Eloro Resources Files NI 43-101 Technical Report for Initial Mineral Resource Estimate for Iska Iska Project, Potosi Department, Southwestern Bolivia
Eloro Resources Files NI 43-101 Technical Report
for Initial Mineral Resource Estimate
for Iska Iska Project, Potosi Department, Southwestern Bolivia
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 Domain (Zn-Pb-
Ag) = US$9.20/t for open pit (OP) mining and US$34.00/t for underground (UG) mining;
Tin Domain (Sn-Ag-Pb) = US$6.00/t for OP mining. C osts 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 grading 0.69% Zn, 0.28% Pb and 13.6 g Ag/t with an NSR value of
US$20.32/t at an NSR cut-off of US$9.20/t which is equal to the estimated operating
cost .
Polymetallic Domain includes a core inferred minera l resource at an NSR cutoff of
US$15/t of 342 million tonnes grading 0.85% Zn, 0.3 5% Pb and 17 g Ag/t with an NSR
value of US$25.22/t which is 2.74 times estimated operating cost of US $9.20/t
This core mineral resource includes a higher grade near surface inferred mineral
resource at an NSR cut-off of US25/t of 132 million tonnes grading 1.11% Zn, 0.50% Pb
and 24.3 g Ag/t with an NSR value of US$34.50/t which is 3.75 times estimated operating
cost of US $9.20/t
Potentially open pittable inferred mineral resource in the Tin Domain (Sn-Pb-Ag) of 110
million tonnes grading 0.12% Sn, 0.14% Pb and 14.2 g Ag/t with an NSR value of
US$12.22/t at an NSR cut-off of US$6.00/t
Potential underground inferred mineral resource in the Polymetallic Domain of 19
million tonnes grading 1.88% Zn, 0.36% Pb and 18.8 g Ag/t with an NSR value of
US$42.23 at an NSR cut-off of US$34.40/t.
The open pit and underground NSR cut-off grades def ining the overall mineral
resource consider estimated mining costs, G&A expen ses, processing costs,
metallurgical recoveries, smelter deductions, treat ment charges, penalties, and
transportation costs for all metals of potential economic interest and, accordingly, are
equal to estimated total operating costs.
Potential open pit defining the bulk of the mineral resource is 1.4km in diameter,
extends to a maximum depth of 750m below the Santa Barbara hill and has a stripping
ratio of 1:1.
Total in situ metal is estimated to be 298 million ounces Ag (silver), 4.09 million tonnes
Zn (zinc), 1.74 million tonnes Pb (lead) and 130,000 tonnes Sn (tin).
Resource estimate is based on 139 diamond drill hol es totalling 96,386m. All holes
intersected significant reportable mineralization a nd the deposit is open in all
directions.
20 Adelaide Street East, Suite 200, Toronto, Ontari o CANADA M5C 2T6 Tel.: (416) 868-9168
TSX Symbol: ELO www.elororesources.com
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Toronto, Canada, October 17, 2023 – Eloro Resources Ltd. (TSX: ELO; OTCQX: ELRRF; FSE:
P2QM) (“Eloro”, or the “Company”) is pleased to announce the filing of the National Instrument 43-
101 (NI 43-101) Technical Report in support of the initial mineral resource estimate (“MRE”) for the
Iska Iska silver-tin polymetallic project in the Potosi Department of southwestern Bolivia. The MRE,
as set out in Table 1 below, has been prepared by independent qualified persons (“QPs”) with Micon
International Limited as defined under NI-43-101.
Table 1: Summary of the Iska Iska Initial Mineral Resources as of August 19, 2023
Item Average Value
Category Domain Mining Method Zn-Pb-Ag NSR
Cut -off (US$)
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
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 Resources could be upgraded to Indicated Mineral
Resources 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/t, for the Tin Domain and Polymetallic Domain, respectively. The UG resource is a coherent mass (less
20 m thick crown pillar) beneath the pit reported at an NSR cut-off of US$34.40/t.
4. Metallurgical recoveries for the Polymetallic Do main are based on pre-concentration recoveries of 9 7% for Zn, Pb and Ag,
followed by the concentrator recoveries of Zn = 87%%, Pb = 80%, and 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 include: mining costs = U S$3.41/t and US$25.22/t for open pit and undergroun d, respectively; G &
A costs = US$0.55/t for the Polymetallic Domain and US$0.68/t for the Tin Domain; all-inclusive proces sing costs for the
Polymetallic Domain = US$8.62/t comprising US$0.40/ t for pre-concentration followed by US$12.66/t for concentrator, and
all-inclusive processing costs for the Tin Domain = US$5.29/t comprising US$0.40/t for pre-concentrati on followed by
US$13.80/t for concentrator. Concentrate transportation, smelting and refining terms have been included for the Polymetallic
Domain. Tin fuming recoveries and costs, and concen trate transportation, smelting and refining terms h ave 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.
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Initial Mineral Resource Estimate
1. Definition – Net Smelter Return (NSR) & Metal Eq uivalent:
The Iska Iska deposit is polymetallic in nature and, as such, the value of its mineralized material will
result from the extraction and sale of a combinatio n of metals which include Ag, Pb, Sn and Zn for
the Initial Mineral Resource. Pending further succe ss in metallurgical testwork, Cu (copper), Au
(gold), and In (indium) may be added to the economic equation.
Based on the CIM Best Practice Guidelines of Novemb er 2019: Two methods are widely applied in
the mining industry to address the polymetallic nat ure of such deposits. These include the use of a
metal-equivalent or the calculation of the Net Smel ter Return (NSR). For the NSR method, the
estimated dollar value that each metal contributes towards the total value of each tonne is calculated
and is expressed as one value referred to as the NS R value per tonne. The calculation of an NSR
value per tonne considers estimated revenues, minin g costs, G&A expenses, processing costs,
metallurgical recoveries, smelter deductions, treatment charges, penalties, and transportation costs
for all metals of potential economic interest. This NSR value per tonne can then be used to derive a
cut-off value, where the NSR cut-off value per tonn e is equal to the estimated total operating costs
of mining, processing and recovering the metals per tonne of the resource.
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
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
better to employ a NSR value in applying a cut-off grade. 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 per tonne which are as follows:
Polymetallic (Zn-Pb-Ag) Domain = US$9.20/t for open pit (OP) mining 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 th e positive “ore-sorting” tests (see Eloro press
release of July 26, 2023).
Note that the open pit Mineral Resources are reported within a constrained pit shell (slope angle 45
degrees) at NSR cut-off values of US$6/t and US$9.2 0/t, for the Tin Domain and Polymetallic
Domain, respectively. The UG resource is a coherent mass (less 20 m thick crown pillar) beneath
the pit reported at an NSR cut-off of US$34.40/t. The open pit and underground NSR cut-off grades
consider estimated mining costs, G&A expenses, processing costs, metallurgical recoveries, smelter
deductions, treatment charges, penalties, and trans portation costs for all metals of potential
economic interest and, accordingly, are equal to estimated total operating costs.
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In the section below, areas of higher-grade resourc e within the overall constraining pit in the
Polymetallic Domain are highlighted at higher NSR cut-offs of US$15/t and US$25/t, respectively. It
is important to recognize that this highlighting of the higher-grade resource does NOT in any way
change the overall total estimated operating cost p er tonne which for the Polymetallic Domain is
US$9.20/t. The mineral resource defined by using a US$25/t cut-off to identify and define a high-
grade zone is particularly important as it is near surface and would be mined in the early years of
production generating potential for earlier payback . The average NSR value of this higher-grade
resource is US$34.49/t which is 3.75 times total estimated operating cost.
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 in
the notes beneath the Table. All the resources are in the Inferred Category. It is reasonably expected
that the majority of the Inferred Mineral Resources could be upgraded to Indicated Mineral Resources
with continued exploration.
The potential open pit defining the bulk of the min eral resource 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. Total in situ
metal is estimated to be 298 million ounces Ag (sil ver), 4.09 million tonnes Zn (zinc), 1.74 million
tonnes Pb (lead) and 130,000 tonnes Sn (tin).
Resource estimate is based on 139 diamond drill hol es totalling 96,386m. All holes intersected
significant reportable mineralization and the deposit is open in all directions.
Figure 1 below is a 3D image of the resource block model while Figure 2 below is a representative
cross section showing distribution of the resource blocks.
Figure 1: 3D Perspective of the Iska Iska Pit Constrained Resource Showing Distribution of
Resources in Major Domains as of August 19, 2023.
Note: For Tin Domain (Sn-Pb-Ag), high grade (HG) = NSR > US$12/t and low grade (LG) = NSR between US$6 /t and US$12/t. For
Polymetallic Domain (Zn-Pb-Ag), HG = NSR > US$25/t & LG = NSR between US$9.2/t and US$25/t. UG Resource = NSR > US$34.40/t.
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Figure 2: Cross Section B-B’ of the Iska Iska Pit Constrained Resource
as of August 19, 2023.
Note: For Tin Domain (Sn-Pb-Ag), HG = NSR > US$12/t & LG = NSR between US$6/t and US$12/t. For Polymet allic Domain (Zn-Pb-
Ag), HG = NSR > US$25/t & LG = NSR between US$9.2/t and US$25/t. UG Resource = NSR > US$34.40/t.
4. Higher Grade Resources in Polymetallic Domain
As shown in Figure 3, there is a core higher-grade inferred mineral resource in the Polymetallic
Domain at an NSR cut-off of US$15/t of 342 million tonnes grading 0.85% Zn, 0.35% Pb and 17 g
Ag/t for an NSR value of US$25.22/t which is 2.74 t imes the total estimated operating cost of US
$9.20/t
This core mineral resource includes a higher grade near surface inferred mineral resource at an NSR
cut-off of US25/t 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/t which is 3.75 times total estimated operating cost of US $9.20/t as shown in Figure 4.
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Figure 3 : Summary of the Distribution of Higher Grade Polymetallic (Zn-Pb-Ag) Resource
at NSR Cut-off Value of US$15/t
Figure 4: Summary of the Distribution of Higher Grade Polymetallic (Zn-Pb-Ag) Resource
at NSR Cut-off Value of US$25/t
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5. Use of Silver Equivalent Calculation
Previous disclosure by Eloro of drill results had employed silver equivalent calculations using current
metal prices to provide comparative results for polymetallic mineralization. Metallurgical recoveries
were recently assessed and are now available for th e major elements in both Polymetallic and Tin
Domains as outlined in the Notes in Table 1. Going forward, Eloro will use these recoveries, as well
as current metal prices, for determining any disclosure of silver equivalent calculations. The previous
disclosure of silver equivalent estimates should no longer be relied upon.
6. Estimates of In-Situ Metal Value
Eloro withdraws the previously released estimates o f in-situ metal value for the Iska Iska mineral
resource in the press release of August 30, 2023 and in the webinar of September 5, 2023. Eloro’s
corporate presentation has been updated to remove references to these estimates and the link to the
webinar has been removed from the corporate website.
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Qualified Person
The initial MRE for Iska Iska has been prepared by Micon International Limited. Independent
Qualified Persons (each a “QP”) for the Technical R eport are Charley Murahwi, P.Geo., FAusIMM,
Richard Gowans, P.Eng., Ing. Alan J. San Martin, MA usIMM (CP) and Abdul Aziz, Drame, P.Eng.,
all of whom are independent QPs as defined by NI 43 -101. Mr. Murahwi completed 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, 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. 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 Micon are regul arly 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 controll ed
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.
Iska Iska is a major silver-tin polymetallic porphy ry-epithermal complex associated with a Miocene
possibly collapsed/resurgent caldera, emplaced on O rdovician 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 min eralization 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 Santa Barbara Breccia Pipe (“SBBP”)
approximately 150m southwest of the Huayra Kasa underground workings.