Eloro Resources Ltd.
TSX VENTURE : ELO
FRANKFURT : P2Q

Eloro Resources Ltd.

February 09, 2011 08:00 ET

Eloro Resources Launches Two-Phase 10,000 m Diamond Drilling Program at Simkar Gold Property, Val-d'Or, Quebec

TORONTO, ONTARIO--(Marketwire - Feb. 9, 2011) - Eloro Resources Ltd. (TSX VENTURE:ELO)(FRANKFURT:P2Q) ("Eloro") is pleased to announce the commencement of a two-phase, 10,000 m, surface diamond-drilling program at the Simkar Gold Property (the "Property"), a former producing mine located 20 km east of Val-d'Or, Quebec. The Property consists of two contiguous mining concessions (2.26 km2) within the prolific Abitibi Greenstone Belt and hosts a thick sequence of east-west trending, near vertical dipping volcanic flows and pyroclastics of the Malartic Group. The higher gold grade, intrusion-centered gold-quartz-tourmaline vein system is geologically similar to the 9 million ounce Sigma-Lamaque Gold Deposit in Val-d'Or and many other gold deposits in the Abitibi Belt.

Since optioning the Property in 2009, Eloro has completed 8,325 m of diamond-drilling and intersected a previously unknown mineralized zone, below the historic mine workings (see Eloro's press releases dated June 16, 2010 and September 7, 2010). The 2010 program demonstrated the potential for down-plunge continuation of the known and new mineralized zones. Highlights of the previously announced 2010 Eloro drilling campaign results include:


Hole
From
(m)
To
(m)
Interval
(m)
Result
(Au-g/t)
Zone
SK10-12 313.9 319.8 5.9 9.40 New Zone
SK10-13 246.0 249.0 3.0 20.74 East Zone
SK10-16A 194.0 199.0 5.0 3.96 New Zone
SK10-22 416.0 420.0 4.0 7.90 New Zone
Note: "From", "To" and "Interval" are down hole measurements, not vertical depths, and do not represent true widths of the mineralized zones.

Eloro's 2011 drilling program will target the up- and down-plunge projections of the "new zone" and of the historic "A", "B" and "East" zones, as well as the projected along-strike extensions of these structures, in previously undrilled areas of the Property. Results will be incorporated into a 3-D Gemcom® mine model to help delineate the gold structures below the -200 m level historic workings and along strike.

Drill sites have been prepared for the 14 holes proposed for the Phase I program. Orbit Drilling of Val-d'Or, Quebec has been contracted to complete the diamond drilling and are mobilizing to the first drill site. The Phase I program will test targets from drill sites best accessed during winter months and will allow evaluation of Phase I results for prioritizing Phase II targets.

Thomas Larsen, President and CEO of Eloro stated, "Eloro's venture into the Malartic/Val-d'Or Mining Camp is a major milestone in the Company's efforts of focusing on quality gold projects in well established gold camps of eastern Canada. The Malartic/Val-d'Or segment of the Cadillac-Larder Lake Break has already yielded in excess of 25 million ounces of gold since the 1920's, and has witnessed a resurgence in activity with the development of Osisko Mining Corporation's 8 million ounce Canadian-Malartic Gold Deposit in Malartic. At the Simkar Gold Property, Eloro is of the opinion that a high quality gold target is present and will be actively exploring in the near term to develop this resource".

About Eloro Resources Ltd.

Eloro is a junior exploration company focused on discovering and developing precious metals in the Val-d'Or mining camp, as well as quality precious and base metal resources in the James Bay region of northern Quebec. Eloro currently has an option to acquire an undivided 50% interest in the Simkar Gold Property from Megastar Development Corp. ("Megastar"), however both Eloro and Megastar entered into an Asset Purchase Agreement, Voting Trust Agreement and other closing documents (the "Acquisition Closing Documents"), which are being held in escrow subject to the occurrence of certain conditions, to complete a business combination pursuant to which Eloro will acquire (the "Acquisition") 100% of the Simkar Gold Property from Megastar in exchange for 70,000,000 Eloro shares, which shares are to be distributed pro rata to Megastar's shareholders (see joint press release dated August 30, 2010). On February 3, 2011, Eloro received the TSX Venture Exchange's final acceptance of the Acquisition and on December 20, 2010, Eloro's shareholders overwhelmingly approved the Acquisition. The only outstanding condition that must be satisfied prior to the release from escrow of the Acquisition Closing Documents and the Eloro shares is the registration of the transfer document with the Ministry in Quebec, transferring title to the Simkar Property from Megastar to Eloro, which registration Eloro expects will be completed shortly.

The technical information contained in this news release was prepared and approved by Martin Bourgoin, P. Geo., Executive VP of Eloro, and John Langton, P. Geo, Project Manager of the Simkar Gold Project. Both individuals are Qualified Persons as defined by National Instrument 43-101.

Information in this news release respecting the financing and the use of the proceeds therefrom constitutes forward-looking information. Statements containing forward-looking information express, as at the date of this news release, the companies' plans, estimates, forecasts, projections, expectations, or beliefs as to future events or results and are believed to be reasonable based on information currently available to the company. Forward-looking statements and information are based on assumptions that financing and personnel will be available when required and on reasonable terms, and all necessary regulatory approvals will be obtained, none of which are assured and each of which is subject to a number of other risks and uncertainties. There can be no assurance that forward-looking statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. Readers should not place undue reliance on forward-looking information.

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts 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)
    www.elororesources.com