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Eloro Resources Ltd (3)
Symbol ELO
Shares Issued 53,370,898
Close 2021-02-16 C$ 5.34
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Eloro Resources adds second drill rig to Iska Iska

2021-02-16 12:09 ET - News Release

Mr. Tom Larsen reports

ELORO RESOURCES ADDS SECOND RIG TO ACCELERATE THE DIAMOND DRILL PROGRAM AT ITS ISKA ISKA PROPERTY, POTOSI DEPARTMENT, SOUTHERN BOLIVIA

Eloro Resources Ltd. is adding an additional drill rig to accelerate its diamond drilling program at its Iska Iska silver-polymetallic project in Potosi department, Southern Bolivia. To date, Eloro has completed 22 holes totalling 6,721 metres from both underground (12) and surface drill holes (10). Results from the first five underground holes were reported on Nov. 18, 2020, and an additional 10 holes were reported on Jan. 26, 2021. Results are pending for an additional seven holes.

Since the Jan. 26, 2021, release, an additional two minus-60-degree holes to the north (DSB-04) and west (DSB-05), respectively, have been completed at the Santa Barbara breccia pipe. These holes have not only confirmed the overall diameter of the pipe of approximately 400 metres, based on surface geological mapping, but also indicate that the pipe bulges out at depth. Hole DSB-05 drilled at minus-60 degrees due west intersected 611 metres of variably mineralized breccia including a 240-metre section of strongly silicified, well-mineralized breccia from 360 metres to 600 metres, which suggests that there is a major bulge in the SBBP to the west.

Currently, a deep hole DSB-06 is being drilled at SBBP at minus-80 degrees at azimuth 210 degrees to test the breccia pipe at depth where it is believed that there is potential to intersect a major porphyry tin-silver-gold deposit.

The new drill rig will be used to carry out first-pass drilling of the central breccia pipe in the northern part of the target area, using a similar radial drill pattern currently being utilized at the SBBP. Once the drill rig at SBBP completes the deep hole, it will be moved to the southern radial drill base at CBP. Each drill will do a series of minus-60-degree holes on 90-degree quadrants followed by a deep hole at minus-80 to minus-85 degrees to complete a first-pass drill test of the CBP in both the north and south areas to cover its approximately 400-metre-by-700-metre extent.

Tom Larsen, Eloro's chief executive officer, commented: "We continue to make excellent progress at Iska Iska, although we have only just started to evaluate the enormous potential of this extensive mineralized system. The additional rig will help considerably in accelerating the drill program. I am also pleased to announce that Dr. Bill Pearson, PGeo, has been appointed executive vice-president, exploration, and will manage all technical aspects of the exploration program on a full-time basis going forward."

Dr. Pearson, PGeo, executive vice-president, exploration, said: "I am delighted to join the Eloro team to move the exciting Iska Iska silver polymetallic project forward with our outstanding team in Bolivia. Our deeper drilling continues to intersect wide zones of well-mineralized and silicified breccia. These types of breccias are typical hosts of sulphidic matrices with widespread massive sulphides, sulphide veinlets and disseminations. It is clear that the SBBP bulges deeper which is particularly evident in hole DSB-05. The full extent of this pipe remains completely open to the west. The breccia pipe system is most certainly driven by a large tin porphyry at depth. There is almost one kilometre vertically from the valley to the peak of Iska Iska hence there is a good possibility that we can intersect this porphyry in our deep hole DSB-06 currently being drilled."

Qualified person

Dr. Osvaldo Arce, PGeo, manager of Minera Tupiza, Eloro's subsidiary in Bolivia, 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, 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. Drill samples are prepared in ALS Bolivia Ltda's preparation facility in Oruro, Bolivia, with pulps sent to the main ALS laboratory in Lima, Peru, for analysis by fire assay for gold and silver as well as 31-element ICP. Overlimits from ICP are analyzed by XRF. Eloro employs an industry standard quality assurance/quality control program with standards, blanks and duplicates inserted into each batch of samples analyzed with selected check samples sent to a separate accredited laboratory.

About Iska Iska

Iska Iska silver 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. The property can be classified as a silver polymetallic (silver, zinc, lead, gold, copper, bismuth, tin and indium) and porphyry-epithermal complex. This is an important mineral deposit type in the prolific south mineral belt of Bolivia.

Silver polymetallic mineralization at Iska Iska occurs within a Miocene possibly collapsed/resurgent caldera that consists of granodioritic stocks and five dacitic domes which are each about 500 metres in diameter. These rocks intrude/extrude an intensely deformed sequence of Ordovician shales, siltstones and sandstones, which are partially covered by Miocene pyroclastic rocks. The silver polymetallic mineralization occurs mainly as veins, vein swarms, veinlets, stockworks, disseminations and in breccias associated with intense hydrothermal alteration. The Iska Iska dome complex has several major phases of igneous breccias, quartz porphyries, dikes and dacitic syn-kinematic flows.

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. Diamond drilling intersected a number of extensive mineralized intersections within the major breccia pipe, including 54.48 grams silver per tonne, 1.45 per cent zinc and 1.60 per cent lead over 16.39 metres (140.91 grams silver equivalent per tonne) within a broader interval of 122.74 m grading 14.29 g Ag/t, 0.81 per cent Zn and 0.41 per cent Pb (53.67 g AgEq/t) in hole DHK-04 (see press release Nov. 18, 2020).

The high-grade gold-bismuth zone outlined in channel samples in the underground working averaged 7.1 g Au/t and 0.2 per cent Bi (8.29 g AuEq/t) over 3.04 m width for strike length of 47 m. Hole DHK-05 on the strike extension of the high-grade Au-Bi zone intersected 6.51 g Au/t, 0.07 per cent Bi and 31.96 g Ag/t (7.68 g AuEq/t) over 11.85 m grading, including 29.56 g Au/t, 0.26 per cent Bi/t and 63.69 g Ag/t (31.94 g AuEq/t) over 2.31 m in this high-grade zone.

On Jan. 26, 2021, Eloro announced significant results from drilling at the Santa Barbara breccia pipe. Highlights are:

  • 129.60 g AgEq/t over 257.5 m (29.53 g Ag/t, 0.078 g Au/t, 1.45 per cent Zn, 0.59 per cent Pb, 0.08 per cent Cu, 0.056 per cent Sn, 0.0022 per cent In, 0.0064 per cent Bi and 0.0083 per cent Cd1) from zero m to 257.5 m in hole DHK-15, the deepest of the three holes reported within the SBBP;
  • 79 g AgEq/t over 121.33 m (21.77 g Ag/t, 0.034 g Au/t, 0.35 per cent Zn, 0.23 per cent Pb, 0.18 per cent Cu, 0.056 per cent Sn, 0.0011 per cent In, 0.004 per cent Bi and 0.0055 per cent Cd) from zero m to 121.33 m in hole DHK-14 within the SBBP; and
  • 74.16 g AgEq/t over 40.88 m (33.43 g Ag/t, 0.032 g Au/t, 0.04 per cent Zn, 0.33 per cent Pb, 0.13 per cent Cu, 0.045 per cent Sn, 0.0010 per cent In and 0.0012 per cent Bi) from 30.40 m to 71.28 m in hole DHK-13 which, is within the approximately 100-metre-wide mineralized envelope that surrounds the breccia pipe.

Silver-polymetallic mineralization within the Iska Iska system occurs over a potential strike length of more than 2.5 km along major ring structures in the caldera complex. A synchrotron study of the underground channel samples (see press release dated June 25, 2020) concluded that the mineral cluster analysis identified four mineralogical domains that cover the entire sampling area suggesting they are related and represent a single, large mineralizing system. Furthermore, the mineralogy of the domains is consistent with minerals identified in hand specimen and are likely related to a telescoped porphyry/epithermal style of mineralization.

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 about 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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