Eloro Resources Ltd.

Eloro Resources Ltd.

August 25, 2009 14:45 ET

Eloro Resources Ltd.: Delta Property Shows Potential for VMS-Type Zinc-Lead-Silver, and Vein-Type Gold and Copper-Gold-Silver-Molybdenum

TORONTO, ONTARIO--(Marketwire - Aug. 25, 2009) - ELORO RESOURCES LTD. (TSX VENTURE:ELO) (the "Company" or "Eloro") is pleased to announce that it has taken delivery of a solicited Target Generation Survey Report (the "Report") for its wholly-owned Delta Copper-Zinc Property (the "Property") in the James Bay Mining District. The Report was completed by A. Carrier, M. Sc, P. Geo., and P. L. Richard, B. Sc., GIT, of InnovExplo Inc. ("InnovExplo") of Val-d'Or (Quebec), and was titled "Geochemical analyses and interpretation for the Delta Property, Province of Quebec, Canada".

The Property is located 35 km south of Goldcorp's Eleonore Gold Project (2.3 million ounces of Gold at a grade of 10.05 g/t Gold in Indicated Resources and 3 million ounces of Gold at a grade of 12.75 g/t Gold in Inferred Resources; www.goldcorp.com) and 40 km west of Eastmain Resources Clearwater Gold Project (310,000 ounces of Gold grading 9.46 g/t Gold in Indicated Resources and 680,000 ounces of Gold grading 6.90 g/t Gold in Inferred Resources; www.eastmain.com), all in the Eastmain Greenstone Belt of the James Bay Mining District.

The Report utilized detailed geochemical analyses in conjunction with interpretation of existing InfiniTEM™ and airborne Magnetic and EM surveys to highlight the best potential Volcanogenic Massive Sulphide ("VMS") targets with Copper-Zinc mineralization. InnovExplo re-sampled the Eloro diamond drill core from the 2007 and 2008 campaigns (taking a total of 198 samples at 30 m intervals). The samples were then submitted to the ALS Laboratories Group facility in Val-d'Or and processed for Multi-Element Whole-Rock Analysis (IME-ICP41 package) that included Gold, Silver, Zinc and Copper. Element correlation tables were constructed and interpolation work was conducted on 32 elements. Based on the evaluation of the correlation tables and the interpolation work, favorability maps for Gold, Silver, Copper, Zinc and Lead were generated using the Rastor Calculator in ArcGIS™ Software.

The Report states that there is potential for VMS-type (Zinc-Lead-Silver) mineralization mainly along the north limb of the Delta Antiform Structure ("DAS"); there is Vein-type (Gold) along the nose of the DAS; and there is Vein-type and potentially VMS (Copper-Gold-Silver-Molybdenum) mineralization mainly along the south limb of the DAS. On the north limb of the DAS, the mineralized volcano sedimentary belt extends over a length of about 6km from the Property onto Eloro's Eastmain-1 Property, signifying a new area where similar mineralization can potentially be discovered. On the south limb of the DAS there is strong potential for additional sub-parallel veins in the immediate sector of the high-grade Delta NW Copper Showing, along with extension at depth. The distinction between mineralization types and their suggested spatial correlation could significantly increase the chances of drill success.

The Property exhibits significant potential to find new mineralization. The authors of the Report recommend that the three mineralization types should be investigated separately, and the discordant NW trending high-grade Copper veins found on surface near the Lac Delta NW showing (south limb of the DAS) should be drill-tested. Based on the recommendations, Eloro plans to determine the relationship between the higher grade Copper veins and the drill intersected Copper zone near the Delta NW Copper showing; investigate the potential link between the Delta NW Copper and Delta NW Zinc showings; and examine the potential for structurally controlled gold mineralization located in the hinge area.

Drilling by Eloro during the winter of 2008 (3,100m in 14 holes) intersected mineralization below a surface Copper showing at 110 m vertical depth and returned 1.10% Copper over 6.15 m and 2.87% Copper over 4.35 m, including 10.15% Copper over 1.15 m (D-07-01). D-07-05, collared 100 m north west of D-07-1, undercut hole D-07-1 by 50 m and returned 0.75% Copper over 2.00 m, including a higher grade core containing 1.83% Copper over 0.50 m. D-07-03, located 500 m to the northeast of D-07-01 and D-07-05 intersected at 140 m vertical depth below surface, 2.13% Zinc and 35.2 g/t Silver over 8.70 m, hosted within a wider interval of 1.20% Zinc and 27.8 g/t Silver over 17.50 m.

The Property hosts surface Copper mineralization identified by Eloro in 2006 and Zinc mineralization intersected in historic drill holes. The mineralization is linked to ground InfiniTEM™ (electromagnetic) anomalies from a geophysical survey completed by Eloro in 2007. The InfiniTEM™ anomalies are located within a 1.4 km long VMS sequence of chert, magnetite and sulphide iron formation, altered volcanic agglomerates, bedded cherts, disseminated and semi-massive chalcopyrite-pyrite stringers and veins, and disseminated magnetite-pyrite-chalcopyrite. Eloro's Property VMS sequence is typical of those hosting major Copper-Zinc-Silver-Gold bearing massive sulphides in the Rouyn-Noranda, Matagami, Louvicourt and Timmins Mining Camps located more than 600 km to the south in the Abitibi Belt.

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.

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.

Val-d'Or, Quebec

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

The technical 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.

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.

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