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Eloro Resources Ltd (3)
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Eloro sees 59.9 m of 0.62 g/t Au in Victoria reanalysis

2019-03-11 07:33 ET - News Release

Mr. Tom Larsen reports


Eloro Resources Ltd. has released drill results from the La Victoria project diamond drill program that arise from a detailed in-house scientific analysis of the La Victoria gold/silver project, upon which a two-phase diamond drilling project was recently completed. The reanalysis was done as part of an internal quality assurance/quality control audit from 4,216 metres in 12 diamond drill holes. The audit is being done by Jim Steel, MBA, PGeo, who is assuming the role of Eloro senior vice-president, mining, and qualified person (QP) for continued works on the La Victoria project and Alex Horvath, PEng, a QP in resource modelling and development who will assume the role of chief technical adviser while continuing to serve as a director for Eloro.

The company believes that the results herein described are sufficiently compelling so as to consider additional exploration on the La Victoria project. To that end, the company is proceeding with an internal resource modelling exercise of the reinterpreted data.

Results of data reanalysis

The highest-grade sample taken from the La Victoria project assayed 63.8 grams per tonne gold, 57.7 g/t silver and 0.77 per cent copper, with greater than 1 per cent arsenic (see news release dated Aug. 12, 2015). Hand samples showed a preponderance of arsenopyrite, which could be the source of the gold. A complete statistical analysis was done on the drill results and a stronger correlation was found between gold and arsenic than was found between gold and silver. No correlation was found between gold and iron or sulphur, which suggests pyrite is not mineralized with gold.

Plotting anomalous arsenopyrite ranges in the drill hole assay data shows that there are at least three principal mineralized bands at the Rufina West target that correlate between drill holes, having been confirmed by holes in both east and west directions. Data suggest a subvertical orientation to the zones, similar to the structural orientation of mineralized fractures seen in surface mapping and sampling on the Rufina West sector (see news release dated April 4, 2018). Mineralization is dominantly found in hydrothermal breccias at La Victoria, as in the nearby Shahuindo gold deposit, owned by Pan American Silver Corp., where a similar arsenic/gold relationship defines part of the suite of mineralization.

Strongly anomalous arsenopyrite values correlate with enhanced gold values over a 109 m vertical range, from approximately 3,136 m to approximately 3,245 m in the drill results. This is the same elevation range as the surface samples collected in 2015 and 2016 from the Rufina West mapping and sampling programs. Integration of these data suggests that this range is the primary mineralized zone (boiling zone), characteristic of epithermal gold deposits and targeted in the drill program.

The associated tables of intersections are based on defined ranges of arsenopyrite content and show the elevations of each intersection. The lower-grade intersections further demonstrate the strong arsenopyrite-gold association and provide important data for vectoring into high-grade zones. Data concerning drill holes are found in the original news releases, referenced in the tables.

Hole No.            Au         From           To     Interval
                 (g/t)          (m)          (m)          (m)

ERU-01            0.54         22.5         36.0         13.5
ERU-01            0.35         85.0         91.0         6.03
ERU-02            0.14         65.6         70.4          4.8
ERU-02            0.62        162.1        222.0         59.9

The 59.9 m intersection in hole ERU-02 contains two adjacent high-arsenopyrite intervals.

Hole No.                Au         From           To     Interval
                     (g/t)          (m)          (m)          (m)

ERU-03                0.68         61.6         83.3         21.8
ERU-03                0.51         89.5         95.5          6.0
ERU-04                1.60        145.6        152.6          7.0
ERU-05 (1)

(1) ERU-05 was a short exploration hole drilled to test the same 
geophysical conductor as were ERU-01 and ERU-02. The only 
intersection was 0.25 g/t over 2.0 m from 141.0 m to 143.0 m 

ERU-03 was drilled to the east into an area with no knowledge of surface mineralization. It tested a geophysical anomaly which was explained by the same arsenopyrite/gold relationship within the same elevation range as seen in the western drill holes.

Hole No.              Au        From        To      Interval
                   (g/t)         (m)       (m)           (m)

ERU-06              0.16       253.0     256.7           4.0
ERU-07              0.34         2.0       5.7           3.7
ERU-07              0.21        51.2      59.7           8.5
ERU-07              0.29        86.7      89.4           2.7
ERU-07              0.35       135.7     140.7           5.0
ERU-07              0.24       235.2     239.7           4.5
ERU-07              0.40       270.7     275.7           6.0

ERU-06 was drilled across the main body of Rufina surface mineralization and collared within the target stratigraphy. The interval noted corresponds vertically to a surface sample of 46.4 g/t gold over 0.3 m taken in 2011 and a surface value of 20.4 g/t gold over 0.4 m taken in 2010. Other than this interval there were several point values of elevated arsenopyrite with gold above 0.5 g/t.

ERU-07 and ERU-08 were reconnaissance exploration holes, drilled significantly stratigraphically higher than the other holes and directed into interbedded sediments and intrusives. The arsenopyrite/gold relationship was seen in several intersections in ERU-07 and with ERU-08 showing point values of gold above 0.2 g/t with higher calculated arsenopyrite values.

Hole No.               Au          From            To      Interval
                    (g/t)           (m)           (m)           (m)

ERU-09A              0.33         149.8         160.8          11.0
ERU-09A              0.41         171.0         173.8           2.8
ERU-09A              0.70         208.8         211.8           5.0
ERU-09A              0.34         241.3         244.3           3.0
ERU-10               0.53          99.0         110.0          11.0
ERU-10               0.33         336.0         339.0           3.0
ERU-10               0.31         366.0         369.3           3.0
ERU-11               0.51          73.3          89.6          16.3
ERU-12               0.31         154.9         161.7           6.8

Eloro chief executive officer Tom Larsen said: "It is very encouraging to see that the drill results show a continuous block of mineralization with gold values that may stand up to a block modelling exercise. Our reconnaissance drilling showed conclusively that there is a lot of potential at the La Victoria gold/silver project. We are now going to step back and evaluate next steps while preparing for the San Markito target drill program."

Eloro's senior vice-president, mining, Jim Steel, added: "We now know that one of the styles of gold mineralization is with arsenopyrite in discrete veins and that the greatest concentrations of gold are in three separate areas at Rufina. We will now go back through the sample database and select several representative gold-bearing units for initial metallurgical assessment, not just at Rufina but at all mineralized sectors that show high gold values."

Qualified person

Mr. Steel, a qualified person in the context of National Instrument 43-101, has read and approved the technical content of this news release.

About Eloro Resources Ltd.

Eloro is an exploration and mine development company with a portfolio of gold and base metal properties in Peru and Quebec. Eloro owns an 82-per-cent interest in the La Victoria gold/silver project, located in the North-Central mineral belt of Peru about 50 kilometres south of Barrick's Lagunas Norte gold mine and Pan American Silver Corp.'s La Arena gold mine and Shahuindo gold mine. La Victoria consists of eight mining concessions and eight mining claims encompassing approximately 89 square kilometres.

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