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Company Spotlight
Platinex Inc (TSXV: PTX)
Platinex Inc. (PTX) is a Canadian mining exploration company. Their priority is to further explore + Read More
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The Ubika Research Junior Resource stock watchlist
| Eloro Resources Ltd. (Symbol: V.ELO) |
| Company Name: |
Eloro Resources Ltd. |
| HQ Location: |
Toronto, Ontario |
| Company Website: |
www.elororesources.com |
| Shares Outstanding |
75.4 Million |
| Closing Price (Mar 22, 2010) |
$0.20 |
| Market Cap: |
$13.96 Million |
| Average Daily Volume |
254,200 |
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Share Highlight / 1-Year Stock Chart
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Business Overview
Eloro is a junior exploration company focused on discovering and developing precious and base metal quality resources in the James Bay region of northern Quebec, and base and precious metals in the Timmins Camp of northern Ontario. Eloro currently has eleven gold-copper-silver properties (1,062 claims) covering 548 sq km in the La Grande and Eastmain Greenstone Belts, proximal to Goldcorp’s Eleonore Gold Project. Eloro also has an option to earn a 50% interest in 31 claims held by Virginia Mines Inc. also located in James Bay, Quebec. The Timmins area holdings include both the prospective Hurdman Property, and the 30 sqkm McArthur Lake Nickel Property under option to Fletcher Nickel Inc.
Eloro’s main focus currently is the Simkar Gold Project located in the prolific Abitibi Greenstone Belt, 20 km east of Val-d’Or (Quebec). The Project consists of two contiguous mining concessions totaling 226 hectares in Louvicourt Township, and is wholly-owned by Megastar Development Corp. (TSX:V: MDV) and under option to Eloro. Eloro and Megastar are in the first year of a Formal Option and Joint Venture Agreement, executed August 14, 2009. The Agreement provides Eloro with the option to earn a 50% undivided interest in the Project by completing $4 million in exploration work on the Project over a 3 year period with $750,000 to be spent in first year.
+ More info
What is interesting?
- In Simkar project, Eloro has an advanced stage project with key ingredients for potential success:
- In Quebec -an attractive mining jurisdiction;
- In Abitibi area - great neighbourhood with several major finds;
- Was a past producing mine;
- High grades found in past drilling (although narrow depth);
- Existing infrastructure in mine;
- No exploration done below 200 metres while neighbouring mines go much deeper;
- Experienced technical team with knowledge of the area and
- Access and good relationship with Alexis gold mill very near to Simkar mine.
- Simkar is a former gold producing mine with 140,000 ounces of gold remaining above the 200 metre level (NI 43-101 compliant). Simkar was partially mined for 50,000 ounces of gold in the past. The neighbouring Sigma mine (owned by Century mining) goes up to a depth of 2000 metre suggesting there is good potential for Simkar to increase depth to find ounces. So far there has been no hole on Simkar below 200 metres.
- Simkar is located in the Abitibi gold district which has been among the prolific gold producing regions in the world. The neighbourhood were Simkar is located, is well populated with producers, developers and past producers. Nearby operators have collectively 16 million ounces of reserves.
- From 1987 to 1993, over $12 million of surface exploration and underground development work was completed on the Simkar project. Already there is a shaft going to 300M deep and 7 kms of underground drifts built in the Simkar mine and over 33,000 metres of drilling has happened. So for Eloro already there is some past data, geology information and infrastructure in place.
- The 2007 drill results produced some very high grades of gold although over very narrow width. (140.0 g/t gold over 0.5 m, 99.8 g/t gold over 0.3 m, 33.9 g/t gold over 1.0 m, and 31.0 g/t gold over 0.5 m). So the new drill program is to expand the width and depth to make this into a much more meaningful and viable resource estimate. Eloro plans to enhance the 3D mine model with detailed interpretation work.
- The 2007 drill results produced some very high grades of gold although over very narrow width. (140.0 g/t gold over 0.5 m, 99.8 g/t gold over 0.3 m, 33.9 g/t gold over 1.0 m, and 31.0 g/t gold over 0.5 m). So the new drill program is to expand the width and depth to make this into a much more meaningful and viable resource estimate. Eloro plans to enhance the 3D mine model with detailed interpretation work.
- Eloro has a very experienced technical team with strong knowledge of this area. The technical personnel who prepared the NI-43 101 report in 2008 on this property are now in the Eloro technical team working on this project.
- Eloro is working on a 5000 m surface drill program in 2010 to delineate the high grade gold zones in depth. It has funding in place to fulfill this drill program.
- Quebec is a very attractive jurisdiction for mine development. Eloro will get 40% cash credit for expenses incurred in Quebec
- Alexandria Minerals corp (TSXV:V.AZX) and its Akasaba mine which is very close to Simkar is now seeing some very good grades and Agnico-Eagle on March 23rd 2010 announced a $1.8 Million investment in Alexandria for 20 cents per share (at a premium to its current share price) for 10% of the company. This investment bodes well for Eloro. If Eloro were to find meaningful results there will be strong interest from majors in this neighbourhood.
- Access to gold mill near the Simkar mine. Aurbel gold mill owned by Alexis Minerals (TSX:T.AMC) is very near and Eloro has a good relationship with Alexis making it feasible for company to quickly start some production if needed
- While the focus is on Simkar, Eloro also has an extensive portfolio of precious and base metal properties in the emerging James Bay exploration camp of northern Quebec. The Eleanore gold deposit find has made this area an interesting one.
Risks
Eloro Resources is an exploration company. Early stage exploration companies typically need significant amount of capital and although currently financed for this years drilling program, Eloro will require additional financing to fulfill its option joint venture agreement. The ability to raise additional capital will determine its ability to continue its exploration program in Simkar and to earn its 50% ownership. This could also result in dilution of current shareholders.
Eloro Resources Ltd News
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Disclaimer
| Was any fee (either in Cash or in Stocks/Options) paid by the company to smallcappower.com or its principal’s Ubika Corporation and/OR Investor Cubed Inc for providing services |
Yes |
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| Common Stock/Options Ownership in Eloro Resources Ltd. |
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| Analyst(s) |
No |
| Analyst’s family members |
No |
| Analyst’s firm, their affiliates and/or subsidiaries |
No |
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