Elray Resources Inc. is a junior exploration and development company which has successfully accumulated a portfolio of mining properties in Asia and South America. The company’s primary objectives are to source projects, conduct geological assessments and seek joint venture partners to develop the properties.
The company reported today that the recently acquired Picacho property in south-eastern Ecuador shows potential for the discovery of precious metals due to a number of gold-bearing veins. The Picacho property is in a prolific 150 square kilometer region known to contain at least 15 important gold-bearing veins.
Independent geologists believe these veins may extend for over a kilometer in length and go as deep as 1500 meters. Elray Resources believes that potential for significant amounts of gold may be possible as the veins have only been mined to a depth of 200 meters.
Official historical records indicate that the major regional mining company, SADCO, extracted over 4.5 million ounces of gold in the period from 1905 to 1950. SADCO identified the particular area as prolific, with an average grade of 14.5 grams of gold per ton.
The high price of gold as well as the region’s history has attracted mining companies in addition to Elray Resources. There are several active mining projects in the region including Dynasty’s Zaruma, Dynasty and Jerusalem projects. Between these three projects there is over 2 million measured and indicated ounces of gold with over 3 million ounces inferred.