Eloro Resources Ltd.

Eloro Resources Ltd.

March 25, 2010 06:00 ET

Eloro Intersects Up to 20.4 g/t Gold Over 3.0 Metres in Multiple New Gold Zones, Adding Significant Potential Below the Simkar Gold Property's Historic Mine Workings

TORONTO, ONTARIO--(Marketwire - March 25, 2010) - Eloro Resources Ltd. (TSX VENTURE:ELO)(FRANKFURT:P2Q) ("Eloro" or the "Company") is pleased to provide the first assay results from the ongoing, surface diamond drilling program at the Simkar Gold Project ("Simkar" or the "Property") located in the prolific Abitibi Greenstone Belt, 20 km east of Val-d'Or (Quebec). Simkar consists of two contiguous mining concessions totalling 226 hectares in Louvicourt Township, and is wholly-owned by Megastar Development Corp. ("Megastar") (TSX VENTURE:MDV) under option to Eloro.

Drill hole SK10-12 intersected 9.4 g/t Au over a 5.9 m core length including an interval of 24.6 g/t Au over 2.1 m. Drill hole SK10-13 intersected 20.4 g/t Au over a 3.0 m core length including an interval of 40.3 g/t Au over 1.3 m. Drill hole SK10-16 intersected 4.0 g/t Au over a 5.0 m core length including an interval of 11.9 g/t Au over 1.0 m. The reported intersections are relatively shallow ranging from 170 m to 275 m vertical below surface.

The current drilling program incorporates 17 holes totalling 6,125 m, of which 11 holes have been completed to date for 3,400 m. The holes are being drilled in reverse order to the hole numbers, and assay results are available for the first 6 holes drilled, including; SK10-12 to SK10-17 (inclusive). Highlights of the analytical results received to date are tabulated below, with no significant results to report from holes SK10-14, SK10-15 or SK10-17.

DDH # FROM (m) TO (m) CORE LENGTH (m) GOLD (g/t)
SK10-12 313.9 319.8 5.9 9.4
incl. 317.7 319.2 2.1 24.6
SK10-13 246.0 249.0 3.0 20.4
incl. 246.0 247.3 1.3 40.3
SK10-14 No significant intervals
SK10-15 No significant intervals
SK10-16 194.0 199.0 5.0 4.0
incl. 194.0 195.0 1.0 11.9
SK10-17 No significant intervals
(1) All holes are inclined and "From" and "To" distances tabulated are metres drilled downhole not vertical depths.
(2) Sample and intersection "Length" tabulated are downhole lengths and not "true" widths.
(3) All assays are reported uncut.
Quality Assurance and Quality Control ("QA/QC") protocols are outlined below.

The current Simkar mineralization model was generated from a comprehensive 3-D compilation and synthesis of historic mine and drill hole data that include the "A", "B", "C", "Montana", "East" and "South" zones from which there is historic gold production. Even though the gold mineralization is interpreted to continue down-dip and down-plunge of the mine workings, only a few of the historic holes tested the gold mineralization below the lower levels of the mine. The 2010 drilling specifically targets the extensions of the modelled zones, primarily below 200 metres vertical depth under the historic underground workings, specifically along the projections and intersections of the planar shear zones.

The intersection in SK10-16 occurs along the eastern extension of the B Zone, near the projected northeast extension of the C Zone. The intersection may represent a new high-grade zone, previously unexplored and open in all directions at relatively shallow depth. SK10-12 intersected the B Zone over 100 metres down-dip from historic workings, whereas SK10-13 intersected the East Zone more than 100 metres down-dip from historic stoping.

The drilling results to date indicate that the gold-mineralized structures are continuous over significant distances, both along strike and down-dip. The presence of higher gold grades may be indicative of localized "chutes". Additional drilling will be required to further test the multiple targets and chutes identified to date.

Tom Larsen, President and CEO of Eloro stated, "Assay results from 3 of the 6 holes assayed to date yielded three important intersections in three separate zones at relatively shallow depths between 150 m and 275 m, but below the known historic underground workings. Each of the intersections offers a significant opportunity to develop additional resources for the project and we look forward to further favourable results from the remaining holes."

The Simkar Gold Project

The Property hosts a thick sequence of east-west trending, near vertical dipping rhyolites, pyroclastics and quartz-feldspar porphyry dykes and sills closely associated with the lode gold vein mineralization and the Louvicourt-type volcanogenic massive sulphide (or "VMS") mineralization.

The higher gold grade vein mineralization is similar to the 9 million ounce Sigma-Lamaque Gold Deposit in Val-d'Or. The historic production of 30,500 ounces of gold (1946-1949) came from extensive underground workings along the A, B and C Zones. From 1987 to 1993, surface exploration and underground development work successfully outlined additional gold mineralization in the immediate extensions of the previously mined zones, as well as defining new gold resources in three new gold bearing structures, the East, F, and Pillar Zones. Subsequently, the existing underground workings were dewatered and new underground development was completed to access the East Zone. This underground development work led to the extraction of 20,000 ounces of gold.

Megastar acquired all rights, titles and interests of the Project in 1996. Since then, Megastar completed ground geophysics; surface diamond drilling, and integrated the former Simkar Gold Mine underground workings into a 3-D mine model. This work led to two National Instrument ("NI") 43-101 compliant technical reports, one in 2004 and a second in 2008 (available on SEDAR at www.sedar.com under Megastar Development Corp). The 2008 technical report outlines Mineral Resource estimates of 1,482,000 tonnes grading 3.01 g/t gold containing 143,160 ounces of gold to vertical depth of -200 m.

Eloro and Megastar are in the first year of an Option and Joint Venture Agreement that provides Eloro with the option to earn a 50% interest in Simkar by completing $4 million in exploration work, paying Megastar $350,000 and issuing 4.5 million shares of Eloro to Megastar over 3 years. 

QA/QC Procedures

The Company has implemented QA/QC procedures to ensure best practices in sampling and analysis of the core samples. The NQ drill core is logged and then split in half with one-half sent for assay. Duplicates, standards and blanks are inserted randomly into the sample stream. The samples are delivered, in secure tagged bags, directly to the ALS Laboratory Group facility in Val-d'Or (Quebec) for analysis. Samples with visible gold are analyzed by the Total Metallic Sieve method, whereas the remaining samples undergo more conventional Fire Assays. For the reported intersections, total metallic screen check-assays were completed on the coarse crushed reject for all samples reporting greater than 10 g/t gold from the initial fire assay. Other samples within the intersection are re-submitted for check fire-assay using the original pulps. The final reported gold grade for a sample is either the Total Metallic Sieve assay result or it is the average of the two fire assays.

About Eloro Resources Ltd.

Eloro is a junior exploration company focused on discovering and developing base and precious metals in both the Val-d'Or and Timmins mining camps of Quebec and northern Ontario, and precious and base metal quality resources in the James Bay region of northern Quebec. In the James Bay (Quebec) region, Eloro has 11 gold-copper-silver properties (1,062 claims) covering 548 km2 in the La Grande and Eastmain Greenstone Belts, proximal to Goldcorp's Eleonore Gold Project. Eloro also has an option to earn a 50% interest in 31 claims held by Virginia Mines Inc. In Timmins (Ontario), the Company holds both the prospective Hurdman Zinc Silver Property, and the 30 km2 McArthur Lake Nickel Property under option to Fletcher Nickel Inc.

The technical information contained in this news release was prepared and approved by Martin Bourgoin, P. Geo., Executive VP of Eloro, and John Langton, P. Geo, VP Exploration of Eloro and Project Manager of the Simkar Gold Project. Both individuals are Qualified Persons as defined by National Instrument 43-101.

Statements made in this news 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.

Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

Contact Information

  • Eloro Resources Ltd.
    Thomas G. Larsen
    President and CEO
    (416) 866-2600
    Eloro Resources Ltd.
    Jorge Estepa
    (416) 866-2600