Eloro Resources finds zinc-silver rich massive sulphides in Ontario

Eloro Resources (ELO-V) believes the mineralization at its Hurdman property in northern Ontario is similar to that of Broken Hill in New South Wales, Australia, one of the world’s richest and largest zinc-lead ore deposits.

The stacked, highly deformed, and shallow dipping sulphide lenses and alterations and metal zoning at Hurdman, as well as the presence of gahnite and the 4 km of known strike length, “lend strong support to the interpretation of the Hurdman sulphide zone as a Broken Hill-type of mineralization,” the company asserts.

The property lies 120 km north of Timmins, Ontario and 75 km north of Xstrata‘s (XSRAF-O, XTA-L) Kidd Creek mill operations.

A drill program was designed to test a number of VTEM anomalies on the property for potential massive sulphide mineralization and to delineate the lateral extensions of the Hurdman sulphide zone to the north and east.

Exploration to date demonstrates that the mineralization is part of a “geophysical domain” that is made up of clusters of point and linear VTEM anomalies linked to sulphides that occur with the zinc, the company says.

Mineralized intervals consist of massive and semi-massive sulphides with up to 12% fine sphalerite disseminated throughout, and 2% to 3% gahnite.

Highlights of a 1,940 metre drill campaign that began in November 2008 include intersects such as 4.3 metres grading 1.03% zinc and 35 grams silver per tonne (Hole 6) and 1.7 metres grading 1.16% zinc and 69 grams silver per tonne (Hole 7). Hole 8 cut 6.8 metres grading 0.47% zinc and 60 grams silver per tonne, while hole 9 returned 4.8 metres grading 0.62% zinc and 18 grams silver per tonne.

The junior exploration company is focused on discovering and developing precious and base metal resources in the James Bay region of northern Quebec and in the Timmins Camp of northern Ontario.

Eloro has eleven gold-copper-silver properties over 548 sq km in the La Grande and Eastmain Greenstone Belts, near Goldcorp‘s (G-T, GG-N) Eleonore gold project.

Eloro also has an option to earn a 50% interest in 31 claims held by Virginia Mines (VGQ-T) in James Bay.

The junior’s holdings in the Timmins area also include the 30 sq km McArthur Lake nickel property, which is under option to Fletcher Nickel (FL-T).

News of the assay results sent Eloro’s share price up a penny, or 20%, to 6¢ a piece.

The company has traded in a 52-week range of 3.5-47.5¢ and has 58.9 million shares outstanding.