Zoloto Resources Ltd.
OTC Bulletin Board : ZRSCF

July 31, 2008 09:00 ET

Zoloto Resources Announces Elvenei Drill Results

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 31, 2008) - Zoloto Resources Ltd. ("Zoloto" or the "Company") (TSX VENTURE:ZR)(OTCBB:ZRSCF), is pleased to announce the results from its initial drill program at the Company's 100% owned Elvenei project in Chukotka, Far East Russia. Six diamond drill holes were completed in a short winter 2007-2008 drilling program managed by CJSC Chaunskoye, a local Russian consultancy. Highlights from Zone 1 include:

- Hole C-12: 6.44 g/t over 8.7 m from 43.5 m to 52.2 m

- Hole C-24: 11.66 g/t over 0.9 m from 128.1 m to 129.0 m

- Hole C-34: 16.77 g/t over 2.1 m from 123.7 m to 125.8 m

Between 1940 and the early 1990's Elvenei has been explored in successive Russian exploration programs that have outlined several mineralized trends at surface. Over an aggregate strike length of 3.4 km, six high-grade mineralized zones had been identified. The aim of Zoloto's first phase of exploration was to test the continuity of mineralization at depth. The location of the holes relative to the previously outlined mineralized zones are shown on a compilation map posted online Zoloto's Elvenei Project webpage (www.zolotoresources.com/main/?elveneiproject).

A total of 932.5 m of core were drilled in six holes. The first four holes targeted the mineralized Zone 1 structure, which has a total surface strike length of over 1 km. The four holes consistently returned high-grade mineralization over 1-2 m widths, at an approximate average vertical depth from surface of 50 m in drill holes C-12 and C-25, and 100 m in drill holes C-24 and C-34. Significant intersections are presented in Table 1.

Table 1: Significant Intersections (greater than 1 g/t Au)

Zone Hole Interval (m) Au (ppm)
Estimated True
From To Length Width
1 C-12 43.5 52.2 8.7 4.15 6.44
incl 45.0 45.7 0.7 0.33 17.05
63.5 64.3 0.8 0.37 7.18
76.0 77.0 1.0 0.45 1.49
C-24 102.5 103.0 0.5 0.23 7.63
128.1 130.3 2.2 0.95 5.82
incl 128.1 129.0 0.9 0.39 11.66
139.0 140.0 1.0 0.43 1.95
146.2 146.5 0.3 0.13 4.37
171.6 172.6 1.0 0.43 2.26
176.6 177.6 1.0 0.43 7.32
C-25 58.9 61.5 2.6 1.26 4.44
C-34 99.1 100.3 1.2 0.57 2.12
123.7 125.8 2.1 0.98 16.77
incl 124.7 125.8 1.1 0.51 27.61
2 C-15 No significant results
3 C-23 180.4 180.8 0.3 0.02 1.08

Drill hole C-15 targeted the Zone 2 mineralized structure and intersected 0.28 g/t over 0.30 m from 89.50 m to 89.80 m (a vertical depth from surface of approximately 80 m) indicating the continuation of mineralization in Zone 2 at depth.

Drill hole C-23 targeted the northern extension of the Zone 3 mineralized structure in an effort to extend known mineralization to the north and at depth. C-23 intersected 1.08 g/t Au over 0.35 m from 180.40 m to 180.75 m (at a vertical depth from surface of approximately 150 m), potentially indicating continuity Zone 3 mineralization at depth.

Tim Petterson, Director of Zoloto, comments "These initial results are encouraging and are broadly consistent with previous Russian exploration that had estimated an average grade of 13.2 g/t over 1.7 m for Zone 1. In terms of geologic setting, grade, width and dip of mineralized trends there are close parallels with that at more advanced projects within the region, where it has also been shown that grade significantly increases with depth. Given the above positive results, this year's drill programme will be expanded to test all of Elvenei's current six target zones".

Zoloto's 2008 summer drill programme at Elvenei is set to commence in the third quarter. Here, a total 1,600 m of core drilling is planned to test Zones 1 & 2 along strike at 120 m intervals, while Zones 3-5 will be drilled at 240 m intervals. In addition, 15,000 m of trenching is planned along 140 m of Zone 1's strike length.

Elvenei Geology

The Elvenei deposit is located immediately north of the Okhotsk-Chukotka Volcanic Belt, a significant metallogenic province located in the Chukotka Autonomous Okrug of northeastern Russia. The Okhotsk-Chukotka Volcanic Belt is a belt of Cretaceous intermediate to felsic volcanics and intrusions emplaced along the southern margin of, and unconformably overlying, the Triassic terriginous metasediments of the Chukotka Terrane. Significant deposits in the area of Elvenei with similar characteristics are Mayskoye (6.89 million tonnes at 11.5 g/t Au(1)) and Kupol (6.82 million tonnes at 14.95 g/t Au(2)). In Elvenei, Mayskoye and Kupol, gold mineralization is associated with quartz +/- sulfide veining in sheared, brecciated zones sub-parallel to, and possibly coeval with, rhyolite dyking. Mayskoye is most similar to Elvenei in that it is hosted in Triassic sediments whereas Kupol is hosted in Cretaceous volcanics.

The area of interest for the Elvenei deposit covers a 15 km(2) area on the eastern bank of the Elveneiveem River in the Chaunskiy Area of Chukotka Autonomous Okrug (Figure 1). The area is known as part of the Rauchuanskiy gold-bearing zone and is underlain by the Triassic Kuveemkaiskiy Formation sediments of upper Norian age. The lower member of the Kumeemkaiskiy Formation consists of poorly sorted terriginous clastics overlain by upper member sandstones and intercalated siltstones. Sediments are intruded by late-Cretaceous felsic to intermediate dykes and related faulting forming a ring-dyke structure over and around a buried biotite granite pluton.

Gold mineralization is structurally related and associated with hydrothermal metasomatism in conjunction with the emplacement of the granitic intrusions. Gold typically occurs with arsenic and/or antimony in quartz veins and veinlets or in silicified mineralized breccia zones trending north-south and central to the ring-dyke complex. The outer limit of the gold-ore zone is expressed by anomalous silver, bismuth, tin, tungsten and/or copper values.

Assaying and CME & Company

From the six core holes drilled, 908 samples were collected. Samples were analyzed by Alex Stewart Geo Analytics in Moscow. The samples were processed by Alex Stewart Group Ltd at ASA GEO ANALITIKA, LLC laboratories in Moscow. Gold and multi-element ICP analyses were performed on all samples. The Alex Stewart Group Ltd is a leading global supplier of precious metal inspection and analytical services. Their Moscow Laboratory is accredited to ISO IEC 17025 standards.

The results contained in this press release conform to Russian, but not CIM, exploration standards. The technical data in this press release has been reviewed by T. Greg Hawkins, P. Geo., and Director of CME & Company (CME). Mr. Hawkins is the Qualified Person for the Elvenei project.

CME is an international mineral exploration consultancy, headquartered in Dubai, UAE. CME has recently been retained by Zoloto as the Company's independent geologic consultants. Two principle remits have been given to CME: to provide guidance in ensuring that all future exploration complies with CIM Best Practices and meets NI 43-101 standards; and to complete the integration of the historic Russian data to a Canadian database.


(1) - Annual Report 2007 - Highland Gold Mines (www.highlandgold.com)

(2) - Annual Report 2007 - Kinross Gold Corporation (www.kinross.com)

About Zoloto Resources

Zoloto is a gold exploration company whose primary focus is to become a mid-tier gold producer through the advancement of its gold exploration properties in the Russian Federation. In addition, Zoloto's management will continue to evaluate acquisition opportunities within the Russian Federation. Zoloto's philosophy is to unlock shareholder value in a socially and environmentally responsible manner.

Tim Petterson


This news release contains forward-looking information which is not comprised of historical facts. Forward-looking information involves risks, uncertainties and other factors that could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward looking information in this news release includes, but is not limited to, the Company's objectives, goals or future plans. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to, those risks set out in the Company's public documents filed on SEDAR. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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