Eloro Resources Intersects 7.31 g Au/t over 3.4m in Upper Part of Major Epithermal System in First Reconnaissance Drilling at La Victoria Au Project, Peru
Eloro Resources Intersects 7.31 g Au/t over 3.4m in Upper Part of Major Epithermal
System in First Reconnaissance Drilling at La Victoria Au Project, Peru
Toronto, Canada , January 16, 2018 – Eloro Resources Ltd. (TSX-V: ELO; FSE: P2Q) (“Eloro” or the
“Corporation”) is pleased to announce that it has completed 2,261m of reconnaissance diamond drilling in 8 holes
at the Rufina Target on the La Victoria Au Property in the North-Central Mineral Belt of Peru. Figure 1 is a plan map
showing locations of the drill holes a nd hole traces. Holes ERU -01, -02, -03, -04 and -09 are on a NE -SW cross
section approximately 800m long. Holes ERU -06, -07 and -08 are on a parallel cross section 500m long
approximately 100m north of the first section. Significant values are shown in Table 1 below. Highlights include (all
core lengths):
3.46 g Au/t over 7.4m including 7.31 g Au/t over 3.4m and 2.73 g Au/t over 1.5m in Hole ERU-02
2.10 g Au/t over 4.5m including 4.31 g Au/t over 1.6m and 2.73 g Au/t over 1.5m in Hole ERU-04
1.86 g Au/t over 3.0m including 4.31g Au/t over 1.0m in Hole ERU-01
2.83 g Au/t over 1.0m in Hole ERU-03
1.92 g Au/t over 1.40m over 1.4m in Hole ERU-09A
0.66 g Au/t over 5.0m including 8.67 g Au/t over 0.4m in Hole ERU-09A
0.35 g Au/t over 19.5m in Hole ERU-04
Drill holes ERU -01, -02, -03, -04 and -09 intersected a major gold -bearing low sulphidation epithermal system
extending approximately 350m along strike as shown in Figure 2, a geological cross section. Th is system is
characterized by quartz and su lphide veins/veinlets, mineralized hydrothermal breccia and silicification in dioritic
rocks that is overprinted by a late r more base metal -rich epithermal phase . It is concluded that the initial
reconnaissance drilling tested the upper part of an extensiv e gold -bearing epithermal system. Further drilling at
Rufina will be deeper to test for potential high-grade bonanza zones that the model predicts may be from 50 to 300m
below.
Tom Larsen, CEO of Eloro commented: “We are now proceeding with deeper drilling on the Rufina zone. The
reconnaissance drilling completed thus far is primarily inthe hill side hence the deeper part of the system is potentially
just below the level of the main access road where there are a number of artisanal workings. We have also retained
the services of Rhind, a Peruvian -based consulting firm, to facilitate the permitting for the next phase of drilling on
our other major targets including Victoria-Victoria South, Ccori Orcco, San Markito South and San Markito.”
Dr. Bill Pearson, P.Geo. Chief Technical Advisor for Eloro commented: “All of the reconnaissance drill holes
intersected wide zones of mineralization and alteration with a significant number of gold intersections in different
structures as shown in Figure 2. This initial drilling intersected the upper part of a classic “flower structure” hence
further drilling needs to be deeper to test for potential bonanza-style gold mineralization. Dioritic rocks, which are the
principal hosts for gold mi neralization, were intersected in all but one (ERU -08) of the holes reported. These
intrusives are marked by prominent magnetic anomalies. Our recently completed ground magnetic survey which
extended coverage in the south partof the property has identified an additional 8 likely prospective intrusives bringing
the total to 18 including those already confirmed in our major target areas. As shown in Figure 3, the principal target
area covers 6 kilometres by 3 kilometres in a major tectonic block , the Rufina-Victoria Block, in the central-eastern
part of the property.
The drill holes at Rufina were selected to provide complete sections across up to 800m strike length of the target
zone to test the major NE and NW striking mineralized structures as well asnorth-south structures identified in surface
geological mapping. Geological work shows that there is an extensive multi-phase low sulphidation epithermal gold
mineralizing system on the La Victoria property centred around the Puca Fault that extends from Rufina north-
eastwards to Victoria-Victoria South, a distance of at least 2.5 kilometres. Gold mineralization occurs in a variety of
structural settings both parallel to the northeast tre nding Puca Fault as well as perpendicular along likely tear faults
related to this structure. Mineralization has been identified vertically over 1 kilometre from elevation 3100 metres at
Rufina to elevation 4200m at San Markito as well as along strike on different structures for up to 3+ kilometres. (see
press release June 13, 2017).
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
Table 1: Summary of Significant Drilling Results, Rufina Zone Target,
La Victoria Gold Project, as of January 16, 2018
Hole (i) From
(m)
To
(m)
Core
Length
(m) (II)
Gold
(g/t)
Description (Iii)
ERU-01 31.0 34.0 3.0 1.86 Quartz vein & sulphide veinlets
incl. 33.0 34.0 1.0 4.31 Quartz vein
86.0 91.0 5.0 0.35 Quartz vein & sulphide veinlets; includes 3.0m at 0.20% Cuincl. 86.0 89.0 3.0 0.41
192.3 193.4 1.1 0.50 Quartz vein, boxworks of aspy and py veinlets, microdiorite
dyke; 0.16% Cu
ERU-02 69.0 70.4 1.4 1.16 Breccia with quartz clasts, aspy & py veinlets
162.1 163.6 1.5 2.73 Microdiorite dyke with veinlets & disseminated py & aspyincl. 162.8 163.6 0.8 5.05
173.6 177.5 3.9 0.57 Microdiorite dyke with py & aspy veinlets & disseminations &
quartz vein; includes 2.1m at 0.17% Cuincl. 175.4 177.5 2.1 1.06
207.0 214.4 7.4 3.46 Quartz veins & veinlets, & diss. py & aspy, tectonic breccia
207.0 210.4 3.4 7.31 Quartz veins & veinlets, with patches & diss. py & aspy;
includes 0.15% Cu
219.0 220.0 1.0 0.58 Sulphide veinlets
ERU-03 9.0 10.5 1.5 0.43 Breccia with propylitized microdiorite clasts.
92.5 93.5 1.0 2.82 Quartz veinlets with py & aspy veins &veinlets
245.1 245.8 0.7 1.03 Breccia with quartz, aspy-py-gn veinlets & late calcite veinlets
316.7 317.0 0.3 1.89 Breccia with quartz-py-aspy-massive po veins
ERU-04 61.6 81.05 19.5 0.35 Microdiorite with sulphide veins & veinlets
68.2 70.3 2.1 0.91 Microdiorite/sulphide veinlets
74.7 78.1 3.4 0.68 Sulphide veins & hydrothermal breccia; 0.26% Cu
145.6 150.1 4.5 2.10 Moderate to strong stockwork& massive sulfides; 0.16% Cu
incl. 146.5 148.1 1.6 4.31 Massive sulphides, breccia; 0.30% Cu
148.1 152.6 4.5 0.55 Tectonic breccia, sulphide vein in argillized diorite
ERU-05 142.0 143.0 1.0 0.36 Quartz and ca veinlets, disseminated py, aspy, po
148.5 149 0.5 0.32 Py veinlets & iron oxides in fractures, chlorite & calcite
ERU-06 Planned deeper hole – not yet drilled
ERU-07 Assays pending
ERU-08 90.2 91.2 1.0 0.59 Microdiorite with disseminated py & po. Fault 10 cm, clay
116.3 117.3 1.0 0.76 Breccia and clay, py/ca veinlets., py/po in fractures; 0.12% Cu
134.4 135.4 1.0 0.32 Aspy, spec, po, chlorite and quartz veinlets
202.5 202.9 0.4 1.54 Breccia, massive aspy/po/py/specularite
ERU-09A(Iv) 149.8 154.8 5.0 0.66 Py/aspy/po/quartz vein, fractures with iron oxides & phreatic
breccia
incl. 149.8 150.2 0.4 8.67 Py/aspy/po/quartz vein, iron oxides and clay in fractures; high
grade of 1% Cu.
159.8 160.8 1.0 0.54 Disseminated po/py/sericite & py/aspy, po & calcite veinlets
171.0 171.4 0.4 2.89 Massive py/aspy/po/quartz, breccias with iron oxides;0.14% Cu
208.8 210.2 1.4 1.92 Breccia & massive sulphide veins
incl. 208.8 209.8 1.0 2.06 Breccias & massive py/aspy/po veins
incl. 209.8 210.2 0.4 1.59 Massive py/aspy/po cut by quartz veins
220.3 221.8 1.5 0.31 Weakly argillized diorite with diss. py/po & calcite veinlets
241.3 242.6 1.3 0.78 Disseminated.py/po & calcite veinlets, massive sulphides and
breccia; 0.13% Cu
incl. 242.2 242.6 0.4 1.10 Breccia and massive py/po & aspy veins
Notes: (i) Diamond drill core for all holes is NTW size = 56.23mm
(II) True width is equal to approximately 70%-75% of core length
(iiI) Abbreviations: py=pyrite, aspy=arsenopyrite, po=pyrrhotite, gn=galena
(iv) Hole ERU-09 was stopped at 62.5m and re-drilled near the same collar as ERU-09A
Table 2: Collar coordinates and dip/azimuth of the drill holes of January 2, 2018
Hole
No. Target UTM Elev. Length Az Dip Status
Easting Northing (i) Completed (i) (i)
ERU-01 Rufina 172727 9080245 3338 311.89 240 -45 Assays
Received
ERU-02 Rufina 172727 9080245 3338 234.10 270 -50 Assays
Received
ERU-03 Rufina 172730 9080246 3338 353.70 60 -50 Assays
Received
ERU-04 Rufina 172641 9080169 3299 246.05 240 -50 Assays
Received
ERU-05 Rufina 172600 9080252 3352 190.00 270 -50 Assays
Received
ERU-06 Rufina 172527 9080243 3358 60 -50 Planned
ERU-07 Rufina 172660 9080325 3366 287.70 60 -50 Assays
Pending
ERU-08 Rufina 172799 9080407 3328 284.35 60 -50 Assays
Received
ERU-09 Rufina 172349 9080038 3294 353.20 60 -50 Assays
Received
Totals 2.260.99
(i) All measurements are in metres except Azimuth (Az) and Dip, which are measured in
degrees.
Additional Work in Progress
Ground Magnetic Survey – Southern Claims
In October 2017, Real Eagle Explorations E.I.R.L. submitted their final report for the 2017 magnetic survey for the
new claims south of Rufina 2, east and west of the town of Huandoval. The survey includes 231.1 line -km of new
magnetic data that have been merged with theexisting data from 2010 to produce the detailed total magnetic intensity
map shown in Figure 3. Dr. Chris Hale, P.Geo., Chief Geophysicist for Eloro concludes that the magnetic data show
a number of additional anomalies that indicatepotential intrusives in the southwestern part of the map. These appear
to be associated with the south-western extension of the Puca Fault and they occur at the margin of a clear zone of
magnetic susceptibility depletion. Overall, the magnetics surveys have identified 1 8 likely prospective intrusives in
including those already confirmed in our major target areas. As shown in Figure 3, the principal target area covers
6 kilometres by 3 kilometres in a major tectonic block, the Rufina-Victoria Block, in the central and eastern part of the
property. The San Markito and Southern Blocks have a different magnetic signature and are likely separate major
tectonic blocks from the Rufina-Victoria Block.
The intrusives in the Victoria -Victoria South, Ccori Orcco, San Markito Sou th and San Markito will be tested in the
next drill program. The highly prospective targets will be explored by detailed geological mapping, prospecting and
sampling later in 2018. The proximity of these targets to the Puca Fault and similarity to the st ructures now being
drill tested on the Rufinatarget suggest that there is good potential to outline addition drill targetsonce further ground
follow-up is completed.
Permitting
Permitting for the 2018 Phase II diamond drilling program is moving forward. Technical field work for the Certificado
de Inexistencia de Restos Arqueologicos (CIRA) is completed and the final report has been submitted. It is expected
that the Ministry of Culture field review will take place in January 2018 with the permit to be received by the end of
February 2018.
Rhind, a Lima -based environmental consulting company, has been retained to prepare a modification to
the Declaracion de Impacto Ambiental (DIA) to drill within the Victoria -Victoria South, Ccori Orcco and San Markito
South target areas. This modification is required in order to move eight (8) of the original ten (10) San Markito
platforms to the new target zones with drilling expected to be permitted by the end of March 2018. The field work for
the modified DIA has been completed. In addition, application is being made to move several platforms in the Rufina
target to facilitate deeper drilling of the major epithermal system ther e.
A more detailed environmental study (Estudio de Impacto Ambiental) with Rhind is in progress to permit up to 100
additional drill pads for June 2018 in the Rufina, San Markito, San Markito South, Victoria -Victoria South and Ccori
Orcco target areas. The first phase of technical field work has been carried out in December 2017. The second
phase will commence in March 2018. As part of the permitting process, presentations will be made in the
communities of Pallasca, Huacaschuque and Huandoval in March 2018.
Agreement with EHR Resources
Further to Eloro’s news release issued on December 20, 2017, and pursuant to the La Victoria Option and Joint
Venture Agreement entered into between Eloro and EHR Resources Limited (“EHR”), by mutual agreement Eloro
and EHR have designated February 20, 2018 as the date by which EHR would be required to notify Eloro and proceed
with the Stage 2 Earn -in Period, whereby EHR could acquire an additional 15% interest in La Victoria by spending
an additional $3 million on exploration on the project by July 31, 2018. EHR’s Peruvian subsidiary currently holds a
10% interest in La Victoria, with Eloro’s Peruvian subsidiary owning a 90% interest.
Qualified Person
Dr. Bill Pearson, P.Geo., a Qualified Person in the context of National Instrument 43-101 has reviewed and approved
the technical content of this news release.
About Eloro Resources Ltd.
Eloro is an exploration and mine development company with a portfolio of gold and base -metal properties in Peru
and Quebec. Eloro owns a 90% interest in the La Victoria Gold/Silver Project, located in the North -Central Mineral
Belt of Peru some 50 km south of Barrick's Lagunas Norte Gold Mine and Tahoe's La Arena Gold Mine. The Property
consists of eight mining concessions and eight mining claims encom passing approximately 89 square kilometres .
The Property has good infrastructure with access to road, water and electricity and is located at an altitude that
ranges from 3,100 m to 4,200 m above sea level.
For further information please contact Jorge Estepa, Vice -President of E loro Resources Ltd. at (416) 868 -
9168.
Information in this news release may contain forward -looking information. Statements containing forward -looking
information express, as at the date of this news release, the Corporation's plans, estimates, forecasts, projections,
expectations, or beliefs as to future events or results and are believed to be reasonable based on information currently
available to the Corporation. There can be no assurance that forward -looking statements will prove to be accurate.
Actual results and future events could differ materially from those anticipated in such statements. Readers should
not place undue reliance on forward-looking information.
Neither the TSXV, CSE nor its Regulation Services Provider (as that term is defined in th e policies of the TSXV or
CSE) accepts responsibility for the adequacy or accuracy of this release.
Figure 1: Plan map showing locations of diamond drill holes completed along with hole traces on the Rufina
target zone.
Figure 2: Geological Cross Section of Diamond Drilling, Rufina
Figure 3: Total magnetic intensity merged from the 2017 and 2010 magnetic data has outlined 16 likely
prospective intrusives including those already confirmed in our major target areas. The principal target area
covers 6 kilometres by 3 kilometres in a major tectonic block, the Rufina -Victoria Block, in the central and
eastern part of the property. The San Markito and Southern Blocks have a different magnetic signature and
are separate major tectonic blocks from the Rufina-Victoria Block.