Eloro Resources Ltd.

Eloro Resources Ltd.

April 08, 2009 08:00 ET

Eloro Intersects Zinc-Silver Rich Massive Sulphides 1.5km East of the Hurdman Sulphide Zone Extending Eastern Continuity of Mineralization at the Hurdman Property, Ontario

TORONTO, ONTARIO--(Marketwire - April 8, 2009) - Eloro Resources Ltd. (TSX VENTURE:ELO) (the "Company" or "Eloro") is pleased to announce assay results from a 1,940m/10 hole diamond drilling campaign initiated in November 2008 at the Company's wholly-owned Hurdman Property (the "Property"). The Property is located 120km north of Timmins, Ontario, and 75km north of XStrata's Kidd Creek Mill Operations.

Following the synthesis and interpretation of an airborne, deep penetrative VTEM survey completed in May 2008 that identified priority drilling targets, the 2008 drill program was designed to test a number of VTEM anomalies on the Property for potential massive sulphide mineralization and to delineate the lateral extensions of the Hurdman Sulphide Zone ("HSZ") to the north and east with the objective of adding continuity to the known mineralization.

Significant assay intervals(i) from the 2008 drilling campaign are listed as follows:

DDH NO. (m) (m) (m) % g/t
ELO-08-01 139.5 140.2 0.7 1.60 154
146.6 147.4 0.8 1.20 22
ELO-08-05 107.6 111.2 3.7 0.48 8
including 107.6 108.7 1.1 1.50 7
ELO-08-06 122.8 127.1 4.3 1.03 35
including 122.8 125.0 2.2 1.27 10
ELO-08-07 73.8 75.5 1.7 1.16 69
78.4 80.4 2.0 1.02 67
73.8 80.8 2.4 0.86 164
ELO-08-08 97.3 104.1 6.8 0.47 60
including 103.6 104.1 0.5 1.26 220
ELO-08-09 41.0 45.8 4.8 0.62 18
including 41.0 42.0 1.0 0.94 14
and 45.1 45.8 0.7 1.45 19
ELO-08-10 109.5 119.3 9.8 1.45 9
including 109.5 114.2 4.7 0.97 9
and 109.5 112.0 2.5 1.12 6
and 117 118.5 1.5 4.94 6
and 117 119.3 2.3 3.68 8

(i) Grades are uncut. Lengths are measured along the core axis, but are very
close to true widths, since mineralized intervals are at near right angles
to the core, except in ELO-08-07, which is interpreted to have intersected
the zone at approximately 60 degrees. A complete listing of assay results
can be accessed on the Eloro website at www.elororesources.com. A drill hole
location map is also available on the website. The Company has a QA/QC
program to ensure best practices in sampling and analysis of the core
samples. The core was logged and then split in half with half sent for
assay, and half retained as a witness. Duplicates, standards and blanks were
inserted into the sample stream by the Company. The samples were delivered,
in secure bags to ALS-Chemex Laboratories in Val-d'Or (Quebec) for sample
preparation, the addition of laboratory standards, duplicates and blanks,
and analysis. The sample protocol at the laboratory is to bar code samples
upon reception, then the entire sample is crushed to a nominal minus 10mesh
(1.7mm), mechanically split (riffle) to obtain a representative sample, and
then pulverized to at least 95% minus 150mesh (106 micrometres). Samples
were analyzed using the Aqua Regia ICP-OES analytical method to detect
subtle trace element haloes as well as target mineralization. Values
measuring greater than 10,000ppm were re-assayed by fire assay.

Drill holes ELO-08-01 and ELO-08-02 were drilled northwest of the HSZ on the northwest side of a large, north-trending, post-mineralization diabase dyke that terminates the known western extent of the HSZ mineralization. Drilling on the west side of the diabase dyke to date has intersected highly chloritic, altered, magnesium-rich rocks indicative of intense hydrothermal alteration; albeit with lower sulphide content. Drill hole ELO-08-01 contained disseminated sphalerite and minor gahnite over a 0.65m interval (at 139.5m down-hole), including 8 to 10cm of near-massive pyrite and minor disseminated sphalerite over 2m from 146m. Drill hole ELO-08-02 did not intersect any significant mineralization.

Drill holes ELO-08-03, ELO-08-04 and ELO-08-05 were drilled at 400m spacing over 250m north and northeast of the down-dip projection of the HSZ. Holes ELO-08-03 and ELO-08-04, drilled on the northward down-dip projection of the HSZ, did not intersect any significant mineralization. Hole ELO-08-05, encountered elevated disseminated sulphides over 8m from 108m down-hole, including three short but strong pyrrhotite-rich conductive sections (at 108.5m, 110.25m and 111m), with significant sphalerite, and two 30cm sections of brecciated host rock with a well developed stockwork of pyrite veinlets. The intersections in ELO-08-05 are located 750m northeast and down-plunge of the HSZ. Additional drilling is planned between the HSZ and ELO-08-05 to explore for zones of higher-grade mineralization and to establish continuity of the resource.

Drill holes ELO-08-06, ELO-08-07, ELO-08-08, ELO-08-09 and ELO-08-10 were drilled 500m to the east of drill hole ELO-08-05 and 1.5km east along strike of the HSZ. The drill holes were spaced at 100m centres focusing on a series of VTEM anomalies in the vicinity of a few historic drill holes that reportedly contained elevated zinc and silver grades. The drill holes successfully intersected polymetallic massive sulphides in two mineralized intervals separated by an alteration zone containing 7 to 10% sulphides. The mineralized intervals consist of massive and semi-massive sulphides with up to 12% fine sphalerite disseminated throughout, and 2 to 3% gahnite.

Previous drilling by the Company on the HSZ intersected mineralization comprising mainly pyrrhotite-pyrite (iron sulphides) with sphalerite (zinc sulphide), gahnite (zinc aluminum oxide), and minor galena (lead sulphide) and chalcopyrite (copper sulphide). Although sulphide mineralization is disseminated throughout the mineralized zone, the main mineralization consists of two continuous, shallowly north-dipping, semi-massive to massive sulphide zones up to 3m thick. The sulphides are also disseminated in veins and along fractures. Previous exploration and drilling by the Company delineated the HSZ over 300m in strike length and 200m down dip.

Additional drilling between the HSZ and the new intersections from recent drilling along strike and down-plunge to the northeast will be required to determine stratigraphic positions and continuity between zones. In addition, the HSZ and surrounding historic holes have demonstrated an apparent metal zoning that will be further studied with an eye to vectoring in to the source area of mineralization.

Continued exploration on the Hurdman Property by the Company is demonstrating that the zinc-rich mineralization is part of a "geophysical domain" consisting of clusters of point and linear VTEM anomalies linked to sulphides that occur with the zinc. There are 8 geophysical domains and 14 separate VTEM linears identified at the Hurdman Property, and 2 domains and 23 linears at the Company's wholly-owned Agate property located nearby. The domains are kilometric in extent, for example, the domain that encompasses the known HSZ extends for 4km by 1km, and are bounded by NW to NE trending faults that are interpreted to be the conduits for the mineralization.

The geological and mineralization characteristics of the HSZ bear similarity to Broken Hill-type mineralization. At Broken Hill, the mineralization occurs as strongly deformed, stacked sulphide lenses with gahnite and magnetite disseminated throughout. Individual lenses are up to tens of metres thick, and may extend hundreds of metres, often grading laterally into disseminated pyrite-pyrrhotite units that measure tens of kilometers. The individual sulphide lenses display stratigraphic metal zoning, typically of lead- and zinc-rich horizons, but also laterally as described above. At Hurdman, the stacked, highly deformed, and shallow dipping sulphide lenses, the accompanying alterations and metal zoning, the presence of gahnite, and the 4km of known strike length lend strong support to the interpretation of the HSZ as a Broken Hill-type of mineralization.

"Significant additional drilling is warranted from the results" stated Tom Larsen, President and C.E.O. of Eloro Resources. "The current drilling program has demonstrated that mineralization is wide-spread on the Hurdman Property with zones extending over several kilometers. Historic drilling results from the nearby Agate Property, similar to those from the Hurdman Property, lead us to postulate that we are within a large mineralizing system capable of generating a sizeable massive sulphide ore body. Many geophysical targets on both the properties remain untested, and the Company intends to prioritize these targets for near term exploration and drilling."

The information contained in this news release was prepared and revised by Mr. John Langton, P. Geo, a Qualified Person as defined by National Instrument 43-101, and the Company's recently appointed VP Exploration.

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

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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.

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Contact Information

  • Eloro Resources Ltd.
    Thomas G. Larsen
    President and CEO
    (416) 868-9168
    (416) 361-1333 (FAX)
    Eloro Resources Ltd.
    Jorge Estepa
    (416) 868-9168
    (416) 361-1333 (FAX)
    Website: www.elororesources.com