield (the "Shares") to Eloro as follows: i) 100,000
Shares after receipt of all necessary regulatory approvals, ii) 166,667
Shares on or before January 31, 2009, iii) 333,333 Shares on or before
January 31, 2010, and iv) 400,000 Shares on or before January 31, 2011. The
Otish Uranium Properties are currently encumbered with a 2% net smelter
return royalty, of which, 1% may by purchased from the royalty holder for
C$ 1 million.�
The Otish
Basin Uranium Mineralization
The Otish Uranium Properties, comprising 158 claims totaling 82.1
km2, straddle the unconformity contact with the underlying
granites and offer potential for classic unconformity-type uranium
mineralization both below and above the unconformity surface. Eloro's
Otish Uranium Properties are in a similar regional geological context as
Strateco Resources Inc.'s high-grade uranium intersection, and the high
grade uranium mines in the Athabasca Basin in Saskatchewan, the world's
largest producing uranium camp.
The Otish Uranium Properties are located approximately 20 km NE of Strateco
Resources Inc.'s Matoush Uranium Discovery, where they have intersected
significant uranium mineralization in drillhole MT-06-35 2.13% U3O8
over 15.2 m
(refer to the Strateco Resources Inc.'s press release dated February 20,
2007). The Otish Basin is also being actively explored by Cameco and
Areva, the world's largest uranium producers.
The Matoush Uranium Discovery is closely linked to a regional
fault which 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 McArthur River and
Cigar Lake uranium deposits in the Athabasca basin.
James
Bay Uranium Properties Sale
Under
the terms of the Sale, Northfield has agreed to purchase Eloro's James
Bay Uranium Properties in exchange for 500,000 common shares of
Northfield. The James Bay Uranium Properties are currently encumbered
with a 1% net smelter return royalty.
Eloro's
James Bay Uranium Properties are comprised of six properties (Gaval,
Maguy, Meech, and Rupert North, Zone 90, and Zone 99) that total 122
claims and cover an area of 6,274 hectares.
The Gaval property contains anomalous uranium mineralization in an
unconformity type geological model; Maguy and Meech contain anomalous
uranium mineralization within a geological pegmatitic model. The
highlight showings on each property are as follows: Gaval 435ppm uranium
("U"), over 1.5m in drillhole G-77-8 (Source: MRN assessment
file GM 37020); Maguy: 0.44% U3O8 (grab sample) in
migmatitic and pegmatitic rocks; Meech: 467 ppm U (grab sample) in
pegmatites; Zone 90: 0.092% U located in a fracture within a
granodiorite; Zone 99: 0.011% U3O8, hosted in fractures
and shear zones associated to a regional structure. Located south of the
Eastmain greenstone belt is the Rupert North property that hosts a
showing that contains 515ppm U hosted in a granitic pegmatite.
The
James Bay Uranium Properties were acquired by Eloro based on historical
values and have not benefited from any significant exploration for
uranium since the 1970's.
Since
there are common directors to both companies, the Board of Directors of
each of Eloro and Northfield struck an independent committee to review
and assess the Agreement and Sale.�
In each case, the independent committee was composed of one
independent director.� Each
independent committee reviewed each proposed transaction and its
underlying property and concluded that both the Agreement and Sale
transactions were comparable to transactions between other mineral
exploration companies relating to comparable properties.� Each independent committee recommended
to its respective Board of Directors that the Agreement and Sale transactions
be approved.� The Agreement and
Sale transactions are subject to approval of the Boards of Directors and
any necessary regulatory approvals.
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