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Eloro Resources: https://elororesources.com/

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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.

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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.

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Eloro Resources Intersects 160.00 g Ag eq/t (27.37g Ag/t, 0.62% Zn, 0.52% Pb and 0.11% Sn) over 251.87m and 133.45 g Ag eq/t (19.10g Ag/t, 0.20 g Au/t, 0.42% Zn, 0.64% Pb and 0.08% Sn) over 289.45m in the Santa Barbara Target area at the Iska Iska Silver-Tin Polymetallic Project, Potosi Department, Bolivia

Eloro Resources Ltd.Wed, May 25, 2022, 6:00 AMIn this article:

  • ELRRF0.00%

Eloro Resources Ltd.
Eloro Resources Ltd.

Figure 1

Geological Plan Map showing Major Drilling areas.  Santa Barbara drilling is shown in more detail in Figure 2.
Geological Plan Map showing Major Drilling areas. Santa Barbara drilling is shown in more detail in Figure 2.

Figure 2

Geological Plan Map of the Santa Barbara Mineral Resource Target Area with Diamond Drill Holes
Geological Plan Map of the Santa Barbara Mineral Resource Target Area with Diamond Drill Holes

Figure 3

Northeast-Southwest Geological Section looking Northwest Showing Potential Higher Grade Feed Zone in the Santa Barbara Adit Area
Northeast-Southwest Geological Section looking Northwest Showing Potential Higher Grade Feed Zone in the Santa Barbara Adit Area
  • These new drill results combined with previously released drill results for the underground drilling are defining a potential major feeder structure for the Ag-Sn polymetallic mineralization in the Santa Barbara Adit area.
  • Bore Hole Induced Polarization (BHIP) surveys to a depth of almost 1,000m indicates that the conductivity increases with depth indicating that this potential feeder zone could be substantive.

TORONTO, May 25, 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 four (4) diamond drill holes from its on-going drilling program at the Iska Iska silver-tin polymetallic project in the Potosi Department, southern Bolivia. Holes DSBU-08, DSBU-07 and DSBU-04 are underground holes drilled from the Santa Barbara adit to test the southwestern and southern extension of the higher-grade mineralized zone. Surface drill hole DSB-26 tested the northwest extension of the Santa Barbara mineralized zone approximately 800m northwest of the Santa Barbara adit underground drill bay. Drilling is currently focussed primarily on the Santa Barbara Resource Definition Drilling Area with two surface drills and one underground drill. One surface drill is completing holes in the Porco area to test for a potential tin porphyry as suggested by the 3D inverse magnetic model (see Eloro press release dated March 1, 2022).

Overall, the Company has completed 56,863m in 92 drill holes to-date, including four holes in progress, as shown in Figures 1 and 2. Tables 1 and 2 list significant assay results for the drill holes in the major target areas. 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 – Underground Drilling

Hole DSBS-07 was drilled underground at an azimuth of 2350 and dip of -500 to test the southwestern extension of the potential higher-grade area in the Santa Barbara Adit area. Hole DSBS-08 was drilled at the same inclination at an azimuth of 2000 while DSBU-04 was drilled due south at an angle of -200. All three holes intersected very long higher-grade intersections:

  • Hole DSBU-07 intersected 160.00 g Ag eq/t (27.37 g Ag/t, 0.62% Zn, 0.52% Pb and 0.11% Sn) over 251.87m from 0.00m to 251.87m, including a higher-grade section of:
    • 178.37 g Ag eq/t (28.84 g Ag/t, 0.69% Zn, 0.62% Pb, and 0.13% Sn) over 208.47m from 0.00m to 208.47m.
  • This hole had a second major intersection of 83.72 g Ag eq/t (6.67 g Ag/t and 0.11%Sn) over 208.93m from 272.87m to 481.8m. This included higher grade sections of:
    • 115.37g Ag eq/t (5.34 g Ag/t and 0.16%Sn) over 40.98m from 328.54 to 369.52m and
    • 224.01g Ag eq/t (1.50 g Ag/t and 0.35% Sn) over 21.58m from 438.11m to 459.69m.
  • Hole DSBU-08 intersected 133.45 g Ag eq/t (19.10 g Ag/t, 0.20 g Au/t, 0.42% Zn, 0.64% Pb, 0.06% Cu and 0.08% Sn) over 289.45m from 0.00m to 289.45m which included higher grade sections of:
    • 152.70 g Ag eq/t (44.65 g Ag/t, 0.08 g Au/t, 0.01% Zn, 0.58 %Pb, 0.20 %Cu and 0.09% Sn) over 22.56m from 0.00m to 22.56m,
    • 150.23 g Ag eq/t (47.17 g Ag/t, 0.03g Au/t, 0.01% Zn, 0.58 %Pb, 0.20% Cu and 0.09% Sn) over 10.82m from 57.10m to 67.92m,
    • 182.92 g Ag eq/t (40.31 g Ag/t, 0.13 g Au/t, 0.30% Zn, 0.88% Pb, 0.05% Cu and 0.14% Sn) over 27.09 m from 90.71m to 117.80m.
    • 222.51 g Ag eq/t (20.38 g Ag/t, 0.12 g Au/t, 1.09% Zn, 1.45% Pb, 0.05% Cu and 0.15% Sn) over 51.24 m from 163.14m to 214.38m, and
    • 254.55 g Ag eq/t (31.50 g Ag/t, 1.17 g Au/t, 0.73% Zn, 0.27% Pb, 0.08% Cu and 0.13% Sn) over 16.42 m from 244.48m to 260.90.
    • Overall, 65% of this 641.9m long hole had reportable intersections which collectively average 107.73 g Ag eq/t.
  • Hole DSBU-04 intersected 97.09 g Ag eq/t (30.11 g Ag/t, 0.41% Pb, 0.06% Cu and 0.07% Sn) over 154.62m from 0.00m to 154.62m which included higher grade sections of:
    • 126.66 g Ag eq/t (7.00 g Ag/t, 0.63 %Pb and 0.15% Sn) over 16.78m from 0.00m to 16.78m,
    • 174.32 g Ag eq/t (70.30 g Ag/t, 0.45 %Pb and 0.12% Sn) over 15.02m from 61.79m to 76.81m

Dr. Bill Pearson, P.Geo. Executive Vice President, Exploration commented: “As shown in Figure 3, a N-S cross section looking east, holes DSBU-07, DSBU-08 and DSBU-4 define a significant extension to the southwest and south of the major high grade mineralized area in the southern part of Santa Barbara. These results combined with previously released drill results for the underground drilling are defining a potential major feeder structure for the Ag-Sn polymetallic mineralization in the Santa Barbara area. Data from on-going borehole induced polarization surveys (BHIP) further reinforce the potential extent of this feeder zone.”

Dr. Chris Hale, P.Geo., Chief Geophysicist for Eloro commented: “Field personnel from MES Geophysics have advanced the borehole induced polarization (BHIP) survey technique to achieve excellent IP/Res data over 1000 m downhole, by reading while the drill is still on the hole. Preliminary analysis of Pole-dipole data at 25m intervals shows that the conductivity within about 10m of the axis of hole DHK-25 increases with depth between 500m and the end of the hole. Chargeability is highest near 525m but remains high (> 10 mV/V) over the entire interval to 975m. Cross hole chargeability and resistivity data have also been collected to a depth of 1000 m, between this hole and both DHK-24 and DSB-06. Data were also collected to 900m in DHK-24. Cross hole data from both DHK-24 and DHK-25 will be used for inverse modelling of the chargeable mineralization. Future BHIP surveys will use the “through-the-drill” technique to collect data, resolving fine detail in the geophysical models even at depths over a kilometer.”

Dr. Osvaldo Arce, P.Geo., General Manager of Eloro’s Bolivian subsidiary Minera Tupiza S.R.L. (“Minera Tupiza”), further commented: “Recent drill assay results from the Santa Barbara zone continue to expand a large and robust tin-silver polymetallic likely feeder zone located to the southeast of the Santa Barbara breccia pipe that is wide open at depth. Holes DSBU-4, DSBU-07 and DSBU-08 encountered numerous intervals of polymetallic oxide and sulphide mineralization that confirm multiple mineralizing events that occurred during the Miocene, which is an important feature of other large polymetallic deposits in the Eastern Andes of southern Bolivia.”

Northwest Extension, Santa Barbara Mineral Resource Definition Target Area

Hole DSBS-26 was collared 800m northwest of the Santa Barbara adit drill bay at an azimuth of 225 and dip of -400. This hole intersected 23 reportable mineralized intersections of which the most significant were as follows:

  • 76.10 g Ag eq/t (2.78 g Ag/t and 0.50% Cu) over 22.19m from 50.22 to 72.41m including a higher-grade section of:
    • 214.83 g Ag eq/t (10.90 g Ag/t and 1.48% Cu) over 4.44m from 50.22 to 54.66m
  • 735.49 g Ag eq/t (615.71 g Ag/t, 0.40 g Au/t, 0.20% Zn, 0.40% Pb and 0.17% Cu) over 10.46m from 134.74 to 145.20m
  • 93.02 g Ag eq/t (41.08 g Ag/t and 0.36% Zn) over 26.75m from 335.85 to 362.60m.
  • 264.05 g Ag eq/t (14.04 g Ag/t, 0.20% Zn, 0.38% Cu, and 0.31% Sn) over 20.06m from 407.51m to 427.57m
  • 70.56 g Ag eq/t (6.31 g Ag/t, 0.08 % Cu and 0.08 % Sn) over 67.50m from 591.71m to 659.21m including higher-grade sections of:
    • 93.46 g Ag eq/t (5.07 g Ag/t, 0.09% Cu and 0.11% Sn) over 18.06m from 594.72 to 612.78m and
    • 105.19 g Ag eq/t (13.00 g Ag/t, 0.11% Cu and 0.12% Sn) over 13.45m from 636.69 to 650.14m

Table 1: Significant Results, Underground Diamond Drilling, Santa Barbara Resource Definition Target Area as at May 25, 2022.

SANTA BARBARA RESOURCE DEFINITION TARGET ZONE
UNDERGROUND DRILL HOLES – SANTA BARBARA ADIT
Hole No.From (m)To (m)Length (m)AgAuZnPbCuSnBiCdAg eq
g/tg/t%%%%%%g/t
DSBU-080.00289.45289.4519.100.200.420.640.060.080.0070.003133.45
Incl.0.0022.5622.5644.650.080.010.580.200.090.0160.001152.70
Incl.57.1067.9210.8247.170.030.010.890.150.090.0020.001150.23
Incl.90.71117.8027.0940.310.130.300.880.050.140.0050.004182.92
Incl.163.14214.3851.2420.380.121.091.450.050.150.0070.006222.51
Incl.244.48260.9016.4231.501.170.730.270.080.130.0180.003254.55
 305.90308.882.9823.590.170.020.120.030.070.0120.00187.58
 322.42325.392.9732.450.380.030.070.030.040.0160.00199.55
 353.90410.3356.4348.530.080.100.030.050.050.0100.00196.73
Incl.353.90373.3019.40105.690.100.110.050.090.080.0150.001184.92
 417.77420.773.007.500.230.180.100.050.040.0050.00170.29
 428.29429.801.516.000.201.300.020.160.040.0040.001126.85
 434.15438.584.4312.140.140.330.010.060.040.0050.00171.88
 458.16472.9814.825.920.250.110.060.020.150.0050.001122.90
 488.01503.0315.024.900.800.050.010.030.090.0080.001129.61
 524.08527.093.014.010.200.060.010.310.510.0110.001363.98
 534.58552.6318.0510.270.390.030.010.050.070.0160.00197.09
 563.17578.2815.116.380.190.190.120.030.120.0080.001110.23
 585.79587.321.537.000.390.110.010.020.060.0410.00187.49
 596.56619.1022.546.940.300.050.050.000.090.0140.00188.81
 628.10632.634.537.560.480.310.020.020.050.0240.00196.64
 641.70643.211.511.000.010.350.010.010.060.0010.00154.10
 656.54659.442.905.970.050.600.010.020.020.0040.00152.15
 664.40669.054.657.330.060.570.030.020.010.0090.00150.98
 681.10682.651.554.000.070.040.030.010.220.0020.001146.14
 811.56813.061.504.000.030.510.040.040.040.0090.00160.25
 835.90842.006.1012.970.060.470.120.040.050.0030.00178.19
DSBU-070.00251.87251.8727.370.100.620.520.080.110.0080.007160.00
Incl.0.00208.47208.4728.840.080.690.620.090.130.0080.008178.37
 272.87481.80208.936.670.030.080.030.020.110.0120.00183.72
Incl.328.54369.5240.985.340.020.110.040.020.160.0180.002115.37
Incl.438.11459.6921.581.500.060.070.030.040.350.0280.001224.01
 535.76540.344.582.670.160.070.020.010.110.0700.00198.79
 556.84558.381.543.000.320.030.010.030.070.0160.00176.69
 565.93585.4819.552.580.140.100.080.030.070.0240.00170.81
Incl.565.93570.434.507.010.370.250.310.100.160.0710.001179.75
 589.98591.401.426.000.100.050.010.000.070.0010.00159.90
 594.40595.871.473.000.320.050.010.010.050.0040.00161.97
 609.38613.954.571.660.060.120.010.000.080.0040.00162.70
 636.47660.2723.801.560.140.030.010.050.050.0130.00152.97
 669.34670.921.586.000.850.020.040.070.080.1310.001157.15
 685.90690.534.6313.000.050.410.160.010.060.0010.00175.96
 693.73695.241.514.000.031.050.010.000.010.0010.00661.12
 740.65742.181.5313.000.210.010.010.120.110.0570.001121.41
DSBU-040.00154.62154.6230.110.030.010.410.040.070.0040.00597.09
Incl.0.0016.7816.787.000.080.010.630.020.150.0040.005126.66
Incl.61.7976.8115.0270.300.020.020.450.090.120.0050.005174.32
 256.93272.0215.0914.060.030.970.410.010.040.0010.007100.31
 276.62278.101.487.000.010.020.490.010.070.0010.00566.06
 288.64290.141.5040.000.046.152.720.020.260.0080.020572.30
 360.98368.437.451.000.010.910.130.020.040.0010.00471.39
 377.41385.047.632.000.010.930.210.010.030.0020.00274.41
 414.12415.631.511.000.010.850.590.000.000.0010.04464.52
 427.17445.1517.9816.830.022.790.470.010.040.0020.019186.76
 496.44499.262.822.040.011.440.110.000.020.0010.00683.24
 504.88506.431.551.000.011.190.030.010.010.0010.00263.57
 513.00514.481.488.000.010.751.810.000.040.0010.002123.93
 524.85532.247.396.930.011.440.340.000.070.0020.004127.29
 551.78553.301.521.000.071.190.070.000.070.0030.003106.03

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, Santa Barbara Resource Definition Target Area – Northwest Extension as at May 25, 2022.

SANTA BARBARA RESOURCE DEFINITION TARGET ZONE
SURFACE DIAMOND DRILLING – NORTHWEST EXTENSION
Hole No.From (m)To (m)Length (m)AgAuZnPbCuSnBiCdAg eq
g/tg/t%%%%%%g/t
DSB-2650.2272.4122.192.780.010.010.030.500.010.0010.00176.10
Incl.50.2254.664.4410.900.020.000.051.480.000.0010.001214.83
 104.71121.2716.5611.320.120.350.080.010.020.0090.00155.20
Incl.104.71106.221.5184.001.250.100.140.010.040.0950.001231.91
 134.74145.2010.46615.710.400.200.410.170.070.0090.001735.49
 194.50195.991.4943.000.210.080.150.070.080.0130.002126.20
 203.69205.191.507.000.400.370.140.010.080.0130.035113.80
 241.27262.3221.050.920.010.770.270.010.010.0010.00356.00
 295.20298.203.0014.000.160.400.010.050.030.0040.00171.28
 304.22313.208.9831.520.100.110.010.090.080.0070.001102.83
 335.85362.6026.7541.080.080.360.020.060.030.0150.00293.02
 357.97362.604.63195.650.050.330.010.080.040.0220.001255.05
 407.51427.5720.0614.040.050.200.020.380.310.0180.001264.05
 446.96449.922.965.410.060.140.010.150.120.0130.001108.61
 476.98478.451.476.000.130.140.000.090.060.0120.00171.41
 487.42488.931.516.000.070.010.010.100.090.0250.00184.30
 530.79532.351.563.000.030.010.000.100.070.0060.00163.06
 538.29572.3734.082.210.120.250.000.090.020.0030.00149.76
 591.71659.2167.506.310.060.040.000.080.080.0130.00170.56
Incl.594.72612.7818.065.070.070.080.000.090.110.0210.00193.46
Incl.636.69650.1413.4513.000.030.020.000.110.120.0110.001105.19
 665.21666.721.519.000.120.040.010.210.180.1070.001170.93
 693.35696.403.0528.950.270.050.010.630.550.0670.001474.73
 725.89727.531.640.501.200.460.000.010.000.0030.001120.48
 766.09770.694.608.080.130.570.010.240.090.1720.001160.65
 789.80791.301.507.000.320.720.040.410.010.7220.001256.32
 806.33807.801.476.000.140.390.050.270.000.3850.001142.79

See Note Table 1.

Figure 1 – Geological Plan Map showing Major Drilling areas. Santa Barbara drilling is shown in more detail in Figure 2.
https://www.globenewswire.com/NewsRoom/AttachmentNg/d72bf44c-804d-43c5-8a0d-6d488775ab10 

Figure 2: Geological Plan Map of the Santa Barbara Mineral Resource Target Area with Diamond Drill Holes
https://www.globenewswire.com/NewsRoom/AttachmentNg/1d597c7a-be89-4fef-b7dc-ae0c15c8c1eb

Figure 3: Northeast-Southwest Geological Section looking Northwest Showing Potential Higher Grade Feed Zone in the Santa Barbara Adit Area
https://www.globenewswire.com/NewsRoom/AttachmentNg/310b1001-0864-4f3c-a249-7b31cb081f2e

Table 3: Summary of Diamond Drill Holes Completed with Assays Pending and Drill Holes in Progress at Iska Iska from May 25, 2022 press release.

SUMMARY DIAMOND DRILLING ISKA ISKA
Hole No.TypeCollar
Easting
Collar
Northing
ElevAzimuthAngleHole length
(m)
Surface Drilling Santa Barbara Breccia
DHK-24S205529.47656222.54153.4225°-60°812.5
DHK-25S205526.97656384.74178.1225°-55°803.2
      Subtotal1615.7
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-19S205209.97656684.04172.5225°-65°803.3
DSB-23S205343.37656534.44176.1225°-40°863.2
DSB-27S205044.57656982.64150.0225°-65°800.4
      Subtotal5060.3
DSB-28S205512.07656112.04162.0225°-60°In progress
DSB-29S205511.07655966.94134.0225°-60°In progress
Underground Drilling Santa Barbara Adit
DSBU-09UG205284.57656080.04167.190°-60°904.0
      Subtotal904.0
DSBU-10UG205284.57656080.04167.140°-60°In Progress
Surface Drilling South Extension Santa Barbara
DSBS-02S205300.07655563.04195.0-45°1023.4
      Subtotal1,724.2
Porco Target Area – Surface Drill Program Testing Magnetic Inverse Model
DPC-07S205090.17655340.94310.0235°-60°791.4
DPC-08S205585.07655423.64089.0235°-65°800.4
DPC-09S205456.77655516.64125.0180°-75°1124.4
DPC-10S205396.57655701.24148.0225°-60°1088.4
DPC-11S205456.77655516.64125.0235°-70°1065.0
DPC-12S205650.07655200.04100.0235°-70°941.4
      Subtotal5,811.0
DM2-01S2059447654211367430°-60°In Progress
      Total15,115.2

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 16,395m has been completed bringing the overall total to 56,863m in 92 drill holes (30 underground drill holes and 62 surface drill holes) including 4 holes in progress.


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., 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. 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.