Eloro Resources Ltd.
TSX VENTURE : ELO

Eloro Resources Ltd.

January 11, 2007 14:53 ET

Eloro Increases Strategic Land Position Near its Hurdman Property, as Company Initiates Drilling at Hurdman

TORONTO, ONTARIO--(CCNMatthews - Jan. 11, 2007) -

(Not for dissemination in the United States of America)

ELORO RESOURCES LTD. (TSX VENTURE:ELO) ("Eloro" or the "Company") is pleased to announce the acquisition (the "Property Acquisitions") of two claim blocks (the "Agate and Gurney Properties") from Mr. Donald McKinnon (the "Vendor") near its wholly owned Hurdman Zn-Ag Property, located 120 kilometres north of Timmins, Ontario, and 75 kilometres north of Xstrata's Kidd Creek Operations.

The Agate Property consists of 15 claims for 38.4 km2 in Agate and Tucker Townships, located 1 km north of the Hurdman Property. The Gurney Property consists of 7 claims for 14.2 km2 in Gurney Township, located 5 km west of the Hurdman Property.

Several airborne geophysical surveys were performed at various orientations, as well as ground geophysics over the property and on adjacent ground in the 1960's by INCO. Follow up drilling by INCO intersected massive sulphides with results ranging between 2.28% Zn over 13.7 metres (BH 32325) and 4.2% Zn over 0.43 metres in quartz-rich rocks interpreted at the time to be sulphide bearing cherts. Three well developed zinc lenses were outlined, that were also linked to three clusters of airborne EM anomalies. Additional drilling in the area by INCO in 1993 revealed lower grade Zn intervals within conductive massive, semi-massive and/or disseminated pyrrhotite-pyrite associated with quartz-rich sulphide facies iron formation. The best intersection returned 0.22% Zn over 19.7 metres (BH72587). INCO's work outlined a potential for SEDEX-type Zn mineralization, believed by Eloro's geologists to be similar to the Broken Hill (Australia) Zn mineralization, as also observed on the Company's adjacent Hurdman Property.

Eloro has agreed to acquire a 100% interest in the Agate and Gurney Properties by issuing 375,000 common shares of Eloro to the Vendor. The Vendor retains a 2% Net Smelter Returns royalty, of which Eloro can purchase 1.0% for $1,000,000. The Property Acquisitions are subject to receiving all necessary regulatory and exchange approval, including that of the TSX Venture Exchange.

Exploration Program at the Hurdman Property

Eloro is initiating a 3,500 metre drill campaign on the 28 claim (66 km2) Hurdman Property in follow-up to the significant results in 2006 from the drill campaign and airborne geophysical survey. The Company plans assessing the full Zn and Ag potential of the property, as well as for copper bearing massive sulphides, either near surface or at depth or both. Copper has yet to be found at Hurdman. Five sets of cluster geophysical anomalies were outlined peripheral to the known zinc mineralization in the western half of the property. The strength and depth responses (from low frequencies) suggest bedrock anomalies, two are 200 metres in length, one 300 metres, one 400 metres and the last one covering a 2 kilometre strike length. The cluster anomalies occur 3 km southwest from the main area of previous drilling by Eloro.

The mineralization at Hurdman has been drill tested over a 750 metre strike length to roughly 80 metres vertical depth, and 200 metres downdip. It remains open in all directions. The mineralization consists of sphalerite bearing semi-massive to massive sulphide zones containing higher zinc grades. The presence of significant gold grades is primarily linked to very coarse pegmatite veins (or dykes), generally with higher silver grades and lower zinc grades, located at the margins of the semi-massive sphalerite horizons.

The contents of this press release have been reviewed by Martin Bourgoin, P. Geo., a Qualified Person under the guidelines of National Instrument 43-101.

The TSX Venture Exchange Inc. 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
    (416) 868-9168
    (416) 361-1333 (FAX)
    Website: www.elororesources.com