Eloro Intersects 160.22g Ag eq/t (36.53 g Ag/t, 1.63%Zn, 1.20%Pb and 0.10%Sn) over 194.14 m in the Santa Barbara Breccia Pipe at Iska Iska Silver-Tin Polymetallic Project, Potosi Department, Bolivia
Eloro Intersects 160.22g Ag eq/t (36.53 g Ag/t, 1.63%Zn, 1.20%Pb and 0.10%Sn) over
194.14 m in the Santa Barbara Breccia Pipe at Iska Iska Silver-Tin Polymetallic Project,
Potosi Department, Bolivia
Section includes 350.91 g Ag eq/t (112.57 g Ag/t, 1.41% Zn, 3.08% Pb and 0.33%
Sn) over 30.06m
Toronto, Canada, September 28, 2021 – 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 30,014 metres (m) in 57 drill holes including three (3) in progress to test major
target areas at Iska Iska. This press release r eports drilling results from two (2) additional holes
which tested the Santa Barbara Breccia Pipe (“SBBP”) (Holes DHK-21 and DHK-22). 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. Figure 1 is a geological plan map showing
locations of drill holes and an updated geological interpretation. This map depicts the recently
identified robust magnetic anomaly to the northwe st of the SBBP where drilling is in progress
(see press release June 7, 2021, for an overview of the magnetic results). Figure 2 is a north-
south section showing the major potential ex tension of the SBBP mineralized system. Table 1
provides significant drilling results with defin itions 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:
160.22 g Ag eq/t (36.53 g Ag/t, 1.63% Zn, 1.20% Pb and 0.10% Sn) over 194.14m from
168.85m to 362.99m in hole DHK-21 , drilled from the west end of the Huayra Kasa
underground workings at -70 degrees on section with discovery hole DHK-15, which
intersected 129.60 g Ag eq/t over 257.5m (see press release dated January 26, 2021,
and Figure 2). This intersection in Hole DHK-21 includes higher grade portions of:
o 250.50 g Ag eq/t (51.31 g Ag/t, 3.35% Zn, 1.78% Pb and 0.10% Sn) over 18.24m
from 238.21 to 256.45m;
o 257.40 g Ag eq/t (75.83 g Ag/t, 2.29% Zn, 2.40% Pb and 0.12% Sn) over 16.33m
from 283.57 to 299.90m; and
o 350.91 g Ag eq/t (112.57 g Ag/t, 1.41% Zn, 3.08% Pb and 0.33% Sn) over
30.06m from 308.90 to 338.96m.
o 64% of this 512.9m long hole contains reportable intersections
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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 from 124.66m to 294.59m in hole DHK-22, drilled to the south-southwest at -60
degrees from the west end of the Huayra Kasa underground workings to test the eastern
side of the SBBP. This intersection included 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 from
135.20m to 165.04m. 49% of this 600m long hole contained reportable intersections.
Mineral Resource Definition Drilling at Santa Barbara Breccia Pipe
As reported in the September 6, 2021 press release, Eloro is focusing on defining a maiden NI
43-101 compliant mineral resource in a target area encompassing approximately 1,200m along
strike, 500m in width and extending to a depth of 600m in the SBBP and surrounding mineralized
envelope. Step-out holes DSB-12 and DSB-13 intersected significant mineralization in altered
dacite visually similar to the style of mineralization in the mineralized envelope east of SBBP. A
further set of step-out holes (DSB-15 and DSB-16) are being drilled 200m NW of the first step-
out to test across the widest part of the magnetic anomaly. Fill-in sectional drilling at 100m
intervals, starting with hole DSB-14 which will test across the centre of the SBBP, is in progress.
Three underground drill holes have been completed from the drill bay at the west end of the Santa
Barbara adit. This drill can complete holes up to 600m long. DSBU-01 was drilled due east at -
20 degrees to test the mineralized envelope of the SBBP. Holes DSBU-02 and DSBU-03 (in
progress) are drilled due west at -20 degrees and -50 degrees, respectively, to test the southern
margin of the SBBP. Assays on these holes are pending.
Structural work by Dr. Osvaldo Arce, P.Geo., General Manager of Eloro’s Bolivian subsidiary,
Minera Tupiza S.R.L. (“Minera Tupiza”), and his geological team indicate that higher grade
mineralization appears to follow a north-westerly trend hence the drill holes with a southwest
orientation should test this trend quite effectively.
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.”
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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 (see
press release July 6, 2021, and Figure 1) 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 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 September 28, 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.
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.
Ag Au Zn Pb Cu Sn Bi Cd
g / t g / t %%%%%%
DHK‐21 1.85 9.32 7.47 0.50 0.007 0.96 0.17 0.019 0.02 0.0008 0.027 47.46
19.88 28.97 9.09 26.84 0.029 2.54 1.63 0.032 0.04 0.0051 0.020 175.02
41.13 42.67 1.54 52.00 0.030 4.82 3.32 0.013 0.05 0.0005 0.023 320.47
92.39 93.88 1.49 9.00 0.010 1.37 0.12 0.048 0.04 0.0080 0.002 78.46
110.30 142.03 31.73 0.55 0.016 1.54 1.10 0.011 0.00 0.0013 0.126 91.72
168.85 362.99 194.14 36.53 0.020 1.63 1.20 0.010 0.10 0.0016 0.008 160.22
Incl. 238.21 256.45 18.24 51.31 0.044 3.35 1.78 0.014 0.10 0.0090 0.018 250.50
Incl. 283.57 299.90 16.33 75.83 0.029 2.29 2.40 0.009 0.12 0.0006 0.013 257.14
Incl. 308.90 338.96 30.06 112.58 0.022 1.41 3.08 0.007 0.33 0.0005 0.007 350.91
382.38 434.85 52.47 26.82 0.129 0.50 0.34 0.007 0.19 0.0023 0.003 126.79
Incl. 385.37 400.45 15.08 79.21 0.121 0.55 0.92 0.006 0.58 0.0020 0.005 328.49
442.35 468.10 25.75 15.80 0.015 1.73 0.30 0.006 0.10 0.0022 0.006 117.24
Incl. 458.94 468.10 9.16 28.65 0.013 3.27 0.33 0.008 0.07 0.0017 0.012 176.79
481.50 487.51 6.01 5.47 0.454 0.34 0.06 0.013 0.03 0.0033 0.001 61.63
DHK‐22 9.02 10.51 1.49 14.00 0.040 3.17 0.20 0.03 0.03 0.0005 0.024 144.33
22.50 49.50 27.00 1.22 0.393 1.03 0.21 0.03 0.02 0.0035 0.009 81.56
75.00 84.07 9.07 2.16 0.016 1.02 0.08 0.02 0.01 0.0008 0.003 44.02
111.07 112.60 1.53 1.00 0.010 1.66 0.10 0.02 0.01 0.0010 0.004 65.63
117.14 318.95 201.81 3.70 0.059 1.51 0.41 0.02 0.05 0.0019 0.010 89.16
Incl. 135.20 165.04 29.84 9.35 0.016 3.43 0.71 0.02 0.03 0.0007 0.024 158.64
Incl. 183.26 196.79 13.53 1.45 0.005 2.02 0.32 0.02 0.06 0.0006 0.013 102.15
Incl. 282.75 293.10 10.35 9.68 0.016 1.82 0.77 0.02 0.08 0.0050 0.008 123.07
Incl. 314.32 318.95 4.63 12.20 0.081 2.48 1.74 0.02 0.26 0.0042 0.009 235.96
342.95 344.47 1.52 4.00 0.005 2.42 0.12 0.01 0.15 0.0010 0.014 141.31
345.97 348.94 2.97 3.00 0.008 1.08 0.70 0.01 0.11 0.0005 0.005 98.52
369.97 378.98 9.01 1.99 0.015 1.04 0.66 0.01 0.05 0.0008 0.003 71.40
421.21 427.37 6.16 9.70 0.007 2.25 0.89 0.01 0.07 0.0011 0.009 135.44
535.61 541.66 6.05 8.89 0.066 2.33 0.31 0.01 0.03 0.0252 0.011 115.53
554.77 571.30 16.53 35.09 0.096 0.44 0.03 0.01 0.08 0.0291 0.001 89.13
581.80 590.75 8.95 21.11 0.010 1.21 0.04 0.01 0.02 0.0008 0.006 72.56
Hole No. From (m) To (m) Length (m) Ag eq**
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Metal prices and conversion factors used for calculation of g Ag eq/t (grams Ag per grams x metal
ratio) are as follows:
Element Price (per
kg)
Ratio to
Ag
Ag $875.00 1.00000
Sn $28.00 0.03200
Zn $2.80 0.00320
Pb $2.10 0.00240
Au $57,400 65.6000
Cu $8.80 0.01006
Bi $12.76 0.01458
In $305.00 0.34857
Cd $5.50 0.00629
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.
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Table 2: Summary of Diamond Drill Holes Completed with Assays Pending and Drill
Holes in Progress at Iska Iska from press release of September 28, 2021.
Hole No. Type Collar
Easting
Collar
Northing
Elev Azimuth Angle Hole Length
m
Surface Drilling Northwest Extension Santa Barbara
DSB-12 S 205072.7 7656867.5 4165.0 225 -40 806.2
DSB-13 S 205072.7 7656867.5 4165.0 225 -60 696.5
DSB-14 S 205283.0 7656587.2 4175.0 225 -65 814.8
DSB-15 S 204973.1 7657053.8 4165.0 225° -40 731.2
Subtotal 3048.7
DSB-14 S 205283.0 7656587.2 4175.0 225 -65 In progress
DSB-16 S 204973.1 7657053.8 4165.0 225° -65 In progress
Underground Drilling Huayra Kasa – Santa Barbara Area
DHK-23 UG 205418.5 7656360.0 4151.9 270 -50 598.0
Subtotal 598.0
Underground Drilling Santa Barbara Adit
DSBU-1 UG 205285.2 7656074.8 4165.0 90 -10 260.5
DSBU-2 UG 205285.2 7656074.8 4165.0 270 -20 563.6
Subtotal 824.1
DSBU-3 UG 205285.2 7656074.8 4165.0 270 -20 In progress
Central Breccia Pipe – Surface Radial Drill Program – North Setup
DCN-05 S 204902.0 7655860.0 4420.0 90 -60 524.3
DCN-06 S 204902.0 7655860.0 4420.0 180 -80 626.4
DCN-07 S 204902.0 7655860.0 4420.0 270 -60 680.4
Subtotal 1831.1
Central Breccia Pipe – Surface Radial Drill Program – South Setup
DCS-03 S 204852.1 7655612.3 4429.7 225 -60 443.5
DCS-04 S 204852.1 7655612.3 4429.7 180 -60 644.4
Subtotal 1087.9
Porco Central – Surface Radial Drill Program
DPC-01 S 205457.2 7655110.9 4175.0 270 -60 767.5
DPC-02 S 205457.2 7655110.9 4175.0 225 -60 908.2
DPC-03 S 205457.2 7655110.9 4175.0 135 -60 524.5
DPC-04 S 205457.2 7655110.9 4175.0 0 -60 371.4
DPC-05 S 205457.2 7655110.9 4175.0 90 -60 407.5
DPC-06 S 205457.2 7655110.9 4175.0 243 -60 716.4
Subtotal 3695.5
TOTAL 11,085.3
S = Surface UG=Underground; collar coordinates in metres; azimuth and dip in degrees
Total drilling completed since the start of the program on September 13, 2020, is 30,014m
in 57 holes including 3 holes in progress (19 underground holes and 38 surface holes).
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Figure 1: Geology of the Iska Iska Caldera Complex showing locations of Major Breccia
Pipe targets including the magnetic anomaly northwest of the Santa Barbara Breccia
Pipe and diamond drill holes completed and in progress.
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Figure 2. SW-NE Geological Cross Section, Santa Barbara Breccia Pipe showing
Location of Newly Released Drill Hole DHK-22 Relative to Discovery Hole DHK-15.
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Qualified Person
Dr. Osvaldo Arce, P. Geo., General Manager of Minera Tupiza S.R.L., and a Qualified Person in
the context of National Instrument 43-101 (“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.
Unfortunately, the ALS Global laboratory in Lima where the Iska Iska samples are being analyzed
has had major delays in turnaround time due to the impact of the COVID-19 lockdown of Lima
by the Peruvian government. This has restricted availability of critical supplies necessary to carry
out analytical work. As a result, there will be delays in reporting of assay results.
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.
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.