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Eloro Resources Ltd (3)
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Eloro drills 441.2 m of 150.47 g/t AgEq at Iska

2022-09-20 11:18 ET - News Release

Mr. Tom Larsen reports


Eloro Resources Ltd. has released assay results from 21 diamond drill holes from its continuing drilling program at the Iska Iska silver-tin polymetallic project in the Potosi department, southern Bolivia. Five surface holes (DSB-28 to DSB-30, DSB-32 and DHK-25) tested the high-grade feeder zone in Santa Barbara which was also tested by two underground holes (DSBU-09 and DSBU-011). Six holes (DSB-16 to DSB-19, DSB-23 and DSB-27) tested the northwest extension of Santa Barbara. Eight holes (DPC-04 to DPC-08 and DPC-10 to DPC-12) are reported for the Porco area. Five surface drills are focused on completing drilling in the Santa Barbara resource definition drilling area and its extension to the south-southeast. This press release also outlines a major update on the geophysical surveys which have greatly expanded the higher-grade feeder area target zone to the south-southeast.

Over all, the company has completed 74,782 metres (m) in 113 drill holes to date at Iska Iska, including five holes in progress. The attached tables list significant assay results for the drill holes reported. Prices used for calculating silver equivalent (AgEq) grades are as outlined in the July 18, 2022, press release. An attached table summarizes drill holes with assays pending. Highlights for each major target area are as follows.

Santa Barbara high-grade feeder zone definition drilling.

Drilling continues to expand the extent of the high-grade feeder zone at Santa Barbara, especially to the south-southeast. New borehole geophysical data have significantly expanded the strike length of this important high-grade zone. The highly conductive zones correlate very well with previously released high-grade drill intersections. The conductivity data from boreholes have extended the high-grade feeder zone a farther 250 m along strike to the south-southeast. The 3-D (three-dimensional) inverse magnetic model which correlates very strongly with the conductive zone suggests that the high-grade feeder zone may extend across the entire caldera for as much as a farther one kilometre (km) along strike. The definition drill program has now been modified to sectionally drill this highly prospective extension, with the intention of defining a major open-pittable mineral resource in the valley of the caldera.

Tom Larsen, chief executive officer of Eloro, said: "The results presented in this press release, combined with the enhanced geological and geophysical interpretation, show the continuing expansion of the already extensive Iska Iska high-grade mineralized system, which has a potential strike length of at least two km. The new data demonstrate excellent potential to outline a major open-pittable deposit in the valley of the Iska Iska caldera. As a result, the estimated completion date for the maiden NI 43-101 mineral resource has been pushed back to the end of Q1 2023 to provide additional time to drill test this important target. We thank both ALS and AHK laboratories for greatly reducing our backlog of samples over the last several months, enabling us to report the results from a large number of holes in this release."

Dr. Bill Pearson, PGeo, Eloro's executive vice-president of exploration, commented: "We are continuing our definition diamond drill program with five surface rigs focusing on the south-southeastern extension of the high-grade feeder zone. As each drill hole is completed, we survey the hole using a pole-dipole IP [induced polarization] array down the hole, as well as cross hole measurements using current in surrounding holes. Our borehole IP team from McKeown Exploration Services, which is supervised by our chief geophysicist, Dr. Chris Hale, PGeo, works closely with our drill contractor, Leduc Drilling, to allow holes to a 1,000-metre depth to be surveyed efficiently. This has greatly enhanced our geophysical program and has led to the tremendous geophysical model disclosed in this press release. We continue to get numerous and extensive mineralized intersections in all our holes as outlined below. In addition, we now know that the DPC series of holes in the Porco area are mainly just on the edge of the massive conductive zone and magnetic susceptibility high that goes through the Porco area at a deeper level."

Significant results from five additional surface drill holes and two underground holes testing the high-grade feeder zone at Santa Barbara are as follows:

Hole DSB-30, drilled to the SW at -60degree across the centre of the current high grade feeder zone, intersected 150.47 g Ag eq/t (9.45 g Ag/t, 1.53% Zn and 0.88% Pb) over 441.21m from 28.70m to 469.91m, including a higher-grade portion grading 209.30 g Ag eq/t (10.06 g Ag/t, 2.76% Zn and 0.98% Pb) over 102.30m from 80.05m to 182.35m. This is the longest continuous mineralized intersection obtained in drilling at Iska Iska thus far.

Overall, 67% of this 909.85m long hole contains reportable intersections which collectively average 133.49 g Ag eq/t

Hole DSB-32, drilled on-section at -60degree to the southeast of hole DSB-30 intersected 185.94 g Ag eq/t (44.55 g Ag/t, 0.57% Pb, 0.14% Cu and 0.25% Sn) over 135.15m from 0.00 to 135.15m, including a higher-grade section of 277.34 g Ag eq/t (78.12 g Ag/t, 0.09 g Au/t, 1.01% Pb, 0.27% Cu and 0.33% Sn) over 66.04m from 45.13m to 111.17m.

Hole DSB-29, collared at surface to test the southeast extension of the high-grade feeder system, was drilled to the SW at -60degree and intersected multiple intersections including:

108.31 g Ag/t (14.31 g Ag/t, 0.08 g Au/t, 0.81% Zn, 0.40% Pb and 0.08% Sn) over 110.40m from 320.94 to 431.34m, including a higher-grade portion of 174.81 g Ag/t (18.66 g Ag/t, 0.17 g Au/t, 1.43% Zn and 0.88% Pb) over 36.06m from 334.66m to 370.72m

Hole DSB-28, located approximately 100m northwest of DSB-29, collared at surface to test the high-grade feeder system, was drilled to the SW at -60degree and intersected multiple intersections including:

98.98 g Ag/t (4.41 g Ag/t, 1.16% Zn and 0.49% Pb) over 96.51m from 39.49 to 136.00m, including a higher-grade portion of 220.47 g Ag/t (2.99 g Ag/t, 2.68% Zn, 1.13% Pb and 0.11% Sn) over 16.52m from 74.20m to 90.72m,

94.39 g Ag eq/t (5.49 g Ag/t, 1.36% Zn and 0.31% Pb) over 90.18m from 163.17m to 253.35m, and

83.44 g Ag eq/t (31.12 g Ag/t, 0.10 g Au/t, 0.27% Zn and 0.23%Pb) over 86.32m from 455.52m to 541.84m including higher-grade portions of 278.75 g Ag eq/t (56.42 g Ag/t, 0.23 g Au/t, 0.83% Zn, 2.38% Pb and 0.22 Sn) over 6.06m from 458.57 to 464.63m and 197.15 g Ag eq/t (136.45 g Ag/t, 0.22 g Au/t, 0.39% Zn, 0.11% Pb and 0.04 Sn) over 10.59m from 520.85 to 531.44m.

Overall, 55% of the overall length of this 831.80m long hole yielded reportable intersections, which collectively average 83.69 g Ag eq/t.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/7a99bfe9-a783-49ac-90c4-a23bef1e5a75

Major Extension of Santa Barbara High Grade Feeder Zone.

As noted above, new borehole geophysical data have significantly expanded the strike length of the important high-grade feeder zone at Santa Barbara. The highly conductive zones correlate very well with previously released high grade drill intersections. Figure 2 is a NW-SE longitudinal section showing the geophysical results in the Santa Barbara high grade feeder zone. Based on current data, this feeder zone has a potential overall strike length of at least 2km. Figure 3 is a view looking south across the Iska Iska caldera valley and Figure 4 shows the conductivity model in the same view as Figure 3.

Eloro's Chief Geophysicist, Dr. Chris Hale, P.Geo. commented: "The geophysical measurements of the most recent boreholes have contributed to a clear picture extending the mineralization south-southeastwards from the mineralization reported in Eloro's July 18, 2022 press release. Where we have borehole IP and conductivity data a conductive core of mineralization extends to the south-southeast for 250m. This conductive core is contained within a broad volume of elevated chargeability that reflects disseminated mineralization. The geophysical correlation is open at depth and to the east where it is only limited by the distribution of drill holes for the borehole IP measurements. A strong correlation of mineralization with both conductivity and magnetic susceptibility extends toward the south-southeast and likely continues for a further kilometer or more at depth where the magnetic susceptibility model indicates an extension but where we do not yet have any conductivity data other than for DPC-08 and DPC-09. Conductivity data for DPC-09 show that this south-directed hole is tangential to a strong off-hole conductivity just to the west. This conductivity anomaly merges with the magnetic susceptibility model showing that the Santa Barbara high grade feeder zone extends deep beneath the known Porco mineralization."

Reinterpretation and Significance of Drilling in the Porco Area.

Results for eight (8) diamond drill holes that tested the magnetic susceptibility anomaly in the Porco area are summarized in Table 2. Locations of these holes are shown on Figure 1. Holes DPC-04, DPC-05 and DPC-06 were drilled from the Porco radial drill platform. Hole DPC-07 was drilled at an azimuth of 235degree at -60degree across the gap area between the Porco and Central Breccia pipes. Holes DPC-08 (Az 235degree, -65degree), DPC-10 (Az 225degree, -70degree) and DPC-11-12 (both Az 235degree, -70degree) were drilled from the access road to the Porco radial platform. Results from DPC-09 (Az 180degree, -75degree) were previously released on June 14, 2022. Highlights are as follows:

Hole DPC-10 returned 38 reportable intersections including 268.41 g Ag eq/t (30.31 g Ag/t, 2.22% Zn, 1.19% Pb and 0.16% Sn) over 17.88m from 253.77 to 271.65m and 185.50 g Ag eq/t (4.18 g Ag/t, 1.15% Zn, 0.92% Pb and 0.17% Sn) over 5.98m from 193.65 to 199.63m.

Hole DPC-11 returned 29 reportable intersections including 126.42 g Ag eq/t (5.09 g Ag/t, 1.77% Zn and 0.13% Pb) over 16.46m from 392.40 to 408.86m, 171.01 g Ag eq/t (16.34 g Ag/t, 0.16 g Au/t, 2.14% Zn and 0.81% Pb) over 8.93m from 241.07 to 250.00m and 595.23 g Ag eq/t (50.32 g Ag/t, 0.48 g Au/t, 8.67% Zn and 1.09% Pb) over 2.99m from 364.47 to 367.46m.

Hole DPC-12 returned 26 reportable intersections including 239.74 g Ag eq/t (58.26 g Ag/t, 2.49% Zn and 1.58% Pb) over 2.96m from 410.66 to 413.62m, 132.46 g Ag eq/t (25.58 g Ag/t, 1.57% Zn and 0.30% Pb) over 3.03m from 761.22 to 764.25m and 72.26 g Ag eq/t (13.73 g Ag/t, 0.87% Zn and 0.06% Pb) over 14.85m from 884.40 to 899.25m.

Hole DPC-08 returned 14 reportable intersections including:

281.64 g Ag eq/t (15.34 g Ag/t, 0.44 g Au/t, 3.51% Zn, 0.77% Pb and 0.17% Cu) over 2.87m from 77.43m to 80.30m,

140.31 g Ag eq/t (9.07 g Ag/t, 2.14% Zn and 0.61% Pb) over 3.03m from 149.20m to 152.23m,

134.34 g Ag eq/t (6.40 g Ag/t, 2.27% Zn and 0.33% Pb) over 4.56m from 237.84m to 242.40m, and

125.58 g Ag eq/t (5.55 g Ag/t, 0.29 g Au/t, 1.15% Zn and 0.13% Pb) over 9.02m from 443.40m to 452.42m.

Hole DPC-07 returned 13 reportable intersections including 286.53 g Ag eq/t (59.08 g Ag/t, 0.37 g Au/t, 1.80% Zn, 0.14% Pb 0.19% Cu and 0.20% Sn) over 3.00m from 587.12 to 590.12m and 158.27 g Ag eq/t (10.41 g Ag/t, 2.51% Zn and 0.09% Pb) over 4.51m from 681.95 to 686.46m.

Hole DPC-06 in the radial drill platform returned 11 reportable intersections including:

122.34 g Ag eq/t (4.66 g Ag/t, 2.16% Zn and 0.16% Pb) over 16.43m from 156.01m to 172.44m,

134.13 g Ag eq/t (9.37 g Ag/t, 2.11% Zn and 0.31% Pb) over 7.46m from 215.92 to 223.38,

277.57 g Ag eq/t (50.31 g Ag/t, 3.44% Zn and 1.41% Pb) over 6.03m from 133.55 to 139.58m, and

447.07 g Ag eq/t (4.10 g Ag/t, 0.91% Zn and 3.37% Pb) over 4.41m from 248.95 to 253.36m.

All the Porco holes reported in this release are on the margins of the conductive/magnetic anomalies, hence the presence of widespread higher-grade mineralization on the edge of these anomalies is very encouraging. Further drilling will be carried out to test the core of the geophysical anomalies in these areas.

Surface Diamond Drilling, Northwest Extension, Santa Barbara.

Results for six (6) diamond drill holes that tested the potential northwest extension of the Santa Barbara zone are summarized in Table 1. Locations of these holes are shown on Figure 1. Holes from southeast to northwest are DSB-23, DSB-18 and DSB-19 on the same section, DSB-17, DSB-27 and the northwesternmost hole DSB-16, which collectively cover a strike length of approximately 600m. Highlights are as follows:

Hole DSB-23 returned 27 reportable intersections including:

186.67 g Ag eq/t (152.91 g Ag/t, 0.13% Pb and 0.19% Cu) over 6.35m from 264.27m to 270.62m,

122.44 g Ag eq/t (22.28 g Ag/t, 0.22 g Au/t, 0.31% Zn, 0.12% Cu and 0.10% Sn) over 33.11m from 598.13m to 631.24m,

195.93 g Ag eq/t (38.19 g Ag/t, 0.40 g Au/t, 0.12% Zn, 0.22% Cu and 0.19% Sn) over 11.69m from 613.50m to 625.19m, and

97.91 g Ag eq/t (13.29 g Ag/t, 0.16 g Au/t, 0.12% Cu and 0.10% Sn) over 21.16m from 655.17m to 676.33m including a higher-grade section of 153.20 g Ag eq/t (22.87 g Ag/t, 0.32 g Au/t, 0.17% Cu and 0.15% Sn) over 7.66m from 668.67m to 676.33m.

Hole DSB-18 returned 32 reportable intersections including 144.53 g Ag eq/t (36.49 g Ag/t, 0.88% Zn, 0.98% Pb and 0.13% Cu) over 17.96m from 243.40 to 261.36m and 71.49 g Ag/t (3.49 g Ag/t, 0.22 g Au/t and 0.09% Sn) over 33.88m from 401.8m to 435.68m.

Hole DSB-19 returned 12 reportable intersections including 202.55 g Ag eq/t (10.56 g Ag/t, 0.47% Zn, 0.57% Pb and 0.25% Sn) over 16.52m from 247.28m to 263.80m and 128.74 g Ag eq/t (4.33 g Ag/t, 1.32% Zn and 0.58% Pb) over 13.38m from 217.37m to 230.75m.

Hole DSB-17 returned 40 reportable intersections including:

76.59 g Ag eq/t (15.61 g Ag/t, 0.16% Cu and 0.09% Sn) over 85.31m from 80.00m to 165.31m,

479.42 g Ag eq/t (5.19 g Ag/t, 0.11% Cu and 1.18% Sn) over 11.82m from 330.66m to 342.48, 85.69 g Ag eq/t (4.73 g Ag/t and 0.68 g Au/t) over 12.11m from 457.44m to 269.55m, and

127.35 g Ag eq/t (30.61 g Ag/t, 0.23 g Au/t, 0.14% Cu and 0.13% Sn) over 18.14m from 624.82m to 642.96m including a higher-grade section of 410.38 g Ag eq/t (106.47 g Ag/t, 0.51 g Au/t, 0.52% Cu and 0.47% Sn) over 3.01m from 639.95m to 642.96m.

Hole DSB-27 returned 7 reportable intersections including 380.33 g Ag eq/t (9.00 g Ag/t, 0.86% Zn, 0.54% Pb and 0.80% Sn) over 1.54m from 130.56m to 132.10m, 143.69 g Ag eq/t (12.00 g Ag/t, 0.30 g Au/t, 1.04% Zn and 0.11% Sn) over 1.50m from 515.37 to 516.87m and 179.30 g Ag eq/t (55.00 g Ag/t, 0.14 g Au/t, 0.22% Cu and 0.20% Sn) over 1.48m from 675.93 to 677.41m.

Hole DSB-16, the northernmost hole returned 20 reportable intersections including 123.03 g Ag eq/t (15.26 g Ag/t, 0.82% Zn and 0.23% Cu) over 3.01m from 188.42m to 191.43m, 113.45 g Ag eq/t (15.13 g Ag/t, 0.52% Zn, 0.12% Cu and 0.11% Sn) over 6.03m from 462.67m to 468.70m, and 96.41 g Ag eq/t (20.64 g Ag/t, 0.15% Cu and 0.13% Sn) over 4.60m from 639.80m to 644.40m.

In calculating the intersections reported in this press release a sample cutoff of 30 g Ag eq/t was used with generally a maximum dilution of 3 continuous samples below cutoff included within a mineralized section unless more dilution is justified geologically.

The equivalent grade calculations are based on the stated metal prices and are provided for comparative purposes only, due to the polymetallic nature of the deposit. Metallurgical tests are in progress by Blue Coast Ltd. to establish levels of recovery for each element reported but currently the potential recovery for each element has not yet been established. While there is no assurance that all or any of the reported concentrations of metals will be recoverable, Bolivia has a long history of successfully mining and processing similar polymetallic deposits which is well documented in the landmark volume "Yacimientos Metaliferos de Bolivia" by Dr. Osvaldo R. Arce Burgoa, P.Geo.

Qualified Person

Dr. Osvaldo Arce, P.Geo., General Manager of Eloro's Bolivian subsidiary, Minera Tupiza S.R.L., and a Qualified Person in the context of NI 43-101, has reviewed and approved the technical content of this news release. Dr. Bill Pearson, P.Geo., Executive Vice President Exploration Eloro, and who has more than 45 years of worldwide mining exploration experience, including extensive work in South America, manages the overall technical program, working closely with Dr. Osvaldo Arce, P.Geo. Dr. Quinton Hennigh, P.Geo., Senior Technical Advisor to Eloro and Independent Technical Advisor, Mr. Charley Murahwi P.Geo., FAusIMM of Micon are regularly consulted on technical aspects of the project.

Eloro is utilizing both ALS and AHK for drill core analysis, both of whom are major international accredited laboratories. Drill samples sent to ALS are prepared in both ALS Bolivia Ltda's preparation facility in Oruro, Bolivia and the preparation facility operated by AHK in Tupiza with pulps sent to the main ALS Global laboratory in Lima for analysis. More recently Eloro has had ALS send pulps to their laboratory at Galway in Ireland. Eloro employs an industry standard QA/QC program with standards, blanks and duplicates inserted into each batch of samples analyzed with selected check samples sent to a separate accredited laboratory.

Drill core samples sent to AHK Laboratories are prepared in a preparation facility installed and managed by AHK in Tupiza with pulps sent to the AHK laboratory in Lima, Peru. Au and Sn analysis on these samples is done by ALS Bolivia Ltda in Lima. Check samples between ALS and AHK are regularly done as a QA/QC check. AHK is following the same analytical protocols used as with ALS and with the same QA/QC protocols. Turnaround time continues to improve, as laboratories return to more normal staffing levels.

About Iska Iska

Iska Iska silver-tin polymetallic project is a road accessible, royalty-free property, wholly controlled by the Title Holder, Empresa Minera Villegas S.R.L. and is located 48 km 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% 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 1.6km by 1.8km in dimension with a vertical extent of at least 1km. 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 September 13, 2020. On November 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 November 24, 2020, Eloro announced the discovery of the SBBP approximately 150m southwest of the Huayra Kasa underground workings.

Subsequently, on January 26, 2021, Eloro announced significant results from the first drilling at the SBBP including the discovery hole DHK-15 which returned 129.60 g Ag eq/t over 257.5m (29.53 g Ag/t, 0.078 g Au/t, 1.45%Zn, 0.59%Pb, 0.080%Cu, 0.056%Sn, 0.0022%In and 0.0064% Bi from 0.0m to 257.5m. Subsequent drilling has confirmed significant values of Ag-Sn polymetallic mineralization in the SBBP and the adjacent CBP. A substantive mineralized envelope which is open along strike and down-dip extends around both major breccia pipes. Continuous channel sampling of the Santa Barbara adit located to the east of SBBP returned 442 g Ag eq/t (164.96 g Ag/t, 0.46%Sn, 3.46% Pb and 0.14% Cu) over 166m including 1,092 g Ag eq/t (446 g Ag/t, 9.03% Pb and 1.16% Sn) over 56.19m. The west end of the adit intersects the end of the SBBP.

Since the initial discovery hole, Eloro has released a number of significant drill results in the SBBP and the surrounding mineralized envelope which along with geophysical data has defined a target zone 1400m along strike, 500m wide and that extends to a depth of 600m. This zone is open along strike to the northwest and southeast as well as to the southwest. The Company's nearer term objective is to outline a maiden NI 43-101 compliant mineral resource within this large target area. As outlined in this press release as a result of continuing discoveries from recent drilling that have substantially extended the high-grade feeder zone at Santa Barbara, the Company has pushed back the inaugural mineral resource to the end of Q1 2023.

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% 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. A recent NI 43-101 Technical Report on Iska Iska, which was completed by Micon International Limited, 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% interest in the La Victoria Gold/Silver Project, located in the North-Central Mineral Belt of Peru some 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 3,150m to 4,400m above sea level.

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