Eloro Resources Ltd.
TSX VENTURE : ELO

Eloro Resources Ltd.

November 23, 2006 12:24 ET

Eloro Options Properties From Virginia Mines in the James Bay Mining District, Adds Claims in Extension to Eloro's Summit-Gabbre Property

TORONTO, ONTARIO--(CCNMatthews - Nov. 23, 2006) - Eloro Resources Ltd. ("Eloro" or the "Company") (TSX VENTURE:ELO) is pleased to announce that it has entered into an Option agreement (the "Agreement") with Virginia Mines Inc. ("Virginia") (TSX:VGQ) which would allow Eloro to acquire a 50% interest in three Virginia mineral properties consisting of 31 claims in the James Bay Mining District. Under the terms of the Agreement Eloro is required to spend C$ 1 million over a 5 year period to acquire the 50% interest on Virginia's wholly owned Amelie Lake, Gaber and Sakami Extension Claim blocks (collectively, the "La Grande North Property").

Tom Larsen, Eloro's President and CEO comments, "Acquiring these three claim blocks from Virginia's extensive portfolio of properties has a significant and immediate consequence for Eloro. For one, the Company acquires the immediate extension of Eloro's polymetallic mineralization at its wholly owned Summit-Gabbre Property. In addition, the Eloro agreement is Virginia's first partnership established after the Goldcorp Inc. (TSX:G) acquisition of Virginia's Eleonore Gold Project, enabling Eloro to benefit from the extensive experience and success of Andre Gaumond and the rest of Virginia's exploration team."

The La Grande North Property was primarily explored prior to Virginia's gold discovery and exploration at Eleonore, and has not been explored beyond the identification of its metals potential. Noranda-Virginia had initially completed an airborne Magnetic and EM survey in 1997, as well as having drilled 10 short holes for approximately 700 meters (Winkie drilling).

The Gaber Claim Block is situated along the southern border of Eloro's Summit-Gabbre Property, where Eloro had previously identified the Company's first polymetallic mineralization consisting of gold, copper, silver, nickel, cobalt, platinum and palladium (refer to Eloro's September 12, 2006 news release). The Amelie Lake Claim Block is located 5 kilometers north of Eloro's Summit-Gabbre Property and contains polymetallic soil anomalies in gold, copper (up to 11,800 ppm), nickel and cobalt. The Sakami Extension Claim Block is completely surrounded by Eloro's Sakami East Property, currently under option to IAMGOLD Corporation (formerly Cambior Inc.) (refer to Eloro's June 8, 2006 news release).

The Agreement provides Eloro with the right to acquire a 50% undivided interest in the La Grande North Property by expending C$ 1 million on exploration within the La Grande North Property in the following increments: C$ 100,000 on or before the 1st anniversary; C$ 150,000 on or before the 2nd anniversary; C$ 200,000 on or before the 3rd anniversary; C$ 250,000 on or before the 4th anniversary; and C$ 300,000 on or before the 5th anniversary. Eloro is also obligated to make option payments to Virginia totaling C$ 50,000 payable in either cash or, at the sole election of Eloro, in common shares of Eloro, on or before the 2nd anniversary of Closing. A C$ 15,000 portion of the option payments is committed. Once Eloro earns its 50% interest in the La Grande North Property, Eloro and Virginia would form and participate in a joint venture. Eloro will be the operator during the earn-in option period with Virginia having the right to become operator thereafter.

The Agreement and any issuance of Eloro common shares is subject to certain conditions precedent, including the entering of a formal agreement and the receipt of all necessary regulatory and exchange approval, including that of the TSX and TSX Venture Exchanges.

Eloro Resources Ltd.

Eloro Resources Ltd. is a junior exploration company focused on discovering and developing precious and base metal quality resources in the James Bay District of northern Quebec and the Timmins Camp of northern Ontario. Eloro has 19 gold-copper-silver and uranium properties covering 425 square kilometers in the La Grande and Eastmain Greenstone Belts, proximal to Goldcorp's Eleonore Gold Prospect. In June 2006 Eloro signed a Letter of Agreement with IAMGOLD Corporation (formerly Cambior Inc.) allowing Cambior to earn a 50% interest in the Lemoyne North, Sakami East and Taiga claim blocks, by spending C$ 2 million in exploration work on or before June 30, 2010.

Virginia Mines Inc.

Virginia is among the most active mining exploration companies in Quebec with a working capital of $44,634,698 as of August 31, 2006, and 26,373,198 shares issued and outstanding as of October 31, 2006. Virginia trades on the Toronto Stock Exchange (TSX) under the ticker symbol VGQ. Virginia concentrates its activities on its numerous properties that are spread over the vast unexplored regions of northern Quebec.

The technical content of this press release has been reviewed by Mr. Martin Bourgoin, P. Geo., Executive VP Exploration of Eloro, and a Qualified Person under the guidelines of National Instrument 43-101.



Eloro Resources Inc.
410-55 Adelaide Street East
Toronto, ON

Virginia Mines Inc.
200-116 St-Pierre
Quebec, QC


Statements in this release that are not historical facts are "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. 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 and TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Eloro Resources Inc.
    Thomas G. Larsen
    President and CEO
    (416) 868-9168
    (416) 361-1333 (FAX)
    or
    Eloro Resources Inc.
    Jorge Estepa
    Vice President
    (416) 868-9168
    (416) 361-1333 (FAX)
    Email: info@elororesources.com
    Website: www.elororesources.com
    or
    Virginia Mines Inc.
    Mr. Andre Gaumond
    President
    1-800-476-1853
    (418) 694-9120 (FAX)
    or
    Virginia Mines Inc.
    Mr. Paul Archer
    VP Exploration and Acquisitions
    1-800-476-1853
    (418) 694-9120 (FAX)
    or
    Virginia Mines Inc.
    Ms. Amelie Laliberte
    Investor Relations
    1-800-476-1853
    (418) 694-9120 (FAX)
    Email: mines@virginia.qc.ca