Eloro Resources Announces Restart of Diamond Drilling and Provides Update on Iska Iska Silver-Tin Polymetallic Project, Potosi Department, Bolivia
Eloro Resources Announces Restart of Diamond Drilling and Provides Update on Iska
Iska Silver-Tin Polymetallic Project, Potosi Department, Bolivia
Toronto, Canada, January 18, 2022 – 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. By the end of 2021, the
Company completed 40,468 metres (m) in 73 drill holes at Iska Iska, as shown in Figure 1. Table
1 summarizes drill holes with assays pending. Currently there are two surface drill rigs and one
underground drill rig on site. Drilling with all rigs recommenced on January 17, 2022. Highlights
of work in progress are as follows:
Definition drilling has been substantially completed over the Santa Barbara target zone
which extends for over a strike length of approximately 1,400m, across a width of
500m and to a depth of 600+m . All drill holes in the Northwest Extension intersected
significant mineralization confirming that the Santa Barbara mineralization extends
across the full 1,400m long resource definition target zone. The mineralized system
remains open along strike to the northwest and southeast as well as to the southwest.
More assay results are expected to be released in the next 2-3 weeks, but further delays
have been experienced due to the impact of Covid-19 on staffing at the laboratories. All
drill core completed prior to shutdown of drilling on December 17, 2021, has been logged,
sawn and sampled with samples shipped to the laboratories.
The Iska Iska caldera complex, which we now know has both a main caldera and two
nested secondary calderas, extends along strike in a northwest-southeast direction
for at least 2.5km, a width of at least 2km and likely extends to a depth of more than
1km.
Going forward exploration drilling will be focused on testing the major targets in the Porco
and Mina 2 areas along with the potential for a tin porphyry at depth. We are working
closely with Micon International Limited to facilitate the National Instrument (“NI”) 43-101
mineral resource estimation process which we are now targeting to be completed in Q2
2022.
Tom Larsen, CEO of Eloro commented: “The last two years have proven to be Eloro’s most
transformative and exciting to date. Our decision in 2019 to pursue a new mineral resource
project, which resulted in the January 2020 signing of the Iska Iska silver-tin polymetallic property
option agreement, has proven to be the catalyst for the Company’s upward trajectory and
promising future. In just 15 months since the start of diamond drilling, Iska Iska has advanced
from a promising grass roots project to being on the verge of outlining a significant NI 43-101
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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compliant mineral resource. Under the leadership of Dr. Osvaldo Arce, P. Geo., our in-country
General Manager, and Dr. Bill Pearson, P, Geo., our Executive Vice President Exploration, we
have built a very strong in-country technical team based in Tupiza, Bolivia. This team is
supported by several excellent local contractors including Leduc Drilling who have completed
more than 40,000 metres of diamond drilling since we started. As outlined in this update, we
have a tremendous amount of work in progress, which will lead to the inaugural mineral resource,
confirmation of metallurgical recoveries and drill-testing of more major targets in this remarkable
mineralized system.”
Dr. Bill Pearson, P.Geo., Eloro’s Executive Vice President Exploration, added: “Work is
progressing well on completing an updated geological model for the Santa Barbara Target Zone.
The bore hole induced polarization (IP) survey results are being processed and the resulting 3D
inverse model should help in determining the internal geometry of the deposit, especially of higher
sulphide zones, which generally have the best grades. We are working closely with Micon
International Limited to facilitate the mineral resource estimation process which we are now
targeting to be completed in Q2 2022. Both the ALS and AHK Laboratories are working to reduce
the backlog of samples waiting for analysis, however, the recent surge in Covid has created
staffing issues for the laboratories, hence there may be further delays in receiving assay results
although it is expected that more results will be available for release in the next 2-3 weeks.
Definition drilling on our 1,400m by 500m wide by 600m deep mineral resource definition target
zone in Santa Barbara is almost complete with the final two holes to be completed in the next
two weeks. All drill core completed prior to shutdown of drilling on December 17, 2021 has been
logged, sawn and sampled with samples shipped to the laboratories. Going forward exploration
drilling will be focused on testing the major targets in the Porco and Mina 2 areas along with the
potential for a tin porphyry at depth.”
Dr. Osvaldo Arce, P.Geo., General Manager of Eloro`s Bolivian subsidiary, Minera Tupiza S.R.L.
(“Minera Tupiza”), said: “The Iska Iska silver-tin polymetallic deposit is hosted in Miocene breccia
pipes, dacitic domes as well as granodiorite stocks and Ordovician sandstones, but especially in
the breccia pipes. These breccia pipes were formed by explosive fluids derived from a large
magmatic plumbing system, likely comparable to several major deposits in southern Bolivia. Such
as Chorolque, Tasna, Tatasi, Chocaya and Siete Suyos. However, in contrast to these other
deposits, the Iska Iska system shows a uniqueness of preservation due to the intense and
ubiquitous silicification that affects all rocks but especially those with closer proximity to the vents
marked by the breccia pipes. The basement Ordovician quartz sandstones are also very
erosionally resistant. The combination of the silicification and erosionally resistant basement has
preserved an almost complete volcanic edifice at Iska Iska which extends 1km vertically from the
valley floor. We now know that the Iska Iska caldera complex consists of a large main caldera
covering an area of approximately 1.6km by 1.8km with two nested secondary calderas
approximately 1.2 km by 1.0 km in the northwest and approximately 800m in diameter in the
southeast as shown in Figure 1. The Iska Iska caldera complex extends along strike in a
northwest-southeast direction for at least 2.5km, a width of at least 2km and likely extends to a
depth of more than 1km. Iska Iska was not discovered historically because of extensive leaching
of metals at surface forming a very depleted oxide zone barren of metals.”
Definition Drilling Santa Barbara Target Area
Definition drilling in the Santa Barbara Mineral Resource Definition Drilling Target Area, as shown
in Figure 1, has been substantially completed except for one section with holes DSB-26 and
DSB-27 that will be drilled in the next few weeks. Overall, 25 surface (18,443m) and 19
underground (8,124m) holes totalling 26,567m have been completed to test the Santa Barbara
target zone over a strike length of approximately 1,400m, across a width of 500m and to a
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depth of 600+m , as shown in Figure 1. The drill holes testing the Northwest Extension all
intersected significant amounts of mineralization confirming that the Santa Barbara mineralization
extends across the full 1,400m long target zone. Fill-in drilling from underground in the Santa
Barbara adit also intersected significant mineralization and completed addition drill coverage in
the eastern part of the SBBP. Assay results are pending for 22 of these mineral resource
definition holes, as listed in Table 1.
An updated geological interpretation is in progress which will be used to refine the current model
developed in Leapfrog mining software. The upper boundary of sulphide mineralization marked
by the sulphide/oxide interface is well defined by geological logging and the magnetic
susceptibility inversion model. The base of the mineralization, which is up to 600m thick, is
defined by the lower limit of the high magnetic susceptibility. The northeast limit of the
mineralization is defined by geology near the contact of the basement Ordovician quartz
sandstones with the dacitic intrusive domes. The mineralized target zone is open along strike
both to the northwest and southeast, as well as to the southwest. Data from the borehole IP
inverse model is expected to aid in defining the internal geometry of the mineralization. Zones
of higher sulphide content which have greater chargeability and much lower resistivity tend to be
higher grade. These zones are also more magnetic because of the presence of pyrrhotite.
Exploration Drilling Porco Breccia Pipe, Gap Area and Mina 2 Targets
The focus of drilling in 2022 will shift to drill-testing the Porco Breccia Pipe (“PBP”) and the area
between the PBP and Central Breccia Pipe (“CBP”) where there is a major magnetic anomaly
(see press release October 21, 2021, and Figures 2 and 3), and testing the potential for a tin
porphyry at depth. Figures 1 and 3 show the initial planned drilling. Holes DPC-07 and DPC-08,
will initially test the Porco area targets with more follow-up drilling planned. Hole DM2-01, to be
collared near the Mina 2 portal, will test for the potential tin porphyry at depth. In addition, an
underground drill hole from the drill bay in the Santa Barbara adit, hole DSBU-07, will be drilled
to the southwest to test the magnetic anomaly in the northern part of the CBP. Underground
geological mapping and channel sampling is also in progress in the Mina 2 workings in the
southern part of the property (see Figure 1 for location) with drilling also planned in this area later
in the year. This area appears to be associated with a secondary caldera (Figure 1).
Eloro is currently using two laboratories, ALS Global and AHK Laboratories, both of whom have
sample preparation facilities in Oruro, Bolivia and laboratories in Lima, Peru. The Company is
also planning to use the ALS laboratory facility in Galway, Ireland, to achieve a faster turnaround
and to help reduce the large backlog of samples with assays pending. Unfortunately, the recent
wave of Covid-19 is impacting staffing at both ALS and AHK laboratories, hence there may be
additional delays.
Metallurgical Drill Holes
Two diamond drill holes, METSBUG-01 and METSBUG-02 were drilled to provide larger samples
of drill core for metallurgical testing. Hole MESTSBUG-01 was directed to intersect the
mineralized breccia of the Santa Barbara Breccia Pipe (“SBBP”) near the centre of discovery
hole DHK-15 which intersected 129.6 g Ag eq/t over 257.5m (see press release January 26,
2021). The second metallurgical hole, METSBUG-02, intersected the centre of hole DHK-18 in
the mineralized envelope east of the SBBP. Hole DHK-18 returned 129.65 g Ag eq/t over
300.75m (see press release July 28, 2021). These holes have been sawn and one-quarter core
sent for analysis with three-quarters core to be used for metallurgical testing.
Metallurgical Testing
A program of preliminary metallurgical testwork has been completed by the Mineral
Concentration Laboratory of the National Faculty of Engineering of the Technical University of
Oruro (UTO). The testwork used eight (8) composite samples assembled from early-stage
resource definition drilling. These samples were selected to represent oxide and sulphide
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mineralization from the Huayra Kasa Mine (“HKM”) area, the SBBP and the CBP targets. Four of
the samples were from HKM, three from SBBP and one from CBP. These early-stage drilling
samples from these mineralized areas contained relatively low amounts of tin and therefore the
conceptual testwork program was focussed on other valuable components particularly silver, zinc
and lead.
The objective of this preliminary metallurgical testwork was to develop an early-stage conceptual
understanding of the metallurgy. Although the program included basic mineralogy using X-ray
diffraction (XRD) analysis, preliminary gravity and leach tests, and work index determinations,
the main focus of the scoping level testwork program was to investigate froth flotation, without
regrinding, to recover silver into separate lead and zinc concentrates. Detailed development
work still needs to be done to investigate the recovery of tin, gold and other potentially valuable
elements, such as indium, cadmium and bismuth.
Several open circuit flotation tests were completed using each composite sample and the results
provided useful insight into the metallurgy of the Iska Iska project. The program was successful
in providing a potential pathway to the successful recovery of lead, zinc and silver into saleable
concentrates and will be used as a starting point for further metallurgical optimization during the
next phase of testwork.
Richard Gowan, P.Eng., Principal Metallurgist for Micon International Limited, reviewed the
preliminary open circuit flotation test results and considers that lead recovery of around 80% to
85% into a saleable lead concentrate could be expected once the flotation conditions were
optimized. The projected zinc recovery to a final saleable zinc concentrate is around 80% to
90%. The lead concentrate would also contain considerable valuable silver and potentially
payable amounts of gold, while the zinc concentrate would also contain payable amounts of silver
and potentially valuable cadmium and indium. Total silver recoveries into the combined lead and
silver rougher concentrates were around 73%, but with optimization Micon believes that the total
flotation silver recovery can be increased up to 80%. Note that the projected recoveries based
on the preliminary test data require confirmation from additional metallurgical testing hence
should not be relied upon.
The next phase of testwork will be undertaken by Blue Coast Research Ltd. (“Blue Coast”) based
in Parksville, BC and will optimize the flotation flowsheet to maximize lead, zinc, silver and gold
into saleable concentrates and develop an appropriate flow sheet for the recovery of tin.
Recovery of other more minor valuable metals including bismuth, indium and cadmium will also
be considered. Blue Coast has world-class metallurgical testing, analytical services, flowsheet
development, consulting and operational support. Their excellent team has been augmented
with the addition of Mr. Mike Hallewell, C.Eng. a senior independent mineral processing
consultant based in Cornwall, England, who has extensive specialist knowledge in the recovery
of tin at mining operations and exploration projects worldwide.
Eloro, in consultation with Micon International Limited and Blue Coast, has selected four
representative metallurgical samples from existing drill core in addition to the two new
metallurgical holes: 1) Mineralized breccia in discovery drill hole DHK-15; 2) Mineralized dacitic
envelope from hole DHK-15; 3) mineralized dacitic envelope from hole DHK-18 and 4) Sn-rich
zone in hole DSB-06. Approximately 60m of core from each drill hole has been quarter cored.
These samples, in addition to approximately 60m from the two metallurgical holes noted above
(three-quarter core), are in the process of being shipped to Blue Coast with the testing likely to
begin in the first part of February.
Bore Hole Induced Polarization Survey
The Bore Hole IP program at Iska Iska, carried out from August 2021 to December 2021, has
progressed well with sixty-two (62) separate cross-hole surveys completed using many of the
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drill holes in the north-northeast part of the property. This program, which is being directed by
Eloro’s Chief Geophysicist, Dr. Chris Hale, P.Geo., initially focused on the mineralization of the
SBBP. A further nineteen (19) cross-hole surveys have also been completed to outline the PBP
mineralization. In addition, forty (40) profiles have been obtained from twenty-one individual
SBBP and PBP drill holes.
Two types of surveys have been carried out with two distinct objectives:
1. Pole Dipole surveys are used to profile the resistivity and chargeability of each drill hole, and
2. Cross-Hole surveys to test the continuity of mineralization between the drill holes.
In pole-dipole surveys current is injected into each hole being surveyed; one dipole length deeper
than the lowest potential dipole. The current point changes throughout the survey as the entire
array is lowered or raised in the drill hole.
For cross-hole surveys, current is injected at fixed points in several other drill holes around each
candidate hole so that the sensitivity of the survey can be concentrated in the various volumes
enclosed between different pairs of drill holes.
Low resistivity and high chargeability indicate the presence of metallic mineralization, in both
survey types. Dipoles of 10, 25 and 50 m lengths were used to profile different cylinder radii
around each drill hole and an additional potential was measured from the collar to depth. This
provides a maximum off-hole measurement radius up to several hundred meters for the deepest
stations. Profile data from the pole-dipole surveys calibrate the IP/Res response against the
known mineralization in the drill core. Cross-hole data are used for inverse modelling with the
UBC DCIP3D software and for interpretation of the off-hole distribution of mineralization.
The mineralization of the SBBP is being modeled using current injection from Santa Barbara and
Huayra Kasa holes. PBP holes will provide a separate model of mineralization for the southern
part of the property including the major target zone between the CBP and PBP.
Synchrotron Study
Synchrotron mineral cluster analysis was performed on 84 drill core samples by Dr. Lisa Van
Loon of LisaCan Analytical Solutions and Dr. Neil Banerjee, P.Geo. of Western University,
Department of Earth Science. These samples were selected to be representative of higher-grade
areas of major and important minor metals including Ag, Sn, Zn, Pb, Au, Bi, In, Cu and Cd. This
work builds on previous analytical work done on the underground channel samples from the due
diligence program at Huayra Kasa (see press release June 25, 2020). The synchrotron is a type
of circular particle accelerator that is an extremely powerful source of broad-spectrum
electromagnetic radiation (e.g., visible light, infrared, UV, & X-rays), approximately 10 billion
times brighter than the sun that provides a rapid, high-resolution analytical technique for mineral
exploration.
Four (4) mineralogical domains were identified. These domains all have the same or very similar
mineralogy. These mineralogical patterns are the result of the time-integrated effects of
geological processes with the domains representing every event that has happened to these
rocks since they were originally formed, including mineralization. Domain 2 is the largest and
includes 60 samples while Domain 1 includes 17 samples, Domain 3 includes 6 samples, and
Domain 4 consists of 1 sample. Within the 4 domains, Au-, Cd-, Cu-, Pb-, Sn, and Zn-dominant
sub-domains are identified. The sub-domains are interpreted using the available geochemistry
data to determine the predominant elements of interest within each sub-domain. These sub-
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domains can be used in a predictive way to be tter understand the spatial distribution of these
elements of interest.
Domain 2 contains two Sn-dominant sub-domains. In one sub-domain Sn is associated with high
Cu, Ag, Bi, and In. Cassiterite was positively identified as the Sn-bearing mineral . In the
other sub-domain, Sn is associated with high Ag, but no Sn-bearing minerals were identified but
this may reflect the limited number of samples (2) available in the second subdomain.
The sub-domains are interpreted to be likely related to variations in fluid composition,
precipitation mechanism, or host rock interaction. The 3D distribution of the sub-domains will be
evaluated in the context of lithological and structural variability within the deposit as they have
important implications for geometallurgy and processing. Further work will investigate if these
3D subdomains can be used to identify blocks with different processing requirements. Additional
testing is planned to further refine this pattern.
Enersoft Inc. GeologicAI Scanning Unit
Eloro has contracted Enersoft Inc. to provide a GeologicAI Scanning Unit on site in Tupiza to
enable systematic scanning of diamond drill core. The GeologicAI unit has multiple scanners
including XRF, Spectroscopy, 50xMicroscopic images and Laser Profilometer. The scanner,
which is in a compact self-contained trailer, will provide real time processing of diamond drill core
on-site. It will allow generation of mineral maps including distribution of sulphides of the
polymetallic mineralization. Data from the synchrotron study will be used to help calibrate the AI
to maximize its efficiency in generating these mineral maps which will be very helpful in defining
metal and mineral zonation. The scanner is currently en route by boat to Bolivia and it is hoped
that it will be on-site and fully operational by the end of February.
Environmental Studies
The following studies are being carried out by the environmental staff of Minera Tupiza SRL and
environmental consultants at Iska Iska:
Collection of existing environmental documentation on the Porvenir concession, where
the Iska Iska project is under exploration, including the review of environmental legal
documents.
Environmental inspection and evaluation of the Porvenir concession.
Implementation of warning and information signs.
Preparation of detailed environmental studies required by the Bolivian environmental
authority.
Regular monitoring of soil, noise, air and water in accordance with current environmental
regulations, in all the exploration work.
Control of solid and liquid waste in exploration work.
Construction of sedimentation and infiltration pits for the final disposal of sludge from the
cutting of samples.
Construction and implementation of sanitation stations.
Evaluation of all existing underground workings on the property including Huayra Kasa,
Santa Barbara, Porco and Mina 2 area.
Preparation of a baseline environmental study for Iska Iska.
Environmental Social Governance (“ESG”) Program
Eloro has a very active program led by ESG Manager Ana Moran, Attorney at Law and Dr.
Osvaldo Arce, P.Geo. Major ESG initiatives completed in 2021 include the following:
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Community support for COVID-19 in Tupiza and surrounding communities.
Building of 110 sanitation stations in homes in the communities of Almona and La Torre,
the closest communities to the Iska Iska property at 5km east and 5km southeast,
respectively.
Working with the Women’s Association of Almona and La Torre to support training
courses in baking and embroidery as well as other social activities.
Support for school programs including providing classroom materials, snacks during
breaks and support to teachers.
ESG activities planned for 2022 include:
Continued implementation of courses, workshops, classes, materials, and other
requirements of social projects focused on women, children, and youth groups in Almona,
La Torre and additional surrounding communities.
Construction of an additional 134 sanitation stations in the communities of Almona, La
Torre and other surrounding communities.
Delivery of equipment for community medical centers.
Improving educational services of the community schools by delivering computer
equipment.
Support for local community strengthening and development through specialized services
in consultation with the communities.
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Table 1: Summary of Diamond Drill Holes Completed with Assays Pending and Drill
Holes in Progress at Iska Iska from November 17, 2021 press release.
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 -65 968.5
DSB-15 S 204973.1 7657053.8 4165.0 225 -40 731.2
DSB-16 S 204973.1 7657053.8 4165.0 225 -65 862.0
DSB-17 S 7656765.4 205131.3 4173.0 225 -40 841.0
DSB-18 S 7656676.3 205207.1 4175.0 225 -40 890.4
DSB-19 S 7656676.3 205207.1 4175.0 225 -65 803.3
DSB-20 S 7656765.4 205131.3 4173.0 225 -65 896.5
DSB-21 S 7657138.0 204870.0 4135.0 225 -40 557.3
DSB-22 S 7657208.4 204799.4 4145.0 225 -40 258.4
DSB-23 S 205341.0 7656535.0 4177.0 225° -40 661.3
DSB-24 S 205341.0 7656535.0 4177.0 225 -65 343.4
DSB-25 S 205283.0 7656587.2 4175.0 225° -40 615.3
Subtotal 9,931.3
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
DSBU-3 UG 205285.2 7656074.8 4165.0 270 -20 443.5
DSBU-4 UG 205285.2 7656074.8 4165.0 180 -20 570.0
DSBU-5 UG 205285.2 7656074.8 4165.0 0 -40 491.7
DSBU-6 UG 205285.2 7656074.8 4165.0 0 -65 253.5
Subtotal 2,582.8
Underground Metallurgical Drill Holes Santa Barbara
METSB-
01 UG 205285.2 7656074.8 4165.0 10 -35 351.0
METSB-
02 UG 205285.2 7656074.8 4165.0 40 -10 303.1
Subtotal 654.1
Central Breccia Pipe – Surface Radial Drill Program – North Setup
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 1,306.8
Central Breccia Pipe – Surface Radial Drill Program – South Setup
DCS-04 S 204852.1 7655612.3 4429.7 180 -60 644.4
Subtotal 644.4
Porco Central – Surface Radial Drill Program
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