Mr. Tom Larsen reports
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. has provided 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 in 64 drill holes including three in progress to test major target areas at Iska Iska. This press release reports drilling results from one additional hole that tested the Santa Barbara breccia pipe (SBBP) (hole DHK-23) and two holes (DCN-05 and DCS-03) that 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-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. An image on the company's website is a geological plan map showing locations of drill holes and an updated geological interpretation. A table on the company's website provides significant drilling results with definitions of chemical symbols and another table on the company's website 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:
100 grams per tonne silver equivalent (including 38.71 g/t Ag, 0.88 per cent zinc and 0.51 per cent lead) over 188.5 m from 58.67 m to 247.13 m in hole DHK-23, drilled from the west end of the Huayra Kasa underground workings at minus 70 degrees due west. This intersection includes a higher-grade portion of 154 g/t AgEq (including 75.51 g/t Ag, 0.96 per cent Zn, 0.65 per cent Pb and 0.16 per cent Cu) over 65.8 m.
Central breccia pipe:
Hole DCS-03, drilled southwest at minus 60 degrees from the south radial platform of the CBP, intersected 12 separate zones of quartz-tourmaline veins in granodioritic intrusive breccia with best results of 224.92 g/t AgEq (including 25.36 g/t Ag, 0.12 g/t Au and 0.55 per cent Sn) over 7.42 m and 113.67 g/t AgEq (including 17.85 g/t Ag, 0.085 g/t Au, 0.21 per cent Cu and 0.18 per cent Sn) over 12.03 m.Hole DCN-05, drilled due east at minus 60 degrees from the north radial platform of the CBP, intersected 10 separate zones of quartz-tourmaline veins in granodioritic intrusive breccia with a best result of 104.72 g/t AgEq (including 74.41 g/t Ag and 0.22 per cent Cu) over 4.59 m.
Tom Larsen, chief executive officer 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, PGeo, Eloro's executive vice-president, exploration, added: "Mineral resource definition drilling is continuing in the Santa Barbara target area, which is 1,400 m along strike, 500 m wide and extends to a depth of 600 m. This target is open along strike to the northwest and southeast. Data from the downhole induced polarization survey is being processed and the resulting 3-D 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, PGeo, general manager of Eloro's Bolivian subsidiary, Minera Tupiza SRL, 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."
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 per cent and 90 per cent of the downhole interval length, but this will be confirmed by further drilling.
Metal prices and conversion factors used for calculation of g/t AgEq (grams Ag per grams multiplied by metal ratio) are shown in the associated table.
Element Price (per kg) Ratio to AgAg $875.00 1.00000Sn$28.00 0.03200Zn $2.80 0.00320Pb $2.10 0.00240Au $57,400 65.6000Cu $8.80 0.01006Bi$12.76 0.01458In $305.00 0.34857Cd $5.50 0.00629
In calculating the intersections reported in this press release a sample cut-off of 30 g/t AgEq was used with generally a maximum dilution of three continuous samples below cut-off 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. Arce.
Total drilling completed since the start of the program on Sept. 13, 2020, is 34,409 m in 64 holes including three holes in progress (20 underground holes and 44 surface holes).
Qualified person
Dr. Arce, a qualified person in the context of National Instrument 43-101, has reviewed and approved the technical content of this news release. Dr. Pearson, 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, PGeo, senior technical adviser to Eloro and independent technical adviser, Charley Murahwi, PGeo, FAusIMM of Micon International Ltd., are regularly consulted on technical aspects of the project.
Drill samples are prepared in ALS's preparation facility in Oruro, Bolivia, with pulps sent to the main ALS laboratory in Lima for analysis. As announced in the Feb. 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 quality assurance/quality control program with standards, blanks and duplicates inserted into each batch of samples analyzed with selected check samples sent to a separate accredited laboratory.
Recently, AHK Laboratories, which manages a global network of laboratories, has set up 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.
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 SRL and is located 48 kilometres 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-per-cent 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 1.6 km by 1.8 km in dimension with a vertical extent of at least one km. Mineralization age is similar to Cerro Rico de Potosi 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 Sept. 13, 2020. On Nov. 18, 2020, Eloro announced the discovery of a significant breccia pipe with extensive silver polymetallic mineralization just east of the Huayra Kasa underground workings and a high-grade gold-bismuth zone in the underground workings. On Nov. 24, 2020, Eloro announced the discovery of the Santa Barbara breccia pipe approximately 150 m southwest of the Huayra Kasa underground workings.
Subsequently, on Jan. 26, 2021, Eloro announced significant results from the first drilling at the SBBP including the discovery hole DHK-15, which returned 129.60 g/t AgEq over 257.5 m (29.53 g/t Ag, 0.078 g/t Au, 1.45 per cent Zn, 0.59 per cent Pb, 0.080 per cent Cu, 0.056 per cent tin, 0.0022 per cent indium and 0.0064 per cent bismuth) from 0.0 m to 257.5 m. 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 downdip, extends around both major breccia pipes. Continuous channel sampling of the Santa Barbara adit located to the east of SBBP returned 442 g/t AgEq (164.96 g/t Ag, 0.46 per cent Sn, 3.46 per cent Pb and 0.14 per cent Cu) over 166 m including 1,092 g/t AgEq (446 g/t Ag, 9.03 per cent Pb and 1.16 per cent Sn) over 56.19 m. 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 g/t AgEq (35.05 g/t Ag, 0.72 per cent Zn, 0.61 per cent Pb, 0.11 per cent Sn and 0.06 g/t Au) over 123.61 m including 205.74 g/t AgEq (92.30 g/t Ag, 0.57 per cent Zn, 0.85 per cent Pb, 0.18 per cent Sn and 0.07 g/t Au) over 32.32 m (DSB-07);105.41 g/t AgEq (8.55 g/t Ag, 1.01 per cent Zn, 0.48 per cent Pb, 0.06 per cent Sn and 0.38 g/t Au) over 173.58 m including 199.77 g/t AgEq (21.90 g/t Ag, 1.18 per cent Zn, 0.93 per cent Pb 0.12 per cent Sn and 0.94 g/t Au) over 39.08 m (DSB-07);69.89 g/t AgEq over 252.89 m from 355.12 to 608.02 m including several higher-grade sections of 196.60 g/t AgEq including 131.13 g/t Ag over 14.52 m, 134.62 g/t AgEq including 93.25 g/t Ag over 21.08 m and 145.35 g/t AgEq including 2.38 per cent Zn over 10.11 m (DSB-08);114.96 g/t AgEq including 0.325 per cent Sn over 56.2 m including a higher-grade section of 187.98 g/t AgEq including 0.535 per cent Sn over 28.86 m, 80.71 g/t AgEq including 0.213 per cent Sn over 74.39 m and 118.69 g/t AgEq over 10.77 m (DSB-10);129.65 g/t AgEq (18.38 g/t Ag, 2.14 per cent Zn, 0.67 per cent Pb and 0.047 per cent Sn) over 300.75 m from 65.14 m to 365.91 m, including higher-grade intervals of 215.54 g/t AgEq over 72.76 m, 163.35 g/t AgEq over 31.83 m and 224.48 g/t AgEq over 19.39 m; 82 per cent of this 446.5 m long hole contained reportable intervals (DHK-18);234.19 g/t AgEq (70.58 g/t Ag, 2.31 per cent Zn, 2.74 per cent Pb and 0.042 per cent Sn) over 53.2 m including a higher-grade portion of 931.73 g/t AgEq (367.29 g/t Ag, 5.64 per cent Zn, 13.67 per cent Pb and 0.10 per cent Sn) over 9.26 m (DHK-20);108.24 g/t AgEq (3.14 g/t Ag, 0.24 g/t Au, 2.03 per cent Zn and 0.58 per cent Pb) over 48.2 m including a higher-grade interval grading 180.76 g/t AgEq (4.46 g/t Ag, 0.35 g/t Au, 3.57 per cent Zn and 1.05 per cent Pb) over 15.02 m (DHK-19); 160.22 g/t AgEq (36.53 g/t Ag, 1.63 per cent Zn, 1.20 per cent Pb and 0.10 per cent Sn) over 194.14 m (DHK-21) including higher-grade portions of: 250.50 g/t AgEq (51.31 g/t Ag, 3.35 per cent Zn, 1.78 per cent Pb and 0.10 per cent Sn) over 18.24 m;257.40 g/t AgEq (75.83 g/t Ag, 2.29 per cent Zn, 2.40 per cent Pb and 0.12 per cent Sn) over 16.33 m;350.91 g/t AgEq (112.57 g/t Ag, 1.41 per cent Zn, 3.08 per cent Pb and 0.33 per cent Sn) over 30.06 m;64 per cent of this 512.9 m long hole contains reportable intersections; 94.68 g/t AgEq (3.87 g/t Ag, 0.067 g/t Au, 1.63 per cent Zn, 0.43 per cent Pb and 0.05 per cent Sn) over 169.93 m including a higher-grade zone that graded 158.64 g/t AgEq (9.35g/t Ag, 0.016 g/t Au, 3.43 per cent Zn, 0.71 per cent Pb and 0.03 per cent Sn) over 29.84 m (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/t AgEq (150.25 g/t Ag, 0.10 per cent Sn and 0.05 g/t Au) over 56.2 m and containing 342.98 g/t AgEq (274.0 g/t Ag, 0.16 per cent Sn and 0.16 g/t Au) over 27.53 m.
Hole DCN-04 drilled at minus 80 degrees to the north from the northern radial platform of the CBP, intersected 17 mineralized intersections, principally Sn-Ag bearing, over its 851.4 m length. Best results include: 71.54 g/t AgEq (32.58 g/t Ag and 0.10 per cent Sn) over 97.10 m from 134.40 to 231.5 m; 101.52 g/t AgEq (28.74 g/t Ag and 0.19 per cent Sn) over 62.01 m; 70.42 g/t AgEq (28.74 g/t Ag and 0.16 per cent Sn) over 22.59 m; and 236.96 g/t AgEq (92.21 g/t Ag and 0.25 per cent Sn) over 17.45 m. Hole DCS-02 was drilled southeast at minus 60 degrees from the south radial platform of the CBP. This hole, which was drilled to 800.5 m, intersected nine reportable Ag-Zn-Pb-Sn-mineralized intervals. Best results include 79.53 g/t AgEq (including 0.21 per cent Sn) over 19.42 m, 101.01 g/t AgEq (32.76 g/t Ag, 0.76 per cent Zn and 0.75 per cent Pb) over 10.47 and 130.95 g/t AgEq (34.14 g/t Ag, 0.10 g/t Au, 1.35 per cent Zn and 0.56 per cent Pb) over 7.40 m.
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 suggest 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 600 m 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. This target is currently being drill tested. Previous channel sampling in the Porco adit located adjacent the target area 200 m to the southeast returned 50 m grading 519.35 g/t AgEq including 236.13 g/t Ag, 1.89 g/t Au, 0.87 per cent Cu, 0.22 per cent bismuth and greater than 0.05 per cent Sn over an average sample width of 2.49 m.
Currently three diamond drill rigs are active at Iska Iska: two surface rigs and one underground drill. Planned drilling for 2021 is 51,000 m with the aim of outlining an initial inferred NI 43-101-compliant mineral resource by the first quarter of 2022. A downhole induced polarization/resistivity (IP/resistivity) 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-per-cent interest in the highly prospective Iska Iska property, which can be classified as a polymetallic epithermal-porphyry complex, a significant mineral deposit type in the Potosi department, in southern Bolivia. Eloro commissioned an NI 43-101 technical report on Iska Iska, which was completed by Micon International, and is available on Eloro's website and under its filings on SEDAR. Iska Iska is a road-accessible, royalty-free property.
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