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Eloro Resources Ltd (3)
Symbol ELO
Shares Issued 61,503,028
Close 2021-06-07 C$ 4.95
Recent Sedar Documents

Eloro Resources increases target areas at Iska Iska

2021-06-07 09:19 ET - News Release

Dr. Osvaldo Arce reports

GROUND MAGNETIC SURVEY CONFIRMS AND EXPANDS TARGET AREAS AT ELORO RESOURCES' ISKA ISKA SILVER-TIN POLYMETALLIC PROJECT, BOLIVIA

Eloro Resources Ltd. has released the results from its recently completely magnetics survey on the company's Iska Iska silver-tin polymetallic project in Potosi department, southern Bolivia. A total of 181.5 line kilometres of magnetic data were collected on 50-metre-spaced north-south lines on all of the accessible parts of the property.

Highlights

  • The magnetic data further confirm the extent of the Iska Iska caldera as determined from geological mapping and satellite interpretation including Aster data.
  • The Santa Barbara and Central breccia pipes, both of which have been confirmed by drill testing, are marked by prominent low anomalies reflecting strong alteration.
  • The Porco (South) breccia pipe target, which is approximately 600 metres in diameter, has a similar signature to the Santa Barbara and Central breccia pipes, further confirming the likelihood of it being a major breccia pipe.
  • It appears likely that the Central and Porco breccia pipes merge at depth.
  • There is a prominent area of low intensity northwest of the Santa Barbara breccia pipe which requires follow-up work.

Dr. Bill Pearson, PGeo, Eloro's executive vice-president of exploration, stated: "The results of this magnetic survey have further refined and expanded our target areas in the Iska Iska caldera as well as outlined an additional target for follow-up northwest of the caldera. The next step will be to calculate 3-D magnetic inverse models which will assist in planning of additional drilling. Induced polarization/geophysical surveys, both downhole and surface, are planned to commence in the latter part of June to further refine target definition."

Qualified person

Dr. Osvaldo Arce, PGeo, general manager of Eloro's Bolivian subsidiary, Minera Tupiza SRL, and a qualified person in the context of National Instrument 43-101, has reviewed and approved the technical content of this news release. Dr. Pearson, PGeo, executive vice-president of exploration, Eloro, who has more than 45 years of worldwide mining exploration experience including extensive work in South America, manages the overall technical program in consultation with Dr. Quinton Hennigh, PGeo, senior technical adviser to Eloro and independent technical adviser, Charley Murahwi, PGeo, FAusIMM of Micon International Ltd.

The magnetic survey was carried out by MES Geophysics using a GEM Systems GSM-19W Overhauser magnetometer. Dr. Chris Hale, PGeo, and John Gilliatt, PGeo, of Intelligent Exploration provided the survey design, preparation of the maps, and interpretation from data processed and quality reviewed by Rob McKeown, PGeo, of MES Geophysics. Mr. Hale, Mr. Gilliatt and Mr. McKeown are qualified persons as defined under National Instrument 43-101.

About Iska Iska

The Iska Iska silver-tin polymetallic project is a road-accessible, royalty-free property, wholly controlled by the title holder, Empresa Minera Villegas SRL, and is located 48 kilometres north of Tupiza city, in the Sud Chichas province of the department of Potosi in southern Bolivia. Eloro has an option to earn a 99-per-cent interest in Iska Iska.

Iska Iska is a major silver-tin polymetallic porphyry-epithermal complex associated with a Miocene possibly collapsed/resurgent caldera, emplaced on Ordovician age rocks with major breccia pipes, dacitic domes and hydrothermal breccias. The caldera is 1.6 kilometres by 1.8 kilometres in dimension with a vertical extent of at least one kilometre. Mineralization age is similar to Cerro Rico de Potosi and other major deposits such as San Vicente, Chorolque, Tasna and Tatasi located in the same geological trend.

Eloro began underground diamond drilling from the Huayra Kasa underground workings at Iska Iska on Sept. 13, 2020. On Nov. 18, 2020, Eloro announced the discovery of a significant breccia pipe with extensive silver polymetallic mineralization just east of the Huayra Kasa underground workings and a high-grade gold-bismuth zone in the underground workings. On Nov. 24, 2020, Eloro announced the discovery of the Santa Barbara breccia pipe approximately 150 metres southwest of the Huayra Kasa underground workings.

Subsequently, on Jan. 26, 2021, Eloro announced significant results from the first drilling at the SBBP including the discovery hole DHK-15 which returned 129.60 grams silver equivalent per tonne over 257.5 metres (29.53 g Ag/t, 0.078 g gold/t, 1.45 per cent zinc, 0.59 per cent lead, 0.080 per cent copper, 0.056 per cent tin, 0.0022 per cent indium and 0.0064 per cent bismuth from zero m to 257.5 m. Subsequent drilling has confirmed significant values of Ag-Sn polymetallic mineralization in the SBBP and the adjacent Central breccia pipe. The SBBP thus far extends 800 m along strike by 400-plus m wide and extends to at least 700 m depth. The CBP extends for 700 m along strike by 400-plus m wide and extends to at least 900 m deep.

A substantive mineralized envelope which is open along strike and down-dip extends around the breccia pipes. Continuous channel sampling of the Santa Barbara Adit located to the east of SBBP returned 442 g AgEq/t (164.96 g Ag/t, 0.46 per cent Sn, 3.46 per cent Pb and 0.14 per cent Cu) over 166 m including 1,092 g AgEq/t (446 g Ag/t, 9.03 per cent Pb and 1.16 per cent Sn) over 56.19 m. The west end of the adit intersects the end of the SBBP.

On May 4, 2021, Eloro released results from the first drill hole on the CBP. Hole DCN-01 intersected multiple mineralized intercepts including 196.09 g AgEq/t (150.25 g Ag/t, 0.10 per cent Sn and 0.05 g Au/t) over 56.2 m and containing 342.98 g AgEq/t (274.0 g Ag/t, 0.16 per cent Sn and 0.16 g Au/t) over 27.53 m. Hole DSB-10, drilled from Santa Barbara breccia pipe platform, encountered over 500 m of continuous sulphide mineralization in a position several hundred metres below mineralization encountered in hole DCN-01. Assays are pending. The target zone is more than one km long by 800 m wide, over 500 m thick and open in all directions.

Geological mapping and satellite interpretation have located a third major breccia pipe target Porco (South) that is approximately 600 m in diameter (south) located southeast of CBP in the southern part of the Iska Iska caldera complex. Previous channel sampling in the Porco adit located adjacent the target area 200 m to the southeast returned 50 m grading 519.35 g AgEq/t including 236.13 g Ag/t, 1.89 g Au/t, 0.87 per cent Cu, 0.22 per cent Bi and greater than 0.05 per cent Sn over an average sample width of 2.49 m.

Currently three diamond drill rigs are active at Iska Iska, two surface rigs and one underground drill. Planned drilling for 2021 is 51,000 m with the aim of outlining an initial inferred National Instrument 43-101 mineralization by late fall. Geophysical surveys are in progress including magnetic and induced polarization to further define drill targets. Preliminary metallurgical tests are also in progress. An updated NI 43-101 technical report is being prepared by independent consultant Micon International Ltd.

About Eloro Resources Ltd.

Eloro is an exploration and mine development company with a portfolio of gold and base-metal properties in Bolivia, Peru and Quebec. Eloro has an option to acquire a 99-per-cent interest in the highly prospective Iska Iska property, which can be classified as a polymetallic epithermal-porphyry complex, a significant mineral deposit type in the Potosi department in southern Bolivia. Eloro commissioned an NI 43-101 technical report on Iska Iska, which was completed by Micon International Ltd., and is available on Eloro's website and under its filings on SEDAR. Iska Iska is a road-accessible, royalty-free property. Eloro also owns an 82-per-cent interest in the La Victoria gold/silver project, located in the north-central mineral belt of Peru approximately 50 km south of Barrick's Lagunas Norte gold mine and Pan American Silver's La Arena gold mine. La Victoria consists of eight mining concessions and eight mining claims encompassing approximately 89 square kilometres. La Victoria has good infrastructure with access to road, water and electricity, and is located at an altitude that ranges from 3,150 m to 4,400 m above sea level.

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