Eloro Resources Ltd.
TSX VENTURE : ELO

Eloro Resources Ltd.

May 05, 2008 12:27 ET

Deep-EM Survey Initiated on Eloro's Hurdman Zinc-Silver Property in the Timmins Mining Camp

TORONTO, ONTARIO--(Marketwire - May 5, 2008) - Eloro Resources Ltd. (TSX VENTURE:ELO) (the "Company" or "Eloro") is pleased to announce that an airborne deep penetrative V-TEM survey has commenced on its wholly-owned Hurdman Zinc-Silver, Agate and Gurney properties located 120 km north of Timmins, Ontario. The survey is being done by Geotech Ltd., of Aurora (Ontario) and is scheduled for completion later this month.

The 1,382 line-km V-TEM survey is being carried out under the supervision of John Langton, M.Sc., P. Geo., a Qualified Person as defined by NI 43-101, and the Company's newly appointed Exploration Manager, Ontario. Upon completion of the airborne survey Abitibi Geophysics of Val d'Or (Quebec) will complete a detailed interpretation-synthesis of the data.

The Hurdman Zinc-Silver, Agate and Gurney properties are comprised of 50 claims, covering 120 km2. Drilling by the Company on the Hurdman Zinc-Silver property has defined continuous zinc-silver bearing semi-massive to massive sulphides. The mineralization is delineated over a 300 m strike length and 200 m downdip, and remains open both laterally and at depth. Higher grade lenses have been recognized within the mineralized zone averaging 3.5% zinc, 40 g/t silver over an average width of up to 8 m.

A.S. Horvath Engineering Inc. ("Horvath") recently completed a comprehensive 3-D synthesis of the Hurdman Zinc-Silver property, and determined that there is sufficient continuity and consistent grade in the mineralization to outline a mineral resource. The company has now mandated Horvath to complete a National Instrument (NI) 43-101 compliant resource estimate for the Hurdman Zinc-Silver mineralization.

In addition, Horvath concluded that the geological and mineralization characteristics at Hurdman bore similarities to the Broken Hill Sedex Deposit ("Broken Hill Deposit") located in New South Wales, Southern Australia. The Broken Hill Deposit is one of the richest accumulations of zinc-silver (and lead) in the World and has been in production since 1883. Strongly deformed, metamorphosed and stacked sulphides, gahnite (a zinc silicate) and magnetite lenses are common, with thickening of the mineralization in fold hinges. Individual lenses can range up to tens of meters thick. The mineralization can extend hundreds of meters, often grading laterally into disseminated pyrite and pyrrhotite units that measure tens of kilometers.

The stacked highly deformed, metamorphosed and shallow dipping sulphide lenses at the Hurdman Zinc-Silver property, the accompanying alteration signatures and gahnite, all lend support for a Broken Hill Deposit style of mineralization.

Horvath recommended that the Hurdman Zinc-Silver property be subjected to a deep penetrative airborne V-TEM survey to detect structural features and potential sulphide lenses which may be the locus of additional zinc-silver mineralization under the overburden cover and at depth. With the proximity of the Agate and Gurney properties the Company decided to simultaneously survey all three properties. The interpreted V-TEM digital data will then be incorporated into the existing 3-D property-wide model for further analysis by Horvath. Priority drilling targets will be selected on the basis of adding continuity to the known mineralization at Hurdman and identifying new areas of potential massive sulphide mineralization on all three properties.

At the Agate property, similar mineralization to that found on the Hurdman Zinc-Silver property was identified by INCO in the mid-1960's. Historical values of 2.32% zinc over 13.4 m and 2.85% zinc over 2.9 m were reported by INCO in their 1991-1992 and 1993 Agate Property Assessment Reports (Ministry of Northern Development & Mines Geofiles 42H12NW8022 and 42H12NE0003). INCO also drilled at least 12 targets on the Gurney property in the mid-1960's, although results were not reported. Geological interpretations indicate that regional-scale fault systems transect both the Agate and Gurney properties. The Company is encouraged by the structural, geophysical, geological and metallogenic environments of both the Agate and Gurney properties.

The information contained in this news release was prepared and revised by Mr. John Langton, P. Geo., Eloro's Exploration Manager, Ontario, a Qualified Person under National Instrument 43-101 standards.

About Eloro Resources Ltd.

Eloro is a junior exploration company focused on discovering and developing precious and base metal quality resources in the James Bay and uranium resources in the Otish Basin districts of northern Quebec, and base and precious metals in the Timmins Camp of northern Ontario. Eloro currently has eleven gold-copper-silver properties (1,062 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. Eloro now owns 90 km2 of prospective uranium holdings in 10 properties (175 claims). The Timmins area holdings include both the prospective Hurdman Zinc-Silver Property, and the 30 km2 McArthur Lake Nickel Property.

Shareholders and stakeholders should visit the Eloro Resources IR Hub at www.agoracom.com/ir/eloro, where you can post questions and receive answers within 24 hours, or simply review questions and answers posted by other investors. If you would like to receive Eloro's news releases and the latest updates in real-time, you may download your e-mail address at elo@agoracom.com.

Statements 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.

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