Eloro Intersects 234.19g Ag eq/t over 53.20m in the Mineralized Envelope of the Santa Barbara Breccia Pipe at Iska Iska Silver-Tin Polymetallic Project, Potosi Department, Bolivia
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Eloro Intersects 234.19g Ag eq/t over 53.20m in the Mineralized Envelope of the Santa
Barbara Breccia Pipe at Iska Iska Silver-Tin Polymetallic Project, Potosi Department,
Bolivia
Step out drilling northwest of Santa Barbara Breccia Pipe demonstrates room for
expansion of the mineralized strike length of the breccia pipe and its surrounding
mineralized envelope to over 1.2km
Definition drilling in progress to define a maiden NI 43-101 compliant mineral
resource within a target block measuring 1,200m along strike, 500m wide and
extending to a depth of up to 600m in Santa Barbara Breccia Pipe and its
surrounding mineralized envelope
Toronto, Canada, September 7, 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 58 diamond drill holes totalling 26,982 metres (m) to test major target areas at Iska
Iska. This press release reports drilling results from four (4) additional holes which tested the
mineralized envelope of the Santa Barbara Breccia Pipe (“SBBP”) (Holes DDHK-19 and DHK-
20) and the central-southern part of the Central Breccia Pipe (“CBP”) (Holes DCN-04 and DCS-
02). To date, every drill hole that has been assayed has returned multiple reportable mineralized
intercepts. Currently three drill rigs are in ope ration 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 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 a recently identified robust m agnetic anomaly to the northwest of the SBBP
where drilling is in progress (see press release J une 7, 2021, for an overview of the magnetic
results). Figure 2 is a north-south section showing the major potential extension of the SBBP
mineralized system. 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:
Hole DHK-20, drilled from the west end of the Huayra Kasa underground workings at -50
degrees on section with hole DHK-18, which intersected 129.65 g Ag eq/t over 300.75m
(see press release dated July 28, 2021), returned 234.19 g Ag eq/t (70.5 g Ag/t, 2.31%
Zn, 2.74% Pb and 0.04% Sn) over 53.20m from 139.35m to 192.55m 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. Multiple additional significant mineralized intervals occur above and below
this intercept. Mineralization occurs within the mineralized envelope east of SBBP in all
host rock types.
20 Adelaide Street East, Suite 200, Toronto, Ontario CANADA M5C 2T6 Tel.: (416) 868-9168 Fax: (416) 361-1333
TSX.V Symbol: ELO www.elororesources.com
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Hole DHK-19, drilled to the southeast at -45 degrees from the west end of the Huayra
Kasa underground workings, intersected 108.24 g Ag eq/t (3.14g Ag/t, 0.24 g Au/t,
2.02% Zn and 0.58% Pb) over 48.2m from 46.95m to 95.15m in altered dacite in the
mineralized envelope of the SBBP. This includes a higher-grade interval grading 180.76
g Ag eq/t (4.46 g Ag/t, 0.35 g Au/t, 3.58% Zn and 1.04% Pb) over 15.02m . Multiple
additional significant mineralized intervals occur above and below this intercept.
Hole DCN-04 was drilled at -80 degrees to the north from the northern radial platform of
the CBP. This hole 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
.19% Sn) over 62.01m from 281.40m to 343.41m; 134.33 g Ag eq/t (70.42 g Ag/t and
0.16% Sn) over 22.59m from 417.05m to 439.64m; and 236.96 g Ag eq/t (92.21 g Ag/t
and 0.25% Sn) over 17.45m from 659.55m to 677.00.m
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 (32.75 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. Mineralization
in the southern part of the CBP is notable for containing significant Zn and Pb as well as
Ag and Sn, a metal assemblage more comparable to SBBP and Porco. The northern part
of the CBP is dominantly Sn-Ag suggesting a deeper origin for this part of the breccia
pipe.
Major Potential Extension to Santa Barbara Breccia Pipe
Data from a ground magnetics survey conducted by Eloro (see press release of June 7, 2021)
outlined a prominent area of anomalously low m agnetic variability northwest of the SBBP, as
shown in Figure 1, likely reflecting strong hydrothermal alteration. Subsequent 3D inversion
modelling confirmed that this area warranted drill testing as this pattern is comparable to the
SBBP and CBP, both marked by similar magnetic anom alies. Recently completed holes DSB-
12 drilled southeast at -40 degrees and DSB-13 on section at -65 degrees intersected strongly
altered dacite and breccia with widespread mineralization. As depicted in Figure 2, a north-south
section, these holes substantially increase the potential strike length of the SBBP and
surrounding mineralized envelope to more than 1.2km. Figure 3 shows pictures of representative
boxes of mineralized drill core. Sulphide minerals identified include pyrite, galena, sphalerite and
chalcopyrite accompanied by cassiterite. As says are pending but visually the style of
mineralization is similar to what has been intersected within drill holes in the mineralized envelope
of the SBBP.
Tom Larsen, CEO of Eloro commented: "The Company is pleased to report that the Santa
Barbara Breccia Pipe and its surrounding mineralized envelope is in fact much larger than initially
envisioned. Our drilling campaign is now focused within this extensive area in order to define an
inaugural NI 43-101 compliant mineral resource which we expect to have completed in Q1 2022.
In addition, I am pleased to announce that, as a result of the continuing sampling backlog delays
at the ALS Laboratory in Lima due to Covid-19 induced issues, the Company has recently
commissioned Alfred H Knight (“AHK”) Laboratories of Great Britain along with ALS Laboratories
to help alleviate this backlog. AHK is highly recognized, having a global network of accredited
laboratories with operations in over 35 countries. They have recently opened facilities in Bolivia,
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due to the high demand taking place from mining co mpanies in the region. This is a significant
development which will improve the reporting of drilling results at Iska Iska going forward."
Dr. Bill Pearson, P.Geo., Eloro’s Executive Vice President Exploration, commented: “The very
encouraging mineralized intersections in the dr ill holes testing the magnetic anomaly northwest
of the SBBP has opened up the potential for a major extension to this target resource area. The
strike length of SBBP and its envelope which trends approximately north-northwest is now more
than 1.2km and remains open in all directions. The present target area for mineral resource
definition is approximately 1.2km along strike, 500m wide and extends to a depth of at least
600m. Drill holes in the CBP continue to return encouraging values but further drilling on this and
the Porco target will be deferred until after drilling in the SBBP area is completed. The downhole
IP/Res survey at the SBBP is moving along well and will provide important information to better
confirm continuity of mineralization between drill holes especially higher-grade zones with greater
sulphide content.”
Dr. Osvaldo Arce, P.Geo., General Manager of Eloro’s Bolivian subsidiary Minera Tupiza S.R.L.,
said: “Interpretation of Aster/Landsat satellite imagery and later, the magnetic survey in the
northwestern sector of the SBBP, has outlined a s ubstantial anomalous zone that likely reflects
widespread hydrothermal alteration. The first diamond drillholes DSB-12 and DSB-13 holes have
intercepted a number of well mineralized intervals in which measurement with the XRF gun
confirm Ag, Sn, Pb, Zn and tungsten (W). This mineralization is hosted in dacitic volcanic domes
which are cut by local sections of well-mineralized breccias with predominantly dacitic clasts
surrounded by a tourmaline matrix that is replaced by sulphides and cassiterite. This discovery
extends the SBBP and associated mineralized envelope along strike as much as 50% from its
original size. The SBBP has characteristics of a large kilometre-scale and continuous near-
surface mineralized body of enriched telescoped polymetallic mineralization.”
Dr. Quinton Hennigh, P.Geo., Senior Technical Advisor to Eloro, commented: “Once again, all
recently assayed drill holes returned multiple long mineralized intervals at Iska Iska. The limits of
the system keep expanding, the magnetic anomaly to the northwest of the SBBP being the most
recent addition. Here, recently completed holes DSB-12 and DSB-13 display very promising long
intervals of mineralization with an appearance similar to holes drilled closer to the SBBP. While
the 1,200 x 500 x 600 m volume currently being targeted for a maiden resource is impressive, it
is important to keep in mind that this is still just a subset of the much larger Iska Iska system that
extends over a kilometre further south to the Porco breccia pipe along the southern margin of the
caldera complex where Eloro recently drilled some visibly mineralized holes. In short, this major
discovery is still in its early days.”
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Table 1: Significant Diamond Drilling Results, Iska Iska, as at September 7, 2021
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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:
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 7, 2021.
Hole No. Type Collar
Easting
Collar
Northing
Elev Azimuth Angle Hole Length
m
Surface Drilling Northwest Extension Santa Barbara
DSB-12 205072.7 7656867.5 4165.0 225 -40 806.2
DSB-13 205072.7 7656867.5 4165.0 225 -60 696.5
Subtotal 1502.7
Underground Drilling Huayra Kasa – Santa Barbara Area
DHK-21 UG 205418.5 7656360.0 4151.9 235 -70 512.9
DHK-22 UG 205418.5 7656360.0 4151.9 210 -60 600.0
DHK-23 UG 205418.5 7656360.0 4151.9 270 -50 598.0
Subtotal 1710.9
Underground Drilling Santa Barbara Adit
DSBU-1 UG 205285.2 7656074.8 4165.0 90 -10 260.5
Subtotal 260.5
DSBU-2 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 2,571.6
TOTAL 10,088.6
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 26,982m
in 58 holes (19 underground holes and 39 surface holes) with one underground in
progress. One surface rig is being moving to a new hole location northwest of SBBP. The
second surface drill rig is being exchanged for a more powerful machine which will arrive
on site soon and commence drilling in the SBBP area.
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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 will
be contracting AHK to provide 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.
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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. 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 which 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 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.
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:
122.66 grams silver equivalent/tonne (“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 from 236.60m to 360.21m
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, from 317.21m to 349.53m.
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 from 449.87m to 623.45m 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, from 551.19m to 590.27m.
146.19 g Ag eq/t (1.70 g Ag/t, 0.00% Zn, 0.01% Pb, 0.42% Sn and 0.02 g Au/t)
over 10.20m from 171.60m to 181.80m in the oxide zone indicating potential for
significant Sn mineralization in this strongly leached nearer surface zone.
In aggregate, 64% of this 683.4m long hole returned reportable mineralized intervals.
Eloro reported additional multiple holes with significant silver-tin polymetallic Intercepts in the
SBBP and CBP on July 6, 2021 including:
Hole DSB-08, testing the northeast quadrant of the SBBP, encountered eighteen
reportable mineralized intercepts beginning near surface to its terminus at 614.4 m. The
longest intercept was 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.
Hole DSB-10, testing the southwest quadrant of the SBBP and northern part of the CBP,
encountered twenty-nine reportable mineralized intercepts beginning near surface to its
terminus at 1,019.4m. Tin was notably elevated in many intervals suggesting proximity to
a mineralizing intrusive source in this area. Notable intercepts include 114.96 Ag eq/t
including 0.325% tin (Sn) over 56.2m from 322.18m to 378.30m 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