21:55:25 EST Fri 09 Dec 2022
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Eloro Resources Ltd (3)
Symbol ELO
Shares Issued 70,029,415
Close 2022-11-22 C$ 3.04
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Eloro signs option deal for Casiterita, Hoyada

2022-11-22 09:12 ET - News Release

Mr. Tom Larsen reports


Eloro Resources Ltd. has entered into an option agreement to acquire the Mina Casiterita and Mina Hoyada properties which collectively cover 14.75 square kilometres southwest and west of the Iska Iska silver-tin polymetallic project. Artisanal mining in the 1960s identified high-grade tin veins on the Mina Casiterita property that are hosted in intrusive dacite. Production from 1962 to 1964 is reported by the Departamento Nacional de Geologia (National Department of Geology) in Bolivia as 69.85 tonnes grading 50.60 per cent tin (Sn). These properties connect with the TUP-3 and TUP-6 claims previously staked by Eloro. The company has also staked additional claims in the Iska Iska region. Collectively, the land package to be controlled by Eloro following the acquisition will total 1,935 quadrants covering 483.75 square kilometres (km). This includes the Tomave, Khuchu Ingenio and Puna properties, located further north toward Potosi.

The company's Bolivian subsidiary, Minera Tupiza SRL, entered into the agreement with the current title holder, subject to finalizing the granting of the mining rights process, for the Mina Casiterita and Mina Hoyada properties. Under the agreement, the capital quotas of the title holder will be transferred to Eloro in exchange for a total consideration of 200,000 common shares of Eloro. The transaction is subject to the completion of the terms outlined in the agreement, together with the receipt of all required regulatory approvals in connection with the issuance of the Eloro common shares.

Eloro recently completed a detailed ground magnetic survey on the Mina Casiterita property. This survey outlined an extensive near-surface magnetic intrusive body immediately southwest of Iska Iska. This intrusive hosts the high-grade tin veins previously mined reported to be dacite and is very likely the continuation of the porphyry tin intrusion projected to be below the epithermal silver-tin-zinc-lead (Ag-Sn-Zn-Pb) mineralization at Iska Iska. Casiterita provides the opportunity to test this major target by relatively shallow drilling in close proximity to Iska Iska.

The Porco adit from which previously reported channel sampling returned 103 metres (m) strike length grading 521 g/t silver equivalent (AgEq) (including 117 g/t Ag, 1.44 g/t gold (Au), 0.54 per cent copper (Cu) and 0.66 per cent Sn) in altered basement sediments is located near the northeast part of the magnetic anomaly, attesting to the potential strength and high-grade nature of the mineralized system in the area.

Tom Larsen, chief executive officer of Eloro, said: "These properties will add significantly to our land position at Iska Iska and provide an excellent opportunity to test the potential for a major tin deposit with much shallower diamond drilling than on the main Iska Iska discovery. Geological mapping and sampling is in progress on these new properties, as well as magnetic surveys. Immediately following the completion of its acquisition, we plan to drill test major targets on the Mina Casiterita property."

Dr. Bill Pearson, PGeo, Eloro's executive vice-president of exploration, commented: "We are on the last drill hole of the previously announced (see Eloro's Oct. 18, 2022, press release) definition drill program on Santa Barbara. Work is continuing with Micon International Ltd. to complete a detailed domain model for Iska Iska that will form the basis for the inaugural mineral resource estimate targeted for Q1 2023. Gemin, an engineering group based in Lima, Peru, is developing parameters for potential open-pit and underground mining scenarios for resource definition. Metallurgical testing is continuing with Blue Coast Research. Extensive work has been done with GeologicalAI to develop mineral maps for the scanned core. The calibration of the AI [artificial intelligence] using detailed mineralogical data developed by Nicholas McKay of Blue Coast Research and Dr. Lisa Van Loon of LisaCan Analytical Solutions, along with on-site checking of drill core by Eloro geological personnel under the supervision of Dr. Osvaldo Arce, PGeo, is near completion. The AI domain analysis will be used in conjunction with geophysical models developed by Eloro's chief geophysicist, Dr. Chris Hale, PGeo, and geological models prepared by the Eloro geological team, to develop the final domain model for mineral resource estimation. Mr. Charley Murahwi, PGeo, of Micon, completed his site visit to Iska Iska in October, 2022. Assay results are pending on 16,642 m of drilling in 20 holes."

Qualified persons

Dr. Arce, PGeo, general manager of Eloro's Bolivian subsidiary, Minera Tupiza, 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 for Eloro and who has more than 48 years of worldwide mining exploration experience, including extensive work in South America, manages the overall technical program, working closely with Dr. Arce, PGeo. Dr. Quinton Hennigh, PGeo, senior technical adviser to Eloro, and independent technical adviser Mr. Murahwi, PGeo, FAusIMM of Micon, are regularly consulted on technical aspects of the project. Dr. Pearson and Dr. Hennigh are qualified persons in the context of NI 43-101. Mr. Murahwi of Micon is an independent qualified person as defined under NI 43-101.

The magnetic survey was carried out by MES Geophysics using a GEM Systems GSM-19W Overhauser magnetometer. Dr. Hale, PGeo, and John Gilliatt, PGeo, of Intelligent Exploration, provided the survey design, preparation of the maps and interpretation from data processed and quality was reviewed by Rob McKeown, PGeo, of MES Geophysics. Dr. Hale, Dr. 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 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-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 km by 1.8 km in dimension with a vertical extent of at least one km. 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 SBBP approximately 150 m 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 g/t AgEq over 257.5 m (29.53 g/t Ag, 0.078 g/t Au, 1.45 per cent Zn, 0.59 per cent Pb, 0.080 per cent Cu, 0.056 per cent Sn, 0.0022 per cent indium (In) and 0.0064 per cent bismuth (Bi) from zero m to 257.5 m. 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 downdip extends around both major breccia pipes. Continuous channel sampling of the Santa Barbara adit located to the east of SBBP returned 442 g/t AgEq (164.96 g/t Ag, 0.46 per cent Sn, 3.46 per cent Pb and 0.14 per cent Cu) over 166 m, including 1,092 g/t AgEq (446 g/t Ag, 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.

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 an extensive target zone. In its Sept. 20, 2022, press release, the company reported that new downhole geophysical data have significantly extended the strike length of the high-grade feeder zone at Santa Barbara a farther 250 m along strike to the south-southeast from existing drilling. 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 km along strike for a total potential strike length of at least two km. As reported, the definition drill program has been modified to sectionally drill this potential extension with the intention of defining a major open-pittable deposit in the valley of the caldera. As a result, the estimated completion date for the maiden National Instrument 43-101 mineral resource has been pushed back 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-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. A recent NI 43-101 technical report on Iska Iska, which was completed by Micon International, 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.

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