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Eloro Resources (TSXV:ELO) provides update on its Iska Iska silver-tin polymetallic project

Mining
TSXV:ELO
28 September 2021 10:15 (EDT)

Eloro Resources (ELO) is pleased to provide an update on its Iska Iska silver-tin polymetallic project in Potosi Department, southern Bolivia.

To date, the company has completed 57 diamond drill holes including three in progress totalling 30,014 metres (m) to test major target areas at Iska Iska.

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 completing drilling at SBBP in order 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 the SBBP and its mineralized envelope.

Highlights:

Tom Larsen, CEO of Eloro commented,

“Once again Dr Bill Pearson, Dr Osvaldo Arce and the technical team at Iska Iska are delivering with drill hole DHK-21 demonstrating a major intersection over 190 metres long with an average grade of 160.22 g Ag eq/t including up to 350.91 g Ag eq/t over 30.06 metres with significant silver of 112.57g Ag/t. This hole is the highest-grade hole yet within the prolific Santa Barbara Breccia Pipe and surrounding mineralized envelope. In addition, the latest step out holes to the northwest are demonstrating added mineralization, extending the strike length beyond the 1200 m that was initially reported.”

Mr. Larsen continued,

“Due to the positive results to date from our drill campaign, initial engineering studies to establish potential economic parameters for mineral resource definition will commence shortly, with a site visit having already been completed by a top Peruvian Engineering firm. More detailed metallurgical studies are also planned.”

Dr. Bill Pearson, P.Geo., Eloro’s Executive Vice President Exploration, commented,

“While we are focusing on drilling in the SBBP area, it is important to emphasize that this target is only part of an enormous, mineralized area in the Iska Iska Caldera Complex. We continue to obtain multiple reportable intersections in all holes that we have released. Other major targets, including the Central and Porco Breccia Pipes, require much further drilling in order to fully evaluate them. Our downhole Induced Polarization survey is advancing well, and we hope that this survey will help better define the geometry of the mineralization, especially the higher grade zones with greater sulphide content.”

Dr. Osvaldo Arce, P.Geo., General Manager of Minera Tupiza, said,

“While radial drilling at Santa Barbara was very useful for defining the general extent of the breccia pipe and mineralized envelope, more focused directed drilling is now being carried out to confirm the orientation of the mineralized zones.

A preliminary structural analysis of the deposit shows a clear NW-SE trend of mineralization, which has been confirmed by the drilling of the step-out holes. Hole DSB-09 which intersected a series of relatively short, mineralized intervals from 1.5m to 15m long appears to have been drilled parallel to this structural trend hence is not likely representative of the grade and extent of the mineralization in the western part of SBBP.

Surface drill holes in progress with azimuths to the southwest across these structures will provide a more representative sampling of this mineralization. It is also clear that the deposit displays both lateral and vertical zonation of metals both within the breccia pipe and in the surrounding envelope. Work is in progress to more accurately model this zonation which will be important for mineral resource estimation.”

Table 1: Significant Diamond Drilling Results, Iska Iska, as at July 5, 2021.

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.

Total drilling completed since the start of the program on September 13, 2020, is 30,014m in 57 holes including 3 holes in progress (19 underground holes and 38 surface holes).

About Iska Iska

The Iska Iska silver-tin polymetallic project is a road-accessible, royalty-free property, wholly controlled by the Title Holder, Empresa Minera Villegas S.R.L. The project 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.

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 Santa Barbara Breccia Pipe (“SBBP”) approximately 150m southwest of the Huayra Kasa underground workings.

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 Central Breccia Pipe (“CBP”). The SBBP thus far extends 800m along strike by 400+m wide and extends to at least 700m depth. CBP extends for 700m along strike by 400+m wide and extends to at least 900m deep.

A substantive mineralized envelope that is open along strike and down-dip extends around the breccia pipes. Continuous channel sampling of the Santa Barbara Adit located to the east of SBBP returned 442 g Ag eq/t (164.96 gAg/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.

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.

On May 26, 2021 Eloro released results from Hole DSB-07 drilled at -60 degrees to a depth of 683.4m to the southeast from the radial drill platform on SBBP which intersected multiple mineralized intercepts including:

Eloro reported additional multiple holes with significant silver-tin polymetallic Intercepts in the SBBP and CBP on July 6, 2021, including:

On July 28, 2021, Eloro reported results from hole DHK-18, drilled due south at -10 degrees from the west drill bay in the Huayra Kasa underground workings, to test the mineralized envelope of the SBBP. This hole intersected 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. This hole intersected significant mineralization approximately 230m below the eastern part of the Santa Barbara adit from which previously reported continuous channel sampling returned 442 g Ag eq/t over 166m (see press release April 13, 2021). 82% of this 446.5m long hole contained reportable intervals.

On September 7, 2021 assay results were reported from a further four (4) additional four holes which tested the mineralized envelope of the Santa Barbara Breccia Pipe (“SBBP”) and the central-southern part of the Central Breccia Pipe (“CBP”), including;

Planned drilling for 2021 is 51,000m with the aim of outlining an initial inferred NI 43-101 mineralization by late fall. A ground magnetic survey was recently completed over the property and an induced polarization survey will commence shortly to further define drill targets. Preliminary metallurgical tests are also in progress. An updated NI 43-101 Technical Report is being prepared by independent consultant Micon International Ltd.

Eloro Resources is an exploration and mine development company with a portfolio of gold and base-metal properties in Bolivia, Peru and Quebec.

Eloro Resources Ltd. (ELO) opened trading at C$3.74 per share.

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