ELO options properties to CambiorEloro options three James Bay properties to Cambior
2006-06-08 12:40 ET - News Release
Mr. Thomas Larsen reports
ELORO OPTIONS THREE JAMES BAY GOLD DISTRICT PROPERTIES TO CAMBIOR
Eloro Resources Ltd. has signed a letter of agreement with Cambior Inc. allowing Cambior to earn a 50-per-cent interest in three of Eloro's James Bay gold district properties, in the La Grande volcano sedimentary belt located north of Goldcorp Inc.'s Eleonore gold deposit area. The Eloro properties involved in the transaction are the Lemoyne North, Sakami East and Taiga claim blocks.
Under the terms of the agreement Cambior has an option to earn 50 per cent in Eloro's Lemoyne North, Taiga and Sakami East properties by spending $2-million on or before June 30, 2010, as follows:
* $300,000 on or before the first anniversary date;
* an additional $400,000 on or before the second anniversary date;
* an additional $600,000 on or before the third anniversary date; and
* an additional $700,000 on or before the fourth anniversary date.
At Lemoyne North, the 48.7-square-kilometre property straddles the northern border of the Poste Lemoyne property, where Virginia Mines Inc. has outlined a 95,000-ounce gold resource grading 14.5 grams per tonne gold that included intersections of up to 43.09 g/t Au over 11.65 metres (Source: Virginia Mines' website). Eloro recently completed a 2,000-metre drill campaign on the property and still awaits its drill core assay results. Historic grab sample assays at Lemoyne North (Virginia Gold Mines, 1996, Boreal Exploration, 1998) include up to:
* 4.04 per cent copper, 21.22 g/t gold and 38 g/t silver; and
* 2.88 per cent copper and 65.42 g/t gold.
At Sakami East, the 32.7-square-kilometre property hosts several grab samples with significant assays (Sirios Resources, 1996; Virginia Gold Mines, 1996; Noranda Exploration, 1997), including:
* 5.4 per cent copper and 75 g/t silver;
* 14,6 per cent copper and 111 g/t silver;
* 4.59 per cent copper, 1.82 g/t gold and 9.6 g/t silver;
* 2.1 per cent copper, 5.17 g/t gold and eight g/t silver;
* 10.2 per cent copper, 1.14 g/t gold, 263 g/t silver and 1,000 parts per million zinc; and
* 8.9 per cent copper, 3.11 g/t gold and 194 g/t silver.
At Taiga, the 44.3-square-kilometre property hosts grab sample with significant assays (Boreal Exploration, 1999), carrying up to:
* 6.72 g/t gold;
* 5.62 g/t gold;
* 19.34 g/t gold;
* 2.13 per cent copper; and
* 2.73 per cent zinc.
Thomas Larsen, president and chief executive officer of Eloro, stated: "This is excellent news for Eloro and its shareholders. Eloro's deal with Cambior is another major development in the James Bay district following Goldcorp's acquisition of Virginia's Eleonore deposit earlier in 2006. Cambior's decision to take on the Sakami East, Lemoyne North and Taiga properties testifies to Eloro's goal in the James Bay district of advancing prized gold and base metals projects towards quality resources." Mr. Larsen added, "Having the annual 600,000-ounce gold producer Cambior as a partner will allow Eloro to achieve its goals more rapidly."
The technical content of this press release has been reviewed by Martin Bourgoin, PGeo, executive vice-president, exploration, of Eloro, and the company's qualified person under the guidelines of National Instrument 43-101.
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