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Eloro Resources’ Deep Hole DSBS-02 Encounters Numerous Mineralized Intercepts Including 146.65 g Ag eq/t (10.74 g Ag/t, 1.01 g Au/t, 0.31% Zn, 0.11% Pb and 0.06% Sn) over 88.66m and 131.86 g Ag eq/t (21.38 g Ag/t, 0.06 g Au/t, 0.25% Zn, 0.24% Pb and 0.14% Sn) over 104.38m in the Santa Barbara Target Area at the Iska Iska Silver-Tin Polymetallic Project, Potosi Department, Bolivia

Eloro Resources, Proven and Probable

Figure 1

Geological Plan Map showing Drilling in Santa Barbara and Porco Areas with Holes referred to in this release highlighted.
Geological Plan Map showing Drilling in Santa Barbara and Porco Areas with Holes referred to in this release highlighted.

Figure 2

3D Location of > 90 g Ag eq/t Grade Shell Model for Santa Barbara relative to the 3D Magnetic Susceptibility Inverse Model.  The high-grade likely feeder zone at Santa Barbara extends approximately 750m along strike, is 650m wide and extends to a depth of at least 750m.  The deposit is open in all directions.
3D Location of > 90 g Ag eq/t Grade Shell Model for Santa Barbara relative to the 3D Magnetic Susceptibility Inverse Model. The high-grade likely feeder zone at Santa Barbara extends approximately 750m along strike, is 650m wide and extends to a depth of at least 750m. The deposit is open in all directions.

Figure 3

3D Model of Inverse Magnetic Susceptibility and BHIP Mx Chargeability and Conductivity, Iska Iska.  Note that BHIP data is primarily only available in the Santa Barbara area.
3D Model of Inverse Magnetic Susceptibility and BHIP Mx Chargeability and Conductivity, Iska Iska. Note that BHIP data is primarily only available in the Santa Barbara area.

Figure 4

Strong inverse magnetic susceptibility anomaly in the Porco Area that extends for approximately 1.6km along strike by 700m wide with a vertical extent of approximately 750m.
Strong inverse magnetic susceptibility anomaly in the Porco Area that extends for approximately 1.6km along strike by 700m wide with a vertical extent of approximately 750m.
  • Hole DSBS-02 was drilled across the interpreted Santa Barbara feeder zone to a length of 1,023.4m, corresponding to a vertical depth of 745m. Notably, 67% of the overall length of this hole yielded reportable intersections which collectively average 100.42 g Ag eq/t.
  • Grade shell modelling in Leapfrog of the Santa Barbara Deposit indicates that, as of this date, drilling has defined a higher-grade zone >90 g Ag eq/t that is approximately 750m along strike, 650m wide and extends to a depth of at least 750m. This deposit remains open in all directions.
  • Hole DPC-09, the first of a series of holes to test the major inverse magnetic susceptibility anomaly in the Porco area, intersected 41 reportable mineralized intersections representing 29% of this 1,124.4m long hole that collectively average 94.73 g Ag eq/t. Significantly, the last reportable intersection near the bottom of this hole is higher in Ag and Sn with very low values of Zn and Pb. This is typical of what is seen in the Santa Barbara area in the transition from the Ag-Zn-Pb-Sn polymetallic mineralization to the more tin dominant mineralization at depth.
  • The coincidence of the magnetic inverse model with the chargeability/conductivity model from Bore Hole Induced Polarization (BHIP) surveys provides a powerful tool to outline very prospective drill targets. BHIP surveys to a depth of almost 1,000m show that the conductivity increases with depth at Santa Barbara, indicating that the potential feeder zone could be even more substantive.

TORONTO, June 14, 2022 (GLOBE NEWSWIRE) —  Eloro Resources Ltd. (TSX-V: ELO; OTCQX: ELRRF; FSE: P2QM) (“Eloro”, or the “Company”) is pleased to announce assay results from an additional two (2) diamond drill holes from its on-going drilling program at the Iska Iska silver-tin polymetallic project in the Potosi Department, southern Bolivia. Hole DSBS-02 is a surface hole drilled due north at -300 from the south side of Santa Barbara across the higher-grade likely feeder zone. Hole DPC-09 is the first in a series of drill holes to test the extensive magnetic susceptibility anomaly in the Porco area in the southern part of the property. Four drills including three surface drills and one underground drill are focussed on completing drilling in the Santa Barbara Resource Definition Drilling Area. The underground drill is on its last hole and will be moved to surface to complete drill holes requested by Micon International Limited (“Micon”) to better define the preliminary open pit to be utilized for the maiden mineral resource estimate targeted for completion at the end of Q3.

Overall, the Company has completed 59,499m in 95 drill holes to-date, including four holes in progress, as shown in Figure 1. Tables 1 and 2 list significant assay results for the two drill holes reported. Prices used for calculating Ag equivalent grades are as outlined in Eloro’s February 1, 2022, press release. Table 3 summarizes drill holes with assays pending. Highlights are as follows:

Santa Barbara Mineral Resource Definition Target Area – Surface Drilling

Hole DSBS-02 was collared in the south part of the Santa Barbara target at an azimuth of 00 and dip of -300 to test across the likely higher grade feeder zone for the Santa Barbara Ag-Sn polymetallic mineralization. This hole was drilled to a length of 1,023.4m, corresponding to a vertical depth of 745m, with 67% of the hole containing reportable intersections which collectively average 100.42 g Ag eq/t. Significant results are as follows:

  • 146.65 g Ag eq/t (10.74 g Ag/t, 1.01 g Au/t, 0.31% Zn, 0.11% Pb and 0.06% Sn) over 88.66m from 319.36m to 408.02m, including a higher-grade section of:
    • 737.33 g Ag eq/t (51.11 g Ag/t, 6.82 g Au/t, 0.24% Zn, 0.31% Pb, and 0.19% Sn) over 12.06m from 355.39m to 367.45m. Notably, this is the strongest gold-bearing intercept encountered to date at Iska Iska.
  • 131.86 g Ag eq/t (21.38 g Ag/t, 0.06 g Au/t, 0.25% Zn, 0.24% Pb and 0.14% Sn) over 104.38m from 531.22m to 635.60m, including higher-grade sections of:
    • 224.16g Ag eq/t (50.19 g Ag/t, 0.02 g Au/t, 0.41% Zn, 0.38% Pb and 0.24%Sn) over 26.79m from 543.09 to 569.88,
    • 300.90g Ag eq/t (35.33 g Ag/t, 0.20 g Au/t, 0.26 % Zn. 0.78% Pb and 0.36% Sn) over 10.38m from 590.84m to 601.22m.
  • 78.94 g Ag eq/t (12.77 g Ag/t, 0.06 g Au/t, 0.66% Zn, 0.12% Pb and 0.04% Sn) over 235.43m from 670.27m to 905.70m which included higher grade sections of:
    • 494.81 g Ag eq/t (170.06 g Ag/t, 0.49 g Au/t, 0.37% Zn, 0.35 %Pb, 0.40 % Sn) over 4.46m from 722.70m to 727.16m,
    • 181.64 g Ag eq/t (76.79 g Ag/t, 0.19g Au/t, 0.76% Zn, 0.23 %Pb and 0.07% Sn) over 4.35m from 770.73m to 775.08m,
    • 120.54 g Ag eq/t (15.50g Ag/t, 0.01 g Au/t, 1.57% Zn, 0.34% Pb and 0.03%Sn) over 10.96 m from 800.44m to 811.40m, and
    • 129.54 g Ag eq/t (6.44 g Ag/t, 0.08 g Au/t, 2.03% Zn, 0.34% Pb and 0.02% Sn) over 8.94 m from 853.28m to 862.22m.

Dr. Bill Pearson, P.Geo. Eloro’s Executive Vice President, Exploration commented: “Grade shell modelling in Leapfrog of the Santa Barbara Deposit by the Iska Iska geological team indicates that drilling has defined a higher-grade zone >90 g Ag eq/t that extends approximately 750m along strike, is 650m wide and extends to a depth of at least 750m. The deposit is open in all directions. Figure 2 shows the Santa Barbara deposit model relative to the extensive 3D inverse magnetic susceptibility model, demonstrating the remarkable scale of this enormous mineralized system.”

Dr. Pearson continued: “Figure 3 is a 3D model combining the inverse magnetic susceptibility model and the bore hole induced polarization (“BHIP”) chargeability and conductivity data that clearly shows how this new hole DSBS-02 intersected significant mineralization in an area of an extensive chargeability anomaly coincident with a magnetic high. In the lower part of this hole conductivity increases substantially and indicates that this hole stopped just short of a likely area of massive sulphide mineralization. The coincidence of the magnetic inverse model with the chargeability/conductivity model provides a powerful tool to outline very prospective drill targets. BHIP surveys to a depth of almost 1,000m show that the conductivity increases with depth at Santa Barbara, indicating that the potential feeder zone could be even more substantive.”

Dr. Chris Hale, P.Geo., Chief Geophysicist for Eloro said: “Geophysical targeting is very useful at Iska Iska because the mineralization often occurs in association with pyrrhotite, a mineral that affects both the electrical and magnetic properties of the host rock. BHIP helps to correlate mineralization between the holes because it samples a much larger volume around the borehole than each assay does. BHIP provides two electrical measures of the quantity of mineralization; chargeability that measures the amount of disseminated mineralization and conductivity that shows when the strength of mineralization reaches the point of “connectivity”, resulting in a conductive deposit. This explains the strong spatial correlation between the grade of mineralization and the chargeable volume around DSBS-02. We do not yet have BHIP surveys under DPC-09 but this hole was targeted to test a peak in the magnetic susceptibility that was modelled using surface magnetic data. The excellent spatial coincidence between the mineralized intersection and the peak in magnetic susceptibility gives us confidence that we will also likely intersect mineralization when we drill the larger magnetic susceptibility zone that is modelled deeper and farther to the south.”

Porco Area – Magnetic Inverse Anomaly – Surface Drilling

Hole DPC-09 is the first of a series of holes to test the major inverse magnetic susceptibility anomaly in the Porco area, as outlined in Eloro’s March 1, 2022 press release. This hole intersected 41 reportable mineralized intersections, representing 29% of this 1,124.4m long hole that collectively averaged 94.73 g Ag eq/t. Highlights include:

  • 143.47 g Ag eq/t (10.67 g Ag/t, 0.25 g Au/t, 1.90 % Zn, 0.23%Pb, 0.09% Cu and 0.01% Sn) over 11.96m from 363.57 to 375.53m
  • 84.46 g Ag eq/t (6.52 g Ag/t, 0.03 g Au/t, 1.13% Zn, 0.37% Pb and 0.01% Sn) over 10.63m from 410.09 to 420.72m
  • 79.46 g Ag eq/t (4.47 g Ag/t, 0.02 g Au/t, 1.12% Zn, 0.08 %Pb and 0.03 % Sn) over 42.55m from 740.63m to 783.18m.
  • 82.64 g Ag eq/t (3.48 g Ag/t, 0.05 g Au/t, 0.50% Zn, 0.09% Pb, and 0.08% Sn) over 57.34m from 798.15m to 855.49m including a higher grade section of:
    • 127.94 g Ag eq/t (3.37 g Ag/t, 0.05 g Au/t, 0.50% Zn,0.12% Pb and 0.16% Sn) over 12.02m from 798.15 to 810.17m,
  • 96.13 g Ag eq/t (8.14 g Ag/t, 0.15 g Au/t, 0.40% Zn, 0.11% Pb and 0.09% Sn) over 14.83m from 972.51m to 987.34m,
  • 69.88 g Ag eq/t (8.73 g Ag/t, 0.11 g Au/t, 0.22% Zn, 0.05% Pb and 0.06% Sn) over 40.24m from 1045.82m to 1086.06m including a higher grade section of
    • 100.05 g Ag eq/t (16.71 g Ag/t, 0.08 g Au/t, 0.35% Zn, 0.06% Pb and 0.09% Sn) over 13.25m from 1068.37 to 1081.62m
  • 163.35 g Ag eq/t (48.35 g Ag/t, 0.12 g Au/t, 0.05% Zn, 0.05% Pb, 0.09% Cu and 0.15% Sn) over 5.95m from 1114.63m to 1120.58m

As shown in Figure 4, this hole intersected a very extensive inverse magnetic susceptibility anomaly which, at elevation 3,400m, extends for approximately 1.6km along strike by 700m wide with a vertical extent of approximately 750m. The 3,400m elevation is approximately 100m above the valley floor. Significantly, the last reportable intersection near the bottom of the hole is higher in Ag and Sn with very low values of Zn and Pb. This is typical of what is seen in the Santa Barbara area in the transition from the Ag-Zn-Pb-Sn polymetallic mineralization to the more tin dominant mineralization at depth.

Table 1: Significant Results, Surface Diamond Drilling, Santa Barbara Resource
Definition Target Area as at June 14, 2022.

SANTA BARBARA RESOURCE DEFINITION TARGET ZONE
SURFACE DIAMOND DRILLING
Hole No.From (m)To (m)Length (m)AgAuZnPbCuSnBiCdAg eq
g/tg/t%%%%%%g/t
DSBS-027.8424.4416.601.360.010.000.010.000.070.0010.00144.49
 116.64119.753.1111.600.010.040.540.030.040.0010.00158.37
 140.40153.6013.200.720.011.110.150.000.010.0010.00360.89
 170.99174.103.110.740.010.990.070.010.010.0010.00453.28
 181.52210.8429.321.610.011.040.110.020.020.0010.00464.93
Incl.204.66209.334.674.630.012.690.350.060.040.0020.008172.94
 235.15255.8620.715.430.061.830.550.010.090.0030.007168.10
 270.96281.7210.767.620.040.490.220.020.060.0010.00278.72
 290.74293.712.9715.530.050.060.140.040.050.0010.00159.26
 298.26308.7810.5226.840.110.050.090.080.020.0010.00165.08
 319.36408.0288.6610.741.010.310.110.010.060.0080.001146.65
Incl.355.39367.4512.0651.116.820.240.310.020.190.0470.001737.33
 438.04447.129.083.670.211.530.100.010.050.0010.007126.04
 469.60483.1213.521.170.060.590.050.010.060.0010.00269.05
 489.14517.8028.666.000.020.550.340.010.040.0010.00268.65
 522.20525.403.206.500.040.270.120.010.070.0010.00166.24
 531.22635.60104.3821.380.060.250.240.010.140.0020.001131.86
Incl.543.09569.8826.7950.190.020.410.380.010.240.0010.001224.16
Incl.590.84601.2210.3835.330.200.260.780.010.360.0060.001300.90
 647.53658.1210.5910.570.010.230.280.010.140.0010.001116.41
 670.27905.70235.4312.770.060.660.120.010.040.0050.00278.94
Incl.722.70727.164.46170.060.490.370.350.040.400.1040.003494.81
Incl.770.73775.084.3576.790.190.760.230.010.070.0130.001181.64
Incl.800.44811.4010.9615.500.011.570.340.010.030.0010.004120.54
Incl.853.28862.228.946.440.082.030.340.010.020.0010.006129.54
 917.78931.2813.507.050.030.780.130.010.040.0020.00273.10
 953.83955.341.5116.000.010.481.240.010.190.0010.001191.90
 964.38971.847.465.960.010.530.140.010.040.0010.00162.14
 980.801022.4041.6038.970.080.240.340.030.100.0070.001132.38

Note: True width of the mineralization is not known at the present time, but based on the current understanding of the relationship between drill orientation/inclination and the mineralization within the breccia pipes and the host rocks such as sandstones and dacites, it is estimated that true width ranges between 70% and 90% of the down hole interval length but this will be confirmed by further drilling and geological modelling.

Chemical symbols: Ag= silver, Au = gold, Zn = zinc, Pb = lead, Cu = copper, Sn = tin, Bi = bismuth, Cd = cadmium and g Ag eq/t = grams silver equivalent per tonne. Quantities are given in percent (%) for Zn, Pb Cu, Sn, Bi and Cd and in grams per tonne (g/t) for Ag, Au and Ag eq.

Metal prices and conversion factors used for calculation of g Ag eq/t (grams Ag per grams x metal ratio) are as follows (Prices updated as of February 1, 2022, to more accurately reflect current metal prices):

ElementPrice $US
(per kg)
Ratio to Ag
Ag$722.561.0000
Sn$42.560.0589
Zn$3.300.0046
Pb$2.330.0032
Au$57,604.0079.7221
Cu$9.680.0134
Bi$12.760.0177
Cd$5.500.0076

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.

Table 2: Significant Results, Surface Diamond Drilling, Porco Area – Magnetic Inverse
Anomaly as at June 14, 2022.

PORCO AREA – MAGNETIC INVERSE ANOMALY
SURFACE DIAMOND DRILLING
Hole No.From (m)To (m)Length (m)AgAuZnPbCuSnBiCdAg eq
g/tg/t%%%%%%g/t
DPC-090.005.425.421.890.010.000.010.000.150.0010.00194.64
 104.28109.274.991.670.010.970.040.030.010.0020.00260.29
 162.18172.7410.560.640.030.840.070.010.010.0020.00354.18
 177.18178.651.472.000.011.100.320.000.020.0010.00472.61
 195.31196.801.493.000.010.810.410.000.010.0010.00359.66
 207.43208.911.489.000.054.040.380.010.010.0010.019215.09
 211.94213.441.500.300.011.040.070.010.010.0010.00355.60
 216.47217.951.482.000.051.670.220.000.010.0010.00693.82
 270.53271.991.468.000.033.610.200.050.010.0010.018194.48
 363.57375.5311.9610.670.251.900.230.090.010.0040.014143.47
 392.13393.601.478.000.021.520.340.010.010.0010.00794.61
 410.09420.7210.636.520.031.130.370.010.010.0080.00584.46
 425.11426.611.5012.000.011.110.340.020.010.0010.00481.08
 468.78473.314.537.010.320.950.270.040.010.0040.00298.88
 621.97624.952.9829.490.157.910.480.020.050.0010.027451.93
 668.49674.455.9616.810.113.400.380.020.020.0010.018211.05
 684.96686.381.423.000.340.310.110.020.010.0010.00158.23
 704.50710.586.088.750.491.560.170.030.010.0050.014135.68
 731.63736.154.5211.620.112.110.360.020.060.0010.013165.28
 740.63783.1842.554.470.021.120.080.010.030.0010.00779.46
 798.15855.4957.343.480.050.500.090.020.080.0020.00282.64
Incl.798.15810.1712.023.370.030.500.120.000.160.0010.002127.94
 865.90868.953.051.500.020.540.060.020.060.0010.00269.83
 879.52881.001.4811.002.811.920.060.040.090.0010.010382.28
 896.05897.541.493.000.020.510.100.010.090.0010.00183.89
 902.05903.541.496.000.680.970.090.030.050.0010.003139.62
 911.06912.571.512.000.030.310.020.010.090.0010.00171.60
 921.60923.151.552.000.020.530.020.010.060.0010.00266.00
 924.64926.071.433.000.010.590.010.010.050.0010.00359.22
 933.55936.563.014.030.060.730.080.010.120.0010.004114.76
 941.08944.062.984.470.030.220.060.010.060.0010.00158.50
 945.53946.991.4610.000.040.290.330.010.160.0010.001133.74
 951.57953.021.4520.000.010.710.520.010.030.0010.00386.78
 957.59960.512.925.000.070.460.100.010.170.0010.002136.71
 972.51987.3414.838.140.150.400.110.020.090.0020.00296.13
 994.96997.892.934.510.060.350.030.000.040.0010.00153.12
 1003.851005.301.4514.000.070.690.030.020.030.0050.00274.61
 1014.231035.3021.076.830.030.240.060.010.050.0020.00156.12
 1045.821086.0640.248.730.110.220.050.020.060.0030.00169.88
Incl.1068.371081.6213.2516.710.080.350.060.040.090.0040.001100.05
 1090.641093.673.039.530.190.090.020.030.050.0050.00162.69
 1104.161108.734.576.670.080.130.010.030.040.0030.00148.93
 1114.631120.585.9548.380.120.050.050.090.150.0180.001163.35

See Note Table 1.

Photos accompanying this announcement are available at https://www.globenewswire.com/NewsRoom/AttachmentNg/b00bb012-0067-4bf2-b22f-fe3d2b787bae

https://www.globenewswire.com/NewsRoom/AttachmentNg/bf108382-d9d3-4d2a-a052-5cacf022835c
https://www.globenewswire.com/NewsRoom/AttachmentNg/61ed7775-0c9b-4f46-af99-6dc6844faf39
https://www.globenewswire.com/NewsRoom/AttachmentNg/b2b16fed-ec98-42ea-958c-26f66b8625a9

Table 3: Summary of Diamond Drill Holes Completed with Assays Pending and Drill
Holes in Progress at Iska Iska from June 14, 2022 press release.

SUMMARY DIAMOND DRILLING ISKA ISKA
Hole No.TypeCollar EastingCollar NorthingElevAzimuthAngleHole length (m)
Surface Drilling Santa Barbara Breccia
DHK-24S205529.47656222.54153.4225°-60°926.3
DHK-25S205526.97656384.74178.1225°-55°1,147.3
      Subtotal2,073.6
Surface Drilling Northwest Extension Santa Barbara
DSB-16S204973.97657053.14147.1225°-65°862.0
DSB-17S205136.37656770.84168.1225°-40°841.0
DSB-18S205209.37656683.34172.5225°-40°890.4
DSB-19S205209.976566844172.5225°-65°803.3
DSB-23S205343.37656534.44176.1225°-40°863.2
DSB-27S205044.57656982.64150225°-65°800.4
DSB-28S20551276561124162225°-60°851.4
      Subtotal5,911.7
DSB-29S2055117655966.94134225°-60°In progress
DSB-30S205440.277656179.064192225°-60°In progress
DSB-31S205652.4037656108.354088225°-60°In progress
Underground Drilling Santa Barbara Adit
DSBU-09UG205284.576560804167.190°-60°904
DSBU-10UG205284.57656080.04167.140°-60°878.9
      Subtotal1,782.9
DSBU-11UG205284.5027656080.034167.117180°-55°In progress
Surface Drilling South Extension Santa Barbara
DSBS-02S20530076555634195-45°1,023.4
      Subtotal1,023.4
Porco Target Area – Surface Drill Program Testing Magnetic Inverse Model
DPC-07S205090.17655340.94310235°-60°791.4
DPC-08S2055857655423.64089235°-65°800.4
DPC-09S205456.77655516.64125180°-75°1,124.4
DPC-10S205396.57655701.24148225°-60°1,088.4
DPC-11S205456.77655516.64125235°-70°1,065.0
DPC-12S20565076552004100235°-70°941.4
      Subtotal5,811.0
Mina 2 Target Area – Surface Drill Program Testing Magnetic Inverse Model
DM2-01S2059447654211367430°-60°860.3
      Subtotal860.3
      TOTAL17,463.3

S = Surface UG=Underground; collar coordinates in metres; azimuth and dip in degrees. Total drilling completed since the start of the program on September 13, 2020 to December 17, 2021 is 40,468 m in 73 holes (26 underground holes and 47 surface holes). From re-start of drilling on January 17, 2022, an additional 19,031m have been completed bringing the overall total to 59,499 m in 95 drill holes (31 underground drill holes and 64 surface drill holes) including 4 holes in progress.

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.

The magnetic survey was carried out by MES Geophysics using a GEM Systems GSM-19W Overhauser magnetometer. Dr. Chris Hale, P.Geo. and Mr. John Gilliatt, P.Geo. of Intelligent Exploration provided the survey design, preparation of the maps and interpretation from data processed and quality reviewed by Rob McKeown, P. Geo. of MES Geophysics. Messrs. Hale, Gilliatt and McKeown are Qualified Persons as defined under NI 43-101. Mr. Joe Mihelcic, P.Eng., P.Geo., of Clearview Geophysics, a QP under NI 43-101, completed the 3D magnetic inversion model in consultation with Dr. Hale and Mr. Gilliatt. The Borehole IP surveys are being carried out by MES Geophysics under the supervision of Dr. Hale and Mr. Gilliatt.

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 Potosí 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 (29.53g Ag/t, 0.078g 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. This work is advancing well with the mineral resource targeted to be completed in Q3 2022. Exploration drilling is also planned on other major targets in the Iska Iska Caldera Complex, including the Porco and Mina 2 areas.

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 3,150 m to 4,400 m above sea level.

For further information please contact either Thomas G. Larsen, Chairman and CEO or Jorge Estepa, Vice-President at (416) 868-9168.

Information in this news release may contain forward-looking information. Statements containing forward-looking information express, as at the date of this news release, the Company’s plans, estimates, forecasts, projections, expectations, or beliefs as to future events or results and are believed to be reasonable based on information currently available to the Company. There can be no assurance that forward-looking statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. Readers should not place undue reliance on forward-looking information.

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.

Categories
Base Metals Eloro Resources Energy Junior Mining Precious Metals

Eloro Resources Provides Update on the Preliminary Metallurgical Testwork Program for the Iska Iska Silver-Tin Polymetallic Project, Potosi Department, Bolivia

Eloro Resources, Proven and Probable

TORONTO, June 13, 2022 (GLOBE NEWSWIRE) — Eloro Resources Ltd. (TSX-V: ELO; OTCQX: ELRRF; FSE: P2QM) (“Eloro”, or the “Company”) is pleased to provide an update on its preliminary metallurgical testwork program for the Iska Iska silver-tin polymetallic project in the Potosi Department, southern Bolivia. The work program including testwork for development of a preliminary metallurgical flowsheet and preliminary mineralogical characterization, is being carried out by Blue Coast Research Ltd. (“Blue Coast”) based in Parksville, BC. The objective is to develop the preliminary flotation flowsheet to maximize lead, zinc and precious metals into saleable concentrates in the Santa Barbara polymetallic deposit and to develop a preliminary flowsheet for tin in both the Santa Barbara and the deeper tin-dominant mineralization.

Blue Coast has world-class metallurgical testing, analytical services, flowsheet development, consulting, and operational support. Their excellent team has been augmented with the addition of Mr. Mike Hallewell, C.Eng., a senior independent mineral processing consultant based in Cornwall, England, who has extensive specialist knowledge in the recovery of tin at mining operations and exploration projects worldwide.

The metallurgical testing is being directed by Richard Gowans, P.Eng., Principal Metallurgist for Micon International Limited, who is an independent Qualified Person as defined under NI 43-101.

Tom Larsen, CEO of Eloro, commented: “The metallurgical testing program at Blue Coast is progressing well. The initial focus of their work was on the Santa Barbara polymetallic mineralization for Ag, Zn and Pb recovery based on samples from discovery hole DHK15 and hole DHK-18. The tin-rich zone in hole DSB-06 was also selected for testing but at that time it was uncertain how this mineralization was connected to the Santa Barbara polymetallic deposit. However, with further drilling and solid work by our geological and geophysical team, we now know that there is extensive tin mineralization at depth beneath the polymetallic mineralization. Once testing is completed on DSB-06, we will be adding additional samples from tin-rich holes to enable further development of an appropriate flow sheet for tin. While arsenic and other potentially deleterious elements are being tracked during the testwork program, these are not anticipated to be a material issue at the levels in current tests.”

Metallurgical Samples

The samples used for the preliminary program completed to date comprise three representative metallurgical samples from existing drill core. The initial three composites are:

  • Composite drill hole DHK-15, from 131 m to 198 m, mineralized breccia.
  • Composite drill hole DHK-18, from 76 m to 140 m, mineralized dacitic envelope.
  • Composite drill hole DSB-06, from 413 m to 477 m, tin-rich mineralized zone.

Approximately 60 m of quarter-core from each drill hole was selected for these three metallurgical composite samples. The head analyses for these three composites are presented in Table 1. It is noted that the arsenic (As) grade is relatively low, being less than = 0.03% for all the three composite samples. Although not anticipated to be a material issue at these levels, the As and other potentially deleterious elements will be tracked during the testwork program.

Table 1: – Metallurgical Sample Head Analyses

Sample IDAuAgBiCdCuInPbZnSnAsFeSS-
ppmppmppmppmppmppm%%%ppm%%%
DHK-150.0229.634120114301.212.480.122892.373.513.07
DHK-180.0232.114185370241.012.890.121783.034.494.37
DSB-060.035.80250.6103<200.010.010.491694.894.104.23

Note: ppm = grams per tonne (g/t)

The initial testwork completed by Blue Coast at the end of May 2022 included preliminary mineralogical characterization studies, open circuit sulphide flotation scoping tests and locked cycle flotation tests using composites DHK-15 and 18. The work conducted on DHK-15 and 18 factored into consideration the preliminary test work conducted by the Universidad Técnica de Oruro on different samples.

The DSB-06 sample is extracted from deeper higher-grade tin mineralization that is seen to replace the polymetallic lead-zinc-silver-tin mineralization type at depth and this sample has become the subsequent focus of the ongoing tin studies at Blue Coast. Additional tin-rich samples will be added for further testing after the initial test program is completed.

Mineralogical Characterization of Metallurgical Composites

The Iska Iska composites DHK-15, DHK-18 and DSB-06 were analyzed using the TESCAN Integrated Mineral Analyzer (TIMA), a fully automated analytical scanning electron microscope, to measure bulk mineralogy, sulphide grain size and liberation to support the metallurgical test program. In addition, a suite of electron microprobe analyses was completed on various sulphide and oxide species to better understand overall mineral chemistry and tin deportment.

Sulphide minerals in base metal composites DHK-15 and DHK-18 consisted of mainly sphalerite, galena and pyrite. Sulphide mineral liberation was very good at the test grind of 80% passing (P80) 70 microns and flotation testwork, described below, was able to achieve good lead-zinc separation. Non-sulphide gangue minerals in all composites consisted of quartz, various phyllosilicate minerals including micas, chlorite and kaolinite, and minor Fe oxides.

Cassiterite (a tin oxide mineral) was the dominant tin mineral identified in tin composite DSB-06. Cassiterite was moderately liberated (69% of grains had liberation of 80% or better at the test grind of P80 70 microns). Cassiterite formed middling particles with pyrite, rutile, quartz and iron oxides. Pyrite in DBS-06 was well liberated. Initial flotation testwork, described below, focused on separating pyrite from the cassiterite.

Microprobe analyses were completed on a group of pyrite, sphalerite, galena and cassiterite grains in the metallurgical composites. Tin was identified in trace amounts within the structure of galena and sphalerite in the base metal composites, suggesting that the sulphide concentrates will contain a small amount of tin.

Geometallurgical Characterization

Separate to the testing of the metallurgical composites, a program of integrated mineralogical analysis is underway on a series of core slabs from Hole DSBU-03. This hole (see press release dated March 1, 2022) intersects both base metal and tin mineralization and is being used to develop a strong mineral reference library for the resource. The slabs have received hyperspectral (SWIR/VNIR), XRF and RGB scanning by GeologicAI and are now being prepared for petrographic analysis using TIMA and microXRF mapping. The combined data set will be used as a reference library to support the on-site automated core scanning program.

Lead-Zinc-Silver Flotation

Following a series of batch rougher and cleaner tests where the preliminary flotation circuit was developed, locked cycle tests (LCT) were completed using DHK-15 and DHK-18. A locked cycle flotation test is a series of identical batch flotation tests where recycled material from the previous cycle is added to the appropriate location in the flowsheet in the current cycle. The LCT is a standard method used to simulate continuous operating conditions.

The lead-zinc sequential flowsheet used for the LCTs included primary grinding followed by lead rougher flotation, lead rougher concentrate regrinding and 3 stages of lead cleaner. The lead rougher tailings and lead first cleaner tailings fed the zinc rougher stage, and similar to the lead circuit, the flowsheet included regrinding of zinc rougher concentrate followed by three zinc cleaner stages. The final residue streams were the zinc rougher tailings and zinc first cleaner tailings.

Each LCT comprised 6 cycles where the final cycles were deemed to be relatively stable and the circuit appeared to reach equilibrium. Summaries of the average results from the last 3 cycles for both tests are presented in Tables 2 and 3.

Table 2: Summary of Locked Cycle Test Average Results for Sample DHK-15

ProductWt. %Assays% Distribution
Ag
(g/t)
Pb
(%)
Zn
(%)
Fe
(%)
S
(%)
AgPbZnFeS
Pb Cl.3 Conc.2.0104756.77.378.8422.668.186.95.96.113.1
Zn Cl.3 Conc.4.31861.5849.610.934.326.55.387.116.643.4
Zn Cl.1 Tail5.2230.581.1619.821.74.02.32.436.333.0
Zn Ro. Tail88.600.080.131.300.401.45.54.540.910.5
Calc. Head100.0301.282.452.833.39100.0100.0100.0100.0100.0

The LCT DHK-15 lead recovery into the final lead concentrate grading 56.7% Pb was 86.9% while the silver grade was 1,047 g/t. The zinc recovery into a final zinc concentrate containing 49.6% Zn was 87.1%. The total silver recovery was 94.6%, including 68.1% and 26.5% into the lead and zinc concentrates, respectively.

Table 3: Summary of Locked Cycle Test Average Results for Sample DHK-18

ProductWt. %Assays% Distribution
Ag
(g/t)
Pb
(%)
Zn
(%)
Fe
(%)
S
(%)
AgPbZnFeS
Pb Cl.3 Conc.1.4105756.27.105.4018.943.572.23.42.25.9
Zn Cl.3 Conc.5.02581.4051.48.2732.037.66.486.912.035.2
Zn Cl.1 Tail9.6391.001.3611.711.910.98.74.432.425.1
Zn Ro. Tail84.030.170.192.211.848.112.65.253.433.8
Calc. Head100.0341.102.963.474.56100.0100.0100.0100.0100.0

The lead recovery for LCT DHK-18 into the final lead concentrate grading 56.2% Pb was 72.2% while the silver grade was 1,057 g/t. The zinc recovery into a final zinc concentrate containing 51.4% zinc was 86.9%. The silver recovery totalled 81.0%, including 43.5% and 37.6% into the lead and zinc concentrates, respectively.

Samples of final concentrate products from each LCT have been submitted for multi-element analyses to assess the distribution of other potential valuable or deleterious components.

The preliminary flotation test results are very encouraging. The results received so far for drill hole sample DHK-15 are considered very good with high lead, zinc and silver recoveries, and although sample DHK-18 results were not quite as good for lead, zinc recovery was high and overall silver distribution into the final products was good.

Acceptable separate lead and zinc concentrates containing significant payable silver that adds considerable value to these products have been produced from both samples. Work will continue at Blue Coast and other metallurgical laboratories to fine tune the flotation conditions to maximize metal recoveries and quality of concentrates produced.

Tin Metallurgy

DSB-06 tin-rich sample contains low levels of lead, zinc and silver-bearing sulphides, the main sulphide mineral present in this sample being pyrite. No stannite (a tin sulphide mineral) is present in this sample; the tin mineralisation consists entirely of cassiterite.

The pyrite to cassiterite ratio in DSB-06 is circa 5:1. The Blue Coast approach has been initially focused on removing the pyrite prior to traditional beneficiation methods of cassiterite that are employed, using gravity followed by tin flotation. The pyrite is well liberated across all size fractions tested and therefore, the preliminary bulk sulphide flotation sulphur recoveries were good.

A preliminary study has identified that grinding the sample generates predominantly fine cassiterite grains that are more amenable to tin flotation technology. Staged comminution options will be considered to minimise fine cassiterite production in conjunction with staged gravity recovery of whatever coarse grained cassiterite is present and recoverable at, as early a stage in the process as possible.

Gravity release analysis by size testwork on bulk sulphide flotation tailings is in progress to identify the amenability of the mineralization to gravity concentration.

One bulk sulphide rougher flotation test followed immediately by a rougher tin flotation test has been conducted using unoptimized conditions. The rougher tin flotation cassiterite stage recovery was encouraging suggesting that the mineralization will be amenable to tin flotation technology. Further mineralogical work is in progress on the tin flotation rougher concentrates produced to ascertain if this rougher concentrate contains predominantly free liberated cassiterite that would therefore be expected to be upgraded by cleaning. Tin flotation is a universally practised technology and used by all the major hard rock tin mines globally as a method of recovering cassiterite that is too fine grained for conventional gravity concentration.

The tin mineralogy and physical competence will be linked to geological attributes. This will become a key feature in contextualising any variances in these parameters across the deposit. The GeologicalAI scanner, which is now on site and will be operational shortly, and the geometallurgical work noted above, will be very important in characterizing the geological attributes.

The test work is too premature to quote tin recovery numbers, but the initial mineralogy shows that the tin minerals are all in the form of cassiterite with insignificant amounts of stannite. Furthermore, the preliminary testing indicates that tin flotation will be a key recovery route and the preliminary tin flotation test work results are encouraging.

Qualified Person

The metallurgical testing is being directed by Richard Gowans, P.Eng., Principal Metallurgist for Micon International Limited, who is an independent Qualified Person as defined under NI 43-101. Mr. Gowans. has reviewed and approved the technical content of this news release.

Dr. Osvaldo Arce, P. Geo., General Manager of Eloro’s Bolivian subsidiary, Minera Tupiza, and a Qualified Person in the context of NI 43-101, supervised all exploration work at Iska Iska. Dr. Bill Pearson, P.Geo., Executive Vice President Exploration for 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 International Limited 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.

Eloro Resources at the PDAC

Eloro will be participating at the PDAC 2022 convention in Toronto and invites you to visit us at Booth IE3326 (Investors Exchange) in the South Building, Metro Toronto Convention Centre from June 13-15, 2022.

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 Potosí 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 (29.53g Ag/t, 0.078g 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. This work is advancing well with the mineral resource targeted to be completed in Q3 2022. Exploration drilling is also planned on other major targets in the Iska Iska Caldera Complex, including the Porco and Mina 2 areas.

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. Eloro commissioned a NI 43-101 Technical Report on Iska Iska, which was completed by Micon International Limited 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% 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 3,150 m to 4,400 m above sea level.

For further information please contact either Thomas G. Larsen, Chairman and CEO or Jorge Estepa, Vice-President at (416) 868-9168.

Information in this news release may contain forward-looking information. Statements containing forward looking information express, as at the date of this news release, the Company’s plans, estimates, forecasts, projections, expectations, or beliefs as to future events or results and are believed to be reasonable based on information currently available to the Company. There can be no assurance that forward-looking statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. Readers should not place undue reliance on forward-looking information.

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.

Categories
Base Metals Eloro Resources Energy Junior Mining Precious Metals

Peter Marrone Appointed to the Position of Senior Corporate Advisor to Eloro Resources Ltd.

TORONTO, June 06, 2022 (GLOBE NEWSWIRE) — Eloro Resources Ltd. (TSX-V: ELO; OTCQX: ELRRF; FSE: P2QM) (“Eloro” or the “Corporation”) is pleased to announce that Mr. Peter Marrone, a shareholder of Eloro, has agreed to serve as an independent advisor to provide support and strategic advice to management on matters of project advancement and business development in relation to its Iska Iska project.

Peter Marrone is Executive Chairman of Yamana Gold Inc., which he founded in 2003 and which recently announced that it is to be acquired by Gold Fields Limited, a combination that creates a world-class, globally diversified company with regional relevance across premier, rules-based mining jurisdictions that is underpinned by low cost, long life mines. Mr. Marrone has a long track record of successful mining start-ups and investments with more than 35 years of mining, business and capital markets experience. Mr. Marrone also currently sits on the board of directors, and is one of the founders, of Aris Gold Corporation which holds one of the best portfolios of producing and development stage assets in Colombia. Mr. Marrone has also been the head of investment banking at a major Canadian investment bank and before that practised law in Toronto with a strong focus on corporate law, securities law and international transactions.

“I am extremely pleased to welcome Mr. Peter Marrone as a Senior Corporate Advisor”, said Eloro Chairman and C.E.O. Mr. Tom Larsen. “Peter brings valued knowledge and experience that will be helpful to our management in relation to all aspects of Eloro’s operations, capital markets efforts and strategic avenues for development and realization of significant value from our highly prospective Iska Iska tin-silver polymetallic project in Bolivia. With his proven success as the founder of companies and his outstanding track record in developing and advancing exploration projects, and realizing value from strategic efforts, it is clearly a benefit for Eloro and its shareholders and I very much look forward to working with him.”

Peter Marrone commented: “I am impressed with the size and scale of Iska Iska which should be developed in time as a world class tin-silver deposit with large scale production, all of which coincides with a time when tin in particular is in high demand and silver is a necessary component for decarbonization.  The tin market is intriguing to me. It is poised for what appears to be a clear upward path for demand and price.  Eloro has built a very strong management team that is continuing to rapidly advance Iska Iska with major milestones, including the inaugural National Instrument 43-101 mineral resource expected in Q3 2022.  As a shareholder, I have become impressed with the project and management. Informally, I have been consulted from time to time by management and I look forward to continuing to provide strategic advice to management and to CEO Tom Larsen and Executive VP Exploration Dr. Bill Pearson, P.Geo., in particular. Interestingly, Bill has known me for many years and has an impressive resume of quality geological discoveries that now includes Iska Iska which is likely the crowning glory of an illustrious career. Simply put, Iska Iska is a world-class project and I look forward to helping management to increase value for Eloro shareholders.”

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 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 3,150 m to 4,400 m above sea level.

For further information please contact either Thomas G. Larsen, Chairman and CEO or Jorge Estepa, Vice-President at (416) 868-9168.

Information in this news release may contain forward-looking information. Statements containing forward-looking information express, as at the date of this news release, the Corporation’s plans, estimates, forecasts, projections, expectations, or beliefs as to future events or results and are believed to be reasonable based on information currently available to the Corporation. There can be no assurance that forward-looking statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. Readers should not place undue reliance on forward-looking information.

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.

Categories
Eloro Resources Energy Junior Mining Precious Metals

Eloro Resources Closes C$9.775 Million Bought Deal Financing

TORONTO, May 19, 2022 (GLOBE NEWSWIRE) — Eloro Resources Ltd. (the “Company” or “Eloro”) (TSX-V: ELO; OTCQX: ELRRF; FSE: P2QM) is pleased to announce that it has closed its previously announced bought deal financing of 3,007,710 units of the Company (the “Units”) at a price of C$3.25 per Unit for gross proceeds to the Company of C$9,775,057.50 (the “Offering”). The Offering was underwritten on a bought deal basis by Cormark Securities Inc. as underwriter (the “Underwriter”), pursuant to an underwriting agreement dated May 16, 2022 between the Company and the Underwriter. Haywood Securities Inc. participated as a special selling group member in connection with the Offering. The Offering included the exercise in full by the Underwriter of the over-allotment option granted by the Company pursuant to the terms of the Offering. Each Unit consists of one common share in the capital of the Company (each a “Common Share”) and one-half of one Common Share purchase warrant of the Company (each whole warrant, a “Warrant”). Each Warrant entitles the holder to acquire an additional Common Share at a price of C$4.75 for a period of 24 months following the closing of the Offering.

The securities issued under the Offering were qualified for distribution pursuant to a prospectus supplement dated May 16, 2022 (the “Supplement”) to the Company’s short form base shelf prospectus dated May 11, 2022.

The net proceeds from the Offering will be used for continued exploration and development of the Company’s Iska Iska project in Bolivia, as further set out in the Supplement filed on the Company’s SEDAR profile at www.sedar.com.

In connection with the Offering, the Company paid the Underwriter a cash commission equal to 6% of the gross proceeds of the Offering (for a total cash commission of C$586,503.45) and issued to the Underwriter and its selling group members that number of non-transferable compensation options (the “Compensation Options”) equal to 6% of the aggregate number of Units sold under the Offering (for a total of 180,462 Compensation Options). Each Compensation Option entitles the holder to acquire one Common Share at a price of C$3.25 per Common Share for a period of 24 months following the closing of the Offering.

The securities offered in the Offering have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”) or any U.S. state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, United States persons absent registration or any applicable exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

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 NI 43-101 Technical Report on Iska Iska, which was completed by Micon International Limited, is available under Eloro’s 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 3,150 m to 4,400 m above sea level.

For further information please contact either Thomas G. Larsen, Chairman and CEO or Jorge Estepa, Vice-President at (416) 868-9168.

Information in this news release may contain forward-looking information. Statements containing forward-looking information express, as at the date of this news release, the Company’s plans, estimates, forecasts, projections, expectations, or beliefs as to future events or results and are believed to be reasonable based on information currently available to the Company (forward-looking statements in this news release include, without limitation, statements regarding the use of proceeds from the Offering). There can be no assurance that forward-looking statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. Readers should not place undue reliance on forward-looking information. The Company does not intend to update any such forward-looking information, except in accordance with applicable laws.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Categories
Eloro Resources Energy Junior Mining Precious Metals

Eloro Resources Announces Upsized Bought Deal Financing To C$8.5 Million

TORONTO, May 13, 2022 /CNW/ – Eloro Resources Ltd. (the “Company” or “Eloro“) (TSXV: ELO) (OTCQX: ELRRF) (FSE: P2QM) is pleased to announce that in connection with its previously announced bought deal financing, the Company and Cormark Securities Inc., (the “Underwriter“) have agreed to increase the size of the previously announced financing. The Underwriter has agreed to purchase, on a bought deal basis, 2,615,400 units of the Company (the “Units“) at a price of C$3.25 per Unit for gross proceeds to the Company of approximately C$8.5 million (the “Offering“). Each Unit will consist of one common share in the capital of the Company (each a “Common Share“) and one-half of one common share purchase warrant (each whole warrant, a “Warrant“) of the Company. Each Warrant shall entitle the holder to acquire an additional Common Share at a price of C$4.75 for a period of 24 months following the closing of the Offering.

The Company has agreed to grant the Underwriter an option (the “Over-Allotment Option“) to sell an additional 392,310 Units, such option being exercisable in whole or in part at any time prior to the date that is 30 days after the closing of the Offering, to cover over-allotments, if any, and for market stabilization purposes. In the event that the Over-Allotment Option is exercised in full, the aggregate gross proceeds of the Offering to the Company will be approximately C$9.775 million.

The net proceeds from the Offering will be used for exploration and development at the Company’s projects in Bolivia and Peru, and for general working capital and corporate purposes as set out in the Prospectus Supplement (defined below).

The Units will be offered by way of a prospectus supplement (the “Prospectus Supplement“) to the Company’s existing base shelf prospectus in all of the provinces of Canada (other than the Province of Quebec). The Prospectus Supplement (together with the related base shelf prospectus) will be available on SEDAR at www.sedar.com.

The Offering is scheduled to close on or about May 19, 2022 and is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory and other approvals including the approval of the TSXV.

The securities offered in the Offering have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”) or any U.S. state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, United States persons absent registration or any applicable exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

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 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 3,150 m to 4,400 m above sea level.

Information in this news release may contain forward-looking information. Statements containing forward looking information such as the closing of the Offering, use of proceeds, and TSXV approval, express, as at the date of this news release, the Company’s plans, estimates, forecasts, projections, expectations, or beliefs as to future events or results and are believed to be reasonable based on information currently available to the Company. There can be no assurance that forward-looking statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. Readers should not place undue reliance on forward-looking information.

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.

SOURCE Eloro Resources Ltd.

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Categories
Eloro Resources Energy Junior Mining Precious Metals

Eloro Resources Files Updated 43-101 Technical Report on Iska Iska Project

Eloro Resources Ltd.
Eloro Resources Ltd.

Eloro Resources Also Announces Filing of Final Base Shelf Prospectus

TORONTO, May 11, 2022 (GLOBE NEWSWIRE) — Eloro Resources Ltd. (the “Company” or “Eloro”) (TSX-V: ELO; OTCQX: ELRRF; FSE: P2QM) is pleased to announce that it has filed on SEDAR an updated technical report (“Technical Report”) on the Company’s Iska Iska silver-tin polymetallic project, prepared by Micon International Limited (“Micon”) and in accordance with National Instrument 43-101.

Eloro also announces that it has filed a final short form base shelf prospectus with the securities regulatory authorities in each of the provinces of Canada except Québec.

Updated NI 43-101 Technical Report

The Technical Report supports the interpretation of the drilling and other exploration results thus far, and details Eloro’s next exploration phase leading to the estimation of mineral resources. Micon’s conclusions in the Technical Report include the following:https://embed.fireplace.yahoo.com/embed?ctrl=Monalixa&m_id=monalixa&m_mode=document&site=sports&os=android&pageContext=%257B%2522ctopid%2522%253A%25221542500%253B1577000%2522%252C%2522hashtag%2522%253A%25221542500%253B1577000%2522%252C%2522wiki_topics%2522%253A%2522Technical_report%253BNational_Instrument_43-101%253BCanadian_Securities_Administrators%253BHelorus%253BInternational_Sport_Karate_Association%253BCompany%2522%252C%2522lmsid%2522%253A%2522a0770000002m0AbAAI%2522%252C%2522revsp%2522%253A%2522globenewswire.com%2522%252C%2522lpstaid%2522%253A%2522bfb4f0a9-3ea8-34cb-a445-59cd20f5f3d0%2522%252C%2522pageContentType%2522%253A%2522story%2522%257D

  • The potential of the Iska Iska Project is unquestionable in terms of its regional geological setting. It is in the midst of a proven metallogenic district with well-established world-class mines such as Cerro Rico de Potosi, Chorolque, and San Vicente. The fact that nearby mines of the Bolivian polymetallic type are operating profitably, is positive for the current drill definition and metallurgical investigations at Iska Iska.
  • Proximity of the deposit to surface offers an opportunity/potential for both open pit and underground exploitation, especially in the Santa Barbara – Huayra Kasa area.
  • Geological mapping, geophysical surveys, and diamond drilling have revealed a potentially large deposit of significance but yet to be converted into a resource. So far, the mineralization/deposit is isotropic, lacking any preferred alignment; this is corroborated by variography and downhole IP surveys.
  • All holes drilled across the project to date display intervals of alteration and significant mineralization, and the limits of the system have not yet been delineated. The deposit is wide open for expansion in all directions.
  • The “epicentre” of mineralization appears to be in the Santa Barbara adit area, where the highest grades and widest widths have been encountered to date. Therefore, resource development and expansion should radiate outwards from here.

In making recommendations in the Technical Report, Micon states: Eloro’s nearer term objective is a maiden mineral resource estimate within this large target area. This work is advancing well with the initial mineral resource targeted to be completed in Q3 2022. Exploration drilling is also planned on other major targets in the Iska Iska Caldera Complex including the Porco and Mina 2 areas. Accordingly, Micon recommends a two-pronged approach for Eloro to achieve its objectives, namely an initial phase of geophysics and additional delineation drilling followed by a second phase of resource expansion and preliminary economic assessment.

Final Base Shelf Prospectus

The base shelf prospectus filed by Eloro will allow Eloro to qualify the distribution by way of prospectus of up to C$100 million, in aggregate, of common shares, warrants and units, or any combination thereof, from time to time during the 25-month period during which the base shelf prospectus is effective. The specific terms of any future offering will be established in a prospectus supplement to the base shelf prospectus, which supplement will be filed with the applicable Canadian securities regulatory authorities in connection with any such offering.

Eloro has filed the base shelf prospectus to provide the Company with greater financial flexibility going forward but has not entered into any agreements or arrangements to authorize or offer any securities of the Company at this time.

A copy of the final short form base shelf prospectus is available under Eloro’s profile on SEDAR at www.sedar.com.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of, any securities of the Company in any jurisdiction in which such offer, solicitation or sale would be unlawful.

Qualified Person

Dr. Bill Pearson, P.Geo., Eloro’s Executive Vice President Exploration and a Qualified Person as such term is defined in National Instrument 43-101, has reviewed 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 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 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 3,150 m to 4,400 m above sea level.

For further information please contact either Thomas G. Larsen, Chairman and CEO or Jorge Estepa, Vice-President at (416) 868-9168.

Information in this news release may contain forward-looking information. Statements containing forward-looking information express, as at the date of this news release, the Company’s plans, estimates, forecasts, projections, expectations, or beliefs as to future events or results and are believed to be reasonable based on information currently available to the Company (forward-looking statements in this news release include, without limitation, statements regarding an initial mineral resource estimate for the Iska Iska project and regarding future financings, if any, pursuant to the short form base shelf prospectus referred to in this news release). There can be no assurance that forward-looking statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. Readers should not place undue reliance on forward-looking information.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Categories
Base Metals Eloro Resources Energy Junior Mining Precious Metals

Eloro Resources Intersects 182.34g Ag eq/t (29.85g Ag/t, 1.01% Zn, 0.64% Pb, 0.11% Cu and 0.11% Sn) over 351.0m in Southern Part of Santa Barbara Target at Iska Iska Silver-Tin Polymetallic Project, Potosi Department, Bolivia

Eloro Resources Ltd.
Eloro Resources Ltd.

Figure 1

Geology of the Iska Iska Caldera Complex showing locations of Major Breccia Pipe targets, the Santa Barbara Resource Definition Target Zone and diamond drill holes completed and planned.
Geology of the Iska Iska Caldera Complex showing locations of Major Breccia Pipe targets, the Santa Barbara Resource Definition Target Zone and diamond drill holes completed and planned.

Figure 2

Preliminary W-E Geological Cross Section with Drill Holes METSBUG-01, METSBUG-02 and DSBU-03 (looking northwest)
Preliminary W-E Geological Cross Section with Drill Holes METSBUG-01, METSBUG-02 and DSBU-03 (looking northwest)
  • Includes higher-grade sections in hole METSBUG-01 of:
    • 261.14g Ag eq/t (24.65g Ag/t, 0.15% Zn, 0.14% Pb, 0.81% Cu and 0.19% Sn) over 22.56m
    • 599.26g Ag eq/t (208.14g Ag/t, 0.28% Zn, 0.51% Pb, 0.56% Cu and 0.41% Sn) over 17.60m
    • 324.72g Ag eq/t (12.49g Ag/t, 1.88% Zn, 1.26% Pb, 0.02% Cu and 0.31% Sn) over 30.01m
    • 292.78g Ag eq/t (55.64g Ag/t, 2.70% Zn, 1.31% Pb, 0.02% Cu and 0.12% Sn) over 31.72m
  • Hole DSB-25, drilled approximately 400m northwest of hole METSBUG-01, intersected 25 reportable intersections with a best result of 205.13g Ag eq/t (25.01g Ag/t, 0.11g Au/t, 0.13% Cu and 0.25% Sn) over 81.11m including a higher-grade section of 428.83g Ag eq/t (55.88g Ag/t, 0.19g Au/t, 0.28% Cu and 0.53 %Sn) over 17.93m

TORONTO, March 16, 2022 (GLOBE NEWSWIRE) — Eloro Resources Ltd. (TSX-V: ELO; OTCQX: ELRRF; FSE: P2QM) (“Eloro”, or the “Company”) is pleased to announce assay results from an additional two (2) diamond drill holes from its on-going drilling program at the Iska Iska silver-tin polymetallic project in the Potosi Department, southern Bolivia. Hole METSBUG-01 is an underground hole drilled for metallurgical sampling purposes from the Santa Barbara adit, while step-out hole DSB-25 was drilled approximately 400m northwest of hole METSBUG-01. Both holes intersected major new extensions of the already large Santa Barbara mineralized zone.

The Company has completed 53,445m in 83 drill holes, including three holes in progress, as shown in Figure 1. Table 1 lists significant assay results from holes METSBUG-01 and DSB-25. Prices used for calculating Ag equivalent grades are as outlined in Eloro’s February 1, 2022, press release. Table 2 summarizes drill holes with assays pending. Highlights are as follows:

Santa Barbara Mineral Resource Target Area

Hole METSBUG-01, an underground hole drilled for metallurgical sampling purposes from the Santa Barbara adit, was drilled at azimuth 10 degrees at a dip of -35 degrees to intersect the midpoint of an intercept of 184.97g Ag eq/t (29.53g Ag/t, 0.08g Au/t, 1.45% Zn, 0.59% Pb, 0.08% Cu, 0.056% Sn) over 257.5m in discovery hole DHK-15 (see Eloro’s January 26, 2021 press release; 164.87g Ag eq/t recalculated, up from 129.60 g Ag eq/t, using current metal pricing) to provide a representative sample in the higher-grade mineralized area of the Santa Barbara breccia pipe (Figures 1 and 2 and Table 1).

This hole intersected 182.34g Ag eq/t (29.85g Ag/t, 1.01% Zn, 0.64% Pb, 0.11% Cu and 0.11% Sn) over its full length of 351.0m including higher-grade sections of:

  • 261.14g Ag eq/t (24.65g Ag/t, 0.15% Zn, 0.14% Pb, 0.81% Cu and 0.19% Sn) over 22.56m from 2.94m to 25.50m,
  • 599.26g Ag eq/t (208.14g Ag/t, 0.28% Zn, 0.51% Pb, 0.56% Cu and 0.41% Sn) over 17.60m from 46.66m to 64.26m. This section included a remarkable sample over 1.42m from 55.43m to 56.85m which assayed 5,106g Ag eq/t (1,730g Ag/t, 0.42g Au/t, 2.15% Bi, 6.33% Cu and 3.55% Sn),
  • 324.72g Ag eq/t (12.49g Ag/t, 1.88% Zn, 1.26% Pb, 0.02% Cu and 0.31% Sn) over 30.01m from 92.89m to 122.90m,
  • 292.78g Ag eq/t (55.64g Ag/t, 2.70% Zn, 1.31% Pb, 0.02% Cu and 0.12% Sn) over 31.72m from 241.28m to 273.00m

As shown in Figure 2, a SW-NE cross section looking northwest, hole METSBUG-01, along with previously released drill holes METSBUG-02 (see Eloro’s February 23, 2022 press release) and DSBU-03 (see Eloro’s March 1, 2022 press release) define a major high grade mineralized area that extends across a width of approximately 600m to a depth of a least 600m and is open along strike to the northwest and at depth. It is significant to note that hole METSBUG-01 was mineralized from top to bottom and terminated in mineralization.

Importantly, mineralization, especially areas with higher tin grades, appears coincident with elevated magnetic susceptibility (Figure 2). Areas of elevated magnetic susceptibility appear much more expansive than current volumes of rock that have been drill tested, a good indication that more mineralization is yet to be discovered.

Step-out hole DSB-25, drilled approximately 400m northwest of hole METSBUG-01, intersected 25 reportable intersections with a best result of 205.13g Ag eq/t (25.01g Ag/t, 0.1 g Au/t, 0.13% Cu and 0.25% Sn) over 81.11m from 356.93m to 439.04m including a higher-grade section of 428.83g Ag eq/t (55.88 g Ag/t, 0.19 g Au/t, 0.28% Cu and 0.53 %Sn) over 17.93m from 379.18m to 397.11m. This hole continues to confirm the extent of significant mineralization in the northwest extension area of Santa Barbara.

Tom Larsen, CEO of Eloro, commented: “We are continuing to intersect wide areas of higher-grade mineralization which will enhance our planned inaugural National Instrument 43-101 mineral resource estimate. Longer holes are planned in this very prospective area of the Santa Barbara target to better define the full extent of the higher-grade areas which remain open both along strike and downdip.”

Dr. Bill Pearson, P.Geo., Eloro’s Executive Vice President Exploration, added: “We are continuing to expand the extent of the remarkable silver-tin polymetallic mineralized system at Iska Iska. Additional holes are in progress to test the downdip and along strike extent of the high-grade zone in the southeastern part of the Santa Barbara target area. Drilling is also in progress, as outlined in the Eloro press release of March 1, 2022, to test the major targets in the Porco area indicated by the 3D inverse magnetic susceptibility model.”

Dr. Osvaldo Arce, P.Geo., General Manager of Eloro’s Bolivian subsidiary Minera Tupiza S.R.L. (“Minera Tupiza”), further commented: “Recent assays from drillholes METSBUG 1 and 2 and DSBU-03 have intersected highly enriched zones of Sn, Ag, Pb and Cu with local Au and Bi in stockworks, disseminations and a variety of breccia types including both volcanic explosive and later structurally controlled breccias. The strength and intensity of mineralization in these holes along with the elevated magnetic susceptibility which extends much further along strike and downdip suggests the possibility of a major feeder in this area.”

Table 1: Significant Results, Diamond Drilling, Santa Barbara Resource Definition Target Area as at March 16, 2022.

SANTA BARBARA RESOURCE DEFINITION TARGET ZONE
UNDERGROUND METALLURGICAL DRILL HOLE
Hole No.From (m)To (m)Length (m)AgAuZnPbCuSnBiCdAg eq
g/tg/t%%%%%%g/t
METSBUG-010.00351.00351.0029.850.031.010.640.110.110.020.01182.34
Incl2.9425.5022.5624.650.050.150.140.810.190.010.00261.14
Incl46.6664.2617.60208.140.070.280.510.560.410.210.01599.26
Incl92.89122.9030.0112.490.031.881.260.020.310.000.01324.72
Incl241.28273.0031.7255.640.022.701.210.020.120.000.01292.78
NORTHWEST EXTENSION DRILL HOLE
DSB-2528.4629.801.3413.000.250.011.970.050.000.0420.001112.56
74.10114.6040.507.340.040.000.170.010.080.0020.00164.16
147.02148.401.3830.000.070.010.270.010.080.0140.00197.17
188.92191.963.0453.790.040.000.980.010.020.0010.001101.78
205.45232.4627.0139.470.050.010.370.060.040.0030.00189.29
253.43260.907.471.100.030.090.750.030.030.0010.01053.58
268.39284.9616.5716.470.030.180.840.020.040.0020.00480.33
308.96347.9739.016.710.050.180.080.090.040.0020.00355.16
356.93439.0482.1125.010.110.010.030.130.250.0310.001205.13
Incl.379.18397.1117.9355.880.190.010.040.220.530.0860.001428.83
463.20511.8648.661.090.020.030.470.010.120.0010.02994.26
539.20542.203.004.500.080.870.200.010.010.0060.03067.28
564.70570.695.992.610.040.020.010.050.090.0060.00365.41
591.03593.992.964.480.070.010.000.150.140.0350.001120.46
612.04615.032.996.990.120.000.010.080.080.0050.00173.20
630.04643.5213.483.990.170.010.000.090.040.0050.00157.42
663.01664.511.507.000.060.040.020.570.020.3630.001168.61
682.50685.533.0310.530.020.050.000.260.140.0040.001133.31
691.50697.506.004.370.160.100.010.050.040.0780.00167.41
703.50713.8710.379.460.530.390.010.080.060.1830.001145.81
719.90725.825.924.290.030.390.150.060.050.0140.00167.07
739.43742.412.983.000.070.300.070.060.040.0610.00169.46
755.97760.524.554.890.170.180.030.080.070.0430.00186.36
766.54768.031.497.000.040.190.030.190.090.0320.001101.64
772.54778.596.056.230.100.750.050.200.060.0420.003121.20
796.54798.031.493.000.090.110.090.060.030.3470.001107.40

Note: True width of the mineralization is not known at the present time, but based on the current understanding of the relationship between drill orientation/inclination and the mineralization within the breccia pipes and the host rocks such as sandstones and dacites, it is estimated that true width ranges between 70% and 90% of the down hole interval length but this will be confirmed by further drilling and geological modelling.

Chemical symbols: Ag= silver, Au = gold, Zn = zinc, Pb = lead, Cu = copper, Sn = tin, Bi = bismuth, Cd = cadmium and g Ag eq/t = grams silver equivalent per tonne. Quantities are given in percent (%) for Zn, Pb Cu, Sn, Bi and Cd and in grams per tonne (g/t) for Ag, Au and Ag eq.

Metal prices and conversion factors used for calculation of g Ag eq/t (grams Ag per grams x metal ratio) are as follows (Prices updated as of February 1, 2022, to more accurately reflect current metal prices):

ElementPrice $US (per kg)Ratio to Ag
Ag$722.561.0000
Sn$42.560.0589
Zn$3.300.0046
Pb$2.330.0032
Au$57,604.0079.7221
Cu$9.680.0134
Bi$12.760.0177
Cd$5.500.0076

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.

Table 2: Summary of Diamond Drill Holes Completed with Assays Pending and Drill Holes in Progress at Iska Iska from March 16, 2022 press release.

Hole No.TypeCollar EastingCollar NorthingElevAzimuthAngleHole Length m
Surface Drilling Northwest Extension Santa Barbara
DSB-14S205283.07656587.24175.0225-65968.5
DSB-16S204973.17657053.84165.0225-65862.0
DSB-17S7656765.4205131.34173.0225-40841.0
DSB-18S7656676.3205207.14175.0225-40890.4
DSB-19S7656676.3205207.14175.0225-65803.3
DSB-22S7657208.4204799.44145.0225-40258.4
DSB-23S205341.07656535.04177.0225-40661.3
DSB-24S205341.07656535.04177.0225-65343.4
DSB-26S205044.57656982.64150.0225-40815.4
DSB-27S205044.57656982.64150.0225-65800.4
Subtotal7244.1
Underground Drilling Santa Barbara Adit
DSBU-4UG205285.27656074.84165.0180-20570.0
DSBU-5UG205285.27656074.84165.00-40491.7
DSBU-6UG205285.27656074.84165.00-65253.5
DSBU-7UG205284.57656080.04167.1235-50800.9
Subtotal2116.1
DSBU-8UG205284.57656080.04167.1200-50In progress
Surface Drilling South Extension Santa Barbara
DSBS-01S205300.07655563.04204.030°-30700.8
Subtotal700.8
DSBS-02S205300.07655563.04204.0-45In progress
Porco Target Area – Surface Drill Program
DPC-04S205457.27655110.94175.00-60371.4
DPC-05S205457.27655110.94175.090-60407.5
DPC-06S205457.27655110.94175.0243-60716.4
DPC-07S205090.07655343.74310.0235-65791.4
DPC-08S205456.27655113.44175.9243-60800.4
Subtotal2295.7
DPC-09S205090.07655343.74310.0235-65In progress
TOTAL12,356.7

S = Surface UG=Underground; collar coordinates in metres; azimuth and dip in degrees. Total drilling completed since the start of the program on September 13, 2020 to December 17, 2021 is 40,468 m in 73 holes (26 underground holes and 47 surface holes). From re-start of drilling on January 17, 2022, an additional 12,977m has been completed bringing the overall total to 53,445m in 83 drill holes (28 underground drill holes and 55 surface drill holes) including 3 holes in progress.

Figure 1: Geology of the Iska Iska Caldera Complex showing locations of Major Breccia Pipe targets, the Santa Barbara Resource Definition Target Zone and diamond drill holes completed and planned.
https://www.globenewswire.com/NewsRoom/AttachmentNg/ddad13c1-182e-4aef-a844-9d1ecde42769

Figure 2: Preliminary W-E Geological Cross Section with Drill Holes METSBUG-01, METSBUG-02 and DSBU-03 (looking northwest)
https://www.globenewswire.com/NewsRoom/AttachmentNg/0f84cd4c-4e09-41a7-b3de-9ae3b13d66dc

Qualified Person

Dr. Osvaldo Arce, P. Geo., General Manager of Minera Tupiza, 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., Manager of Minera Tupiza. Dr. Quinton Hennigh, P.Geo., Senior Technical Advisor to Eloro and Independent Technical Advisor, Mr. Charley Murahwi P. Geo., FAusIMM of Micon International Limited are regularly consulted on technical aspects of the project.

The magnetic survey was carried out by MES Geophysics using a GEM Systems GSM-19W Overhauser magnetometer. Dr. Chris Hale, P.Geo. and Mr. John Gilliatt, P.Geo. of Intelligent Exploration provided the survey design, preparation of the maps and interpretation from data processed and quality reviewed by Rob McKeown, P. Geo. of MES Geophysics. Messrs. Hale, Gilliatt and McKeown are Qualified Persons as defined under NI 43-101. Mr. Joe Mihelcic, P.Eng., P.Geo., a QP under NI 43-101, of Clearview Geophysics completed the 3D magnetic inversion model in consultation with Dr. Chris Hale, P.Geo. and Mr. John Gilliatt, P.Geo. of Intelligent Exploration.

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 and it is hoped that most of the sample backlog will be cleared in the next 4-6 weeks.

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 Potosí 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 (29.53g Ag/t, 0.078g 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. This work is advancing well with the mineral resource targeted to be completed in Q2 2022. Exploration drilling is also planned on other major targets in the Iska Iska Caldera Complex including the Porco and Mina 2 areas.

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. Eloro commissioned a NI 43-101 Technical Report on Iska Iska, which was completed by Micon International Limited 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% 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 3,150 m to 4,400 m above sea level.

For further information please contact either Thomas G. Larsen, Chairman and CEO or Jorge Estepa, Vice-President at (416) 868-9168.

Information in this news release may contain forward-looking information. Statements containing forward-looking information express, as at the date of this news release, the Company’s plans, estimates, forecasts, projections, expectations, or beliefs as to future events or results and are believed to be reasonable based on information currently available to the Company. There can be no assurance that forward-looking statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. Readers should not place undue reliance on forward-looking information.

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.

Categories
Base Metals Eloro Resources Energy Junior Mining Precious Metals

Eloro Resources Files Preliminary Base Shelf Prospectus

Eloro Resources Ltd.
Eloro Resources Ltd.

TORONTO, March 10, 2022 (GLOBE NEWSWIRE) — Eloro Resources Ltd. (the “Company” or “Eloro”) (TSX-V: ELO; OTCQX: ELRRF; FSE: P2QM) announces that it has filed a preliminary short form base shelf prospectus with the securities regulatory authorities in each of the provinces of Canada except Québec. The base shelf prospectus, when final, will allow Eloro to qualify the distribution by way of prospectus of up to C$100 million, in aggregate, of common shares, warrants and units, or any combination thereof, from time to time during the 25-month period during which the base shelf prospectus is effective. The specific terms of any future offering will be established in a prospectus supplement to the base shelf prospectus, which supplement will be filed with the applicable Canadian securities regulatory authorities in connection with any such offering.

Eloro is filing a base shelf prospectus to provide the Company with greater financial flexibility going forward but has not entered into any agreements or arrangements to authorize or offer any securities of the Company at this time.

A copy of the preliminary short form base shelf prospectus is available under Eloro’s profile on SEDAR at www.sedar.com.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of, any securities of the Company in any jurisdiction in which such offer, solicitation or sale would be unlawful.

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. Eloro commissioned a NI 43-101 Technical Report on Iska Iska, which was completed by Micon International Limited 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% 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 3,150 m to 4,400 m above sea level.

For further information please contact either Thomas G. Larsen, Chairman and CEO or Jorge Estepa, Vice-President at (416) 868-9168.

Information in this news release may contain forward-looking information. Statements containing forward-looking information express, as at the date of this news release, the Company’s plans, estimates, forecasts, projections, expectations, or beliefs as to future events or results and are believed to be reasonable based on information currently available to the Company (forward-looking statements in this news release include, without limitation, statements regarding future financings, if any, pursuant to the short form base shelf prospectus referred to above). There can be no assurance that forward-looking statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. Readers should not place undue reliance on forward-looking information.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Categories
Base Metals Eloro Resources Energy Junior Mining

Eloro Resources Intersects 171.57 g Ag eq/t (12.04 g Ag/t, 0.29% Zn, 0.22% Pb and 0.22% Sn) over 373.40m in Southern Part of Santa Barbara Target at Iska Iska Silver-Tin Polymetallic Project, Potosi Department, Bolivia

Eloro Resources Ltd.
Eloro Resources Ltd.

Figure 1

Geology of the Iska Iska Caldera Complex showing locations of Major Breccia Pipe targets, the Santa Barbara Resource Definition Target Zone and diamond drill holes completed and planned.
Geology of the Iska Iska Caldera Complex showing locations of Major Breccia Pipe targets, the Santa Barbara Resource Definition Target Zone and diamond drill holes completed and planned.

Figure 2

Preliminary W-E Geological Cross Section with Drill Hole DSBU-03 (looking north)
Preliminary W-E Geological Cross Section with Drill Hole DSBU-03 (looking north)

Figure 3

3D Inverse Magnetic Susceptibility Model Showing How Hole DSBU-03 Intersected the Northern tip of this Massive Anomaly that extends to the Southeast from the Santa Barbara area to beneath the Porco area.
3D Inverse Magnetic Susceptibility Model Showing How Hole DSBU-03 Intersected the Northern tip of this Massive Anomaly that extends to the Southeast from the Santa Barbara area to beneath the Porco area.
  • Includes higher-grade sections of 401.81 g Ag eq/t (31.46 g Ag/t, 0.19 %Pb and 0.61 %Sn) over 28.58m from 192.72m to 221.30m, 261.83 g Ag eq/t (4.91 g Ag/t and 0.43% Sn) over 95.16m in underground drill hole DSBU-03.
  • Deeper in this hole, an additional major intersection of 197.61 g Ag /t (1.79 g Ag/t and 0.28% Sn) over 60.50m was encountered from 418.80m to 479.30m.
  • In order to more aggressively drill this major new extension of the Santa Barbara deposit, a third surface diamond drill is being brought onto site bringing the total operating drills to four (3 surface and 1 underground).

TORONTO, March 01, 2022 (GLOBE NEWSWIRE) — Eloro Resources Ltd. (TSX-V: ELO; OTCQX: ELRRF; FSE: P2QM) (“Eloro”, or the “Company”) is pleased to announce assay results from an additional diamond drill hole from its on-going drilling program at the Iska Iska silver-tin polymetallic project in the Potosi Department, southern Bolivia. Hole DSBU-03, an underground hole drilled due west from the Santa Barbara adit at -50 degrees, has discovered major new depth extensions of the already large Santa Barbara mineralized zones.

The Company has completed 45,779m in 81 drill holes, including three holes in progress as shown in Figure 1. Table 1 lists significant assay results. Prices used for calculating Ag equivalent grades are as outlined in Eloro’s February 1, 2022, press release. Table 2 summarizes drill holes with assays pending. Highlights are as follows:

Underground Metallurgical Hole, Santa Barbara Mineral Resource Target Area

Underground hole DSBU-03, collared in the Santa Barbara adit and drilled at an azimuth of 270 degrees at -50 degrees dip, intersected significant mineralization including substantial tin suggesting proximity to a major intrusive source (Figures 1, 2 and 3 and Table 1):

  • 171.57 g Ag eq/t (12.04 g Ag/t, 0.29% Zn, 0.22% Pb and 0.22% Sn) over 373.40m from 0.00m to 373.40m Including higher-grade sections of 401.81 g Ag eq/t (31.46 g Ag/t, 0.19 %Pb and 0.61 %Sn) over 28.58m from 192.72m to 221.30m and 261.83 g Ag eq/t (4.91 g Ag/t and 0.43% Sn) over 95.16m from 272.27m to 367.41m.
  • The first higher-grade interval above includes the highest single Sn grade sample yet encountered at Iska Iska at 4.1% Sn over 1.47m.
  • Deeper in this hole, an additional major intersection of 197.61 g Ag /t (1.79 g Ag/t and 0.28% Sn) over 60.50m was encountered from 418.80m to 479.30m.
  • This drill hole intersected the northern tip of an extensive 3D inverse magnetic susceptibility anomaly that extends from the Santa Barbara area southeastwards beneath Porco as shown in Figure 3. The southern part of this anomaly in the Porco area may reflect a deeper porphyry Sn intrusion and will be drill tested shortly.

Tom Larsen, CEO of Eloro, commented: “This new underground hole is the longest and highest-grade intersection obtained thus far in our diamond drill program and further highlights the major potential of the Santa Barbara target area to host significant higher-grade mineral resources, especially with tin. In order to more aggressively drill this major new extension of the Santa Barbara deposit, a third surface diamond drill is being brought onto site bringing the total operating drills to four (3 surface and 1 underground).

Dr. Bill Pearson, P.Geo., Eloro’s Executive Vice President Exploration, added: “The 3D inverse magnetic susceptibility model is proving to be an important indicator for targeting areas of potential tin mineralization at depth. Work by Dr. Arce and his geological team indicates that in deeper levels tin occurs as cassiterite associated with pyrrhotite which is magnetic. Tin at higher levels is associated with silver, which likely has been remobilized, and generally occurs with pyrite that is non-magnetic.” “In addition to the outstanding drill results, work is moving forward on the metallurgical testing with Blue Coast Research Ltd. We are also working closely with Micon International Limited to develop appropriate parameters for the mineral resource estimation. The bore hole induced polarization program is continuing with additional holes being surveyed to expand our coverage and determine the continuity of mineralization between drill holes. The GeologicAI scanner is expected to be on site and fully operational by the end of March.”

Dr. Osvaldo Arce, P.Geo., General Manager of Eloro’s Bolivian subsidiary Minera Tupiza S.R.L. (“Minera Tupiza”), further commented: “At Iska Iska we are rapidly defining a massive porphyry-epithermal silver-tin polymetallic mineralized system. The grade and extent of tin mineralization increases considerably with depth which is typical of the deeper parts of tin porphyries in Bolivia. Superimposed on this extensive tin porphyry system is a higher-level silver-zinc-lead epithermal mineralized system that is principally hosted in the major breccia pipes and intensely fractured dacitic domes surrounding these breccia pipes.”

“The entire package has been subjected to later deformation and remobilization which has substantially altered many of the primary relationships. The southern area of Santa Barbara where we already have two impressive holes with 300m+ long intersections and southeast to the Porco area appears to be the potential centre of the porphyry-epithermal system. We are now on our 81st hole and all holes reported to date have multiple reportable intersections, which is remarkable. The system remains open along strike to the northwest and to the southeast. Geological mapping and diamond drilling suggest that the potential strike length of the entire system may be as much as 4km, the width up to 2km, with a depth extent of 1km or more.”

Table 1: Significant Results, Diamond Drilling, Santa Barbara Resource Definition Target Area as at March 1, 2022.

SANTA BARBARA RESOURCE DEFINITION TARGET ZONE
UNDERGROUND DRILL HOLE
Hole No.From (m)To (m)Length (m)AgAuZnPbCuSnBiCdAg eq
g/tg/t%%%%%%g/t
DSBU-030.00373.38373.4012.040.060.290.220.030.220.0030.007171.57
Incl.192.72221.328.5831.460.050.010.190.020.610.0030.005401.81
Incl.272.27367.4195.164.910.010.010.020.010.430.0010.005261.83
391.22395.834.611.000.010.010.020.010.160.0010.00598.99
418.80479.360.501.790.050.020.060.090.280.0830.005197.61
493.11494.611.503.000.450.010.000.010.150.0010.005129.35
514.30515.721.428.000.210.010.100.070.110.0340.005110.16
520.24524.764.533.670.020.000.010.110.090.0270.00579.57
547.40560.8513.454.570.100.010.030.120.050.0450.00569.80
578.90581.832.931.500.260.010.000.080.030.0010.00554.94
599.90601.451.553.000.780.010.020.100.090.0290.005139.37
614.97617.973.001.970.040.010.020.510.070.0090.005115.65
625.41631.416.001.000.040.010.030.400.000.0010.00561.52

Note: True width of the mineralization is not known at the present time, but based on the current understanding of the relationship between drill orientation/inclination and the mineralization within the breccia pipes and the host rocks such as sandstones and dacites, it is estimated that true width ranges between 70% and 90% of the down hole interval length but this will be confirmed by further drilling and geological modelling.

Chemical symbols: Ag= silver, Au = gold, Zn = zinc, Pb = lead, Cu = copper, Sn = tin, Bi = bismuth, Cd = cadmium and g Ag eq/t = grams silver equivalent per tonne. Quantities are given in percent (%) for Zn, Pb Cu, Sn, Bi and Cd and in grams per tonne (g/t) for Ag, Au and Ag eq.

Metal prices and conversion factors used for calculation of g Ag eq/t (grams Ag per grams x metal ratio) are as follows (Prices updated as of February 1, 2022, to more accurately reflect current metal prices):

ElementPrice $US (per kg)Ratio to Ag
Ag$722.561.0000
Sn$42.560.0589
Zn$3.300.0046
Pb$2.330.0032
Au$57,604.0079.7221
Cu$9.680.0134
Bi$12.760.0177
Cd$5.500.0076

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.

Table 2: Summary of Diamond Drill Holes Completed with Assays Pending and Drill Holes in Progress at Iska Iska from March 1, 2022 press release.

Hole No.TypeCollar EastingCollar NorthingElevAzimuthAngleHole Length m
Surface Drilling Northwest Extension Santa Barbara
DSB-14S205283.07656587.24175.0225-65968.5
DSB-16S204973.17657053.84165.0225-65862.0
DSB-17S7656765.4205131.34173.0225-40841.0
DSB-18S7656676.3205207.14175.0225-40890.4
DSB-19S7656676.3205207.14175.0225-65803.3
DSB-22S7657208.4204799.44145.0225-40258.4
DSB-23S205341.07656535.04177.0225-40661.3
DSB-24S205341.07656535.04177.0225-65343.4
DSB-25S205283.07656587.24175.0225-40615.3
DSB-26S205044.57656982.64150.0225-40815.4
DSB-27S205044.57656982.64150.0225-65800.4
Subtotal7859.4
Underground Drilling Santa Barbara Adit
DSBU-4UG205285.27656074.84165.0180-20570.0
DSBU-5UG205285.27656074.84165.00-40491.7
DSBU-6UG205285.27656074.84165.00-65253.5
DSBU-7UG205284.57656080.04167.1235-50800.9
Subtotal2116.1
DSBU-8UG205284.57656080.04167.1200-50In progress
Underground Metallurgical Drill Holes Santa Barbara
METSBU-01UG205285.27656074.84165.010-35351.0
Subtotal351.0
Surface Drilling South Extension Santa Barbara
DSBS-01S205300.07655563.04204.030°-30700.8
Subtotal700.8
DSBS-02S205300.07655563.04204.0-45In progress
Porco Target Area – Surface Drill Program
DPC-04S205457.27655110.94175.00-60371.4
DPC-05S205457.27655110.94175.090-60407.5
DPC-06S205457.27655110.94175.0243-60716.4
DPC-08S205456.27655113.44175.9243-60800.4
Subtotal2295.7
DPC-07S205090.07655343.74310.0235-65In progress
TOTAL13,323

S = Surface UG=Underground; collar coordinates in metres; azimuth and dip in degrees. Total drilling completed since the start of the program on September 13, 2020 to December 17, 2021 is 40,468 m in 73 holes (26 underground holes and 47 surface holes). From re-start of drilling on January 17, 2022, an additional 5,311m has been completed bringing the overall total to 45,779m in 81 drill holes (27 underground drill holes and 54 surface drill holes) including 3 holes in progress.

Figure 1: Geology of the Iska Iska Caldera Complex showing locations of Major Breccia Pipe targets, the Santa Barbara Resource Definition Target Zone and diamond drill holes completed and planned.
https://www.globenewswire.com/NewsRoom/AttachmentNg/c76d310b-6996-445f-b60c-372aef74d01f

Figure 2: Preliminary W-E Geological Cross Section with Drill Hole DSBU-03 (looking north)
https://www.globenewswire.com/NewsRoom/AttachmentNg/abe4a4b7-49af-4c5f-b33e-951ce8e2f5fd

Figure 3: 3D Inverse Magnetic Susceptibility Model Showing How Hole DSBU-03 Intersected the Northern tip of this Massive Anomaly that extends to the Southeast from the Santa Barbara area to beneath the Porco area.
https://www.globenewswire.com/NewsRoom/AttachmentNg/389e27fe-e2aa-4157-bb36-ea1723bfed63

Qualified Person

Dr. Osvaldo Arce, P. Geo., General Manager of Minera Tupiza, 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., Manager of Minera Tupiza. Dr. Quinton Hennigh, P.Geo., Senior Technical Advisor to Eloro and Independent Technical Advisor, Mr. Charley Murahwi P. Geo., FAusIMM of Micon International Limited are regularly consulted on technical aspects of the project.

The magnetic survey was carried out by MES Geophysics using a GEM Systems GSM-19W Overhauser magnetometer. Dr. Chris Hale, P.Geo. and Mr. John Gilliatt, P.Geo. of Intelligent Exploration provided the survey design, preparation of the maps and interpretation from data processed and quality reviewed by Rob McKeown, P. Geo. of MES Geophysics. Messrs. Hale, Gilliatt and McKeown are Qualified Persons as defined under NI 43-101 Mr. Joe Mihelcic, P.Eng., P.Geo., a QP under NI 43-101, of Clearview Geophysics completed the 3D magnetic inversion model in consultation with Dr. Chris Hale, P.Geo. and Mr. John Gilliatt, P.Geo. of Intelligent Exploration.

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 and it is hoped that most of the sample backlog will be cleared in the next 4-6 weeks.

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 Potosí 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 (29.53g Ag/t, 0.078g 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. This work is advancing well with the mineral resource targeted to be completed in Q2 2022. Exploration drilling is also planned on other major targets in the Iska Iska Caldera Complex including the Porco and Mina 2 areas.

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. Eloro commissioned a NI 43-101 Technical Report on Iska Iska, which was completed by Micon International Limited 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% 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 3,150 m to 4,400 m above sea level.

For further information please contact either Thomas G. Larsen, Chairman and CEO or Jorge Estepa, Vice-President at (416) 868-9168.

Information in this news release may contain forward-looking information. Statements containing forward-looking information express, as at the date of this news release, the Company’s plans, estimates, forecasts, projections, expectations, or beliefs as to future events or results and are believed to be reasonable based on information currently available to the Company. There can be no assurance that forward-looking statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. Readers should not place undue reliance on forward-looking information.

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