Eloro Resources Ltd.
TSX VENTURE : ELO

Eloro Resources Ltd.

January 22, 2008 11:37 ET

Drilling Commences on Gold Bearing Massive Sulphide Target at Eloro's Lemoyne North Property in James Bay District, Quebec and Eloro Acquires Property in Douglas Township, Ontario

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™ 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.

Contact Information

  • Eloro Resources Ltd.
    Thomas G. Larsen
    President and CEO
    (416) 868-9168
    (416) 361-1333 (FAX)
    or
    Eloro Resources Ltd.
    Jorge Estepa
    Vice-President
    (416) 868-9168
    (416) 361-1333 (FAX)
    Website: www.elororesources.com