Eloro Resources Ltd. Announces Completion of Underground Drill Bays for Diamond Drilling Program at Iska Iska Silver-Polymetallic Property Area, Potosi Department, Southern Bolivia
Eloro Resources Ltd. Announces Completion of Underground Drill Bays for Diamond
Drilling Program at Iska Iska Silver-Polymetallic Property Area, Potosi Department,
Southern Bolivia
Toronto, Canada, August 11, 2020 – Eloro Resources Ltd. (TSX-V: ELO; FSE: P2Q) (“Eloro”,
or the “Company”) is pleased to announce that its B olivian subsidiary Minera Tupiza S.R.L. has
completed the three (3) underground drill bays in the Huayra Kasa Mine required for the planned
3,500m underground diamond drilling program on its optioned Iska Iska Polymetallic Project in
Potosi Department, southern Bolivia. The Company an d contractor Empresa Minera Villegas
S.R.L. have implemented safeguards to protect personnel from COVID-19. Minera Tupiza S.R.L.
has received clearance from the Government of Bolivia for travel to Tupiza. Drilling will be carried
out by Leduc Drilling S.R.L. and is expected to com mence in early September. All workings will
be systematically geologically mapped and channel sampled prior to commencement of the drill
program.
Table 1 below identifies the initial 20 planned und erground drill holes totalling 2,225 metres at
Huayra Kasa Mine and Figure 1 is a plan map showing the location of the planned holes in
relation to the mineral domains defined by the sync hrotron study (see press release June 25,
2020). The study concluded that synchrotron mineral cluster analysis identified four mineralogical
domains that cover the entire sampling area suggesting they are related and represent a single,
large mineralizing system. Furthermore, the minera logy of the domains is consistent with
minerals identified in hand specimens and are likely related to a telescoped porphyry/epithermal
style of mineralization. The remaining 1,275m of dr illing in the program will be allocated
depending on results from the initial drilling.
Tom Larsen, President & CEO of Eloro commented: “Th e results from the synchrotron study
support the concept of outlining potential bulk mineable silver-polymetallic mineralization at Iska
Iska as concluded by Micon International Limited (“ Micon”). The planned drill program follows
the outline presented in the NI 43-101 Technical Re port by Micon (see press release April 29,
2020), 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 i n 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 w ill be over a strike length of approximately
300m to a depth of 100m in the vicinity of the mine workings (Figure 1). Iska Iska is situated in
the highly prolific Southern Bolivian Silver belt a nd has excellent potential to host a significant
silver-polymetallic mineral deposit”.
Qualified Person
Dr. Osvaldo Arce, P. Geo., an expert on Bolivian ge ology 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
20 Adelaide Street East, Suite 200, Toronto, Ontari o CANADA M5C 2T6 Tel.: (416) 868-9168 Fax: (416) 3 61-1333
TSX.V Symbol: ELO www.elororesources.com
Committee and Micon International. Drill samples w ill be prepared in SGS’s preparation facility
in Oruro, Bolivia with pulps sent to their main lab oratory in Lima, Peru for analysis by fire assay
for gold and silver as well as 31 element ICP. Elo ro will employ an industry standard QA/QC
program with standards, blanks and duplicates
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. T he property can be classified as a
polymetallic (Ag, Zn, Pb, Au, Cu, Bi, Sn, In) epith ermal-porphyry complex. This is an important
mineral deposit type in Bolivia. Eloro’s Bolivian s ubsidiary, Minera Tupiza S.R.L., has an option
to acquire a 99% interest in Iska Iska.
Geological mapping on the property by Eloro has rev ealed 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 inc luding 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 minera logy 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 pervasive while Domains 2, 3 and 4 are
more localized.
Dr, Osvaldo Arce, P.Geo., Project Manager in Bolivi a, 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 wides pread 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 epitherm al style that occurs along structures cutting
the widespread Domain 1 mineralization that is of d isseminated 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 compan y 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 Elo ro’s website and under its filings on SEDAR.
Iska Iska is a road-accessible, royalty-free proper ty. 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 infrastruct ure 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 curr ently 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 Provid er (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 (Vice -President)
[email protected] jestepa @elororesources.com
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 are shown.