Elray Resources, Inc., a junior exploration and development company, announced this morning that they have acquired the rights to the property known as Picacho, in Ecuador’s legendary El Oro Province, southeastern Ecuador. This property has strong possibilities as records show that the major regional mining company SADCO extracted over 4.5 million ounces from the region between 1905 and 1950 with an average grade of 14.5 grams/ton of gold. Other projects in this same geographic area have millions of ounces of gold measured and indicated. Elray accumulated a portfolio of highly prospective, heavily mineralized mining tenements in South East Asia and South America already and is pleased to be adding this to their ever-growing list of properties.
Mr. Barry Lucas, Executive Chairman of Elray Resources was quoted as stating: “This area has produced millions of ounces of gold, with a history dating back over 450 years. Until modern times the majority of this mining has been done by individual miners, using very basic and primitive extraction techniques.”
Based in Vancouver, British Columbia, Canada, Elray does not develop the properties themselves. Their primary objective is to research and conduct the geological studies and then outsource the development through joint-venture partnerships. Elray Resources has been relatively quiet with press releases over the last 4 months, but had issued 2 announcements in December of 2009 regarding their investigation and research of the Picacho property before announcing today that they have acquired it.
ELRA closed yesterday at .20 (up 25%) after a spike to .28 with a total of 277,000 shares traded.