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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

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.

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 Junior Mining Precious Metals

Eloro Resouces Announces RSU Grants

TORONTO, Jan. 19, 2022 (GLOBE NEWSWIRE) — Eloro Resources Ltd. (TSX-V: ELO; OTCQX: ELRRF; FSE: P2QM) (“Eloro”, or the “Company”) announces it has granted an aggregate of 2.35 million restricted share units (the “RSUs”) to its senior officers and key consultants, pursuant to the Company’s RSU plan (the “Plan”).

The Plan aims to compensate and reward its key officers and consultants for working towards the Company’s long-term objectives and in alignment with the shareholders’ best interests. All of the RSUs granted cannot be settled until December 31, 2025 (the “Redemption Date”) and are subject to the following performance related vesting milestones in connection with the advancement of the Company’s Iska Iska silver-tin polymetallic project:

  • one-third to vest on the date of filing of a National Instrument 43-101 (“NI 43-101”) compliant technical report in connection with the measurement of at least 300 million tonnes of Inferred Resources at the Iska Iska project in Bolivia.
  • one-third to vest on the date of filing of a NI 43-101 compliant technical report in connection with the measurement of at least 500 million tonnes of Inferred Resources at the Iska Iska project in Bolivia.
  • one-third to vest on the date of filing of a NI 43-101 compliant technical report in connection with the completion of a positive Prefeasibility Study for the Iska Iska project in Bolivia.

The settlement of any vested RSU awards shall only occur at the end of the performance period, on the Redemption Date, being December 31, 2025, and all settlements are subject to the terms and provisions of the Plan.

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
Eloro Resources Energy Junior Mining Uncategorized

Eloro Intersects 100 Ag eq/t (including 38.71 g Ag/t, 0.88%Zn and 0.51%Pb) over 188.5 m in the Santa Barbara Breccia Pipe at Iska Iska Silver-Tin Polymetallic Project, Potosi Department, Bolivia

Eloro Resources Ltd.Tue, November 2, 2021, 7:00 AMIn this article:

Section includes a higher-grade zone of 154 g Ag eq/t (including 75.51 g Ag/t, 0.96% Zn, 0.65% Pb and 0.16% Cu) over 65.8m

Table 1

Significant Diamond Drilling Results, Iska Iska, as at November 2, 2021
Significant Diamond Drilling Results, Iska Iska, as at November 2, 2021
Significant Diamond Drilling Results, Iska Iska, as at November 2, 2021
https://s.yimg.com/rq/darla/4-9-0/html/r-sf-flx.html

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 in progress.  Drill holes for which assays are reported in this release are highlighted.
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 in progress. Drill holes for which assays are reported in this release are highlighted.
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 in progress. Drill holes for which assays are reported in this release are highlighted.

TORONTO, Nov. 02, 2021 (GLOBE NEWSWIRE) — Eloro Resources Ltd. (TSX-V: ELO; OTCQX: ELRRF; FSE: P2QM) (“Eloro”, or the “Company”) is pleased to provide an update on its Iska Iska silver-tin polymetallic project in the Potosi Department, southern Bolivia. To date, the Company has completed 34,409 metres (m) in 64 drill holes including three (3) in progress to test major target areas at Iska Iska. This press release reports drilling results from one (1) additional hole which tested the Santa Barbara Breccia Pipe (“SBBP”) (Hole DHK-23) and two holes (DCN-05 and DCS-03) which tested the Central Breccia Pipe target (“CBP”). To date, every drill hole that has been assayed has returned multiple reportable mineralized intercepts. Currently three drill rigs are in operation at Iska Iska. Two surface drill rigs are continuing to drill at SBBP to outline an initial National Instrument 43-101 (“NI-43-101”) compliant resource. A third drill, an underground rig, situated in the west end of the Santa Barbara Adit, is testing the eastern part of SBBP and its mineralized envelope. Figure 1 is a geological plan map showing locations of drill holes and an updated geological interpretation. Table 1 provides significant drilling results with definitions of chemical symbols and Table 2 lists holes completed with assays pending, as well as holes in progress in the three major target areas. Highlights are as follows:

Highlights:

Santa Barbara Breccia Pipe

  • 100g Ag eq/t (including 38.71 g Ag/t, 0.88%Zn and 0.51%Pb) over 188.5 m from 58.67m to 247.13m in hole DHK-23, drilled from the west end of the Huayra Kasa underground workings at -70 degrees due west. This intersection includes a higher-grade portion of 154 g Ag eq/t (including 75.51 g Ag/t, 0.96% Zn, 0.65% Pb and 0.16%Cu) over 65.8m

Central Breccia Pipe

  • Hole DCS-03 drilled southwest at -60 degrees from the south radial platform of the CBP intersected twelve (12) separate zones of quartz-tourmaline veins in granodioritic intrusive breccia with best results of 224.92 g Ag eq/t (including 25.36 g Ag/t, 0.12 g Au/t and 0.55% Sn) over 7.42m and 113.67 g Ag eq/t (including 17.85 g Ag/t, 0.085 g Au/t, 0.21% Cu and 0.18% Sn) over 12.03m
  • Hole DCN-05 drilled due east at -60 degrees from the north radial platform of the CBP intersected ten (10) separate zones of quartz-tourmaline veins in granodioritic intrusive breccia with a best result of 104.72 g Ag eq/t (including 74.41 g Ag/t and 0.22% Cu) over 4.59m

Mr. Tom Larsen, CEO of Eloro, commented: “We are now starting to see a reduction in the backlog of assay samples with two laboratories operating at near capacity. These latest drill results, especially from DHK-23, are again demonstrating the accumulating amount of potential commercial bulk tonnage material, especially within the Santa Barbara complex, a subset of the overall Iska Iska volcanic edifice.”

Dr. Bill Pearson, P.Geo., Eloro’s Executive Vice President Exploration, added: “Mineral resource definition drilling is continuing in the Santa Barbara Target area, which is 1,400m along strike, 500m wide and extends to a depth of 600m. This target is open along strike to the northwest and southeast. Data from the downhole Induced Polarization survey is being processed and the resulting 3D inversion models should aid in refining our geological model, especially determining the likely geometry of the higher-grade zones that typically have greater sulphide content.”

Dr. Osvaldo Arce, P.Geo., General Manager of Eloro`s Bolivian subsidiary, Minera Tupiza S.R.L. (“Minera Tupiza”), said: “As we move to the northwest in the SBBP, silver and gold values are increasing suggesting that there is a zonation at Iska Iska, from a more tin-rich polymetallic mineralization in the southeastern part of the SBBP to more of a silver-rich polymetallic mineralization in the northwestern part. In addition, significant enriched tin-silver mineralization occurs in the northern part of the CBP.”

Table 1: Significant Diamond Drilling Results, Iska Iska, as at November 2, 2021:
https://www.globenewswire.com/NewsRoom/AttachmentNg/4f8beb2c-64d6-4e65-a54a-2c660a17b9ae

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. Percentage metal contents are shown for each element.

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:

ElementPrice (per
kg)
Ratio to
Ag
Ag$875.001.00000
Sn$28.000.03200
Zn$2.800.00320
Pb$2.100.00240
Au$57,40065.6000
Cu$8.800.01006
Bi$12.760.01458
In$305.000.34857
Cd$5.500.00629

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. Preliminary metallurgical tests are in progress 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 press release of November 2, 2021.

Hole No.TypeCollar
Easting
Collar
Northing
ElevAzimuthAngleHole Length
m
Surface Drilling Northwest Extension Santa Barbara
DSB-12S205072.77656867.54165.0225-40806.2
DSB-13S205072.77656867.54165.0225-60696.5
DSB-14S205283.07656587.24175.0225-65968.5
DSB-15S204973.17657053.84165.0225-40731.2
DSB-16S204973.17657053.84165.0225-65862.0
DSB-17S7656765.4205131.34173.0225-40841.0
DSB-18S7656676.3205207.14175.0225-40890.4
Subtotal5,795.8
DSB-19S7656676.3205207.14175.0225-65In progress
DSB-20S7656765.4205131.34173.0225-65In progress
Underground Drilling Santa Barbara Adit
DSBU-1UG205285.27656074.84165.090-10260.5
DSBU-2UG205285.27656074.84165.0270-20563.6
DSBU-3UG205285.27656074.84165.0270-20443.5
Subtotal1,267.6
DSBU-4UG205285.27656074.84165.0180-20In progress
Central Breccia Pipe – Surface Radial Drill Program – North Setup
DCN-06S204902.07655860.04420.0180-80626.4
DCN-07S204902.07655860.04420.0270-60680.4
Subtotal1,306.8
Central Breccia Pipe – Surface Radial Drill Program – South Setup
DCS-04S204852.17655612.34429.7180-60644.4
Subtotal644.4
Porco Central – Surface Radial Drill Program
DPC-01S205457.27655110.94175.0270-60767.5
DPC-02S205457.27655110.94175.0225-60908.2
DPC-03S205457.27655110.94175.0135-60524.5
DPC-04S205457.27655110.94175.00-60371.4
DPC-05S205457.27655110.94175.090-60407.5
DPC-06S205457.27655110.94175.0243-60716.4
Subtotal3,695.5
TOTAL12,710.1

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, is 34,409m in 64 holes including 3 holes in progress (20 underground holes and 44 surface holes).

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 in progress. Drill holes for which assays are reported in this release are highlighted:
https://www.globenewswire.com/NewsRoom/AttachmentNg/cce5620d-1deb-4db4-8f54-903bee989c21

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. Arce. 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.

Drill samples are prepared in ALS Bolivia Ltda’s preparation facility in Oruro, Bolivia with pulps sent to the main ALS Global laboratory in Lima for analysis. As announced in the February 26, 2021 press release, Eloro has changed the assay protocol to utilize X-ray fluorescence (XRF) to more accurately analyze higher tin. Tin in the CBP is suspected to occur as cassiterite which is insoluble in acid digestion, and therefore not suited for wet chemical techniques. In addition, other assay protocols have been changed to provide for a more accurate measurement of the wide-ranging suite of polymetallic metals at Iska Iska. 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.

Recently, AHK Laboratories, who manage a global network of laboratories have setup operations in Bolivia with the establishment of a preparation laboratory in Oruro. AHK has a strong base of accredited laboratories in South America including Peru, Chile, Brazil and Argentina. Eloro has contracted AHK to provide additional analytical services in order to help reduce the sample backlog. A series of check samples are currently being analyzed by AHK as a QA/QC check. AHK is following the same analytical protocols used as with ALS and with the same QA/QC protocols. The used of both accredited laboratories is reducing the backlog of samples to be analysed and improving turnaround.

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 discovery hole on the SBBP, Eloro has released a number of significant drill results on this target, including:

  • 122.66 grams g Ag eq/t (35.05 g Ag/t, 0.72% Zn, 0.61% Pb, 0.11% Sn and 0.06 g Au/t) over 123.61m including 205.74 g Ag eq/t (92.30 g Ag/t, 0.57% Zn, 0.85% Pb, 0.18% Sn and 0.07 g Au/t) over 32.32m (DSB-07),
  • 105.41 g Ag eq/t (8.55 g Ag/t, 1.01% Zn, 0.48% Pb, 0.06% Sn and 0.38 g Au/t) over 173.58m including 199.77 g Ag eq/t (21.90 g Ag/t, 1.18% Zn, 0.93% Pb 0.12% Sn and 0.94 g Au/t) over 39.08m (DSB-07)
  • 69.89 g Ag eq/t over 252.89m from 355.12 to 608.02m including several higher-grade sections of 196.60 g Ag eq/t including 131.13 g Ag/t over 14.52m, 134.62 g Ag eq/t including 93.25 g Ag/t over 21.08m and 145.35 g Ag eq/t including 2.38% Zn over 10.11m (DSB-08).
  • 114.96 Ag eq/t including 0.325% Sn over 56.2m including a higher-grade section of 187.98 g Ag eq/t including 0.535% Sn over 28.86m; 80.71 g Ag eq/t including 0.213% Sn over 74.39m and 118.69 g Ag eq/t over 10.77m (DSB-10).
  • 129.65 g Ag eq/t (18.38 g Ag/t, 2.14% Zn, 0.67%Pb, and 0.047% Sn) over 300.75m from 65.14m to 365.91m, including higher grade intervals of 215.54 g Ag eq/t over 72.76m, 163.35 g Ag eq/t over 31.83m and 224.48 g Ag eq/t over 19.39m. 82% of this 446.5m long hole contained reportable intervals (DHK-18).
  • 234.19 g Ag eq/t (70.58 g Ag/t, 2.31% Zn, 2.74% Pb and 0.042% Sn) over 53.2m including a higher-grade portion of 931.73 g Ag eq/t (367.29 g Ag/t, 5.64% Zn, 13.67% Pb and 0.10% Sn) over 9.26m (DHK-20).
  • 108.24 g Ag eq/t (3.14g Ag/t, 0.24 g Au/t, 2.03% Zn and 0.58% Pb) over 48.2m including a higher-grade interval grading 180.76 g Ag eq/t (4.46 g Ag/t, 0.35 g Au/t, 3.57% Zn and 1.05% Pb) over 15.02m (DHK-19). 160.22 g Ag eq/t (36.53 g Ag/t, 1.63% Zn, 1.20% Pb and 0.10% Sn) over 194.14m (DHK-21) including higher grade portions of:
    • 250.50 g Ag eq/t (51.31 g Ag/t, 3.35% Zn, 1.78% Pb and 0.10% Sn) over 18.24m.
    • 257.40 g Ag eq/t (75.83 g Ag/t, 2.29% Zn, 2.40% Pb and 0.12% Sn) over 16.33m.
    • 350.91 g Ag eq/t (112.57 g Ag/t, 1.41% Zn, 3.08% Pb and 0.33% Sn) over 30.06m.
    • 64% of this 512.9m long hole contains reportable intersections
  • 94.68 g Ag eq/t (3.87 g Ag/t, 0.067 g Au/t, 1.63% Zn, 0.43% Pb and 0.05% Sn) over 169.93m including a higher-grade zone that graded 158.64 g Ag eq/t (9.35g Ag/t, 0.016 g Au/t, 3.43% Zn, 0.71% Pb and 0.03%Sn) over 29.84m (DHK-22).

On May 4, 2021, Eloro released results from the first drill hole on the CBP. Hole DCN-01 intersected multiple mineralized intercepts including 196.09 g Ag eq/t (150.25 g Ag/t, 0.10% Sn and 0.05 g Au/t) over 56.2m and containing 342.98 g Ag eq/t (274.0 g Ag/t, 0.16% Sn and 0.16 g Au/t) over 27.53m.

Hole DCN-04 drilled at -80 degrees to the north from the northern radial platform of the CBP, intersected seventeen (17) mineralized intersections, principally Sn-Ag-bearing, over its 851.4m length. Best results include: 71.54 g Ag eq/t (32.58 g Ag/t and 0.10% Sn) over 97.10m from 134.40 to 231.5m; 101.52 g Ag eq/t (28.74 g Ag/t and 0.19% Sn) over 62.01m; 70.42 g Ag eq/t (28.74 g Ag/t and 0.16% Sn) over 22.59m; and 236.96 g Ag eq/t (92.21 g Ag/t and 0.25% Sn) over 17.45m. Hole DCS-02 was drilled southeast at -60 degrees from the south radial platform of the CBP. This hole, which was drilled to 800.5m, intersected nine (9) reportable Ag-Zn-Pb-Sn mineralized intervals. Best results include 79.53 g Ag eq/t (including 0.21% Sn) over 19.42m, 101.01 g Ag eq/t (32.76 g Ag/t, 0.76% Zn, 0.75% Pb) over 10.47 and 130.95g Ag eq/t (34.14 g Ag/t, 0.10 g Au/t, 1.35% Zn and 0.56 % Pb over 7.40m.

A detailed ground magnetic survey of the Iska Iska property, reported on June 6, 2021, confirmed the extent of the Iska Iska Caldera as determined from geological mapping and satellite interpretation, including Aster data. The SBBP and CBP, both of which have been confirmed by drill-testing, are marked by prominent low anomalies reflecting strong alteration. The magnetic data suggests that the Central and Porco Breccia Pipes likely merge at depth. In addition, there is a prominent area of low intensity magnetics northwest of the SBBP which was reported on in this press release.

Geological mapping and satellite interpretation identified a third major breccia pipe target, Porco (South), that is approximately 600m in diameter (South) located southeast of the CBP in the southern part of the Iska Iska caldera complex. The Porco (South) Breccia Pipe target has a similar magnetic signature to the Santa Barbara and Central Breccia Pipes, further confirming the likelihood of it being a major breccia pipe. Six (6) drill holes have been completed on Porco; assay results are pending. Previous channel sampling in the Porco adit located adjacent the target area 200m to the southeast returned 50m grading 519.35 g Ag eq/t including 236.13 g Ag/t, 1.89 g Au/t, 0.87% Cu, 0.22% Bi and >0.05% Sn over an average sample width of 2.49m.

Currently three diamond drill rigs are active at Iska Iska, two surface rigs and one underground drill. Planned drilling for 2021 is 51,000m with the aim of outlining an initial inferred NI 43-101 compliant mineral resource by Q1 2022. The target zone at the SBBP and the surrounding mineralized envelope is 1400m along strike, 500m wide and extends to a depth of 600m. This zone is open along strike to the northwest and southeast. A downhole induced polarization/resistivity (IP/Res) survey is in progress to further define drill targets and aid resource definition drilling. Preliminary metallurgical tests are also in progress. An updated NI 43-101 Technical Report is being prepared by independent consultant Micon International Ltd.

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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