OTISH MOUNTAINS URANIUM PROPERTIES

Eloro’s Otish Mountain Uranium properties consist of 4 claim blocks totalling 68.7km² located in the Otish Basin Uranium camp, approximately 330km N-NE of Chibougamau, Quebec. Eloro is planning to proceed with an initial airborne radiometric, magnetic and EM survey, which will be followed by ground prospecting, mapping and assaying on the recently acquired (news release) 35.3km² Otish North and 26.1km² Otish South Properties. Priority targets will be immediately drill tested.

Otish Mountains Claim Map

Otish Basin Mineralization

The Otish Basin is being actively explored for uranium, most notably at the Matoush Uranium Discovery where Strateco Resources Inc. drilled up to 2.13% U3O8 over 15.2 m (MT-06-35; refer to the Strateco Resources Inc.’s press release dated February 20, 2007). Also actively exploring in the area is Cameco and Areva, the world's largest uranium producers. Eloro’s Otish Uranium Properties were acquired for their potential to host fault-controlled uranium mineralization similar to that discovered by Strateco and high-grade uranium deposits similar to those currently mined in the Athabasca Basin, Saskatchewan, the world's largest producing Uranium Camp. Unconformity-type uranium deposits found in the Athabasca Basin account for more than 30% of the global uranium production and 15% of global reserves. The uranium mineralization is epigenetic and occurs near the basal contact of sandstone overlying crystalline basement rocks. Uranium is not confined to the sandstone but may also be concentrated in fractured basement rocks below the unconformity. Mineralization is typically found within 200 m above and below the unconformity surface. The Matoush Uranium Discovery is closely linked to a regional fault that appears to have acted as a conduit for uranium-bearing fluids. The uranium mineralization found at Matoush lies well above the basin rim and resembles perched bodies found above the McArthur River and Cigar Lake uranium deposits in the Athabasca basin.

Eloro’s Lac Henry Property Option with Icon Industries Ltd.

On April 24, 2007, Eloro announced an option agreement with Icon Industries Limited allowing Icon to earn a 55% interest in Eloro’s wholly-owned Lac Henry Uranium Property. Icon can earn an initial interest of 50% by spending CDN $1,000,000 in exploration by the third anniversary of the closing date of the agreement and by issuing to Eloro 300,000 shares of Icon by the second anniversary of the closing date of the agreement. For complete details of the agreement…

Otish Mountains Uranium Geological Compilation

Otish Mountains Uranium Claims Map

Property Name: Lac Mills
Property Owner: Eloro Resources (100%)
Size of Property: 8 claims – 423.96 Ha
SNRC: 33A01 - UTM 689100 E 5772200 N - NAD 83 Zone 18
Discovery year: 1974

Localization reference: The occurrence is generated by Sample 6CJ-218 (GM 32768) taken from the aero-radiometric anomaly 157-1, located on the flight line 157 (GM 57674), along the Tichegami River.

Geology: The mineralization is disseminated in pegmatite sills cross-cutting a metasedimentary schist. The main constituents of the pegmatite are biotite, quartz and albite, along with chlorite, apatite and zircon.

Host Rocks: Granitic Pegmatites

Ore Genesis: This mineralization seems to be a primary uraniferous mineralization associated with granitic pegmatites.

Mineralization: The mineralization consists of disseminations of small pitchblende clusters associated with biotite crystals.

Historical sampling: Grab samples returned the following grades: 4BS-015 (GM 57674): 0.39% U 6CJ-218 (GM 32768): 1.31% U

References: CL 033A, DP 358, AND 83-05, GM 31528, GM 32768, GM 39281, GM 40257, GM 40422, GM 57674, GM 57730, GM 57731, GM 57818, GM 57888, PRO 94-05, PRO 95-06

Property Name: Lac Henry
Property Owner: Eloro Resources (100%)
SNRC: 33A01 – 693400 E 5779600 N – Nad 83, Zone 18
Size of Property: 7 claims – 307.36 Ha
Discovery year: 1978

Localization reference: The occurrence is generated by Sample 8DS01 (GM 57730) located about 6 km SE of Barou Lake.

Geology: The mineralization consists of a uranophane-bearing vein cross-cutting migmatites. The only mineralization in place was observed in an N-S trending vein, one cm wide, which was traced over 20 m.

Host Rocks: Migmatites

Ore Genesis: This uraniferous vein was probably formed during the Proterozoic distentional tectonic phase of the Otish Basin. It is associated with a significant boulder train of erratic uraniferous blocks which returned grades reaching 0.9% U3O8 (GM 57730).

Mineralization: The mineralized vein is associated with hematization of undetermined character.

Historical sampling: Surface grab samples returned the following assay values: (GM 57730) 8DS01: 0.86% U3O8 8DS02: 0.32% U3O8.


References: CL 033A, DP 358, GM 31528, GM 32768, GM 34312, GM 40257, GM 40422, GM 57631, GM 57674, GM 57730, GM 57888, PRO 94-05, PRO 95-06