Eloro Resources Ltd.

Eloro Resources Ltd.

October 17, 2005 11:54 ET

Eloro To Acquire Additional Property in James Bay Area; Eloro Announces Surface Exploration Results Obtained In Virginia Gold Camp

TORONTO, ONTARIO--(CCNMatthews - Oct. 17, 2005) - Eloro Resources Ltd. (TSX VENTURE:ELO) (the "Company" or "Eloro") is pleased to announce that further to the Company's acquisitions announced on June 28 and July 8, 2005, it has entered into an additional Property Purchase and Royalty Agreement (the "Agreement") with J.S. Lavallee (the "Vendor"), to acquire a 100% interest in a 3,060 hectare gold, copper, silver and molybdenum property located 85 kilometers south west of Virginia Gold Mines Inc.'s Roberto Deposit, within the Eastmain archean greenstone belt in the James Bay area of northern Quebec (the "Eastmain Property").

Pursuant to the terms of the Agreement, Eloro will acquire the Eastmain Property by paying to the Vendor $30,000, and through the issuance of 600,000 common shares of Eloro to the Vendor, subject to the receipt of all regulatory and exchange approval, including that of the TSX Venture Exchange Inc. The Agreement stipulates that the Vendor will retain a 1% Net Smelter Return royalty on the Eastmain Property, of which Eloro will have the option to purchase 0.5% for $500,000.

Previous geological surveys conducted on the Eastmain Property by the Quebec Mines and Energy Department (ML-01-4030) revealed mineralized quartz veins within intensively deformed mafic volcanic rocks with interlayers of felsic cherty tuffs. Surface grab samples taken by previous operators yielded values of 176.61 g/t Au and 28.3 g/t Ag and 1395 ppm Zn (GM 48733). Furthermore, the Eastmain Property is also documented to host molybdenum mineralization. Grab samples taken by the Societe de developpement de la Baie James ("SDBJ") in 1981 from surface exposure of pegmatite dykes found on the property yielded 0.61% molybdenum, 0.29% molybdenum and 600 ppm bismuth (GM 37997). Furthermore, the SDBJ drill tested some of the pegmatite dykes and the following results were obtained: 0.63% molybdenum over 0.3m, 0.66% molybdenum over 0.3m, 1800 ppm bismuth over 1.0m, and 2500 ppm copper over 0.5m (GM 38169).

The Company is pleased with the acquisition of the Eastmain Property, which will enable it to continue its strategy of ground acquisition of mineral properties in the James Bay area within the highly prospective and under explored bands of archean volcanic rocks. The Company recently acquired 8 mineral properties in the James Bay area, totaling approximately 20,000 hectares. A team of experienced geologists and prospectors has been mobilized on site and field work is currently progressing. Once priority targets have been assigned they will be subsequently drill tested.

Eloro is also pleased to report on recent work completed as part of an ongoing surface exploration program at its Rupert South Property, located in the James Bay area of northern Quebec. Recent grab samples obtained from the Rupert South Property have returned assay results of 6.02% Cu (Sample No. 929364), 3.24% Cu (Sample No. 929365) and 1.88% Cu (Sample No. 929363). The samples were taken from outcrop, within a well mineralized copper showing, containing up to 10% sulphide mineralization, comprised mainly of chalcopyrite and pyrite. The host rock is composed of a well sheared sillimanite-biotite-garnet paragneiss. The samples were assayed at the ALS Chemex laboratory facility in Val D'Or, Quebec, using the aqua regia / AA method.

Additionally, Eloro has mandated Explorateur - Innovateur (''EX-IN''), a Quebec city based geophysical contracting firm, to compile all historical geophysical surveys (airborne mag and EM) in order to target anomalous areas for ground follow-up using the EX-IN Group's Beep Mat technology. The Beep Mat survey was conducted on the Lemoyne North Property and over 20 conductors were detected.

The EX-IN Group's Beep Mat technology has been used extensively by Virginia Gold Mines Inc. in this region, due to its low overburden characteristic. Recent successful discoveries by Virginia Gold Mines can attest to the effectiveness of this technology.

Ground prospecting crews are currently following up the Beep Mat survey program with a detailed geological survey (prospecting/mapping/sampling). This field work is being supervised by MRB & Associates ("MRB"), in order to further explore the areas and to verify the nature of the conductive areas. Additional sampling will be undertaken by MRB, primarily channel samples in areas of strong conductivity. Upon completion of this ground prospecting program, detailed IP surveys within selected target areas will be conducted if warranted. Priority targets will be subsequently drill tested as part of the next phase of exploration work. The Lemoyne North and Taiga properties are situated near the Trans Taiga highway and are readily accessible for winter diamond drilling.

The contents of this press release have been reviewed by Martin Bourgoin, B.Sc., 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
    (416) 868-9168
    Eloro Resources Ltd.
    Jorge Estepa
    Vice President
    (416) 868-9168
    (416) 361-1333 (FAX)