Eloro Resources Ltd.
TSX VENTURE : ELO

Eloro Resources Ltd.

August 05, 2009 08:30 ET

Eloro Options Summit-Gaber Property to Shield Gold

TORONTO, ONTARIO--(Marketwire - Aug. 5, 2009) - ELORO RESOURCES LTD. (TSX VENTURE:ELO) (the "Company" or "Eloro") is pleased to announce that it has entered into a Letter of Intent ("LOI") with Shield Gold Inc. ("Shield"), a capital pool company, granting Shield an option to acquire a 50% interest (the "Option") in Eloro's Summit-Gaber Property (the "Property") in the La Grande Greenstone Belt, northwestern Quebec.

Pursuant to the LOI, the Option will be earned over a 3 year period (the "Transaction") and initially requires a payment of $75,000 by Shield to Eloro and the issuance of 100,000 common shares of Shield to Eloro. Thereafter Shield is required to incur aggregate exploration and development expenditures of $1,500,000 and issue to Eloro a total of 500,000 common shares of Shield over the next three years. The Transaction will serve as Shield's Qualifying Transaction, as defined in Policy 2.4 of the TSX Venture Exchange (the "Exchange") and is subject to the approval of the Exchange.

Information about the Property

The Property is centered on NTS map sheet 33F/09 in the La Grande Greenstone Belt, northwestern Quebec. Eloro wholly owns the 100 contiguous claims (5,109 hectares or 51.09 square kilometers) comprising the Property.

Five mineral occurrences (Summit 1 to 5) were discovered in 1996 by Noranda. These Copper-Silver showings are associated with pyrite-rich bands hosted by mafic volcanics. In 1997 four other mineralized occurrences were discovered. The latter are associated with calcite-hematite veins and pyrite-rich bands. Very high copper and silver assay results were obtained from grab samples. Moreover, three grab samples grading between 1.62 and 35.8 g/t Gold, 0.34 and 15.4 g/t Platinum, 0.19 and 10.5 g/t Palladium and, 768 and 1,500 g/t Silver, were collected on the Cartouche occurrence (Eloro, 2006). Some of the Summit Copper-Silver occurrences are related to volcanogenic massive sulphide ("VMS") mineralization. They are associated with a metric to decametric wide pyrite and pyrrhotite horizon that follows the contact between chloritic and epidotized basalts and dacites. These zones may represent remnants of black smoker chimneys typically found under VMS mounts. Another type of mineralizing event is related to Nickel-Cobalt-Silver found on Summit IV. This mineralization is possibly analogous to silver-rich deposits in the Cobalt Mining Camp. Both VMS and the Cobalt-type models are being proposed as guidelines for future exploration work.

To date, work performed on the Property includes; regional lake-bottom sediment sampling; regional scale (1:50,000) and detailed (1:5,000) mapping over the central portion of the Property; Airborne Electro-magnetic and Magnetic surveys; ground Electromagnetic and Magnetic surveys over 40 line-kilometers; lineament study; followed by lithogeochemical sampling; extensive litho-geochemical and grab sampling (1,725 samples); portable Winkie drilling (± 330m) on the Summit IV and Cartouche Copper-Silver occurrences, and finally, a high resolution Heliborne Magnetic survey which was completed over the entire Property in April 2009.

The Property is at an early stage of exploration as the Summit occurrences are covering only 4km out of 13km of prospective lithologies (for the VMS model) and structures (Cobalt-type model containing Bismuth-Cobalt-Nickel-Silver-Uranium). As a comparative, the entire Cobalt Mining Camp covers approximately 5 square kilometers, which is about one-half the area covered by the Summit-Gaber favorable mineralization corridor. For this reason, a two-phase exploration program is recommended on the Property. During the Phase 1 exploration, an extensive B Horizon soil sampling survey is recommended covering the Property along the extensions of the Summit occurrences. This type of survey was successfully used by Virginia Mines Inc. in the La Grande Greenstone Belt as it helped generate new drilling targets.

Phase 2 will consist mostly of detailed prospecting work (mapping, channel sampling) around the Summit occurrences, and ultimately, the completion of a surface diamond drilling program designed to test all geochemical and geophysical anomalies.

A National Instrument 43-101 compliant Technical Report (the "Report") is currently being prepared for the Property and will summarize the historic work, geology, mineralization, upside potential and final recommendations. The Report is being prepared by J.P Berube, P.Eng of MRB & Associates Geological Consultants, and will be available for review on SEDAR at www.sedar.com.

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

About Eloro Resources Ltd.

Eloro is a junior exploration company focused on discovering and developing precious metal quality resources in eastern Canada. Eloro currently has eleven gold (-copper-silver) properties covering 548 km2 in the La Grande and Eastmain Greenstone Belts, proximal to Goldcorp's Eleonore Gold Project, in Quebec. Eloro also has an option to earn a 50% interest in 31 claims held by Virginia Mines Inc. also located in James Bay. 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.

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