Eloro Resources Ltd. is pleased to announce that with the re-quotation of the shares of EHR Resources Limited (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 have now been satisfied, and accordingly, the Stage 1 Earn-in has commenced.
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 "