NEWS ELOEloro Discovers Two New Mineralized Zones as itCompletes Winter Diamond Drilling Program at the Simkar Gold Project;Additional Drilling Planned to Follow Higher Grade Gold Intervals2 hours ago - ACQUIREMEDIA
TORONTO,ONTRAIO--(Marketwire - May 27, 2010) - Eloro Resources Ltd.(TSX VENTURE:ELO)(FRANKFURT:P2Q) ("Eloro" or the "Company") and Megastar Development Corp.(TSX VENTURE:MDV)(FRANKFURT:M5Q) are pleased to announce the discoveryof two new mineralized zones and the successful intersection of over 80%of the intended gold-bearing targets. These drilling results furtherindicate that the gold mineralized structures are continuous oversignificant distances at the Simkar Gold Project ("Simkar" orthe "Property") located in the prolific Abitibi Greenstone Belt, 20 kmeast of Val-d'Or(Quebec).Simkar consists of two contiguous mining concessions totalling 226hectares, and is wholly-owned by Megastar, under option to Eloro. Phase 1of the Simkar drilling program totalled 6,125m in 17 holes. The tablebelow provides highlights of the results obtained from the drillingprogram - holes SK-10-12 through SD-10-17 were previously issued on March25, 2010.
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DDH # FROM (m) TO (m) CORE LENGTH(m) GOLD GRADE(g/t)
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370.9 371.4 0.5 6.74
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SK-10-01 378.0 379.2 1.2 3.94
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396.0 397.5 1.5 3.47
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162.0 163.5 1.5 3.26
SK-10-02 --------------------------------------------------------
196.5 198.0 1.5 4.11
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SK-10-03 120.0 121.5 1.5 1.95
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156.0 158.0 2.0 2.54
SK-10-04 --------------------------------------------------------
192.8 193.9 1.1 3.03
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215.5 216.7 1.2 2.52(i)
SK-10-05 --------------------------------------------------------
397.5 400.5 3.0 1.85
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213.4 214.2 0.8 4.72
SK-10-06 --------------------------------------------------------
274.1 274.9 0.8 2.38
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219.8 220.4 0.6 4.20
SK-10-07 --------------------------------------------------------
256.6 258.1 1.5 1.39
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SK-10-08 132.0 133.5 1.5 1.73
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150.0 150.8 0.8 2.41
SK-10-09 --------------------------------------------------------
267.8 268.3 0.5 13.55(i)
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SK-10-10 144.9 145.3 0.4 1.19
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74.0 75.0 1.0 4.61
SK-10-11 --------------------------------------------------------
156.0 156.5 0.5 41.70(i)
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SK-10-12 313.9 319.8 5.9 9.40
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incl. 317.7 319.2 2.1 24.60(i)
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SK-10-13 246.0 249.0 3.0 20.40
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incl. 246.0 247.3 1.3 40.30(i)
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SK-10-14 no significant intervals
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SK-10-15 no significant intervals
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SK-10-16A 194.0 199.0 5.0 3.96
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incl. 194.0 195.0 1.0 11.00(i)
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SK-10-17 no significant intervals
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Notes -All drill holes are inclined. The From and To lengths aremetres drilled down hole and not vertical depths. Lengths tabulated aredown hole lengths and not true widths. All gold assays are reporteduncut. Quality Assurance and Quality Control ("QA/QC") protocols areoutlined below. (i)Assays from Metallic Sieve Analysis.
The two new mineralized zones were discovered in drill holesSK-10-11 and SK-10-16A. In addition, the drilling successfullyintersected 80% of the intended gold-bearing targets at depth andresults indicate that the gold mineralized structures are continuousover significant distances both along strike and down-dip. Although notall of the intersected zones yielded higher gold grades, most were wellmineralized - containing over 10% sulphides - suggesting that thedrilling intercepts were slightly off-plunge of the targeted mineralizedchutes. The drilling results to date indicate that the gold mineralizedstructures are continuous over significant distances, both along strikeand down-dip. The presence of higher gold grades is considered to beindicative of local higher grade mineralized chutes.
Thomas Larsen, President and CEO of Eloro stated,"With this drilling program Eloro has met its Year 1 work commitment of C$750,000required pursuant to the Option Agreement with Megastar. In light ofthe positive results to date Eloro will aggressively continue exploringSimkar with an additional 10,000 metre drilling program designed tofurther delineate higher grade gold mineralization discovered in holesSK-10-12 and SK-10-13, follow-up on two new gold zones, in holesSK-10-11 and SK-10-16, and test the down-plunge continuity of highergrade gold to depths below 300 m."
Dusan Berka, President and CEO of Megastar, stated,"The completion of this winter drilling program is another positivestep in our efforts to bring the Simkar project back into production.These results reconfirm our optimism about the project's potential. Weare particularly excited that Eloro will be following up on these mostrecent results and will continue exploring Simkar with an aggressivedrilling program following up on these new results."
The Simkar mineralization model was generated from a comprehensive3D compilation and synthesis of historic mine and drill hole data thatincluded the "A", "B", "C", "Montana", "East" and "South" zones fromwhich there is historic gold production. The intersected lithologies inthis drill campaign corroborate the 3D geological model developed forthe Property to delineate drill targets. The drilling specificallytargeted the extensions of the modelled zones, primarily below 200metres vertical depth, under the historic underground workings along theprojections and intersections of gold-bearing, planar shear-zones. Thedrilling has continued to intersect narrow, higher gradequartz-tourmaline tension veins comparable to those encountered on theProperty by Megastar in 2007, and similar to those occurring at thenearby Sigma-Lamaque Deposit in Val-d'Or.
The Simkar Gold Project
The Property hosts a thick sequence of east-west trending, nearvertical dipping rhyolites, pyroclastics and quartz-feldspar porphyrydykes and sills closely associated with the lode gold veinmineralization and the Louvicourt-type volcanogenic massivesulphide (or "VMS") mineralization. The higher gold grade veinmineralization is similar to the 9 million ounce Sigma-Lamaque GoldDeposit in Val-d'Or.The historic production of 30,500 ounces of gold (1946-1949) came fromextensive underground workings along the A, B and C Zones. From 1987 to1993, surface exploration and underground development work successfullyoutlined additional gold mineralization in the immediate extensions ofthe previously mined zones, as well as defining new gold resources inthree new gold bearing structures, the East, F, and Pillar Zones.Subsequently, the existing underground workings were dewatered and newunderground development was completed to access the East Zone. Thisunderground development work led to the extraction of 20,000 ounces ofgold.
Megastar acquired all rights, titles and interests of the Project in1996. Since then, Megastar completed ground geophysics; surface diamonddrilling, and integrated the former Simkar Gold Mineunderground workings into a 3-D mine model. This work led to twoNational Instrument ("NI") 43-101 compliant technical reports, one in2004 and a second in 2008 (available on SEDAR at www.sedar.com under Megastar Development Corp).The 2008 technical report outlines Mineral Resource estimates of1,482,000 tonnes grading 3.01 g/t gold containing 143,160 ounces of goldto vertical depth of -200 m.
Eloro and Megastar are in the first year of an Option and JointVenture Agreement that provides Eloro with the option to earn a 50%interest in Simkar by completing $4 million inexploration work, paying Megastar $350,000 and issuing4.5 million shares of Eloro to Megastar over 3 years.
QA/QC Procedures
The Company has implemented QA/QC procedures to ensure bestpractices in sampling and analysis of the core samples. The NQ drillcore is logged and then split in half with one-half sent for assay.Duplicates, standards and blanks are inserted randomly into the samplestream. The samples are delivered, in secure tagged bags, directly tothe ALS Laboratory Group facility in Val-d'Or (Quebec) for analysis.Samples with visible gold are analyzed by the Total Metallic Sievemethod, whereas the remaining samples undergo more conventional FireAssays. For the reported intersections, total metallic screencheck-assays were completed on the coarse crushed reject for all samplesreporting greater than 10 g/t gold from the initial fire assay. Othersamples within the intersection are re-submitted for check fire-assayusing the original pulps. The final reported gold grade for a sample iseither the Total Metallic Sieve assay result or it is the average of thetwo fire assays.
About Eloro Resources
Eloro is a junior exploration company focused on discovering anddeveloping base and precious metals in both the Val-d'Or and Timmins miningcamps of Quebecand northern Ontario,and precious and base metal quality resources in the James Bay regionof northern Quebec.In the James Bay(Quebec)region, Eloro has 11 gold-copper-silver properties (1,062 claims)covering 548 km2 in the La Grande and Eastmain Greenstone Belts,proximal to Goldcorp's Eleonore Gold Project. Eloro also hasan option to earn a 50% interest in 31 claims held by VirginiaMines Inc. in Timmins(Ontario). TheCompany holds both the prospective Hurdman Zinc Silver Property, andthe 30 km2 McArthur Lake Nickel Property under option to FletcherNickel Inc.
About MegastarDevelopment Corp.
Megastar DevelopmentCorp. is an emerging resource company engaged in the acquisition,exploration and development of mineral properties in Canada. Megastar owns goldand base metal properties in Quebec and British Columbia, including the SimkarGold Project in Val d'Or, Quebec for which a NI 43-101compliant independent Technical Report concludes that the Project isestimated to have a remaining (post-historic mining) Inferred Resourcesof about 140,000 ounces, based on parameters appropriate for areasonable underground mining scenario. For further information,investors and shareholders are invited to visit the Company's website atwww.megastardevelopment.comor call the office at 604-683-6648.
The technical information contained in this news release wasprepared and approved byMartin Bourgoin, P. Geo.,Executive VP of Eloro, a Qualified Person as defined by NationalInstrument 43-101.
Statements made in this news release that are not historical factsare "forward-looking statements", and readers are cautioned that anysuch statements are not guarantees of future performance, and thatactual developments or results, may vary materially from those in these"forward-looking" statements.
Neither the TSX Venture Exchange nor its regulation servicesprovider (as that term is defined in the policies of the TSX VentureExchange) accepts responsibility for the adequacy or accuracy of thisnews release.