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Message: Eloro Intersects Multiple High Grade Gold-Bearing Zones in Historic Simkar Mine

Eloro Intersects Multiple High Grade Gold-Bearing Zones Beneath and South of Historic Simkar Mine Workings

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Press Release Source: Eloro Resources Ltd. On Tuesday August 16, 2011, 7:30 am

TORONTO, ONTARIO--(Marketwire - Aug. 16, 2011) - Eloro Resources Ltd. (TSX VENTURE:ELO - News; FRANKFURT:P2Q - News; "Eloro", or the "Company") is pleased to announce results from the 2011, Phase I diamond-drilling programme on its wholly-owned Simkar Gold Project (the "Simkar Property" or "Project"), situated in the prolific Val-d'Or Gold Mining Camp, 20 km east of Val-d'Or. The latest phase of drilling on the Project comprised 14 holes totalling 6,710 metres, and was designed to test the down-dip extension to mineralized zones defined by previous exploration on the Simkar Property.

Drillhole SK11-09 intersected 3.14 gpt Au over a 7.0 m core length and included an interval of 8.1 gpt Au over 1.9 m. The intersection occurs at an approximate vertical depth of 600 m in the northern most diorite unit and is the deepest intersection to date on the Project. Its spatial location relative to the directly overlying historic "A" and "B" zones and the "New" zone, outlined by 2010 drilling, indicates that hole SK11-09 may have encountered a second new auriferous zone (designated the "600" zone) within a stacked sequence of en-echelon fault-fill veins in the northern most diorite unit (see Figures 1 and 2). The adjacent holes (SK11-10, SK11-13 and SK11-14) were stopped just short of the deeper "600" zone. Eloro intends to further delineate the "New" and "600" zones including deepening the adjacent holes during the next phase of diamond-drilling as well as targeting for additional stacked lenses above and below the "600" zone.

Tom Larsen, Eloro's President and CEO commented, "The initial results from our drill program to test mineralization below the Simkar mine workings are very encouraging since they have identified new zones of gold mineralization and vein structures south of the existing deposit. Our team has developed a structural model of the Simkar Property and we expect the next phase of drilling to focus on the new mineralization zones to significantly expand the existing gold resources to support reactivating ore production from the Simkar mine."

In order to test the deeper extents of the historic mineralized structures, the 2011 drillhole collars were positioned approximately 400 m south of the historic mine sequence. This resulted in cross-cutting additional stratigraphy south of the historic mine sequence.

Drillhole SK11-12 intersected 1.59 gpt Au over 2.5 m and 15.55 gpt Au over 0.6 m in the historically lesser explored southern-most diorite unit whereas drillhole SK11-13, located 200 m on-strike intersected 8.66 gpt Au over 0.5 m. These favourable intersections are within 20 m of bedrock surface and suggest up-side potential for this newly identified "South" zone structure within the southern-most diorite unit.

Drillhole SK11-07, collared in the extreme southeast part of the Project, encountered 4.35 gpt Au over 2.40 metres at surface also hosted within the southern-most diorite. It is not clear whether or not this intersection lies along the same structure as the near-surface "South" zone.

Best results from the 2011 drill program are displayed in Table 1.

Table 1
Avg Grade(2)
Hole From (m) To (m) Length(1)(m) (Au gpt)
SK11-02 224.50 225.50 1.00 2.08
Az 360 degrees Dip -60 degrees
Length 252 m 236.00 237.00 1.00 2.02

Az 360 degrees Dip -50 degrees 13.60 16.00 2.40 4.35
Length 300 m

SK11-09 211.00 214.00 3.00 2.03
Az 360 degrees Dip -62 degrees
Length 801 m 764.00 771.00 7.00 3.14
including... 764.00 765.90 1.90 8.10

8.50 11.00 2.50 1.59
Az 360 degrees Dip -70 degrees 18.70 19.30 0.60 15.55
Length 816 m
416.30 417.90 1.20 11.50

6.00 8.00 2.00 2.33
6.00 6.50 0.50 8.66

127.50 131.00 3.50 1.91
Az 360 degrees Dip -65 degrees 730.00 731.00 1.00 2.52
Length 798 m
117.00 118.00 1.00 2.20

165.60 166.45 0.85 1.60

354.55 357.00 2.45 1.84

239.20 239.80 0.60 66.60

294.00 297.00 3.00 2.21
Az 360 degrees Dip -60 degrees 457.00 458.00 1.00 2.25
Length 801 m
677.00 679.50 2.50 1.28

688.00 689.00 1.00 1.92

(1)Intersection lengths are not true widths; (2)Gold Assays were performed
using conventional Fire Assaying with 30 g fusions and AAS finish.

Results of the 2011 drilling are being incorporated into the 3-D mine model to help refine the understanding of the gold structures below the 200 metre historic underground mine level.

Simkar Structural Model and Summary

The Simkar Property hosts an Archean, high-grade, shear-zone associated, gold-bearing, fault-fill and extensional quartz vein system, characteristic of the gold deposits in the Val-d'Or Gold Mining District. As Eloro's exploration has advanced, similarities between the gold mineralization at Simkar and that of the well-studied Sigma Mine in Val-d'Or, continue to be recognized.

Sigma/Louvicourt-type mineralization is the result of fracturing of the relatively competent sill-like (mainly diorite) intrusions followed by the growth of en-echelon vein systems. Progressive deformation causes dilation, and repeated reopening results in "crack and seal" veins, often with bands of tourmaline that form with successive infillings. The veins pinch and swell, and often branch and intersect in response to localized stress fields.

The auriferous veins in these types of deposits typically include: 1) moderately to steeply dipping fracture-fill veins within, and parallel to, the shear zones (south dipping at Simkar); 2) moderately dipping extensional-shear veins (north-dipping at Simkar), and; 3) sub-horizontal extensional veins in the structurally competent intrusions, which at Simkar comprise diorite dykes sub-parallel to the regional strike (see Figures 1 and 2). The fracture-fill auriferous veins show a clear affinity for the more competent intrusive rocks (diorite, quartz-feldspar porphyry), whereas shear zones and their gold-bearing veins are typically located in the more ductile surrounding volcanic rocks. As a result of the stress-controlled structural permeability, the mineralization along the various vein systems at Simkar is unevenly distributed, with linear and irregular ore shutes separated by lower grade zones and barren fault segments. At Simkar, as at Sigma, both the fault-fill and extensional veins are distributed in an en-echelon or stepping pattern both along strike and down dip making the targeting of the mineralized zones difficult from surface.

QA/QC Procedures

The Company has implemented QA/QC procedures to ensure best practices in sampling and analysis of the core samples. The NQ drill core is logged and then split with one-half sent for assay and the other retained in the core box as a witness sample. Duplicates, standards and blanks are inserted regularly into the sample stream. The samples are delivered, in secure tagged bags, directly to the ALS Laboratory Group facility in Val-d'Or (Quebec) for analysis. All samples were assayed for Gold using conventional Fire Assaying with 30 g fusions and AAS finish. Eloro's protocol calls for total metallic screen check-assays to be completed on the coarse crushed reject for all samples reporting greater than 10 ppm (gpt) gold from the initial fire assay, whereas other samples within the intersection are re-submitted for check fire-assay using the original pulps. The final reported gold grade for a sample is either the Total Metallic Sieve assay result or it is the average of the two fire assays.

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. The Simkar Property consists of two contiguous mining concessions totalling 226 hectares in Louvicourt Township, approximately 20 km east of Val-d'Or, Quebec. Since optioning the Simkar Property in 2009, Eloro has completed 15,035 m of drilling on the Project and has identified two new mineralized zones below the historic workings and two near surface zones in a diorite unit south of the historic workings.

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.

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 Figure 1: Composite Cross Section, please visit the following link: http://media3.marketwire.com/docs/Fig1-CCS.pdf

To Figure 2: North Diorite Longitudinal Section, please visit the following link: http://media3.marketwire.com/docs/Fig2-NDLS.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.


Thomas G. Larsen
Eloro Resources Ltd.
President and CEO
(416) 868-9168
(416) 361-1333 (FAX)

Jorge Estepa
Eloro Resources Ltd.
(416) 868-9168
(416) 361-1333 (FAX)
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