Eloro Resources Ltd. Announces Commencement of Underground Diamond Drilling Program at Iska Iska Silver-Polymetallic Property Area, Potosi Department, Southern Bolivia
Eloro Resources Ltd. Announces Commencement of Underground Diamond Drilling
Program at Iska Iska Silver-Polymetallic Property Area, Potosi Department, Southern
Bolivia
Toronto, Canada, September 14, 2020 – Eloro Resourc es Ltd. (TSX-V: ELO; OTCQX:
ELRRF; FSE: P2QM) (“Eloro” or the “Company”) is pleased to announce t hat its Bolivian
subsidiary Minera Tupiza S.R.L. has commenced the p lanned 3,500m underground diamond
drilling program at Huayra Kasa on its optioned Isk a Iska Polymetallic Project in Potosi
Department, southern Bolivia. The Company and contr actor Empresa Minera Villegas S.R.L.
have implemented safeguards to protect personnel fr om COVID-19. Drilling, which will be HQ-
sized core, is being carried out by Leduc Drilling S.R.L. an experienced Bolivian drill contractor.
Details of the initial planned drill holes in the program are listed in Table 1 and shown on Figure 1
(refer to press release of August 11, 2020 for more details).
All underground workings are being systematically g eologically mapped and channel sampled;
to date this work is approximately one half completed. In addition, a surface trenching program
is being carried out along with geological mapping and sampling to test the on-strike extension
of the Huayra Kasa zone. Assay results for this wor k are pending. Preliminary geological work
indicates that the Huayra Kasa zone extends at least 1 km along strike within the more extensive
Iska Iska mineralized system. Silver-polymetallic m ineralization within the Iska Iska system
occurs over a potential strike length of more than 2.5km along major ring structures in a caldera
complex.
Tom Larsen, President & CEO of Eloro commented: “This program will be the first drilling to ever
be carried out on the property and is designed to test the full extent of the mineralized system in
and around the Huayra Kasa underground workings. The mineralized/altered zone is exposed in
the underground workings over a width of 100m but is likely much more extensive. Drilling will
initially test a strike length of approximately 300m to a depth of 100m in the vicinity of the mine
workings (Figure 1), however the potential strike length of the Huayra Kasa zone is at least 1 km.
Iska Iska is situated in the highly prolific Southern Bolivian Silver belt and has excellent potential
to host a significant silver-polymetallic mineral deposit”.
Qualified Person
Dr. Osvaldo Arce, P. Geo., an expert on Bolivian geology and a Qualified Person in the context
of National Instrument 43-101 has reviewed and appr oved the technical content of this news
release. Dr. Bill Pearson, P.Geo., Chief Technical Advisor for Eloro, and who has more than 45
years of worldwide mining exploration experience including extensive work in South America, will
provide technical oversight to the program in consu ltation with Eloro’s Technical Advisory
Committee and Micon International. Drill samples will be prepared in SGS’s preparation facility in
Oruro, Bolivia with pulps sent to their main laboratory in Lima, Peru for analysis by fire assay for
gold and silver as well as 31 element ICP. Eloro will employ an industry standard QA/QC program
with standards, blanks and duplicates
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
About Iska Iska
Iska Iska 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. The property can be classified as a polymetallic
(Ag, Zn, Pb, Au, Cu, Bi, Sn, In) epithermal-porphyry complex. This is an important mineral deposit
type in Bolivia. Eloro’s Bolivian subsidiary, Minera Tupiza S.R.L., has an option to acquire a 99%
interest in Iska Iska.
Geological mapping on the property by Eloro has revealed the spatial and temporal zonation of
alteration and vein minerals in an area of about 5 square kilometres. The polymetallic
mineralization occurs mainly as veins, subsidiary v ein swarms, veinlets, stockworks, and
disseminations, forming a subvertical vein system i n both the stock and the volcanic and
sedimentary rocks. Preliminary evaluation work incl uding 42 channel samples in underground
and on surface workings at Iska Iska returned significant results as summarized below. All of the
channel samples included altered wall rock with wid ths ranging between 1.20 to 5.55 m,
averaging 2.90 m (see press release of October 8, 2019 for further details).
Silver. Anomalous silver values range between 35.5-694 g/t Ag (46% of channel samples).
Gold. Anomalous gold values range between 0.31-28.6 g/t Au (42% of channel samples).
Zinc. Anomalous zinc values range between 1.05-16.95% Zn (37% of channel samples).
Lead. Anomalous lead values range between 0.41- 16.95% Pb (49% of channel samples).
Copper. Anomalous copper values range between 0.1->1% (22% of channel samples).
Bismuth. Anomalous bismuth values range between 967-7,380 g/t Bi (22% of channel
samples).
Indium. Anomalous indium values range between 10.35->500 g/t In (34% of channel
samples).
The synchrotron study concluded that the mineral cl uster analysis identified four mineralogical
domains that cover the entire sampling area suggesting they are related and represent a single,
large mineralizing system. Furthermore, the mineralogy of the domains is consistent with minerals
identified in hand specimen and are likely related to a telescoped porphyry/epithermal style of
mineralization. Domain 1 (Figure 1) is the most per vasive while Domains 2, 3 and 4 are more
localized.
Dr, Osvaldo Arce, P.Geo., Project Manager in Bolivia, commented: “The results from this study
support the concept of outlining potential bulk mineable silver-polymetallic mineralization at Iska
Iska as concluded by Micon. Domain 1 is very widesp read with mineralization and alteration
occurring in all rock types including granodiorite, dacite and sandstone. Some samples returned
grades comparable to those samples in the more rest ricted domains. Domain 2 contains high
silver, zinc, lead and indium values while Domain 3 has high gold and bismuth values. Domain 4
returned the highest gold value with high silver and bismuth. It is likely that the mineralization in
Domains 2 to 4 is a precious metal-rich epithermal style that occurs along structures cutting the
widespread Domain 1 mineralization that is of disse minated porphyry style. It should be
emphasized that this is a preliminary study the conclusions of which will be refined with additional
surface/underground geological mapping and diamond drilling” (see press release June 25, 2020
for further details).
About Eloro Resources Ltd.
Eloro is an exploration and mine development company with a portfolio of gold and base-metal
properties in Bolivia, Peru and Quebec. Eloro has an option to acquire a 99% interest in the highly
prospective Iska Iska Property, which can be classi fied as a polymetallic epithermal-porphyry
complex, a significant mineral deposit type in the Potosi Department, in southern Bolivia. Eloro
recently commissioned a NI 43-101 Technical Report on Iska Iska, which was completed by
Micon International Limited and is available on Eloro’s website and under its filings on SEDAR.
Iska Iska is a road-accessible, royalty-free property. Eloro also owns an 82% 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 Pan American Silver’s La Arena Gold Mine. La Victoria
consists of eight mining concessions and eight mini ng claims encompassing approximately 89
square kilometres. La Victoria has good infrastructure with access to road, water and electricity
and is located at an altitude that ranges from 3,150 m to 4,400 m above sea level.
CAUTION REGARDING FORWARD-LOOKING INFORMATION
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 Company’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 Company. There can
be no assurance that statements of forward-looking information will prove to be accurate. Actual
results and future events could differ materially f rom those anticipated in such statements.
Readers should not place undue reliance on forward-looking information.
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of
the TSXV) accepts responsibility for the adequacy or accuracy of this release.
FOR FURTHER INFORMATION PLEASE CONTACT:
Thomas G. Larsen (President & CEO) Jorge Estepa (Vi ce-President)
[email protected] [email protected] om
ELORO RESOURCES LTD
20 Adelaide Street East, Suite 200 PHONE (416) 868-9168 | FAX (416) 361-1333
Toronto, Ontario, Canada M5C 2T6 www.elororesources.com
Table 1: Summary of Initial Planned Underground Diamond Drill Holes, Huayra Kasa Mine.
DDH
No.
DRILL
BAY
No.
SECTION
EASTING
UTM
NORTHING
UTM
ELEV.
(masl)
AZIMUTH
DIP
PLANNED
LENGTH
(m)
DHK-01 1 A-A' 205616 7656385 4155 180 -10° 100
DHK-02 1 A-A' 205616 7656385 4155 180 -50° 100
DHK-03 1 B-B' 205616 7656385 4155 90 00 75
DHK-04 1 B-B' 205616 7656385 4155 90 -45° 100
DHK-05 1 A-A' 205616 7656385 4155 N00 -50° 100
DHK-06 1 B-B' 205616 7656385 4155 270 00 150
DHK-07 1 B-B' 205616 7656385 4155 270 -45° 150
DHK-08 2 C-C' 205540 7656367 4155 150 -10° 100
DHK-09 2 C-C' 205540 7656367 4155 150 -45 150
DHK-10 2 D-D' 205540 7656367 4155 30 -50° 150
DHK-11 2 C-C' 205540 7656367 4155 330 00 100
DHK-12 2 C-C' 205540 7656367 4155 330 -45° 100
DHK-13 2 D-D' 205540 7656367 4155 210 00 100
DHK-14 2 D-D' 205540 7656367 4155 210 -45° 100
DHK-15 3 E-E' 205490 7656368 4155 315 00 100
DHK-16 3 E-E' 205490 7656368 4155 315 -45° 150
DHK-17 3 F-F' 205490 7656368 4155 270 00 100
DHK-18 3 F-F' 205490 7656368 4155 270 -45° 150
DHK-19 3 G-G' 205490 7656368 4155 225 00 100
DHK-20 3 G-G' 205490 7656368 4155 225 -45° 150
TOTAL 2,225
Note: Final drill hole coordinates and depths may vary from planned.
Figure 1: Location of initial planned underground diamond drill holes, Huayra Kasa Mine.
Mineral cluster domains from the synchrotron study (see press release June 25, 2020 for
more details) are shown.