Eloro Resources Ltd.

Eloro Resources Ltd.

August 27, 2009 10:44 ET

Eloro Acquires Claims Adjacent to Lithium One Inc.'s Cyr Lithium Discovery, in the James Bay Mining District of Northern Quebec

TORONTO, ONTARIO--(Marketwire - Aug. 27, 2009) - Eloro Resources Ltd. (TSX VENTURE:ELO) (the "Company" or "Eloro") is pleased to announce the acquisition of two claim groups (the "Agreement"), from arm's length vendors (the "Vendors"), the Cyr East and Cyr West claim groups (the "Property") comprising 146 claims totaling 7,710 hectares (or 77.1 km2) in the James Bay Mining District of northern Quebec. The Cyr East claim group consists of 109 claims covering 5,755 hectares (or 57.6 km2); whereas the Cyr West claim group consists of 37 claims covering 1,955 hectares (or 19.5 km2). The registration of the claims by the Quebec government is still pending, but should be confirmed shortly.

The Property is located adjacent to the east and west of the Lithium One Inc. -property containing the Cyr Lithium discovery which hosts significant drill intersections of 1.59% Li2O over 10.27 m (JBL09-01). 1.72% Li2O over 9.87 m (JBL09-02) and 1.43% Li2O over 22.50 m (JBL09-11) (www.lithium1.com); and is also 75 km due south of Goldcorp's Eleonore Gold Deposit (2.3 million ounces of Gold in Indicated Mineral Resources at a grade of 10.05 g/t Gold and 3 million ounces of Gold in Inferred Mineral Resources at a grade of 12.75 g/t Gold; www.goldcorp.com), and finally 80 km west of Eastmain Resources Clearwater Gold Project (310,00 ounces of Gold grading 9.46 g/t Gold in Indicated Mineral Resources and 680,000 ounces of Gold grading 6.90 g/t Gold; www.eastmain.com). In addition, Eloro's Delta/Eastmain 1, Eastmain 2 and Eastmain 3 base and precious metal properties are located 30 km east, 30 km northwest and 45 km west, respectively, from the Property. All are situated in the prolific Eastmain Greenstone Belt.

Boisvert (1989) describes the region as containing biotite schists and gneisses; volcanic and sedimentary lithologies and mafic intrusive rocks; as well as granites and particularly pegmatites. The Property area hosts pegmatites, occurring as irregular but generally continuous lenses within the biotite schists. Individual pegmatites can attain up to 60 m in width and more than 100 m in length, collectively forming part of a much larger bodies having kilometric lengths and widths up to 300 m. Additional work by the Ministere des ressources naturelles et de la faune Quebec (the "MRNFQ") uncovered a number of lithium showings in the region with a similar metallogenic context to that of the Cyr Lithium Discovery of Lithium One Inc. linked to spodumene (a lithium bearing aluminum silicate) pegmatites. This type of pegmatite is also associated with the Preissac-Lacorne Batholith located further south in the Abitibi Greenstone Belt (near Val-d'Or, Quebec) where Canada Lithium Corporation is developing the Quebec Lithium Project containing historical ore reserves(i) of 15,612,300 tonnes at a grade of 1.14% Li2O.

Historical work on Lithium One Inc.'s Cyr Lithium Discovery has demonstrated significant lithium potential, identifying a resource potential(i) of 12 million tonnes (45,000 m2 by 100 m deep) grading 1.7% Li2O (www.lithium1.com).

Thomas Larsen, President and CEO of Eloro commented, "As stated by the Fraser Institute, Quebec is one of the best places in the world for exploration based on its geological endowment, title and land ownership, and fiscal regimes and that is why Eloro is focusing on the James Bay region. The sector hosts a variety of metals, from Gold, Copper, Zinc, Uranium and Lithium. We are fortunate to find key mineral claims so close to a major lithium discovery. Eloro plans a field program in the near term to rapidly evaluate the lithium targets on the Property.

Pursuant to the Agreement, Eloro will acquire a 100% ownership in the Property by; i) making cash payments of $30,000 within 6 months of the Agreement date and ii) upon receipt of of all required regulatory approval, including that of the TSX Venture Exchange, issue a total of 1.65 million Eloro shares to the Vendors, subject to the required hold period. The Vendors will retain a 2% Net Smelter Returns Royalty (the "NSR") of which 1% can be purchased by Eloro for $1 million. The Agreement is subject to the claims being registered with the Quebec government.

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 region of northern Quebec, and base and precious metals in both the Timmins and Val-d'Or mining camps of northern Ontario and Quebec.

James Bay, Quebec

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 Project. Eloro also has an option to earn a 50% interest in 31 claims held by Virginia Mines Inc., also located in James Bay, Quebec.

Val-d'Or, Quebec

Eloro recently signed an option agreement with Megastar Development Corporation to earn a 50% interest in the advanced Simkar Gold property located 20km east of Val-d'Or Quebec.

Timmins, Ontario

The Timmins area holdings include both the prospective Hurdman Zinc Silver Property, and the 30 km2 McArthur Lake Nickel Property under option to Fletcher Nickel Inc.

The information contained in this news release was prepared and revised by Mr. Martin Bourgoin, P. Geo., Eloro's Executive VP, and a Qualified Person as defined by National Instrument 43-101.

(i) The resource potential and "ore reserve" estimates are considered historical, should not be relied on and are not considered National Instrument ("NI") 43-101 compliant. A Qualified Person has not reviewed and evaluated the resource potential and "ore reserve" estimates to outline NI 43-101 Mineral Resources. It is uncertain that any future exploration and development work will result in any of the resource potential and "ore reserve" estimates to be considered as NI 43-101 Mineral Resources. Resource potential and "ore reserve" estimates should only be considered as an indication of the lithium mineralization.

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.

Claim map illustrating Eloro's newly acquired Cyr East and West Claim Blocks in the Eastmain Greenstone Belt, James Bay Mining District of northern Quebec. The map details the proximity of Lithium One Inc.'s neighboring Cyr Lithium Discovery and Eloro's Delta/Eastmain 1, Eastmain 2 and Eastmain 3 properties in the region.

To view the Claim map, please visit the following link: http://media3.marketwire.com/docs/EloroClaimmap.pdf

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) 868-9168
    Eloro Resources Ltd.
    Jorge Estepa
    (416) 868-9168