Elray Resources, Inc.
OTC Bulletin Board : ELRA

Elray Resources, Inc.

April 16, 2009 09:15 ET

Elray Targeting Early Completion of Mining Study on Highly Promising Zircon JV

Study is ahead of schedule to define strategy for how to maximize revenues from high value Zircon Sands Project in Indonesia

LAS VEGAS, NEVADA--(Marketwire - April 16, 2009) - Elray Resources, Inc. (OTCBB:ELRA), a technically-driven mining and exploration company today announced that it is ahead of schedule for the completion of its mining study for its Zircon Sands Project.

Elray Resources Inc. has a 50% interest in a highly promising zircon sands mining project in Central Kalimantan, Indonesia with PT. Indo Imperial Resources Tambang, who have been successfully operating the project on a small scale for the last two years. PT Indo Imperial Resources Tambang is looking to Elray Resources to provide the resources and technical expertise required to take production to the next level.

Data available from the project demonstrates that the zircon is of a very high quality and is commanding premium prices. As a result, Elray Resources is in the process of doing a study on the current operating Zircon mining project. The study is covering drilling / test pitting programs, trace element analysis, metallurgical testing for plant specification and design, and financial modelling. By-product opportunities, including for gold, illmenite and rutile are also being investigated as a priority.

China has recognized the high quality of the zircon currently being delivered against contracts by this project. The project requires low capital expenditure to increase production as demanded by China and Elray fully expects the use of new more efficient recovery technologies to enable rapid revenue stream development and attractive returns.

About Elray Resources, Inc.

Elray Resources, Inc. is a junior exploration and development Corporation which has successfully accumulated a portfolio of highly prospective, heavily mineralized mining tenements in South East Asia. Elray Resources, Inc.'s, primary objective is to source projects, conduct geological assessments and seek Joint Venture partners to develop the properties.

This announcement contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. Actual results may differ from management's expectations. These forward-looking statements involve risks and uncertainties that include, among others, risks associated with gold & precious mineral exploration risks related to competition, management of growth, new products, services and technologies, potential fluctuations in operating results, international expansion, commercial agreements, acquisitions and strategic transactions, government regulation and taxation. More information about factors that potentially could affect the Company's financial results is included in its filings with the Securities and Exchange Commission.

Contact Information

  • Elray Resources, Inc.
    Jake Harris
    Investor Relations
    (347) 410-9782
    Email: ir@ElrayMining.com