Eloro Resources (TSXV:ELO) provides update on its Iska Iska Silver-Tin Polymetallic Project

• Eloro Resources (ELO) is pleased to provide an update on its Iska Iska silver-tin polymetallic project
• To date, the company has completed 33 diamond drill holes totalling 14,346.7 metres
• Three drill rigs are in operation at Iska Iska
• Results from DSB-07 demonstrate the diversified metal value and size potential
• Total drilling completed since the start of the program on September 13, 2020 is 14,346.7m in 33 holes
• Eloro is an exploration and mine development company with a portfolio of gold and base-metal properties in Bolivia, Peru and Quebec
• Eloro Resources (ELO) opened trading at C$5.30 per share

Eloro Resources (ELO) is pleased to provide an update on its Iska Iska silver-tin polymetallic project in Potosi Department, southern Bolivia.

To date, the company has completed 33 diamond drill holes totalling 14,346.7 metres to test the Huayra Kasa Mine area, Santa Barbara Breccia Pipe (SBBP) and Central Breccia Pipe (CBP) targets.

Three drill rigs are in operation at Iska Iska. Two surface drill rigs are testing the Central Breccia from the northern and southern radial setups and one underground drill is testing the target area east of SBBP.

Figure 1 is a geological plan map depicting the locations of the drill holes with updated geological interpretation.

Figure 2 is a NW-SE longitudinal section along the axis of the 800m long SBBP, showing the location of the main mineralized zone and of Hole DSB-07. Table 1 details significant drilling results and Table 2 lists holes completed with assays pending and holes in progress. Highlights are as follows:

Highlights

Hole DSB-07 drilled at -60 degrees to a depth of 683.4m to the southeast from the radial drill platform on SBBP intersected multiple mineralized intercepts including:

• 122.66 grams silver equivalent/tonne (“g Ag eq/t”) (35.05 g Ag/t, 0.72% Zn, 0.61% Pb, 0.11% Sn and 0.06 g Au/t) over 123.61m from 236.60m to 360.21m including 205.74 g Ag eq/t (92.30 g Ag/t, 0.57% Zn, 0.85% Pb, 0.18% Sn and 0.07 g Au/t) over 32.32m , from 317.21m to 349.53m.
• 105.41 g Ag eq/t (8.55 g Ag/t, 1.01% Zn, 0.48% Pb, 0.06% Sn and 0.38 g Au/t) over 173.58m from 449.87m to 623.45m including 199.77 g Ag eq/t (21.90 g Ag/t, 1.18% Zn, 0.93% Pb 0.12% Sn and 0.94 g Au/t) over 39.08 m, from 551.19m to 590.27m.
• 146.19 g Ag eq/t (1.70 g Ag/t, 0.00% Zn, 0.01% Pb, 0.42% Sn and 0.02 g Au/t) over 10.20m from 171.60m to 181.80m in the oxide zone indicating potential for significant Sn mineralization in this strongly leached nearer surface zone.
  
• In aggregate, 64% of this 683.4m long hole returned reportable mineralized intervals.

Tom Larsen, Chairman and CEO of Eloro said,

“The results from DSB-07 are most encouraging and continue to demonstrate the diversified metal value and size potential of the Iska Iska silver-tin polymetallic system.

The Leduc drilling program at the site, which currently consists of 3 drills (two surface and one underground), is progressing very efficiently at the rate of 250m to 300m per day, resulting in a very positive discovery pace. Currently, we have approximately 1,500 samples awaiting analysis at the ALS Global Laboratory in Lima.

In particular, we are eagerly awaiting the results of hole DSB-10, which as previously reported (see May 4, 2021 press release), intersected over 500 m of continuous sulphide mineralization. While there have been delays in assay turnaround, due to COVID-19 protocols restricting critical supplies to the laboratory, particularly oxygen, we are optimistic that conditions will improve in the near future and turnaround will return to more normal levels.”

Dr. Bill Pearson, P.Geo., Eloro’s Executive Vice President Exploration, stated,

“We are continuing to aggressively explore the very extensive mineralized system at Iska Iska. Hole DSB-07 returned significant mineralization over substantive widths from both the SBBP and the underlying granodioritic intrusion breccia. The detailed ground magnetic survey, which consisted of 181.5 line-km at 50m line spacing, is now complete and the data is being processed by our geophysicists. Down-hole Induced Polarization (“IP”) surveys are expected to commence in the latter part of June.

A drill bay is under construction at the west end of the Santa Barbara adit to provide a base for underground drill testing of the central part of the caldera which will commence following the completion of underground drilling at Huayra Kasa.  

After Holes DCS-02 and DCS-03 are finished on the southern radial setup on the CBP, the drill will be moved to the Porco (South) target to carry out radial drilling at that location.”

Table 1: Significant Diamond Drilling Results, Iska Iska as of May 26, 2021

Note: True width of the mineralization is not known at the present time, but based on the current understanding of the relationship between drill orientation/inclination and the mineralization within the breccia pipes and the host rocks such as sandstones and dacites. It is estimated that true width ranges between 70% and 90% of the downhole interval length but this will be confirmed by further drilling. Percentage metal contents are shown for each element.

Metal prices and conversion factors used for calculation of g Ag eq/t (grams Ag per grams x metal ratio) are as follows:

In calculating the intersections, a sample cutoff of 30 g Ag eq/t was used with generally a maximum dilution of 3 continuous samples below cutoff included within a mineralized section, unless more dilution is justified geologically.

Table 2: Summary of Diamond Drill Holes Completed With Assays Pending and Drill Holes In Progress at Iska Iska from the May 26, 2021 press release.

S = Surface UG=Underground; collar coordinates in metres; azimuth and dip in degrees.

Total drilling completed since the start of the program on September 13, 2020 is 14,346.7m in 33 holes (13 underground holes and 20 surface holes) with one underground and two surface holes in progress.

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. 

Silver-tin polymetallic mineralization at Iska Iska occurs within a Miocene possibly collapsed/resurgent caldera that consists of granodioritic stocks and five (5) dacitic domes which are each about 500m in diameter. These rocks intrude/extrude an intensely deformed sequence of Ordovician shales, siltstones, and sandstones, which are partially covered by Miocene pyroclastic rocks. The silver polymetallic mineralization occurs mainly as veins, vein swarms, veinlets, stockworks, dissemination and in breccias associated with intense hydrothermal alteration. The Iska Iska dome complex has several major phases of igneous breccias, quartz porphyries, dikes and dacitic syn-kinematic flows.

On November 18, 2020, Eloro announced the discovery of a significant breccia pipe with extensive silver polymetallic mineralization just east of the Huayra Kasa underground workings and a high-grade gold-bismuth zone in the underground workings. Diamond drilling intersected a number of extensive mineralized intersections within the major breccia pipe including 54.48 g Ag/t, 1.45% Zinc (Zn) and 1.60% Lead (Pb) over 16.39m (140.91 g Ag eq/t) within a broader interval of 122.74m grading 14.29 g Ag/t, 0.81% Zn and 0.41% Pb (53.67 g Ag/t eq) in Hole DHK-04 (see press release November 18, 2020).

The high-grade gold-bismuth zone outlined in channel samples in the underground working averaged 7.1 g Au/t and 0.2% Bi (8.29 g Au eq/t) over 3.04m width for strike length of 47m. Hole DHK-05 on the strike extension of the high-grade Au-Bi zone intersected 6.51g Au/t, 0.07% Bi and 31.96 g Ag/t (7.68 g Au eq/t) over 11.85m grading including 29.56 g Au/t,0.26% Bi/t and 63.69 g Ag/t (31.94 g Au eq/t) over 2.31m in this high-grade zone.

On January 26, 2021, Eloro announced significant results from drilling at the Santa Barbara Breccia Pipe. Highlights are as follows:

• 129.60 g Ag eq/t over 257.5m (29.53g Ag/t, 0.078g Au/t, 1.45%Zn, 0.59%Pb, 0.080%Cu, 0.056%Sn, 0.0022%In, 0.0064%Bi and 0.0083%Cd) from 0.0m to 257.5m in hole DHK-15, the deepest of the three holes reported within the SBBP;
• 79.00 g Ag eq/t over 121.33m (21.77g Ag/t, 0.034g Au/t, 0.35%Zn, 0.23%Pb, 0.18%Cu, 0.056%Sn, 0.0011%In, 0.004%Bi and 0.0055%Cd) from 0.0m to 121.33m in Hole DHK-14 within the SBBP;
• 74.16 g Ag eq/t over 40.88m (33.43g Ag/t, 0.032g Au/t, 0.04%Zn, 0.33%Pb, 0.13%Cu, 0.045%Sn, 0.0010%In and 0.0012%Bi) from 30.40m to 71.28m in Hole DHK-13 which is within the approximately 100m wide mineralized envelope that surrounds the breccia pipe.

Silver-tin polymetallic mineralization within the Iska Iska system occurs over a potential strike length of more than 2.5km along with major ring structures in the caldera complex.  

A synchrotron study of the underground channel samples concluded that the 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 mineralogy of the domains is consistent with minerals identified in the hand specimen and is likely related to a telescoped porphyry/epithermal style of mineralization.

Eloro is an exploration and mine development company with a portfolio of gold and base-metal properties in Bolivia, Peru and Quebec.

Eloro Resources (ELO) opened trading at C$5.30 per share.