Elray Resources, Inc.
OTC Bulletin Board : ELRA

Elray Resources, Inc.

June 08, 2009 05:00 ET

Extensive Small Scale Gold Mining Confirmed on Elray's Indonesia Concession

LAS VEGAS, NEVADA--(Marketwire - June 8, 2009) - Elray Resources, Inc.(OTCBB:ELRA), a technically-driven mining and exploration company today advised shareholders that it is encouraged by Geologists reports of the significant presence of gold on its zircon gold joint venture in central Kalimantan, Indonesia.

The 9,000 ha project area has reportedly played host to traditional gold and zircon mining for more than 100 years with reports of locals gold take-out at around 2g/t.

The gold and zircon are hosted in alluvial quartz sand and gravel deposits that appear to cover most of the concession area. Anecdotal evidence suggests that these deposits may be several tens of meters thick although traditional miners have only mined and worked the top 4-5 meters.

The gold is extremely fine with high mass to surface area ratios and Elray plans for recovery by gravity separation methods with an 85-90% recovery being expected.

Although the Geologists report the presence of gold, the grades however are unknown although they are expected to increase with depth. At an estimated thickness of 20m plus, a small preliminary drilling program will be worked-up to provide some indication as to the distribution and grade over the total thickness of the deposit.

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