Eloro Resources Announces Robust Initial Inferred Mineral Resource Estimate of 670 million tonnes containing 1.15 Billion In-situ Ounces Silver Equivalent for Iska Iska Project, Potosi Department, Southwestern Bolivia
Eloro Resources Announces Robust Initial Inferred Mineral Resource Estimate of 670 million
tonnes containing 1.15 Billion In-situ Ounces Silver Equivalent for Iska Iska Project, Potosi
Department, Southwestern Bolivia
Total in situ metal estimated to be 298 million ounces Ag, 4.09 million tonnes Zn, 1.74
million tonnes Pb and 130,000 tonnes Sn totalling 1.15 billion ounces silver equivalent.
Due to the multi-metal nature of the deposit, the resources are reported using Net Smelter
Return (NSR) cut-off values which are as follows: Polymetallic (Zn-Pb-Ag) doma in =
US$9.20/t for open pit (OP) and US$34.00/t for underground (UG) mining; Tin (Sn-Ag-Pb)
domain = US$6.00/t for OP mining . Costs have been significantly reduced due to the
major impact of the positive “ore-sorting” tests.
Potentially open pittable inferred mineral resource in Polymetallic Domain (Zn-Pb-Ag)
of 541 million tonnes at 0.69% Zn, 0.28% Pb and 13. 6 g Ag/t for an NSR value of
US$20.32/t at a cutoff of US$$9.20/t.
Includes higher grade near surface inferred mineral resource of 132 million tonnes at
1.11% Zn, 0.50% Pb and 24.3 g Ag/t for an NSR value of US$34.50 at an NSR cutoff of
US$25/t.
Potentially open pittable inferred mineral resource in the Tin Domain of 110 million
tonnes at 0.12% Sn, 0.14% Pb and 14.2 g Ag/t for an NSR value of US$12.22/t at an NSR
cutoff of US$6.00 per tonne.
Potential underground inferred mineral resource in the Polymetallic Domain of 19
million tonnes at 1.88% Zn, 0.36% Pb and 18.8 g Ag/t with an NSR value of US$42.23 at
a cutoff grade of US$34.40.
Total inferred mineral resource, 97% of which is potentially open pittable, is 670 million
tonnes at an NSR of $19.62. Potential open pit is 1.4km in diameter, extends to a
maximum depth of 750m below the Santa Barbara hill and has a stripping ratio of 1:1.
Resource estimate is based on 139 diamond drill hol es totalling 96,386m. All holes
intersected significant reportable mineralization a nd the deposit is open in all
directions.
Toronto, Canada, August 30, 2023 – Eloro Resources Ltd. (TSX: ELO; OTCQX: ELRRF; FSE:
P2QM) (“Eloro”, or the “Company”) is pleased to announce the inaugural mineral resource estimate
(“MRE”) for the Iska Iska silver-tin polymetallic p roject in the Potosi Department of southwestern
Bolivia. The MRE, as set out in Table 1 below, has been prepared by independent qualified persons
(“QPs”) with Micon International Limited as defined under National Instrument 43-101 (“NI-43-101”).
A Technical Report outlining the mineral resource estimation will be filed on Sedar within 45 days of
the date of this release.
20 Adelaide Street East, Suite 200, Toronto, Ontari o CANADA M5C 2T6 Tel.: (416) 868-9168
TSX Symbol: ELO www.elororesources.com
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Summary of the Iska Iska Initial Mineral Resources as of August 19, 2023
Item Average Value
Category Domain Mining Method Zn-Pb-Ag NSR
Cut -off (US$)
Tonnage
(Mt)
Zn-Pb-Ag
NSR ($/t)
Zn
(%)
Pb
(%)
Ag
(g/t)
Inferred Polymetallic
OP 9.20 541 20.32 0.69 0.28 13.6
UG 34.40 19 42.23 1.88 0.36 18.8
OP+UG - 560 21.08 0.73 0.28 13.8
Category Domain Mining Method
Sn-Pb-Ag NSR
Cut-off
(US$)
Tonnage
(Mt)
Sn-Pb-Ag
NSR
($/t)
Sn
(%)
Pb
(%)
Ag
(g/t)
Inferred Tin OP 6.00 110 12.22 0.12 0.14 14.2
Inferred Silver-Zinc-
Lead -Tin OP+UG - 670 19.62 - - -
Notes:
1. The mineral resources have been estimated in acc ordance with the CIM Best Practice Guidelines (2019 ) and the CIM
Definition Standards (2014).
2. It is reasonably expected that the majority of t he Inferred Mineral Resource could be upgraded to a n Indicated Mineral
Resource with continued exploration.
3. The OP Mineral Resources are reported within a c onstrained pit shell (slope angle 45 degrees) at NS R cut-off values of
US$6/t and US$9.20, for Tin and Polymetallic, respe ctively. The UG resource is a coherent mass (less 2 0 m thick crown
pillar) beneath the pit reported at a cut-off of US$34.40.
4. Metallurgical recoveries for the polymetallic Zn -Pb-Ag domain are based on pre-concentration recoveries of 97% for Zn, Pb
and Ag, followed by the concentrator recoveries of Zn = 87%%, Pb = 80%, Ag = 88%;
5. Metallurgical recoveries for the tin- domain are based on pre-concentration recoveries of 62% for Sn followed by concentrator
recoveries of Sn = 50%, Pb = 64% and Ag = 53%;
6. The mineral resource estimate is based on 3-year trailing average metal prices of Ag = US$22.52/oz, Pb = 0.95/lb, Sn =
US$12.20/lb, Zn = US$1.33/lb, and an exchange rate of 1.30 C$: 1 US$.
7. Other economic factors mining costs = US$3.41/t and US$25.22/t for open pit and underground, respectively; G & A costs =
US$0.55/t for polymetallic domain and US$0.68/t for Sn domain, all-inclusive processing costs for poly metallic domain =
US$8.62/t comprising US$0.40/t for pre-concentration followed by US$12.66 for concentrator, and all-in clusive processing
costs for tin domain = US$5.29/t comprising US$0.40 /t for pre-concentration followed by US$13.80 for c oncentrator.
Concentrate transportation, smelting and refining t erms have been included for the polymetallic domain . Tin fuming
recoveries and costs, and concentrate transportation, smelting and refining terms have been included for the tin domain.
8. Mineral resources unlike mineral reserves do not have demonstrated economic viability. The estimate of mineral resources
may be materially affected by environmental, permit ting, legal, title, taxation, socio-political, mark eting, or other relevant
issues.
9. The QPs are not aware of any known permitting, l egal, title, taxation, socio-economic, marketing, political, or other relevant
factors that could materially affect the Mineral Resource estimate.
10. The UG resources include the ‘must take’ minor material below cut-off grade which is interlocked w ith masses of blocks
above the cut-off grade within the MSO stopes.
11. Figures may not tally due to rounding.
12. Average stripping ratio for the open pit is 1:1. The open pit has a diameter of approximately 1.4km and extends to a maximum
depth of approximately 750 m from the summit of the Santa Barbara hill.
The Micon QPs with responsibility for the Initial Mineral Resource Estimate are Charley Murahwi, MSc., P.Geo., FAusIMM., Alan
San Martin, MAusIMM (CP), and Abdoul Aziz Dramé, B.Eng., P. Eng.
Tom Larsen, CEO of Eloro, said: “We are delighted with this initial MRE which shows what a massive
discovery Iska Iska is. The recent metallurgical w ork (see Eloro press release of July 26, 2023),
particularly the positive “ore sorting” results, has significantly enhanced the potential economics by
substantially lowering the NSR cutoff, especially f or the potential open pit where the bulk of the
resource is located. The fact that this potential pit is 1.4km in diameter and extends to a depth of
750m below the Santa Barbara hill attests to the remarkable size of the Iska Iska mineralized system.
The overall stripping ratio of 1:1 is very attractive. In the first years of the potential production from
the near surface higher grade resource, the stripping ratio will be less than 1. Although the resource
is classified as inferred, we are confident that further drilling will upgrade much of this to the indicated
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category. In addition, the metallurgical testing program was very extensive for this stage of the project
but was felt to be necessary to confirm the economi c potential. Additional planned metallurgical
testing has the potential to further improve recoveries.”
Mr. Larsen continued: “The overall MRE contains alm ost 300 million ounces of in situ silver, 4.1
million tonnes of zinc, 1.7 million tonnes of lead and 130,000 tonnes of tin for a remarkable total of
1.15 billion ounces silver equivalent in situ. Our geological team led by Dr. Bill Pearson, P.Geo., Vice
President, Exploration, and Dr. Osvaldo Arce, P.Geo ., General Manager of Minera Tupiza, are
confident that the Iska Iska resource can be furthe r expanded and that grades in areas with only
wide-spaced drilling will likely increase with defi nition drilling. The tin domain in particular is v ery
under drilled, and our geophysical data indicates potential for a large tin porphyry at depth.”
Mr. Larsen further noted that: “The overall in situ value based on the net NSR values stated above is
approximately US$6.8B of which US$3.3B is in the shallower high-grade zone in the potential open
pit. This augers well for the potential for early payback on the project. We will shortly be commencing
the next phase of work which will include definition drilling, further metallurgical testing, preparation
of a preliminary economic assessment (“PEA”) and further exploration drilling of the tin domain.”
Dr. Osvaldo Arce, P.Geo., the author of Yacimientos Metaliferos de Bolivia, the authoritative book on
metalliferous deposits of Bolivia commented: “Iska Iska, which is a very large “Bolivian-type”
polymetallic porphyry-epithermal deposit, is one of the major discoveries historically in the prolific
Bolivian Tin Belt joining the “giant” (>500 million tonnes) systems such as Cerro Rico de Potosi (Ag,
Sn) and Llallagua (Sn). Iska Iska is an example of responsible mineral exploration practices,
environmental protection and respect for the rights of local communities that will be fundamental to
ensure sustainable and equitable growth in this sec tor. This, in turn, generates employment and
growth opportunities for local communities and in the country as a whole.”
Initial Mineral Resource Estimate
The following section is prepared by Micon International Limited (“Micon”):
1. Definition – Net Smelter Return (NSR) & Metal Eq uivalent:
The Iska Iska deposit is polymetallic in nature and as such/hence, the value of its mineralized material
will result from the extraction and sale of a combination of metals which include Ag, Pb, Sn and Zn
for the Initial Mineral Resource. Pending further s uccess in metallurgical testwork, Cu, Au, and In
may be added to the economic equation.
Based on the CIM Best Practice Guidelines of November 2019: Two methods are widely applied in
the mining industry to address the polymetallic nature of such deposits. These include the use of a
metal-equivalent or the calculation of the Net Smelter Return (NSR). For the NSR method, the dollar
value that each metal contributes towards the total value is calculated and is expressed as one value
referred to as the NSR value. The calculation of an NSR value considers revenues, metallurgical
recoveries, smelter deductions, treatment charges, penalties, and transportation costs for all metals
of potential economic interest. This NSR value can then be used to derive a cut-off value, where the
NSR cut-off value is then the dollar value of a given sample or block that equals the total operating
costs, as appropriate. ….
In some cases where there are multiple elements in the deposit that contribute to the deposit value,
a one-commodity equivalent calculation is sometimes used as the cut-off grade or value. In this
approach, all the grades for the various commodities are converted to an equivalent metal grade by
consideration of the metal prices and recoveries. The calculation of equivalent cut-off grade or value
is based on a formula developed by the Practitioners. This formula, and the parameters used for its
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development, must be clearly stated. The metal-equi valent grades are then used as the cut-off
grades to estimate the Mineral Reserves.
2. NSR versus Metal equivalent grade cut-off grades :
Based on the Micon’s QP Experience: In multi-metal deposits where there is a primary product
supported by secondary products, it is more appropr iate to use a Metal Equivalent cut-off grade
based/denominated on the primary commodity. Conversely, in multi-metal deposits where the deposit
constituents/metals are considered largely as co-products with no obvious dominant commodity, it is
best to employ a NSR value in applying a cut-off gr ade. The second scenario suits the Iska Iska
deposit better at this stage of exploration in the definition of the deposit.
3. ISKA ISKA Initial MRE Statement
Due to the multi-metal nature of the deposit, the r esources are reported using Net Smelter Return
(NSR) cut-off values which are as follows:
Polymetallic (Zn-Pb-Ag) domain = US$9.20/t and for open pit (OP) and US$34.00/t for underground
(UG) mining; Tin (Sn-Ag-Pb) domain = US$6.00/t for OP mining. Costs have been significantly
reduced due to the major impact of the positive “or e-sorting” tests (see Eloro press release of July
26, 2023).
Using the above cut-off values, the Initial Mineral Resources for the Iska Iska deposit as of August
19, 2023, are shown in Table 1 above. The economic and technical assumptions used are stated
beneath this Table. All the resources are in the In ferred Category . Figure 1 is a 3D image of the
resource block model while Figure 2 is a representa tive cross section showing distribution of the
resource blocks.
Figure 1 shows a 3D perspective of the Iska Iska constrained resource with the two Major domains
highlighted. Figure 2 is a cross section of the resource.
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Figure 1: 3D Perspective of the Iska Iska Pit Constrained Resource Showing Distribution of
Resource in Major Domains as of August 19, 2023.
Note: For Sn Domain (Sn-Pb-Ag), high grade (HG) = N SR > $12 and low grade (LG) = NSR between $6 and $1 2. For Polymetallic
Domain (Zn-Pb-Ag), HG = NSR > $25 & LG = NSR between $9.2 and $25. UG Resource = NSR > $34.40.
Figure 2: Cross Section B-B’ of the Iska Iska Pit Constrained Resource as of August 19,
2023.
Note: For Sn Domain (Sn-Pb-Ag), HG = NSR > $12 & LG = NSR between $6 and $12. For Polymetallic Domain (Zn-Pb-Ag), HG = NSR >
$25 & LG = NSR between $9.2 and $25. UG Resource = NSR > $34.40.
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4. Higher Grade Shallower Resource in Polymetallic Domain
As shown in Figures 3 to 5 and summarized in Figure 6, there is a shallow higher-grade resource in
the polymetallic domain of 132 million tonnes at 1.11% Zn, 0.50% Pb and 24.3 g Ag/t f or an NSR
value of US$34.50 at an NSR cutoff of US$25/t. This portion of the potentially open pittable resource
provides potential for early payback for the Iska Iska project.
Figure 3: 3D Perspective of the Iska Iska Pit Constrained Resource with NSR>US$25
Figure 4: Cross Section (B – B’) of Iska Iska Pit Resource Model with NSR>US$25 blocks in
red
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Figure 5: Longitudinal Section (A’ – A) of Iska Iska Resource Model with NSR>US$25 blocks
in red
Figure 6: Summary of the Distribution of Higher Grade Polymetallic (Zn-Pb-Ag) Resource at
NSR Cutoff Value of US$25/t
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Upcoming Webinar
Eloro is also pleased to announce that Dr. Bill Pea rson will be presenting an overview of the Iska
Iska MRE in a live webinar taking place on Tuesday, September 5th at 10:30AM PT / 1:30PM ET.
The webinar will be hosted by Focus Communications Investor Relations ("FCIR") and Cory Fleck of
the Korelin Economics Report. Participants are encouraged to submit any questions for the Company
prior to the event by emailing FCIR at [email protected] . To register for the webinar please click the link
below:
Date: Tuesday, September 5th
Time: 10:30AM PT / 1:30PM ET
Registration: https://event.webinarjam.com/register/235/45gxnh1o
Qualified Person
The inaugural MRE for Iska Iska has been prepared b y Micon International Limited. Independent
QPs for the Technical Report are Charley Murahwi, P.Geo., FAusIMM, Richard Gowans, P.Eng., Ing.
Alan J. San Martin, MAusIMM (CP) and Abdul Aziz, Dr ame, P.Eng., all of whom are independent
QP’s as defined by NI 43-101. Mr. Murahwi complete d site visits in January 2020 and November
2022.
Dr. Osvaldo Arce, P. Geo., General Manager of Eloro ’s Bolivian subsidiary, Minera Tupiza S.R.L.,
and a Qualified Person in the context of 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 explorat ion experience, including extensive work in
South America, manages the overall technical progra m, working closely with Dr. Osvaldo Arce,
P.Geo. Dr. Quinton Hennigh, P.Geo., Senior Technical Advisor to Eloro and Independent Technical
Advisor, Mr. Charley Murahwi P. Geo., FAusIMM of Mi con are regularly consulted on technical
aspects of the project.
Eloro is utilizing both ALS and AHK for drill core analysis, both of whom are major international
accredited laboratories. Drill samples sent to ALS are prepared in both ALS Bolivia Ltda’s
preparation facility in Oruro, Bolivia and the preparation facility operated by AHK in Tupiza with pulps
sent to the main ALS Global laboratory in Lima for analysis. More recently Eloro has had ALS send
pulps to their laboratory at Galway in Ireland. Elo ro 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.
Drill core samples sent to AHK Laboratories are pre pared in a preparation facility installed and
managed by AHK in Tupiza with pulps sent to the AHK laboratory in Lima, Peru. Au and Sn analysis
on these samples is done by ALS Bolivia Ltda in Lima. Check samples between ALS and AHK are
regularly done as a QA/QC check. AHK is following the same analytical protocols used as with ALS
and with the same QA/QC protocols.
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
100% interest in Iska Iska.