TORONTO, ONTARIO -- (Marketwire) -- 11/02/11 -- Eloro Resources Ltd. (TSX VENTURE: ELO)(FRANKFURT: P2Q) ('Eloro' or the 'Company') is pleased to announce commencement of a 3,500 metre, surface diamond-drilling programme at its wholly-owned Simkar Gold Project ('Simkar', or the 'Property') located in the prolific Val-d'Or Gold Mining Camp, 20 km east of Val-d'Or, Quebec.
Simkar hosts a high-grade, gold-bearing, fault-fill and extensional quartz vein system, characteristic of nearby gold deposits in the Val-d'Or District. As exploration activities conducted by Eloro on the Property since 2009 have advanced, similarities between the gold mineralization at Simkar and that of the shear-zone associated gold deposit at the well-studied Sigma Mine in Val-d'Or, continue to be recognized.
The Property consists of two contiguous mining concessions (2.26 km2) and hosts a former gold producer (Louvicourt Goldfield). Historic production of 30,500 oz Gold @ 4.2 gpt from 1946-1949, and 20,000 oz Gold @ 8.4 gpt from 1987-1993, came from extensive underground workings of the 'A', 'B' and 'C' Zones to -200 metres. A known (National Instrument 43-101 compliant) underground resource of 140,000 oz remains above the -200 m level (1.48 Mt @ 3.01 gpt with 1.00 gpt cut-off(1)).
Since 2009, Eloro has completed over 15,000 metres of drilling on the Property and has intersected at least two previously unknown mineralized zones, below the historic workings (Figure 1 and Figure 2, and Eloro's Press Releases dated 2010-06-16 and 2010-09-14). The drilling has also revealed the potential for down-plunge continuations of all encountered mineralized zones. Results of the 2010 diamond-drilling campaign triggered a National Instrument 43-101 Technical Report, and further prompted Eloro to acquire 100% ownership of the Property.
The objectives of the proposed 2011 drilling program are threefold:
1. to begin infill drilling of the New Zone, first intersected in 2010, as
groundwork towards a NI 43-101 Inferred Mineral Resource estimate on the
Project;
2. to further test the location and extent of the '600' zone, intersected
in Hole SK11-09, by extending Holes SK11-10, SK11-13, SK11-14 and SK11-
18, which had targeted a projected extension of the New Zone and were
unfortunately stopped just short of the 600 Zone;
3. to test the projected location of a potential new mineralized zone
inferred to exist as a third stacked lens en echelon to the 'New' and
'600' zones (see Figure 1 and Figure 2).
Drill hole locations of the proposed program have been confirmed and the required permits are pending. Orbit Drilling of Val-d'Or, Quebec has been contracted to complete the drill-program and will mobilize to the first drill site once the pending permits have been received by Eloro. Once drilling has been completed and assay results received, Eloro will incorporate the data in the 3-D Gemcom® mine model in preparation for a mineral resource estimate planned for early 2012.
About Eloro Resources Ltd.
Eloro Resources is an exploration and mine development company with a portfolio of gold and base metal properties in northern and western Quebec. The Company is focussed on expanding the historic gold resources at the past-producing Simkar Mine property. Eloro plans to pursue exploration work at Simkar with the objective to outline quality gold resources in an established mining camp.
The technical information contained in this Press Release has been prepared and reviewed by John Langton, MSc., P. Geo, Vice-President Exploration for Eloro and Qualified Person according to National Instrument 43-101.
(1)Bourgoin, M. and Sandefur, R. 2008, Technical report (NI 43-101) Simkar Property Val-d'Or, Quebec. Prepared for Megastar Development Corporation by Chlumsky, Armbrust & Meyer (CAM), LLC, 128 Pages. Available on SEDAR (http://www.sedar.com/).
Information in this news release may contain forward-looking information. Statements containing forward-looking information express, as at the date of this news release, the Company's 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. 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.
To view Figure 1 & 2, please visit the following link:
http://media3.marketwire.com/docs/Simkar%20Drilling-Fig1%262.pdf
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.
Contacts:
Eloro Resources Ltd.
Thomas G. Larsen
President and CEO
(416) 868-9168
Eloro Resources Ltd.
Jorge Estepa
Vice-President
(416) 868-9168
www.elororesources.com
