TORONTO, Aug. 08, 2017 (GLOBE NEWSWIRE) -- Eloro Resources Ltd. (TSX-V:ELO) (FSE:P2Q) (“Eloro”) is pleased to announce that with the re-quotation of the shares of EHR Resources Limited (“EHR")(ASX:EHX) (formerly Cott Oil and Gas Limited) on the Australian Securities Exchange on August 4, 2017, all conditions to the La Victoria Option Agreement with EHR dated March 29, 2017 (the “Agreement”) have now been satisfied, and accordingly, the Stage 1 Earn-in has commenced.
A photo accompanying this announcement is available at
http://www.globenewswire.com/NewsRoom/AttachmentNg/b54ea59e-a0aa-406f-a53c-e868fc0050ae
Pursuant to the Agreement, during the Stage 1 Earn–in Period EHR is required to contribute C$2 million towards exploration expenditures at Eloro’s wholly-owned La Victoria Gold Silver Project in Peru (the “Project” or “La Victoria”), after which it will earn a 10% interest in the Project. EHR may then elect to proceed with the Stage 2 Earn-in, whereby it will be required to contribute a further C$3 million in exploration expenditures in order to earn an additional 15% interest in the Project (for a total interest in the Project of 25%).
La Victoria Exploration Update
Recent geological work by Eloro shows that there is an extensive multi-phase epithermal gold-silver mineralizing system on La Victoria centred around the Puca Fault and environs (see Figure 1 and press release dated June 13, 2017). Gold mineralization occurs in a variety of structural settings both parallel to the northeast trending Puca Fault as well as perpendicular along likely tear faults related to this structure. Mineralization has been identified vertically over 1 kilometre from elevation 3100 metres at Rufina to elevation 4200m at San Markito as well as along strike on different structures for up to 3+ kilometres. Geological mapping and sampling programs are continuing in the Victoria-Victoria South and Ccori Orcco target areas to better evaluate these extensive mineralized areas.
Eloro has contracted Valdor Sudamerica S.A.C. for an additional 50.7-line kilometres of Induced Polarization and Resistivity survey (IP/Res). This survey, being supervised under the direction of Dr. Chris Hale, P.Geo., Eloro’s Chief Geophysicist, will extend the IP/Res coverage toward the northeast from the 2016 survey at Rufina to Victoria-Victoria South and Ccori Orcco over an area of approximately 2.2km by 3.4km. Once completed, this will allow three dimensional models of Resistivity and Chargeability to be calculated over the whole survey area to a depth of 150m. The IP/Res data will be interpreted in conjunction with magnetic survey data and detailed geological mapping to identify high priority targets for drilling.
In addition, Eloro has contracted Real Eagle Explorations E.I.R.L. to extend the detailed magnetic surveys over the newly acquired southern portion of the property as this technique is very effective in outlining structures and potential mineralized areas.
The final drilling permit application for the Rufina area was submitted July 3, 2017 to the Ministry of Energy and Mines and is currently being reviewed for approval. The water permit field work including volume and flow readings has been completed with the technical report to be submitted shortly in support of the water permit application.
The environmental and archaeological assessment for the Victoria-Victoria South and Ccori Orcco areas is in progress and will be submitted in connection with the drilling permit application for these areas. Preliminary drill sites have been outlined based on geological and magnetic surveys; these sites will be refined following receipt of results from the IP/Res survey. These results will be compiled for the drilling permit application for the Victoria-Victoria South and Ccori Orcco areas.
Commenting on these developments, Eloro’s President and CEO, Mr. Thomas Larsen said, “I am most pleased that our farm-in partner EHR Resources have now completed the final requirements in closing the transaction. We look forward to a very busy late summer and fall program at the La Victoria project.”
EHR’s Chairman, Mr. Stephen Dennis added, “We are pleased that our shares have started trading under our new name, EHR Resources Limited, and we greatly value the support we received from shareholders in our recent capital raising which was over-subscribed. We can now look forward to the first ever drilling program getting under way at La Victoria, which is an exciting time for both Eloro and EHR.“
About Eloro Resources Ltd.
Eloro is an exploration and mine development company which holds a 100% undivided interest in the La Victoria Gold/Silver Project, located in the prolific North-Central Mineral Belt of Peru. The La Victoria Gold/Silver Project covers 80.4 square kilometres and is within 50 km of several large, low-cost producing gold mines, with three producers visible from the property. Infrastructure in the area is good with access to road, water, and electricity and is located at an altitude that ranges from 3,100m to 4,200m above sea level. Eloro also holds a portfolio of gold and base-metal properties in northern and western Quebec. For additional technical information on the La Victoria Project, the reader is referred to the NI 43-101 Technical Report on the La Victoria Au-Ag Property, Ancash, Peru filed under the Company’s profile on SEDAR (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 Corporation'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 Corporation. 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. 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.
Dr. William Pearson, P.Geo., a Qualified Person in the context of National Instrument 43-101 has reviewed and approved the technical content of this news release.
CONTACT: For further information please contact Jorge Estepa, Vice-President of Eloro Resources Ltd. at (416) 868-9168.