Elcora Resources Encounters Significant Graphite Mineralization in Multiple Veins
Halifax, Nova Scotia--(Newsfile Corp. - December 7, 2015) - Troy Grant, President and CEO of Elcora Resources Corp. (TSXV: ERA) (FSE: ELM), (the "Company" or "Elcora"), is pleased to announce that the company has progressed to advanced underground drilling work to define the twelve historically worked veins at depth and to find additional veins at the Ragedara mine in Sri Lanka. Historically, the peak production of these 12 veins was 18,000 tonnes per year. The mine was abandoned due to improper mine planning and infrastructure. The vein structure remains open at depth both downward and into the mountain.
Two drilling locations were used at the 0 m level exploring into the hill, which discovered three veins ranging between 15 and 24 cm in width within 10 m of the old workings. These veins are currently being mined.
An additional drilling location is currently being exploited at the 38 m level to pass under the historical working of the mine. This has already resulted in locating the 5 veins with widths of 66, 40, 20, 20 and 15 cm. Additional holes are being drilled in order to further define these veins and the current shaft is being deepened in order to provide access for future work.
The graphite grade in the Ragedara veins ranges from 92-99% graphite. Historically, some of the veins have also contained fist sized silica than can be selectively mined from to graphite resulting in two potential products.
"This work is important for proper mining planning in support of the company's goal to re-establishing peak production at the Radegara mine." said Troy Grant, Elcora's President and CEO. "This is another step in Elcora's continued strategic development of the Ragedara mine and the establishment of a cash flow."
Cautionary Notes Regarding Ragadera Production
The Sakura graphite project's Ragadera mine has no established resource and is without a known body of commercial ore. The decision to commence production at the Ragadera mine and Elcora's plans for small scale mining and milling operations were based on economic models prepared by Elcora in conjunction with management's knowledge of the property and the prior limited recent operating history of the Sakura/Ragadera mine. The production decision and operating plan for the extraction and sale of graphite were not based on any preliminary economic assessment, a pre-feasibility study or a feasibility study of mineral reserves demonstrating economic and technical viability. Accordingly, there is increased uncertainty and economic and technical risks of failure associated with the production decision and operating plan, in particular the risk that mineral quantities and/or grades will be lower than expected, the risk that construction or ongoing mining operations will be more difficult or more expensive than expected, the risk that the Company will not be able to transport or sell the mineralized material it produces on the terms it expects, or at all, the risk that due to the absence of a detailed economic and technical analysis according to and in accordance with NI 43-101 the production and economic variables associated with mineral extractions and sale may vary considerably. Readers are cautioned that no reliable estimates of future production capability or the economics of any extraction activity can be made.
Ian Flint, Ph.D., P. Geo., is the Qualified Person as defined under NI 43-101 who has reviewed and is responsible for the technical information presented in this news release.
For further information please visit the company's website at http://www.elcoraresources.com
For further information please contact: Troy Grant, Director, President and CEO, Elcora Resources Corp., T: 902 802-8847 F: 902 446-2001.
CAUTIONARY STATEMENT:
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. No stock Exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This News Release includes certain "forward-looking statements". All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding potential mineralization and reserves, exploration results, and future plans and objectives of Elcora, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Elcora's expectations are exploration risks detailed herein and from time to time in the filings made by Elcora with securities regulators.
Investors are cautioned that, except as disclosed in the filing statement prepared in connection with the transaction, any information released or received with respect to the transaction may not be accurate or complete and should not be relied upon.