🕐02.02.10 - 17:08 Uhr
Eloro Resources begins a 6,000 m Surface Diamond Drilling Campaign on the Simkar
Gold Property, Val DOr, Quebec
Eloro Resources Ltd.
PRESS RELEASE
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Eloro Resources begins a 6,000 m surface diamond drilling campaign on the Simkar
Gold Project, Val dOr (Quebec)
eloro logo min
Toronto, Canada, February 2, 2010 - Eloro Resources Ltd.
(TSX-V: ELO; FSE-P2Q) ("Eloro"
or the "Company") is pleased to announce the start of a 6,000 m surface diamond
drilling program on the Simkar Gold Project (the "Project") located in the prolific
Abitibi Greenstone Belt, 20 km east of Val-dOr (Quebec).
The Project consists of
two contiguous mining concessions totaling 226 hectares in Louvicourt Township,
and is wholly-owned by Megastar Development Corp.
(TSX:V: MDV)("Megastar") and under
option to Eloro.
The drilling program is expected to validate historic intersections and the down
plunge extension of the historic gold zones, and will incorporate the results into
the 3-D mine model to help refine the projection of the gold structures from surface
to below the 200 m level.
Eloro is of the opinion that the presence of higher grade
tension veins intersected on the Project by Megastar in 2007 surface diamond drilling
(140.0 g/t gold over 0.5 m, 99.8 g/t gold over 0.3 m, 33.9 g./t gold over 1.0 m,
and 31.0 g/t gold over 0.5 m) represents strong evidence of the similarities of
the Simkar Gold Deposit with the 9 million ounce Sigma-Lamaque Gold Deposit located
20 km to the west.
Eloro and Megastar are in the first year of a Formal Option and Joint Venture Agreement
(the "Agreement"), executed August 14, 2009.
The Agreement provides Eloro with the
option to earn a 50% undivided interest in the Project by completing $4 million
in exploration work on the Project over a 3 year period, whereby $750,000 would
be incurred in the first year, $1.25 million in the second year and $2 million in
the third year; paying Megastar $350,000 cash over a three year period, and issuing
4.5 million common shares of Eloro to Megastar as follows: (1) 750,000 common shares
issued upon execution of the Agreement (2) 750,000 common shares on the first year
anniversary of the Agreement, (3) 1.5 million common shares on the second and third
anniversary of the Agreement.
Should Eloro elect to utilize the six month extension
on either the second or third years exploration commitments, Eloro would issue
an additional 100,000 common shares to Megastar.
Eloro is the Project manager and
operator.
The Simkar Gold Project
The Project is located within the Abitibi Greenstone Belt and hosts a thick sequence
of east-west trending, near vertical dipping volcanic flows and pyroclastics of
the Malartic Group (the "North Rhyolite") that also includes quartz-feldspar porphyry
dykes and sills, closely associated with the lode gold vein mineralization and the,
little-investigated to date, Noranda or Matagami-type volcanogenic massive sulphide
(or "VMS") deposits.
The higher gold grade, intrusion-centered gold-quartz-tourmaline
vein system is similar to the 9 million ounce Sigma-Lamaque Gold Deposit in Val-dOr
and many other gold deposits in the Abitibi Belt.
Prior gold production on the Project
(1946-1949) came from extensive underground workings along three main zones (A,
B and C Zones).
More recent exploration outlined three new gold zones (Pillar Zone,
F Zone, and Montana Zone) and identified one high potential structure, the East
Zone Shear.
The Project has been the subject of two National Instrument ("NI") 43-101 compliant
technical reports, one in 2004 and a second in 2008.
The first was titled "Technical
Report (NI 43-101 F1) on the 2004 drilling Program, Simkar Property (Val-dOr, Quebec),
Louvicourt Township, Province of Quebec, Canada (NTS: 32C04)", by C.
Pelletier,
B.
Sc., P.
Geo.
(of InnovExplo Inc.), dated December 6, 2004.
The 2008 report titled
"Technical Report (NI 43-101) Simkar Property , Val dOr, Quebec" (the "Report")
was prepared by M.
Bourgoin, P.
Geo., of MRB & Associates, and R.
Sandefur, P.
Eng., of Chlumsky, Armbrust and Meyer LLC.
Both reports are available on SEDAR at
www.sedar.com
(under Megastar Development Corp).
Following the original discovery, the Project produced 261,590 tons of ore grading
0.123 oz/ton gold for 30,500 ounces of gold from 1947 to 1949.
This production was
from the A, B and C Zones.
Operations were suspended due to increased mining costs
at a time of fixed gold prices.
>From 1987 to 1993, over $12 million of surface exploration and underground development
work was completed on the Project.
The exploration work successfully defined significant
gold mineralization in the extensions of the previously mined A,B and C Zones, as
well as defining new gold resources in three new gold bearing structures, the East,
F, and Pillar Zones.
Subsequently, the existing underground workings were dewatered
and new underground development was completed to access the East Zone on two levels.
This underground development work led to the extraction of 71,068 tonnes grading
8.42 g/t gold for approximately 20,000 ounces of gold.
Megastar acquired all rights, titles and interests of the Project in 1996.
Since
then, Megastar completed ground geophysics; surface diamond drilling totaling 8,000
m in 26 holes; and integrated the former Simkar Gold Mine underground workings into
a GEMCOMTM GEMS 3-D mine model.
This work led to the Report and mineral resource
estimates in 2008 which are outlined in the following table to a vertical depth
of -200 m:
SIMKAR GOLD DEPOSIT
TOTAL INFERRED RESOURCES*
CUT-OFF
(g/t gold)
TONNES
GRADE
(g/t gold)
Total contained gold ounces
1.0
1,482,000
3.01
143,160
2.0
641,050
5.10
105,100
3.0
347,400
7.32
81,800
5.0
188,750
10.23
62,100
* Numbers are rounded.
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-dOr mining camps of northern
Ontario and Quebec.
James Bay, Quebec
Eloro currently has eleven gold-copper-silver properties (1,062 claims) covering
548 square kms in the La Grande and Eastmain Greenstone Belts, proximal to Goldcorps
Eleonore Gold Project.
Eloro also has an option to earn a 50% interest in 31 claims
held by Virginia Mines Inc., aslo located in James Bay, Quebec.
Val-dOr, Quebec
Eloro recently signed an option agreement with Megastar Development Corporation
to earn a 50% interest in the advanced Simkar Gold property located 20km east of
Val-dOr 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.
The information contained in this news release was prepared and revised by Mr.
Martin
Bourgoin, P.
Geo., Eloros Executive VP, and a Qualified Person as defined by National
Instrument 43-101.
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For further information please contact:
Thomas G.
Larsen, President and CEO or Jorge Estepa, Vice President
(416) 868-9168 (tel) or (416) 361-1333 (fax)
Further information is available on the Companys website atwww.elororesources.com
Statements in this 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.
ELO - TSX Venture Exchange
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