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Eloro Resources’ drill hole DHK-27 intersects 202.43g Ag eq/t (69.80g Ag/t, 1.21% Zn, 0.49% Pb, and 0.12%Sn) over 325.48m including a higher-grade portion of 395.98 g Ag eq/t (182.02g Ag/t, 1.73% Zn, 0.97% Pb, 0.18% Cu and 0.19%Sn) over 109.60m in the High-Grade Zone, Santa Barbara Deposit at the Iska Iska Silver-Tin Polymetallic Project, Potosi Department, Bolivia

Eloro Resources Ltd. (TSX-V: ELO; OTCQX: ELRRF; FSE: P2QM) (“Eloro”, or the “Company”) is pleased to announce assay results from eight (8) additional diamond drill holes from its definition drilling program at the Iska Iska silver-tin polymetallic project in the Potosi Department, southern Bolivia. Hole DHK-27 was drilled from Huayra Kasa due west at -45 degrees to a length of 860m to fill-in gaps in previous drilling of the High-Grade Zone. Five (5) additional holes (DHK-26. DHK-28, DHK-29, DHK-30 and DSB-42) were drilled to the southwest from the Huayra Kasa area to test the eastern margin of the Santa Barbara deposit. Hole DSB-43 was drilled on southwest side of Santa Barbara and hole DSB-46 tested the potential south-southeastern extension.

As previously reported in a press release dated November 27, 2022, the Company completed 84,495m of drilling in 122 holes to complete the definition drill program in the Santa Barbara target area, as shown in Figure 1. Tables 1 and 2 list significant assay results for the reported drill holes. Prices used for calculating Ag equivalent grades are as outlined in Eloro’s July 21, 2022 press release. Table 3 summarizes drill holes completed but with assays pending. The remaining eight (8) holes outstanding are in the south-southeastern extension area of the southern part of the Iska Iska caldera.

In addition to the new drill results, the Company is pleased to report on channel sampling results from the Mina 1 and Mina 2 underground workings located approximately 2km south-southeast of the Santa Barbara adit and approximately 800m east of the Porco adit where previously reported channel sampling returned a 103m strike length grading 521 g Ag eq/t (g 117g Ag/t, 1.44 g Au/t, 0.54% Cu and 0.66% Sn) in altered basement sediments (see Eloro’s November 17, 2021 press release). The location of Mina 1 and Mina 2 is shown in Figure 1. Complete channel sampling results are listed in Tables 4 and 5.

Tom Larsen, CEO of Eloro, said: “Hole DHK-27 when determining grade times intercept of 65,887 g Ag eq/t-m is the 2nd most valuable drill hole recorded to date and only just behind the 441-meter 66,389 g Ag eq/t-m intersection in hole DSB-30 reported last fall (see press release September 20, 2022). These are remarkable intercepts and grades. The significance of DHK-27 is the consistent high silver grades averaging 69.80 g Ag/t over a length of 325.48 meters which is close to true thickness. The higher grade 182.02 g Ag/t over 109.60 m portion of Hole DHK-27 attests to the potential of outlining much higher-grade areas in the Santa Barbara deposit with further drilling. It is also important to note that calculations for equivalent Ag grade in this release are based on July 2022 metal prices which for the major metals at Iska Iska are 13% to 33% lower than current prices hence the quoted values for silver equivalent are conservative.”

“The technical team under the supervision of Dr. Bill Pearson, P.Geo. and Dr. Osvaldo Arce, P.Geo. are setting up for resumption of diamond drilling in early February that will target the major tin porphyry that they believe is below the Iska Iska porphyry and extends into the newly acquired Mina Casiterita property,” continued Mr. Larsen. “Eloro has a remarkable opportunity to outline a second, potential world class tin deposit at Iska Iska in addition to the already extensive Santa Barbara silver-tin polymetallic deposit which is the focus of our inaugural mineral resource estimate expected by the end of Q1 2023. Expect to see a lot of activity in and around Iska Iska in 2023!”

Dr. Bill Pearson, P.Geo. Eloro’s Executive Vice President, Exploration commented: “We are working closely with Micon International to ensure that they have all the data necessary to complete the inaugural mineral resource estimate on the Santa Barbara deposit targeted for the end of Q1 2023. Blue Coast Research in Parksville, B.C. is completing their metallurgical studies and Gemin Associates in Lima, Peru is preparing preliminary economic parameters for the mineral resource estimation. On the ground, the Company has commenced induced polarization surveys on the Mina Casiterita property and is preparing for the restart of drilling in early February. The next phase of exploration drilling will target the potential tin porphyry in the Porco and Mina Casiterita areas. In addition, we have also initiated a program of geological mapping, sampling, and prospecting to evaluate the newly staked properties in the Iska Iska area which are detailed in our November 22, 2022 press release.”

Updated Geological Model for Iska Iska and its Santa Barbara Deposit

Drilling across the valley of the Iska Iska Caldera indicates that this area is underlain by a coarse-grained porphyritic dacitic intrusion that is well mineralized with Ag, Zn and Pb and is the likely source of the extensive epithermal mineralization in the Santa Barbara and Central Breccia areas. The porphyry, now named the Iska Iska Porphyry, is approximately 800m by 600m (Figure 1) and is notable for the absence of tin mineralization despite the abundance of tin in the nearby area. The tin at Iska Iska has been long recognized by Dr. Osvaldo Arce, P.Geo., an expert on Bolivian geology, as likely being the product of an earlier higher temperature and deeper tin porphyry, which has been overprinted by the later higher-level porphyry-epithermal Ag-Zn-Pb mineralization related to the Iska Iska porphyry.

Detailed analysis and modeling of the geological, geophysical, and geochemical data at Iska Iska indicates that the hydrothermal signature for the Iska Iska porphyry-epithermal system is approximately 2.8km along strike, up to 1.2km across strike and extending to a depth of at least 1.4km (Figure 1).

The High-Grade Zone that occurs within this extensive hydrothermal system defined by the >90 g Ag eq/t grade shell model is approximately 1,000m along strike, 800m wide and extends to a depth of 1,100m (Figure 2). This zone is open to the south, west and northwest as well as at depth. Magnetic inverse modelling and limited deep drilling suggest that the major tin porphyry is likely below the Iska Iska Porphyry and to the south and southwest in the Porco and Mina Casiterita areas.

The definition drilling program has more than doubled the potential volume of high grade mineralized material to be assessed for the mineral resource. Figure 2 shows the >90 g Ag eq/t grade shell model released September 20, 2022, compared to the date of this release. The success of the definition drilling in expanding the >90 g Ag eq/t zone is readily evident in Table 6, below and in Figure 2.

Table 6: Comparison of September 2022, >90 g Ag eq/t Grade Shell Model versus January 2023 Model for Santa Barbara Deposit

DimensionSeptember 2022 ModelJanuary 2023 ModelIncrease (m)% Increase
Strike700m1,000m300m42%
Width650m800m150m23%
Depth810m1,100m290m36%

The overall mineralized zone as defined by the >30 g Ag eq/t grade shell has a strike length of 2,200m, a width of 1,200m and extends to a depth of at least 1,400m. Note that much of the drilling at Santa Barbara is at 100m spacing hence further drilling will likely provide better definition of higher-grade zones within the extensive mineralized envelope.

Santa Barbara Definition Drilling Huayra Kasa Area

Hole DHK-27 was drilled from Huayra Kasa due west at -45 degrees to a length of 860m. 50% of this hole returned reportable intersections averaging 172.09 g Ag eq/tThe silver grades in this hole are the highest and most extensive yet intersected in the Santa Barbara deposit.

Highlights from Hole DHK-27

  • 202.43g Ag eq/t (69.80g Ag/t, 1.21% Zn, 0.49% Pb, and 0.12%Sn) over 325.48m from 93.30m to 418.78m, including a higher-grade portion of:
    • 395.98 g Ag eq/t (182.02g Ag/t, 1.73% Zn, 0.97% Pb, 0.18% Cu and 0.19%Sn) over 109.60m from 198.41m to 308.01m.

Five (5) additional holes (DHK-26. DHK-28, DHK-29, DHK-30 and DSB-42) were collared in the Huayra Kasa area to test the eastern margin of the Santa Barbara deposit. All these holes were drilled at an azimuth of 225with a dip of -600. Collectively, these holes intersected many significant intersections within altered and mineralized dacite and dacitic breccia including:

Highlights from Hole DHK-26

  • 221.51g Ag eq/t (28.44 Ag/t, 3.11% Zn and 0.26% Pb) over 53.90m from 729.40m to 783.30m including:
    • 486.82g Ag eq/t (89.75g Ag/t, 0.21 g Au/t, 6.23% Zn and 0.83% Pb) over 7.42m from 751.84m to 759.26m.
    • 517.28g Ag eq/t (50.66g Ag/t, 0.13 g Au/t, 7.95% Zn, 0.38% Pb and 0.10 % Sn) over 12.08m from 769.72m to 781.80m.
  • 99.76g Ag eq/t (32.59g Ag/t, 0.11 g Au/t, 0.54% Zn and 0.18% Pb) over 82.38m from 819.50m to 901.88m including:
    • 238.64g Ag eq/t (115.01g Ag/t, 0.09 g Au/t, 0.76% Zn, 0.38% Pb and 0.12% Sn) over 7.59m from 838.63m to 846.22m.
    • 273.63g Ag eq/t (149.42g Ag/t, 0.26 g Au/t, 1.54% Zn and 0.41% Pb) over 7.52m from 853.72m to 861.24m.
    • 187.82g Ag eq/t (33.08g Ag/t, 0.26 g Au/t 1.54% Zn and 0.49% Pb) over 7.53m from 877.72m to 885.25m.

Highlights from Hole DHK-28

  • 140.99g Ag eq/t (25.01g Ag/t, 1.85% Zn and 0.64% Pb) over 7.52m from 174.18m to 181.70m.
  • 125.48g Ag eq/t (5.01g Ag/t and 2.10% Zn) over 6.04m from 413.20m to 419.24m.
  • 79.22g Ag eq/t (26.26g Ag/t, 0.35% Zn and 0.33% Pb) over 141.56m from 728.88m to 870.44m including:
    • 162.77g Ag eq/t (67.00g Ag/t, 0.55% Zn and 1.30% Pb) over 23.85m from 734.70m to 758.55m.

Highlights from Hole DHK-29

  • 176.28g Ag eq/t (19.10g Ag/t, 2.29% Zn and 0.27% Pb) over 21.30m from 206.30m to 227.60m.
  • 156.90g Ag eq/t (30.88g Ag/t, 0.19 g Au/t, 1.67% Zn and 0.10% Pb) over 10.78m from 608.85m to 619.63m.
  • 82.48g Ag eq/t (5.07g Ag/t, 0.21 g Au/t, 0.78% Zn and 0.18% Pb) over 69.18m from 727.12m to 796.30m.

Highlights from Hole DHK-30

  • 113.69g Ag eq/t (17.63g Ag/t, 0.19 g Au/t, 1.13% Zn and 0.34% Pb) over 7.54m from 136.52m to 144.06m.
  • 116.22g Ag eq/t (14.31g Ag/t, 0.43 g Au/t, 0.86% Zn and 0.10% Pb) over 6.08m from 382.93m to 389.01m.
  • 430.17g Ag eq/t (63.65g Ag/t, 0.23 g Au/t, 0.29% Zn, 1.02% Pb, 0.70% Sn and 0.13% Bi) over 2.94m from 559.68m to 562.62m.

Highlights from Hole DSB-42

  • 494.23g Ag eq/t (3.03g Ag/t, 4.59 g Au/t, 0.63% Zn and 0.15% Pb) over 2.99m from 51.71m to 54.70m.
  • 63.86g Ag eq/t (2.66g Ag/t, 1.01% Zn and 0.21% Pb) over 31.72m from 374.64m to 406.36m, including a higher-grade section of:
    • 161.05g Ag eq/t (5.33g Ag/t, 2.74% Zn and 0.32% Pb) over 4.53m from 385.25m to 389.78m.
  • 260.46g Ag eq/t (67.81g Ag/t, 0.11 g Au/t, 2.58% Zn and 1.42% Pb) over 18.21m from 442.58m to 460.79m, including a higher-grade section of:
    • 678.61g Ag eq/t (189.03 g Ag/t, 0.30 g Au/t, 6.40% Zn and 3.76% Pb) over 6.08m from 445.60m to 551.68m.
  • 138.95g Ag eq/t (22.69g Ag/t, 1.65% Zn and 0.75% Pb) over 10.52m from 477.38m to 487.90m.
  • 130.69g Ag eq/t (7.19g Ag/t, 1.83% Zn and 0.48% Pb) over 42.17m from 519.62m to 561.79m, including a higher-grade section of:
    • 283.75g Ag eq/t (17.53g Ag/t, 0.13 g Au/t, 3.97% Zn and 1.31% Pb) over 13.49m from 519.62m to 533.11m.
  • 129.98g Ag eq/t (19.71g Ag/t, 1.50% Zn and 0.57% Pb) over 72.31m from 596.33m to 668.64m, including a higher-grade section of:
    • 208.42g Ag eq/t (33.10g Ag/t, 2.37% Zn and 1.00% Pb) over 34.64m from 634.00m to 668.64m.
  • 57.11g Ag eq/t (1.75g Ag/t, 0.67% Zn and 0.13% Pb) over 78.10m from 685.15m to 763.25m, including a higher-grade section of:
    • 120.06g Ag eq/t (2.95g Ag/t, 1.61% Zn and 0.30% Pb) over 13.21m from 742.49m to 755.70m.

Hole DSB-43 tested the southwest side of Santa Barbara while hole DSB-46 tested the south-southeast extension. Highlights in these two holes are as follows:

Highlights from Hole DSB-43

128.40g Ag eq/t (58.77g Ag/t, 0.12% Zn, 0.08% Pb, 0.10% Cu and 0.11% Sn) over 28.75m from 434.28m to 463.03m, with higher-grade portions of:

  • 190.20g Ag eq/t (94.23g Ag/t, 0.11% Zn, 0.11% Pb, 0.15% Cu and 0.14% Sn) over 16.60m from 438.90m to 455.50m.
  • 103.50g Ag eq/t (16.83g Ag/t, 0.14 g Au/t, 0.30% Zn, 0.26% Pb and 0.12% Sn) over 15.02m from 650.28m to 665.30m.

Highlights from Hole DSB-46

  • 107.44g Ag eq/t (5.83g Ag/t, 1.75% Zn, 0.12% Pb) over 33.50m from 504.15m to 537.65m, with a higher-grade portion of:
    • 137.05g Ag eq/t (6.58g Ag/t, 2.20% Zn and 0.14% Pb) over 10.77m from 510.18m to 520.95m.
    • 257.17g Ag eq/t (15.28g Ag/t, 4.39% Zn and 0.26% Pb) over 6.07m from 531.58m to 537.65m.

Channel Sampling Mina 1 and Mina 2

Channel sampling of the Mina1 and Mina2 underground workings in the southern part of the property, approximately 2km south-southeast of the Santa Barbara adit, returned significant values from vein breccias as follows:

  • 153.94g Ag eq/t (55.03g Ag/t, 0.11 g Au/t, 0.70% Zn, 0.16% Pb and 0.08% Sn) over 145.95m of the northwest trending drift, including a higher-grade portion of 285.16g Ag eq/t (120.18g Ag/t, 0.25 g Au/t 1.23% Zn, 0.30% Pb and 0.13% Sn) over 56.34m in Mina 1.
  • 382.79g Ag eq/t (15.67g Ag/t, 1.70 g Au/t, 2.20% Zn and 0.75% Pb) over 68.53m in an east-west trending crosscut in Mina 2. A second shorter crosscut on a secondary subparallel structure approximately 20m to the south returned 475.78g Ag eq/t (69.31g Ag/t, 0.26 g Au/t, 5.62% Zn and 1.92% Pb) over 26.67m in Mina 2.

Figure 3 is a plan map showing sampling results at Mina 1 and Mina 2. Table 6 gives details of the sampling results.

These results, along with the previously reported channel sample results from Porco noted above, clearly indicate that the Iska Iska mineralizing system extends much further south outside of the principal Iska Iska Caldera. Based on field work by the Eloro geological team, it appears that there may be a second, larger ringer structure with a diameter of approximately 4.6km outside the main Iska Iska caldera that could be another major focus of mineralization. This possibility is currently being explored by geological mapping and geophysical surveys to outline targets for drill-testing in conjunction with work in the Porco area and the nearby Mina Casiterita property.

Figure 1 – Geological Plan Map showing Drilling in Santa Barbara Area with Holes referred to in this release highlighted.

Geological Plan Map showing Drilling in Santa Barbara Area with Holes referred to in this release highlighted

 

Figure 2: >90 g Ag eq/t Grade Shell Model and Magnetic Inverse Model, Santa Barbara Deposit; Comparison between the September 2022 Model and the Current Model

 

Figure 3: Plan Map Showing Channel Sample Results at Mina 1 and Mina 2, southern part of Iska Iska Property

Plan Map Showing Channel Sample Results at Mina 1 and Mina 2, southern part of Iska Iska Property

 

Table 1: Significant Results, Definition Surface Diamond Drilling Huayra Kasa Area, Santa Barbara Deposit as at January 31, 2023.

Hole No.From (m)To (m)Length (m)AgAuZnPbCuSnBiCdAg eq
g/tg/t%%%%%%g/t
SANTA BARBARA DEFINITION DRILLING HUAYRA KASA AREA
DHK-2747.9860.1212.1416.370.021.080.530.040.050.0010.015114.89
66.2375.489.257.620.010.740.290.010.020.0010.00463.88
93.30418.78325.4869.800.031.210.490.070.120.0030.006202.43
198.41308.01109.60182.020.031.730.970.180.190.0030.012395.98
Incl.402.32412.7810.468.130.020.060.050.010.420.0010.003179.71
445.90447.401.5019.000.050.030.020.080.060.0030.00159.46
451.92453.421.5025.000.020.040.010.050.040.0100.00154.00
462.42463.931.512.000.060.260.030.010.080.0010.00152.18
471.48480.529.046.500.040.140.020.020.110.0010.00264.38
489.53498.539.0031.670.020.140.010.020.040.0030.00157.32
522.54530.117.5716.550.060.110.020.040.050.0340.00157.16
537.63539.171.548.000.090.140.040.010.270.0030.002130.10
567.88595.1227.2413.070.170.250.050.080.070.0060.00181.02
602.46606.303.8420.510.020.040.000.100.090.0010.00170.28
621.60624.703.1014.480.110.170.010.060.030.0040.00251.77
642.84650.377.532.470.340.180.010.030.030.0060.00156.67
683.66686.632.975.010.120.120.010.110.060.0450.00167.91
DHK-2638.5040.001.5045.400.011.901.130.020.010.0010.013181.01
61.3464.393.050.500.730.120.010.000.000.0230.00179.04
84.0887.173.0925.110.010.710.810.000.000.0010.00387.72
91.7493.231.4912.800.021.000.440.010.000.0010.00480.14
108.31115.887.578.580.020.790.270.010.000.0010.00461.38
126.47131.044.578.740.140.590.240.030.000.0010.00462.57
140.12158.1418.029.140.010.880.240.010.010.0010.00767.05
164.23167.222.995.100.020.720.160.000.010.0010.00550.53
186.81188.311.5019.100.020.480.470.010.010.0040.00364.15
198.90200.371.4789.800.225.362.590.070.020.0050.034472.73
207.89227.4519.569.480.010.620.360.030.010.0010.00458.07
301.44302.951.516.500.011.920.210.010.010.0010.007112.05
334.60336.101.500.301.490.020.020.020.000.0030.001140.41
376.82385.839.011.140.011.580.420.010.000.0010.00496.07
400.90418.9618.063.480.022.030.260.010.010.0010.007118.88
524.38527.393.017.000.031.730.270.010.010.0010.008107.71
592.35595.453.103.320.010.910.120.020.010.0010.00257.34
729.40783.3053.9028.440.093.110.260.040.050.0030.013222.51
Incl.751.84759.267.4289.750.216.230.830.070.090.0080.027486.82
Incl.769.72781.8012.0850.660.137.950.380.090.100.0060.031517.28
819.50901.8882.3832.590.110.540.180.030.050.0100.00299.76
Incl.838.63846.227.59115.010.090.760.380.080.120.0540.003238.64
Incl.853.72861.247.52149.420.270.490.410.070.130.0190.002273.63
Incl.877.72885.257.5333.080.261.540.490.040.080.0220.006187.82
924.61926.081.479.400.010.840.080.030.040.0100.00176.46

Hole No.From (m)To (m)Length (m)AgAuZnPbCuSnBiCdAg eq
g/tg/t%%%%%%g/t
SANTA BARBARA DEFINITION DRILLING HUAYRA KASA AREA (CON’T)
DHK-2810.3023.5213.2220.710.020.430.690.010.000.0010.00368.57
91.2094.263.0612.610.011.050.390.010.000.0010.00580.42
97.2098.771.577.000.011.030.210.010.010.0010.00669.07
124.38127.403.029.990.011.210.290.010.000.0010.00582.05
138.02147.049.0213.480.021.010.340.020.000.0010.00478.26
174.18181.707.5225.010.011.850.640.020.000.0010.011140.99
207.58210.623.045.430.010.650.090.020.010.0020.00249.22
230.24233.142.901.950.011.010.280.010.020.0010.00271.24
275.62278.492.873.950.011.221.090.010.020.0010.004107.09
289.03290.601.5715.000.022.861.300.020.010.0010.019207.62
361.79363.311.526.000.051.050.030.020.030.0010.00578.99
413.20419.246.045.010.052.100.040.020.020.0010.008125.48
488.78490.231.454.000.010.990.020.010.010.0010.00358.37
497.76499.261.5017.000.052.360.800.020.010.0010.006168.58
536.99540.053.068.490.012.300.480.030.040.0010.010155.33
588.80591.102.301.000.011.060.010.020.000.0010.00157.36
604.96608.033.0725.800.022.350.030.170.150.0010.008224.29
707.72710.712.999.580.011.130.280.010.030.0010.00488.46
728.88870.44141.5626.260.070.350.330.020.040.0060.00179.22
Incl.734.70758.5523.8567.000.050.551.300.020.050.0050.002162.77
878.04881.073.038.260.100.540.100.080.090.0040.00192.98
938.26941.212.956.540.030.780.070.040.020.0010.00161.33
DHK-2944.8947.852.9616.560.011.260.410.040.010.0010.00999.84
58.4960.051.567.100.010.610.140.150.000.0010.00560.64
108.42114.403.051.660.012.130.290.010.010.0010.009120.39
126.31130.844.531.750.011.060.170.010.000.0010.00562.64
206.30227.6021.3019.100.072.290.270.060.050.0110.009176.28
248.71250.181.472.600.020.920.010.020.010.0010.00358.22
277.40280.523.124.700.020.880.010.010.010.0020.00456.98
375.80384.959.156.980.061.050.100.020.030.0080.00482.46
407.25410.202.952.790.010.910.010.010.010.0010.00354.76
416.10420.504.403.140.010.710.050.010.030.0030.00452.81
441.70443.161.463.500.011.230.040.010.010.0010.00670.33
446.13449.163.033.560.011.620.040.000.010.0010.00689.23
488.40489.931.532.000.080.650.090.020.020.0010.00255.96
502.04508.046.004.810.240.670.090.020.040.0110.00180.88
521.65523.171.523.500.031.430.050.010.010.0030.00684.21
544.32547.323.002.900.470.280.040.020.030.0060.00175.88
596.90598.361.4629.500.033.440.190.010.040.0010.018224.90
608.85619.6310.7830.880.191.670.100.030.050.0060.006156.90
650.69655.184.497.150.050.780.020.010.020.0050.00261.49
659.69665.525.8313.090.270.370.150.020.040.0540.00191.46
689.78698.819.035.310.090.510.130.020.030.0070.00157.66
701.88704.802.923.450.280.300.070.020.010.0070.00155.95
712.35713.821.4716.300.060.020.020.010.020.1150.00156.82
727.12796.3069.185.070.210.780.180.020.030.0050.00382.48

SANTA BARBARA DEFINITION DRILLING HUAYRA KASA AREA (CON’T)
Hole No.From (m)To (m)Length (m)AgAuZnPbCuSnBiCdAg eq
g/tg/t%%%%%%g/t
DHK-3032.5935.572.980.300.640.020.010.010.000.0010.00161.76
52.2853.781.5067.400.232.771.390.150.010.1760.012326.16
91.3892.861.4838.900.021.350.770.030.010.0120.008141.03
104.93106.411.4816.500.020.860.340.030.010.0220.00482.44
136.52144.067.5417.630.191.130.340.040.020.0040.005113.69
175.66177.171.513.800.030.900.060.020.010.0030.00461.59
189.21199.7810.574.040.051.010.070.030.020.0010.00469.44
208.80210.311.514.000.040.580.010.060.040.0010.00260.32
219.36220.881.527.600.021.460.030.040.030.0010.00799.88
228.37229.931.567.300.310.250.000.120.110.0010.001103.30
243.51246.563.052.710.240.750.010.020.010.0020.00270.08
263.30266.252.952.490.030.620.010.020.040.0030.00256.28
275.35278.363.013.200.010.770.010.020.020.0010.00354.26
282.90286.123.222.660.010.860.030.010.010.0010.00253.40
301.30302.801.502.500.021.290.010.010.020.0010.00576.23
343.40351.277.873.110.030.800.030.010.010.0020.00153.07
382.93389.016.0814.310.430.860.100.010.030.0190.004116.22
440.31441.811.506.000.041.360.030.010.010.0110.00686.68
512.65515.622.972.740.030.590.110.000.040.0010.00255.43
523.31524.751.445.800.040.390.210.000.090.0010.00170.91
549.28553.814.534.170.010.490.040.010.090.0010.00265.33
559.68562.622.9463.650.230.291.020.020.700.1310.001430.17
576.51578.031.522.200.010.060.250.010.150.0010.00172.78
580.86583.983.126.720.020.230.240.020.080.0010.00161.72
588.52591.573.0513.030.060.160.090.050.080.0050.00169.16
615.20616.691.492.900.780.140.070.010.020.0150.00194.92
636.28637.831.554.300.010.730.280.020.060.0020.00475.65
665.11672.617.506.020.011.110.120.020.040.0030.00284.14
683.04686.143.102.310.021.630.220.060.080.0050.002129.03
782.40785.403.001.650.020.420.070.170.090.0060.00280.23
791.40794.392.991.230.010.800.300.030.020.0020.00162.58
DSB-4251.7154.702.993.034.590.630.150.020.010.1680.002494.23
62.3163.841.531.000.021.100.330.030.000.0010.00372.15
69.9074.314.412.660.210.260.170.030.000.1390.00174.63
130.30139.366.0610.150.120.810.120.020.010.0150.00674.15
156.06157.571.510.500.640.020.010.020.000.0010.00162.61
193.85195.421.5713.000.151.040.510.010.010.0010.00598.83
242.06243.551.495.000.010.760.180.010.010.0010.00254.97
317.45318.961.515.000.042.190.140.010.010.0010.011126.24
374.64406.3631.722.660.011.010.210.010.000.0010.00463.86
Incl.385.25389.784.535.330.042.740.320.020.010.0050.011161.05
442.58460.7918.2167.810.112.581.420.020.010.0260.010260.46
Incl.445.60451.686.08189.030.306.403.760.040.020.0770.028678.61
477.38487.9010.5222.690.041.650.750.020.010.0030.005138.95
519.62561.7942.177.190.071.830.480.010.020.0080.006130.69
Incl.519.62533.1113.4917.530.133.971.310.010.040.0020.014283.75
575.22576.741.521.000.011.050.080.010.000.0010.00457.83
581.30582.801.504.000.011.970.060.010.030.0010.006118.53
596.33668.6472.3119.710.031.500.570.010.040.0030.006129.98
Incl.634.00668.6434.6433.100.042.371.000.010.060.0010.010208.42
685.15763.2578.101.750.080.670.130.020.020.0010.00257.11
Incl.742.49755.7013.212.950.081.610.300.010.050.0040.005120.06
814.88817.752.870.750.020.870.080.010.020.0010.00157.61

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 down hole interval length but this will be confirmed by further drilling and geological modelling.

Chemical symbols: Ag = silver, Au = gold, Zn = zinc, Pb = lead, Cu = copper, Sn = tin, Bi = bismuth, Cd = cadmium and g Ag eq/t = grams silver equivalent per tonne. Quantities are given in percent (%) for Zn, Pb Cu, Sn, Bi and Cd and in grams per tonne (g/t) for Ag, Au and Ag eq.

Metal prices and conversion factors used for calculation of g Ag eq/t (grams Ag per grams x metal ratio) are as follows (Prices updated as of July 21, 2022, to more accurately reflect current metal prices):

ElementPrice $US
(per kg)
Ratio to Ag
Ag$607.001.0000
Sn$23.550.0589
Zn$2.980.0046
Pb$1.920.0032
Au$54,932.8079.7221
Cu$7.000.0134
Bi$12.760.0177
Cd$5.500.0076

In calculating the intersections reported in this press release 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.

The equivalent grade calculations are based on the stated metal prices and are provided for comparative purposes only, due to the polymetallic nature of the deposit. Metallurgical tests are in progress by Blue Coast Ltd. to establish levels of recovery for each element reported but currently the potential recovery for each element has not yet been established. While there is no assurance that all or any of the reported concentrations of metals will be recoverable, Bolivia has a long history of successfully mining and processing similar polymetallic deposits which is well documented in the landmark volume “Yacimientos Metaliferos de Bolivia” by Dr. Osvaldo R. Arce Burgoa, P.Geo.

Table 2: Significant Results, Definition Surface Diamond Drilling Southwestern and South-Southeastern Extensions Santa Barbara Deposit as at January 31, 2023.

Hole No.From (m)To (m)Length (m)AgAuZnPbCuSnBiCdAg eq
g/tg/t%%%%%%g/t
SANTA BARBARA DRILLING SOUTHWESTERN EXTENSION
DSB-4343.8656.0212.1615.010.040.010.030.010.090.0010.00156.74
157.55163.606.0518.050.210.120.160.030.100.0200.00193.89
185.44192.807.366.800.020.010.050.060.090.0030.00152.42
213.80236.9423.146.210.100.000.020.000.170.0110.00182.61
262.08265.002.920.300.030.000.000.070.160.0170.00174.55
278.62283.434.812.190.020.000.010.010.170.0040.00171.93
295.41304.609.191.500.030.000.020.000.110.0050.00150.40
321.13327.306.174.230.010.000.030.580.080.0010.001103.98
378.85380.411.561.900.010.000.030.110.110.0030.00160.77
386.30398.3812.084.100.030.000.050.010.290.0140.001126.39
434.28463.0328.7558.770.040.120.080.100.110.0280.001128.40
Incl.438.90455.5016.6094.230.050.110.110.150.140.0460.001190.20
573.46574.941.4816.200.450.110.100.010.090.0120.001104.61
596.10612.6616.5660.050.100.070.010.020.020.0030.00182.12
627.74635.227.485.700.190.710.160.020.020.0110.00576.77
650.28665.3015.0216.830.140.300.260.020.120.0160.001103.50
761.80767.876.076.630.070.020.090.050.050.1080.00166.16
805.24806.761.526.000.120.060.010.100.100.1160.00194.19
829.25833.103.858.430.020.050.010.110.080.0310.00164.65
SANTA BARBARA DRILLING SOUTH-SOUTHEASTERN EXTENSION
DSB-4687.1588.701.551.400.010.840.050.090.000.0010.00356.17
114.31115.851.545.600.231.760.280.080.000.0010.006133.06
145.05146.571.522.300.010.650.050.270.000.0010.00369.08
170.65172.191.5416.000.767.760.830.460.000.0010.030548.36
218.84220.371.538.900.234.650.170.050.010.0030.017273.50
277.60279.111.513.100.071.400.110.050.010.0010.00690.90
325.80351.5025.708.050.031.240.180.050.010.0030.00885.82
360.48362.011.534.100.320.230.060.070.000.0130.00157.77
365.05371.096.047.710.580.380.080.190.000.0200.002108.11
383.11384.621.516.800.040.700.200.020.010.0010.00556.05
401.27402.801.532.200.140.600.080.030.000.0010.00351.49
405.84407.301.464.800.060.620.180.010.010.0010.00350.23
416.42422.496.077.280.151.370.180.030.000.0010.009100.10
434.59437.552.964.920.020.940.110.010.000.0010.00459.21
442.16446.664.509.550.071.430.210.010.000.0010.00896.18
460.25478.4718.226.950.101.340.200.030.010.0010.00993.84
484.57485.981.417.500.012.150.200.010.010.0010.016125.15
504.15537.6533.505.830.041.750.120.020.010.0010.010107.44
Incl.510.18520.9510.776.580.072.200.140.030.020.0010.013137.05
Incl.531.58537.656.0715.280.054.390.260.040.020.0010.025257.17
542.13543.641.512.400.080.860.060.020.010.0010.00659.16
570.73572.311.588.700.141.360.240.010.010.0020.005102.13
602.40611.429.020.120.020.071.090.000.010.0040.00043.33
646.17647.661.4925.600.021.110.770.040.030.0010.005121.36
664.18665.701.5212.000.521.990.210.020.010.0040.010171.30
688.55690.071.5211.600.361.270.300.050.010.0030.008125.92
718.90720.411.5117.700.900.250.050.020.020.0030.001125.06
730.92732.431.517.200.010.940.170.000.030.0010.00573.23
764.37765.881.5139.400.293.222.020.010.310.0040.017409.92
768.86770.431.574.200.020.880.140.010.010.0010.00659.82
784.00785.501.505.000.261.550.040.010.050.0050.011127.82
811.15812.701.551.300.120.660.080.020.010.0010.00351.79

See Note Table 1.

Table 3: Summary of Diamond Drill Holes Completed with Assays Pending at Iska Iska from January 31, 2023, press release.

SUMMARY DIAMOND DRILLING ISKA ISKA
Hole No.TypeCollar EastingCollar NorthingElev.AzimuthAngleHole Length (m)
Surface Drilling Santa Barbara Resource Definition South-Southeast Extension
DSB-44S20561176556254076225°-60°964.1
DSB-45S20526376564264240225°-60°836.4
DSB-47S20537076561084227225°-60°1,001.4
DSB-48S20575276554834054225°-60°821.4
DSB-49S20589476559114017225°-60°830.4
DSB-50S20596576558414016225°-55°854.4
DSB-51S20589476556284028225°-60°803.4
DSB-52S20596576555584002225°-60°824.4
TOTAL 6,935.9 

S = Surface UG = Underground; collar coordinates in meters; azimuth and dip in degrees. Total drilling completed since the start of the program on September 20, 2020 to the completion of the Santa Barbara definition drill program on November 27, 2022 is 84,495m in 122 drill holes (32 underground drill holes and 90 surface drill holes).

Table 4: Channel Sampling Results, Mina 1.

CHANNEL SAMPLING RESULTS – MINA 1
SAMPLE No.Distance between samples (m)Channel Width (m)Ag g/tAu g/tZn %Pb %Sn %Ag eq g/t*
M1-1412.842.140.011.000.020.010.0214.26
M1-155.691.810.010.500.010.000.017.93
M1-165.841.460.010.500.010.000.0112.25
M1-174.942.120.014.000.050.020.0552.53
M1-193.711.650.011.000.010.000.016.65
M1-206.322.300.013.000.030.040.0333.20
M1-215.102.000.011.000.070.020.0749.85
M1-224.591.520.013.000.070.050.0753.44
M1-233.831.620.0134.000.121.030.12152.55
M1-253.412.080.97197.000.190.490.19467.14
M1-014.381.20383.000.545.900.630.33918.09Avg-01*
M1-404.382.60427.000.496.780.630.331002.63
M1-024.702.74149.000.101.080.230.08265.68Avg-02*
 M1-414.701.42174.000.090.950.230.12305.07
M1-035.361.500.61267.000.180.400.18541.76
M1-043.531.170.91290.000.260.660.26689.08
M1-056.781.370.1654.000.080.220.08142.87
M1-264.192.760.0484.000.170.030.17210.81
M1-273.772.890.0721.000.030.020.0350.58
M1-283.861.970.0431.000.050.040.0571.14
M1-292.851.820.0117.000.030.240.0368.45
M1-305.502.580.014.000.020.020.0234.43
M1-314.461.900.011.000.000.000.005.11
M1-324.531.600.012.000.030.010.0323.56
M1-066.511.1013.000.020.340.070.0459.11Avg-03*
M1-076.510.98158.000.037.220.480.12581.92
M1-096.510.7242.000.110.080.040.18171.70
M1-336.512.254.000.010.070.080.16105.88
M1-356.511.9621.000.030.540.060.14135.55
M1-366.511.9322.000.060.090.030.0885.12
M1-426.511.7389.000.103.100.170.11316.37
M1-104.241.600.0449.000.120.190.12189.44
M1-117.081.560.0570.000.210.470.21280.27
M1-123.851.720.0329.000.120.100.12118.70
M1-135.531.420.013.000.120.070.1279.06
M1-383.971.950.011.000.100.030.1060.30
M1-394.601.080.011.000.000.000.003.48
Avg-01*4.382.60383.00405.006.340.630.33960.36
Avg-02*4.72.74161.500.101.010.230.10285.38
Avg-03*6.5110.6749.860.051.640.130.12207.95
Right WallDistance between samples (m)Channel length (m)Ag g/tAu g/tZn %Pb %Sn %Ag eq g/t*
145.9563.6055.030.110.700.160.08153.94
Note. Ag equivalent calculation is based on prices in July 21, 2022 press release.
Weighted average grade
Avg-01*M1-01 and M1-40
Avg-02*M1-02 and M1-41
Avg-03*M1-06; M1-07; M1-09; M1-33; M1-35; M1-36; M1-42

Note: See Table 1 for metal prices used to calculate g Ag eq/t.

Table 5: Channel Sampling Results, Mina 2.

CHANNEL SAMPLING RESULTS – MINA 2
Sample No.Channel Width (m)Distance between samples (m)Ag g/tAu g/tZn %Pb %Sn %Ag eq g/t*
M2-811.413.812.000.010.470.060.0131.49
M2-821.833.781.000.010.080.030.0111.02
M2-390.853.931.000.010.590.140.0241.81
M2-831.454.890.300.010.050.010.015.98
M2-841.404.390.300.010.010.000.014.17
M2-851.575.090.300.010.010.000.002.80
M2-092.004.451.000.010.080.030.0110.04
M2-102.002.071.000.010.080.030.0111.43
M2-111.671.631.000.910.460.170.02213.75
M2-122.002.901.000.190.120.040.0130.06
M2-1031.324.831.000.010.010.000.016.19
M2-1041.644.832.000.010.520.060.0031.68
M2-1051.784.051.000.010.230.030.0534.23
M2-1061.783.541.000.010.070.020.018.68
M2-1071.453.920.300.010.010.000.013.74
M2-1081.275.810.300.010.010.000.015.69
M2-1091.655.991.000.010.100.040.019.80
M2-1101.704.660.300.010.020.000.003.32
M2-1111.514.400.300.010.040.010.015.75
M2-400.403.7298.000.013.354.160.01400.95
M2-1121.734.370.300.010.010.000.003.22
M2-410.642.411.000.010.060.030.018.05
M2-430.400.5512.000.012.170.500.01138.50
M2-440.601.871.000.010.190.040.0013.58
M2-1131.664.121.000.010.100.010.009.13
M2-1141.563.972.000.010.340.020.0021.66
M2-1161.674.095.000.010.380.070.0134.95
M2-1171.264.047.000.011.540.190.0194.95
M2-1180.853.762.000.010.260.080.0123.27
M2-1191.233.957.000.011.000.400.0173.55
Weighted average grade115.814.640.020.340.180.0134.94
M2-340.904.071.000.010.830.030.0149.98Avg-01*
M2-360.354.07128.000.073.910.720.35648.64
M2-370.694.071.000.010.050.010.017.96
M2-652.004.0729.000.020.950.170.14178.81
M2-671.333.9032.000.440.950.370.03160.50
M2-681.181.322.000.040.050.020.0116.55
M2-691.132.972.000.010.010.000.0117.83
Weighted average grade3.9524.080.160.790.200.06130.66
M2-891.271.766.000.010.780.120.0152.82
M2-051.653.831.001.751.130.230.03244.34
M2-883.503.899.000.390.700.280.08124.27
M2-061.333.821.004.200.280.100.01435.80
M2-872.203.612.001.330.510.160.02164.51
M2-081.274.5612.000.462.020.600.02187.61
M2-863.504.361.000.520.210.060.0169.60
M2-131.374.8921.001.502.720.750.02696.20
M2-912.564.0720.000.280.740.530.03166.64
M2-141.623.905.001.523.120.650.03459.88
M2-921.573.9214.003.081.450.600.01487.86
M2-161.233.3330.004.773.462.130.04969.42
M2-931.483.1328.0010.203.701.350.041305.70
M2-171.453.7446.000.273.162.280.07351.99
M2-942.133.3133.000.688.841.730.04627.02
M2-181.403.8726.000.923.521.610.02345.00
M2-952.244.766.000.092.270.130.02141.32
M2-961.593.7726.000.431.780.560.02210.69
Weighted average grade68.5315.671.702.200.750.03382.79
M2-971.205.730.300.010.040.010.007.17
M2-981.523.882.000.010.670.050.0039.59
M2-991.353.007.000.011.140.260.0182.92
Weighted average grade12.612.420.010.490.080.0035.16
M2-1001.503.7131.000.015.580.810.01342.47
M2-1011.602.6376.000.105.882.890.03486.13
M2-021.575.2828.000.102.191.220.02210.15
M2-031.158.95120.000.666.302.890.09680.10
M2-011.453.0666.000.038.911.870.05589.72
M2-041.363.0336.000.016.080.880.02374.13
Weighted average grade26.6769.310.265.621.920.05475.78
Avg-01*2.004.0739.750.031.430.230.13221.35
*Note. Ag equivalent calculation is based on prices in July 21, 2022 press release.
Weighted average grade
Avg-01*M2-34; M2-36; M2-37; M2-65

Note: See Table 1 for metal prices used to calculate g Ag eq/t.

Qualified Person

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, and 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 regularly 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. Eloro 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 prepared 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. Turnaround time continues to improve, as laboratories return to more normal staffing levels.

About Iska Iska

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 in southern Bolivia. Eloro has an option to earn a 100% interest in Iska Iska.

Iska Iska is a major silver-tin polymetallic porphyry-epithermal complex associated with a Miocene possibly collapsed/resurgent caldera, emplaced on Ordovician 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 mineralization 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 SBBP approximately 150m southwest of the Huayra Kasa underground workings.

Subsequently, on January 26, 2021, Eloro announced significant results from the first drilling at the SBBP including the discovery hole DHK-15 which returned 129.60 g Ag eq/t over 257.5m (29.53g Ag/t, 0.078 g Au/t, 1.45%Zn, 0.59%Pb, 0.080%Cu, 0.056%Sn, 0.0022%In and 0.0064% Bi from 0.0m to 257.5m). Subsequent drilling has confirmed significant values of Ag-Sn polymetallic mineralization in the SBBP and the adjacent CBP. A substantive mineralized envelope which is open along strike and down-dip extends around both major breccia pipes. Continuous channel sampling of the Santa Barbara Adit located to the east of SBBP returned 442 g Ag eq/t (164.96 g Ag/t, 0.46%Sn, 3.46% Pb and 0.14% Cu) over 166m including 1,092 g Ag eq/t (446 g Ag/t, 9.03% Pb and 1.16% Sn) over 56.19m. The west end of the adit intersects the end of the SBBP.

Since the initial discovery hole, Eloro has released a number of significant drill results in the SBBP and the surrounding mineralized envelope which along with geophysical data has defined an extensive target zone. In its September 20, 2022 press release, the Company reported that new downhole geophysical data has significantly extended the strike length of the high-grade feeder zone at Santa Barbara a further 250m along strike to the south-southeast from existing drilling. The 3D inverse magnetic model which correlates very strongly with the conductive zone suggested that the high-grade feeder zone may extend across the entire caldera for as much as a further 1 km along strike for a total potential strike length of at least 2 km. As reported, the definition drill program was modified to sectionally drill this potential extension with the intention of defining a major open pittable deposit in the valley of the caldera. As a result, the estimated completion date for the maiden National Instrument 43-101 mineral resource was pushed back to the end of Q1 2023.

The Company completed 84,495m of drilling in 122 holes from the definition drill program in the Santa Barbara target area, as previously announced on November 27, 2022.

On November 22, 2022, Eloro announced the acquisition of the Mina Casiterita and Mina Hoyada properties covering 14.75 km2 southwest and west of Iska Iska. These properties connect with the TUP-3 and TUP-6 claims previously staked by Eloro. Eloro has also staked additional land in the area. Following the acquisition, the total land package in the Iska Iska area to be controlled by Eloro will total 1,935 quadrants covering 483.75 km2.

Artisanal mining in the 1960’s identified high grade tin (Sn) veins on the Mina Casiterita property that are hosted in an intrusive dacite. Production from 1962 to 1964 is reported by the Departamento Nacional de Geología in Bolivia to be 69.85 tonnes grading 50.60% Sn.

Recently completed magnetic surveys by Eloro has outlined an extensive, near surface, magnetic intrusive body on the Mina Casiterita property immediately southwest of Iska Iska. This intrusive hosts the previously mined high-grade tin veins and is very likely the continuation of the porphyry tin intrusion projected to be below the epithermal Ag-Sn-Zn-Pb mineralization at Iska Iska.

The Porco adit from which previously reported channel sampling returned 103m grading 521 g Ag eq/t (including g 117g Ag/t, 1.44 g Au/t, 0.54% Cu and 0.66% Sn) in altered basement sediments, is located near the northeast part of the magnetic anomaly, attesting to the potential strength and high-grade nature of the mineralized system in the area.

Drilling is planned in the Porco area and on Mina Casiterita commencing in early February 2023 with geological mapping, sampling and geophysical surveys now in progress on the full land package across the Iska Iska region.

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 100% interest in the highly prospective Iska Iska Property, which can be classified as a polymetallic epithermal-porphyry complex, a significant mineral deposit type in the Potosi Department, in southern Bolivia. A recent NI 43-101 Technical Report on Iska Iska, which was completed by Micon International Limited, 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.

For further information please contact either Thomas G. Larsen, Chairman and CEO or Jorge Estepa, Vice-President 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 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 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 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.

Figures accompanying this announcement are available at:
https://www.globenewswire.com/NewsRoom/AttachmentNg/9ce30823-fe4c-4f72-a3d8-929e6570e0b3

https://www.globenewswire.com/NewsRoom/AttachmentNg/455df381-6439-40b5-bf6a-b9af4235468c

https://www.globenewswire.com/NewsRoom/AttachmentNg/3c1d7522-6763-472d-b75a-54cd9233254d

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Clean Air Metals: Royalty, Not Equity

One of the challenges in the junior resource exploration/development sector is attaching a credible net asset value to potential assets in the ground. A 43-101 resource estimate is helpful, so is a preliminary economic assessment; but neither really attaches a hard cash value to a company’s project.

Which is why Abraham Drost, CEO of Clean Air Metals (AIR.V) was delighted with the sale of a 2.5% net smelter returns mining royalty for all mineral products produced on the Thunder Bay North Critical Minerals (Platinum, Palladium, Copper, Nickel) Project in Northern Ontario, Canada.

“Triple Flag Precious Metals Corp. is paying us what will be 15 million dollars for a 2.5% net smelter return royalty on our Thunder Bay Critical Minerals Project,” said Drost. “These were orphaned assets which we paid 15 million dollars for 100% of title two years ago. We jumped in with both feet and we’ve put a further $30 million into the ground since then.”

“The value of the Current Deposit and Escape Deposit assets and the work done is not yet reflected in Clean Air’s share price,” said Drost. “However, the Triple Flag investment was into the asset not the equity. If we had gone the equity route to finance 15 million dollars we would have had to issue 60% of our float.”

Drost has lots to say about the flow through share, tax-driven, nature of junior resource financing in Canada. But his takeaway was, “Triple Flag are royalty investors that believe in the potential production value of the assets.”

“Now we are funded to delivery of a pre-feasibility study technical report and additional drilling. Our exploration work will be looking at six, ultra low resistivity, electromagnetic targets outside the known magma conduits. The lower the resistivity the higher the conductivity and that indicates metal.”

With what they have seen so far, Clean Air envisions two mines feeding a single mill. “But there maybe a third deposit, time will tell” said Drost.

Clean Air has attracted a good deal of industry attention. “We had seven parties in the data room,” said Drost. “The CEO of Triple Flag is an ex-colleague of our Chairman, Jim Gallagher and COO Mike Garbutt at Falconbridge and XStrata. Triple Flag has made its bet on the assets and the jockeys.”

In the news release, Gallagher states: “This sizeable, early-stage investment by Triple Flag made after a significant due diligence review demonstrates the inherent potential value of the Thunder Bay North Critical Minerals Project. We appreciate Triple Flag’s confidence in the Clean Air Metals team’s ability to engineer, permit and construct a mine at Thunder Bay North.”

The jockeys in Clean Air’s case bring a wealth of mining engineering and exploration experience to their orphaned deposits. Jim Gallagher has been a mining engineer and mine operator for 35 years. Most recently he “turned around” and sold North American Palladium. Abraham Drost is a professional geologist with a 35 year career leading junior exploration and development companies.

From the investor perspective, Clean Air trading at $0.12 is very much worth a look now that it is funded to the pre-feasibility stage. Triple Flag is not investing to lose money so, rather obviously, their due diligence suggested a highly economic potential producer. Critically, selling the royalty instrument means that Clean Air will not be returning to the capital markets to raise money any time soon.

The great enemy of the retail investor is the share dilution companies have to undertake to raise capital to advance their projects. Clean Air’s management is committed to avoiding that dilution which means there will not be more shares issued at knock down prices. As the Thunder Bay North project advances the markets will have the opportunity to re-rate Clean Air’s share price as it moves from exploration to development.

The overall junior resource market is battered. Market caps are in no way reflective of the underlying value of the assets a company controls or the work it has undertaken.

“Up until now we’ve been price takers,” said Drost. “Now we aren’t.”

It is a very good place to be.

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Clean Air Metals appoints BBA as Prime Engineering Consultant for Prefeasibility Study of the Thunder Bay North Critical Minerals Project and Provides Corporate Update

Clean Air Metals Inc. (“Clean Air Metals” or the “Company”) (TSXV: AIR) (OTCQB: CLRMF) (FRA: CKU) is pleased to announce that Sudbury and Montreal-based BBA E&C Inc. (“BBA”) has been selected as the prime engineering consultant to lead the execution of the remaining Pre-Feasibility Study (PFS) work packages on the Thunder Bay North Critical Minerals Project.

The work package will include the overall underground mine design, optimized life-of-mine planning, dilution estimation, mining selectivity and cut-off policy optimization, mining value chain optimization (“mine-to-mill”), estimation of proven and probable (2P) mineral reserves and reporting according to NI 43-101 requirements. In keeping with Clean Air Metals’ objective in seeking net-zero carbon neutrality at Thunder Bay North, BBA will conduct trade-off studies around conventional mine fleet, trolley-electric and battery-electric vehicles (BEV) as well as site infrastructure design, tailings management solutions and provide overall cost estimation.

DRA Americas continues with the metallurgical optimization work that was started in May 2022 (see press release dated May 26, 2022).  It is expected that the metallurgical test program will be completed in Q1 2023 with the mill flowsheet and plant design phase commencing immediately and continuing into Q2 2023. Completion of the entire Prefeasibility Study is expected in Q3 2023.

Mineral Resource Update

Clean Air Metals has engaged SLR Consulting to complete a validation of in-house resource estimates that were generated for the Current and Escape deposits within the Thunder Bay North Project (see press release dated August 2, 2022). The Corporation intends to use the validated mineral resource estimate will be used for the basis of a standalone technical report authored by SLR with a target release in Q1 2023. It is expected that the updated mineral resource estimate will be the foundation for the mine planning in the PFS technical report.

Carbon Capture and Carbon Sequestration

Carbon capture and carbon sequestration are becoming more relevant to all industries as society strives to a net zero impact to the environment. Carbon capture is the trapping of carbon emissions after they have been emitted but before they enter the atmosphere. Carbon sequestration is the storage of removed or captured carbon in various environmental reservoirs.

The carbon sequestration potential of ultramafic mine tailings has been recognized previously at multiple operations. Mining operations that produce ultramafic rock tailings have the potential advantage of sequestering CO2 into the waste material. Carbon sequestration into exposed tailings has a two-fold benefit; 1) reducing carbon foot print associated with the mining process through CO2 sequestration and 2) potential stabilization of tailings by the formation of secondary magnesium carbonate minerals that can act as a cement within the tailings after they are deposited.

Clean Air Metals has initiated a number of studies, including specialty testing at world-class research facilities, to better understand the carbon sequestration potential of the waste rock and mill processing tails at Thunder Bay North. A Master of Science research project at Lakehead University is looking at the effects of hydrothermal alteration on the mineralized ultramafic rocks and characterizing the magnesium alteration products to identify potential reactive mineral species. Results to date show that the ultramafic and mafic rock units and minerals at Thunder Bay North successfully capture and sequester CO2 gas from the atmosphere.

Abraham Drost, Chief Executive Officer of Clean Air Metals, commented: “planned 2023 project milestones include a mineral resource update in Q2 2023 and delivery of a prefeasibility study and 2P mineable reserves in Q3 2023. The Company has a long-term commitment to development of an environmentally sustainable mining operation at Thunder Bay North. It is well financed for the next chapter of that journey having recently closed the first tranche of a C$15 million mining royalty investment into the Thunder Bay North Platinum-Palladium-Copper-Nickel project by Triple Flag Precious Metals Corp.” (See press release dated December 19, 2022).

Social Engagement

Clean Air Metals Inc. and its wholly-owned subsidiary Panoramic PGMs (Canada) Ltd. acknowledge that the Thunder Bay North Critical Minerals Project is on the traditional territories of the Fort William First Nation, Red Rock Indian Band and Biinjitiwabik Zaaging Anishinabek. The parties together are the Cooperating Participants in a Memorandum of Agreement dated January 9, 2021 (press release January 11, 2021) and Exploration Agreement signed April 13, 2022 (press release April 14, 2022).

The Company appreciates the opportunity to work in these territories and remains committed to the recognition and respect of those who have lived, traveled, and gathered on the lands since time immemorial. Clean Air Metals is committed to stewarding Indigenous heritage and remains committed to building, fostering and encouraging a respectful relationship with First Nations and Métis peoples based upon principles of mutual trust, respect, reciprocity and collaboration in the spirit of reconciliation.

About Clean Air Metals Inc.

Clean Air Metals’ flagship asset is the 100% owned, high grade Thunder Bay North Project, a platinum, palladium, copper, nickel project located near the City of Thunder Bay, Ontario and the Lac des Iles Mine owned by Impala Platinum. The Thunder Bay North Project hosts the twin magma conduit bodies which host the Current and Escape deposits forming the basis for a robust preliminary economic assessment (PEA) filed January 12, 2022. The PEA of a ramp access underground mine and on-site 3600 tpd milling complex and the 2-year trailing average price deck delivers an NPV5 NAV of $425m in fully discounted cash flows, a pre-tax IRR of 31% and a post-tax IRR of 25% on initial capital of $367 million.

Executive Chair Jim Gallagher, P.Eng. and COO Mike Garbutt, P.Eng. lead an experienced technical team who are using the Norilsk magma conduit stratigraphic and mineral deposit model to guide ongoing exploration and development prefeasibility studies for a low-carbon, all-electric sustainable mining operation at Thunder Bay North. As the former CEO of North American Palladium Ltd. which owned the Lac des Iles Mine prior to the sale to Impala Platinum in December 2019, Jim Gallagher and team are credited with the mine turnaround and creation of significant value for shareholders.

Website: www.cleanairmetals.ca

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Cautionary Note Regarding Forward-Looking Information

The information contained herein contains “forward-looking statements” within the meaning of applicable securities legislation. Forward-looking statements relate to information that is based on assumptions of management, forecasts of future results, and estimates of amounts not yet determinable. Any statements that express predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance are not statements of historical fact and may be “forward-looking statements.” Forward-looking statements in this press release include statements related to timing and results of the technical studies including the delivery of a prefeasibility study and 2P mineable reserves in Q3 2023 which are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements, including, without limitation: risks related to the failure to obtain adequate financing on a timely basis and on acceptable terms; risks related to the outcome of legal proceedings; political and regulatory risks associated with mining and exploration; risks related to the maintenance of stock exchange listings; risks related to environmental regulation and liability; the potential for delays in exploration or development activities or the completion of feasibility studies; the uncertainty of profitability; risks and uncertainties relating to the interpretation of drill results, the geology, grade and continuity of mineral deposits; risks related to the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses; results of prefeasibility and feasibility studies, and the possibility that future exploration, development or mining results will not be consistent with the Company’s expectations; risks related to commodity price fluctuations; and other risks and uncertainties related to the Company’s prospects, properties and business detailed elsewhere in the Company’s disclosure record. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements. Investors are cautioned against attributing undue certainty to forward-looking statements. These forward-looking statements are made as of the date hereof and the Company does not assume any obligation to update or revise them to reflect new events or circumstances, except in accordance with applicable securities laws. Actual events or results could differ materially from the Company’s expectations or projections.

SOURCE Clean Air Metals Inc.

For further information: Abraham Drost, M.Sc. P.Geo., Chief Executive Officer, Clean Air Metals Inc., Phone: 807-252-7800, Email: adrost@cleanairmetals.ca

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Clean Air Metals Files Q3/22 Interim Financial Statements

Clean Air Metals Inc. (“Clean Air Metals” or the “Company“) (TSXV: AIR) (FRA: CKU) (OTCQB: CLRMF) announces that it has filed its unaudited consolidated interim financial statements and management’s discussion and analysis for the nine-month period ended October 31, 2022, available for viewing on www.sedar.com.

Financial Highlights
  • Total assets as at October 31, 2022 of $42,279,897
  • Total cash as at October 31, 2022 of $903,741
  • Working capital deficiency as at October 31, 2022 of $472,891
  • Shareholder’s equity as at October 31, 2022 of $40,281,883

During the three-month period ended October 31, 2022 as previously reported, the Company:

  • Completed a total of 11 holes on the Current Deposit for a cumulative total of 2,564m of drilling.
  • Continued prefeasibility studies and environmental baseline studies for the Thunder Bay North Critical Minerals Project under the supervision of Mr. Mike Garbutt, P.Eng. MBA, Chief Operating Officer and Mr. Kris Tuuttila, Director of Permitting, Sustainability and Community Relations.
  • Appointed SLR Consulting Limited (“SLR”) to provide external validation of an internal mineral resource update of the Escape Deposit, including the addition of 55,651m of previously reported 2021/22 drilling results.

Financial Summary

For the three months ended

For the nine months ended

October 31,

2022

October 31,

2021

October 31,

2022

October 31,

2021

Operating Expenses

$     1,244,247

$     1,056,915

$       3,352,677

$       3,045,788

Net Loss and Comprehensive Loss

(1,149,336)

(43,617)

(2,456,850)

(885,959)

Loss per share –

Basic and Diluted

$            (0.01)

$            (0.00)

$             (0.01)

$              (0.01)

October 31,

2022

January 31,

2022

Total Assets

$   42,279,897

$      35,059,465

Total Liabilities

1,988,014

4,027,436

Total Shareholders’ Equity

$   40,281,883

$      31,032,029

Full details of the financial reports and operating results for the nine-month period ended October 31, 2022 are described in the Company’s unaudited consolidated interim financial statements with accompanying notes and related Management’s Discussion and Analysis, available on SEDAR at www.sedar.com.

Qualified Person

Dr. Geoff Heggie, Ph.D., P.Geo., a Qualified Person under National Instrument 43-101 and Vice President – Exploration for the Company, has reviewed and approved all technical information in this press release.

Social Engagement

Clean Air Metals Inc. and its wholly-owned subsidiary Panoramic PGMs (Canada) Ltd. acknowledge that the Thunder Bay North Critical Minerals Project is on the traditional territories of the Fort William First Nation, Red Rock Indian Band and Biinjitiwabik Zaaging Anishinabek. The parties together are the Cooperating Participants in a Memorandum of Agreement dated January 9, 2021 (press release January 11, 2021) and Exploration Agreement signed April 13, 2022 (press release April 14, 2022).

The Company appreciates the opportunity to work in these territories and remains committed to the recognition and respect of those who have lived, traveled, and gathered on the lands since time immemorial. Clean Air Metals is committed to stewarding Indigenous heritage and remains committed to building, fostering and encouraging a respectful relationship with First Nations and Métis peoples based upon principles of mutual trust, respect, reciprocity and collaboration in the spirit of reconciliation.

About Clean Air Metals Inc.

Clean Air Metals’ flagship asset is the 100% owned, high grade Thunder Bay North Project, a platinum, palladium, copper, nickel project located near the City of Thunder Bay, Ontario and the Lac des Iles Mine owned by Impala Platinum. The Thunder Bay North Project hosts the twin magma conduit bodies which host the Current and Escape deposits forming the basis for a robust preliminary economic assessment PEA) filed January 12, 2022.  The PEA of a ramp access underground mine and on-site 3600tpd milling complex and the 2-year trailing average price deck, features a pretax NPV5 of C$425m and an IRR of 31% on initial capital of $378m over a 10-year mine life.

Executive Chair Jim Gallagher and CEO Abraham Drost lead an experienced technical team who are using the Norilsk magma conduit stratigraphic and mineral deposit model to guide ongoing exploration and development and prefeasibility technical studies for a low-carbon, all-electric sustainable mining operation at Thunder Bay North. As the former CEO of North American Palladium Ltd. which owned the Lac des Iles Mine prior to the sale to Impala Platinum in December 2019, Jim Gallagher and team are credited with the mine turnaround and creation of significant value for shareholders.

ON BEHALF OF THE BOARD OF DIRECTORS

Abraham Drost

Abraham Drost, Chief Executive Officer of Clean Air Metals Inc.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Cautionary Note

The information contained herein contains “forward-looking statements” within the meaning of applicable securities legislation. Forward-looking statements relate to information that is based on assumptions of management, forecasts of future results, and estimates of amounts not yet determinable. Any statements that express predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance are not statements of historical fact and may be “forward-looking statements.” Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements, including, without limitation: political and regulatory risks associated with mining and exploration; risks related to the maintenance of stock exchange listings; risks related to environmental regulation and liability; the potential for delays in exploration or development activities or the completion of feasibility studies; the uncertainty of profitability; risks and uncertainties relating to the interpretation of drill results, the geology, grade and continuity of mineral deposits; risks related to the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses; results of prefeasibility and feasibility studies, and the possibility that future exploration, development or mining results will not be consistent with the Company’s expectations; risks related to commodity price fluctuations; and other risks and uncertainties related to the Company’s prospects, properties and business detailed elsewhere in the Company’s disclosure record. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements. Investors are cautioned against attributing undue certainty to forward-looking statements. These forward-looking statements are made as of the date hereof and the Company does not assume any obligation to update or revise them to reflect new events or circumstances, except in accordance with applicable securities laws. Actual events or results could differ materially from the Company’s expectations or projections.

SOURCE Clean Air Metals Inc.

For further information: Abraham Drost, Chief Executive Officer of Clean Air Metals Inc., Phone: 807-252-7800, Email: adrost@cleanairmetals.ca, Website: www.cleanairmetals.ca

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CLEAN AIR METALS CLOSES FIRST TRANCHE OF C$15 MILLION ROYALTY FINANCING AGREEMENT ON THUNDER BAY NORTH CRITICAL MINERALS PROJECT WITH TRIPLE FLAG PRECIOUS METALS CORP.

 Clean Air Metals Inc. (“Clean Air Metals”) (the “Company”) (TSXV: AIR) (OTCQB: CLRMF) (CKU: DB) has closed the first tranche in the amount of C$10 million of a C$15-million mineral royalty financing agreement (the “TF Royalty Agreement”) effective December 16, 2022 (the “Effective Date”) with Triple Flag Precious Metals Corp. (“Triple Flag”).  The TF Royalty Agreement features a 2.5% net smelter returns (“NSR”) mining royalty for all mineral product produced on the Thunder Bay North Critical Minerals (Platinum, Palladium, Copper, Nickel) Project in Northern Ontario, Canada, temporarily excepting the Escape claims.

The second tranche, consisting of C$5 million, will be paid on or before 110 days from the Effective Date of the TF Royalty Agreement, allowing time for due diligence and a decision by Rio Tinto Exploration Canada Inc. (“RTEC”) on whether or not to sell its 1% NSR royalty on the Escape claims to Clean Air Metals for C$2 million, subject to certain conditions (“Put Option No. 1”). RTEC also has an alternative option to sell its 1% NSR to Clean Air Metals for C$3.5 million at a future date (“Put Option No. 2”) or may elect not to sell its 1% NSR at all. Put Option No. 2 is valid for the period from June 30, 2024 until 60 days after filing of a “Feasibility Study” (as such term is defined in National Instrument 43-101 – Standards of Disclosure for Mineral Projects) on SEDAR. The Tranche 1 and Tranche 2 payment areas are shown in the accompanying map link Figure 1 Triple Flag Royalty Map.

Benton Resources Inc. has also provided its consent for the application of the TF Royalty Agreement to the former Thunder Bay North claims previously held by Panoramic Resources Inc. and ultimately to the Escape claims formerly held by Benton Resources under option with RTEC. At either the expiry or closing of Put Option No. 1 or the election of RTEC to move to Put Option No. 2 or not to sell its 1% NSR at all, Clean Air Metals and Triple Flag will close the second tranche and the TF Royalty Agreement shall also apply to the Escape claims and be posted on title of the Escape claims.

Use of Proceeds

Proceeds of the royalty financing will be used: (i) to finance the last instalment payment of C$1.5 million cash to Panoramic Resources Inc. as the final vesting condition of the option agreement with Benton Resources Inc. (reported May 15, 2020). On payment, Clean Air Metals will have fully earned a 100% interest in the Thunder Bay North Project and the Escape Project, now collectively called the Thunder Bay North Critical Minerals Project; (ii) to complete the Prefeasibility Study for the Project pursuant to National Instrument 43-101 under supervision of Chief Operating Officer Mike Garbutt, P.Eng.; (iii) to advance environmental and regulatory permitting activities; (iv) to advance further exploration activities, and (v) for general corporate and working capital purposes.

Royalty Buydown

The TF Royalty Agreement entitles Triple Flag, through its subsidiary TF R&S Canada Ltd., a 2.5% NSR royalty paid using the net smelter returns, as defined in the TF Royalty Agreement, received by Clean Air Metals from the sale of all mineral products for the life of the collective Thunder Bay North Project and within an agreed area of interest (the “Area of Interest”). Clean Air Metals has also been granted the right by Triple Flag to buy down up to 40% of the NSR royalty and to reduce the NSR percentage to 1.5% on at any time on or before three years following the Effective Date of the TF Royalty Agreement, for C$10.5-million, assuming the closing of both Tranche 1 and Tranche 2 payments.

Jim Gallagher, P.Eng., Executive Chair of Clean Air Metals, commented: “This sizeable, early-stage investment by Triple Flag made after a significant due diligence review demonstrates the inherent potential value of the Thunder Bay North Critical Minerals Project. We appreciate Triple Flag’s confidence in the Clean Air Metals team’s ability to engineer, permit and construct a mine at Thunder Bay North.”

Abraham Drost, Chief Executive Officer of Clean Air Metals, commented: “The exploration upside at this Mid-Continent Rift related mineral system being developed at Thunder Bay North is considerable. We look forward to continuing the search for the source of high value massive sulphide deposits in feeder zone structures, for the benefit of our Indigenous partners and other stakeholders, Clean Air Metals shareholders and our new finance partner Triple Flag Precious Metals Corp.”

Right of First Refusal on Project Finance

Clean Air Metals has also granted Triple Flag a right of first refusal to match any bona fide written offer that it is willing to accept from any person dealing at arm’s length with Clean Air Metals or any of its affiliates to enter into a stream, royalty or similar financing arrangement in or with reference to mineral products extracted from ore which originates within the Thunder Bay North Project and the Area of Interest.

About Clean Air Metals Inc.

Clean Air Metals’ flagship asset is the 100% owned, high grade Thunder Bay North Project, a platinum, palladium, copper, nickel project located near the City of Thunder Bay, Ontario and the Lac des Iles Mine owned by Impala Platinum. The Thunder Bay North Project hosts the twin magma conduit bodies which host the Current and Escape deposits forming the basis for a robust preliminary economic assessment (PEA) filed January 12, 2022. The PEA of a ramp access underground mine and on-site 3600tpd milling complex and the 2-year trailing average price deck, features a pre-tax NPV5 of C$425m and an IRR of 31% on initial capital of $367m over a 10-year mine life.

Executive Chair Jim Gallagher, P.Eng. and COO Mike Garbutt, P.Eng. lead an experienced technical team who are using the Norilsk magma conduit stratigraphic and mineral deposit model to guide ongoing exploration and development prefeasibility studies for a low-carbon, all-electric sustainable mining operation at Thunder Bay North. As the former CEO of North American Palladium Ltd. which owned the Lac des Iles Mine prior to the sale to Impala Platinum in December 2019, Jim Gallagher and team are credited with the mine turnaround and creation of significant value for shareholders.

About Triple Flag Precious Metals Corp.

Triple Flag is a pure play, gold-focused, emerging senior streaming and royalty company. Triple Flag offers bespoke financing solutions to the metals and mining industry with exposure primarily to gold and silver in the Americas and Australia, with a total of 80 assets, including 9 streams and 71 royalties. These investments are tied to mining assets at various stages of the mine life cycle, including 15 producing mines and 65 development and exploration stage projects. Triple Flag is listed on the TSX and the NYSE under the ticker “TFPM”.

Website: www.cleanairmetals.ca

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Cautionary Note Regarding Forward-Looking Information

The information contained herein contains “forward-looking statements” within the meaning of applicable securities legislation. Forward-looking statements relate to information that is based on assumptions of management, forecasts of future results, and estimates of amounts not yet determinable. Any statements that express predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance are not statements of historical fact and may be “forward-looking statements.” Forward-looking statements in this press release include statements related to the closing of the second tranche of the royalty financing and the use of proceeds of the royalty financing are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements, including, without limitation: risks related to the failure to obtain adequate financing on a timely basis and on acceptable terms; risks related to the outcome of legal proceedings; political and regulatory risks associated with mining and exploration; risks related to the maintenance of stock exchange listings; risks related to environmental regulation and liability; the potential for delays in exploration or development activities or the completion of feasibility studies; the uncertainty of profitability; risks and uncertainties relating to the interpretation of drill results, the geology, grade and continuity of mineral deposits; risks related to the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses; results of prefeasibility and feasibility studies, and the possibility that future exploration, development or mining results will not be consistent with the Company’s expectations; risks related to commodity price fluctuations; and other risks and uncertainties related to the Company’s prospects, properties and business detailed elsewhere in the Company’s disclosure record. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements. Investors are cautioned against attributing undue certainty to forward-looking statements. These forward-looking statements are made as of the date hereof and the Company does not assume any obligation to update or revise them to reflect new events or circumstances, except in accordance with applicable securities laws. Actual events or results could differ materially from the Company’s expectations or projections.

SOURCE Clean Air Metals Inc.

For further information: Please contact: Abraham Drost, M.Sc. P.Geo., Chief Executive Officer, Clean Air Metals Inc., Phone: 807-252-7800, Email: adrost@cleanairmetals.ca

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Eloro Resources Intersects Multiple Intersections including 108.16 g Ag eq/t (11.63 g Ag/t, 1.53% Zn and 0.36% Pb) over 111.26m in High-Grade Feeder Zone in Santa Barbara Target Area at the Iska Iska Silver-Tin Polymetallic Project, Potosi Department, Bolivia

Eloro Resources Ltd. (TSX-V: ELO; OTCQX: ELRRF; FSE: P2QM) (“Eloro”, or the “Company”) is pleased to announce assay results from two (2) additional diamond drill holes from its on-going drilling program at the Iska Iska silver-tin polymetallic project in the Potosi Department, southern Bolivia. One drill hole, DSB-36, collared 400m southeast of the Santa Barbara adit, tested the extension of the core of the high-grade feeder zone at Santa Barbara while hole DSB-34, tested the potential southwest limits of the high-grade feeder zone as shown in Figure 1.

To-date, the Company has completed 79,258m in 118 drill holes to-date at Iska Iska, including four holes in progress, as shown in Figure 1. Table 1 lists significant assay results for the drill holes reported. Prices used for calculating Ag equivalent grades are as outlined in Eloro’s July 21, 2022 press release. Table 2 summarizes drill holes completed with assays pending and holes in progress.

Tom Larsen, CEO of Eloro, said: “Results from hole DSB-36 continue to confirm that the high-grade feeder zone extends much further south-southeast across the valley of the Iska Iska caldera as interpreted from our geophysical surveys. This new hole has extended the strike length a further 400m to the south-southeast where it remains open along strike. We are continuing to aggressively drill this important target which has the potential to outline a significant open pittable resource.”

Dr. Bill Pearson, P.Geo. Eloro’s Executive Vice President, Exploration commented: “We are continuing to carry out our 100m-spaced sectional drilling across the Iska Iska caldera valley. As shown in Figure 2, we have four holes in progress with four additional holes planned that collectively total 6,000m to complete our first-pass definition drill program. We expect that this drilling will be completed by the mid- to latter part of November. Currently, assays are outstanding for approximately 14,213m of drill core as shown in Table 2. Turnaround from our assay laboratories has however improved in recent weeks so we expect most of this backlog to be cleared up by the end of November. We are working closely with Micon International to build a robust model for the mineral resource estimation. GeologicAI is also completing development of comprehensive mineral maps calibrated by our new mineralogical data which will greatly aid the modelling process.”

Santa Barbara High Grade Feeder Zone Extension Definition Drilling

Hole DSB-36 was drilled to test the potential south-southeastern extension of the Santa Barbara High Grade Feeder Zone shown in Figure 1. This hole was collared approximately 400m south-southeast of the underground drill bay in the Santa Barbara adit and was drilled at an azimuth of 225° with a dip of -60°. This hole intersected many significant intersections including:

  • 108.16 g Ag eq/t (11.63 g Ag/t, 1.53% Zn and 0.36% Pb) over 111.26m from 326.22 to 437.48m with higher-grade portions of:
    • 180.29 g Ag eq/t (24.27 g Ag/t, 2.49% Zn and 0.73% Pb) over 24.13m.
    • 197.54 g Ag eq/t (17.04 g Ag/t, 2.96% Zn and 0.58% Pb) over 11.82m.
    • 211.34 g Ag eq/t (30.50 g Ag/t, 2.87% Zn and 0.76% Pb) over 6.02m.
  • 101.31 g Ag eq/t (28.14 g Ag/t, 0.19% Zn, 0.55% Pb and 0.26% Cu) over 77.82m from 3.70m to 81.52m.
  • 101.47 g Ag eq/t (23.88 g Ag/t, 1.08% Zn and 0.56% Pb) over 55.54m from 207.34 to 262.88m.
  • 205.75 g Ag eq/t (20.69 g Ag/t, 0.15 g Au/t, 0.68% Zn and 0.75% Pb) over 22.75m from 619.88m to 642.63m.
  • 136.82 g Ag eq/t (3.33 g Ag/t, 0.09 gAu/t, 1.72% Zn, 0.31% Pb and 0.07% Sn) over 78.39m from 776.87m to 855.26m including:
    • 478.26 g Ag eq/t (12.60 g Ag/t, 0.27 gAu/t, 5.61% Zn, 0.91% Pb and 0.28% Sn over 10.53m from 805.52m to 816.05m.
  • 203.26 g Ag eq/t (1.73 g Ag/t, 0.75% Zn and 0.42% Sn) over 12.22m from 897.58m to 909.80m.
  • The last sample in this 935.4m long hole returned 549.91g Ag eq/t (46.00 g Ag/t, 3.33% Zn, 2.27% Pb and 0.68% Sn) over 1.51m from 933.89m to 935.40m.
  • 52% of this hole contained reportable intersections which collectively averaged 112.48 g Ag eq/t

Hole DSB-34 was drilled at an azimuth of 225° with a dip of -60° and was collared approximately 200m due south of the Santa Barbara adit to test the potential southwest limit of the high-grade feeder zone (Figure 1). This hole intersected several wide lower grade intersections in the upper part of the hole which are notable for their silver content in the absence of appreciable base metals. In the lower part of the hole, base metals are again present including tin and copper. Significant results are as follows:

  • 51.52 g Ag eq/t (21.00 g Ag/t and 0.07% Sn) over 37.14m from 14.40m to 51.54m.
  • 52.95 g Ag eq/t (19.14 g Ag/t and 0.2% Zn) over 55.41m from 242.84 to 298.25m including a higher-grade section grading:
    • 109.29 g Ag eq/t (61.42 g Ag/t, 0.18% Zn and 0.11% Cu) over 5.98m from 258.37m to 264.35m
  • 65.49 g Ag eq/t (9.93 g Ag/t, 0.53% Zn and 0.14% Pb) over 24.17m from 372.95 to 397.12m including a higher-grade section grading:
    • 153.09 g Ag eq/t (20.27 g Ag/t, 1.53% Zn, 0.34% Pb and 0.11% Sn) over 4.58m from 392.54m to 397.12m
  • 197.66 g Ag eq/t (71.64 g Ag/t, 0.25 g Au/t, 0.09% Zn, 0.11% Pb, 0.14% Cu and 0.20% Sn) over 13.35m from 506.87 to 520.22m.

Figure 1 – Geological Plan Map showing Drilling in Santa Barbara Area with Holes referred to in this release highlighted.
https://www.globenewswire.com/NewsRoom/AttachmentNg/b0a8faf8-2143-4455-b357-21e0a30ca404

Figure 2 – Plan map showing Completed and Planned Drill Holes to test the South-southeastern Extension of the High-Grade Feeder Zone at Santa Barbara. The surface projection of the High Conductivity Zone (from 200m below surface) and the 3D Magnetic Susceptibility Anomaly (from 500m below surface) are also shown for reference. For further discussion on our geophysical surveys, please refer to our press release of September 20, 2022.
https://www.globenewswire.com/NewsRoom/AttachmentNg/f051fbfe-3deb-485f-b3fd-148637469b95

Table 1: Significant Results, Surface Diamond Drilling, Santa Barbara Resource Definition High Grade Feeder Zone Extension as at October 18, 2022.

SANTA BARBARA RESOURCE DEFINITION – HIGH GRADE FEEDER ZONE EXTENSION
SURFACE DIAMOND DRILLING
Hole No.From (m)To (m)Length (m)AgAuZnPbCuSnBiCdAg eq
g/tg/t%%%%%%g/t
DSB-363.7081.5277.8228.140.010.190.550.260.040.0020.001101.31
99.92118.1718.252.940.011.060.120.010.010.0010.00465.25
133.32175.9142.594.290.020.920.180.010.010.0010.00361.35
207.34262.8855.5423.880.011.080.560.010.010.0010.004101.47
270.40290.0519.654.800.020.680.160.010.010.0080.00350.91
303.58305.151.579.000.011.570.320.010.010.0010.006101.25
309.69311.161.479.000.011.810.350.010.010.0010.007114.86
314.20315.681.483.000.021.480.150.010.010.0010.00687.80
326.22437.48111.2611.630.011.530.360.010.020.0010.006108.16
Incl.341.27365.4024.1324.270.012.490.730.010.020.0010.010180.29
Incl.385.05396.8711.8217.040.022.960.580.010.030.0010.014197.54
Incl.414.88420.906.0230.500.012.870.760.010.030.0020.015211.34
469.38476.907.5234.260.011.881.030.010.020.0010.010169.51
520.60528.107.507.410.481.300.360.040.020.0020.004138.34
555.16559.674.517.980.071.230.390.010.020.0010.00597.30
619.88642.6322.7520.690.150.680.750.020.280.0230.003205.75
666.62675.769.147.290.200.810.440.030.020.0010.00390.78
707.48708.971.495.000.152.700.300.030.020.0010.010173.01
721.14725.694.553.980.091.680.130.010.020.0010.007108.37
736.45737.961.518.000.413.790.300.010.010.0080.014250.18
766.36767.791.431.000.010.870.100.010.000.0010.00350.04
776.87855.2678.393.330.091.720.310.010.070.0160.007136.82
Incl.805.52816.0510.5312.600.275.610.960.010.280.1060.024478.26
876.41877.901.4917.000.010.430.430.010.010.0010.00155.23
897.58909.8012.221.730.010.780.010.000.420.0010.002203.26
933.89935.401.5146.000.043.332.270.010.680.0010.015549.91
DSB-3414.4051.5437.1421.000.030.000.030.000.070.0020.00151.52
71.0472.561.524.800.010.010.090.070.130.0010.00168.23
75.5196.6021.095.670.020.510.280.030.040.0010.00359.09
114.80116.231.4331.900.010.323.010.000.070.0010.001172.01
180.90182.371.471.800.010.070.020.020.120.0010.00157.17
242.84298.2555.4119.140.020.200.020.060.030.0080.00152.95
Incl.258.37264.355.9861.420.030.180.020.110.050.0140.001109.29
307.32312.405.082.140.010.710.070.010.020.0020.00250.50
372.95397.1224.179.930.020.530.140.010.050.0040.00265.49
Incl.392.54397.124.5820.270.021.530.340.010.110.0020.006153.09
425.90427.401.508.400.050.260.050.030.050.0010.00150.35
462.06465.143.0824.200.060.170.030.000.050.0100.00161.39
469.67472.602.9323.150.040.030.060.020.040.0030.00149.32
506.87520.2213.3571.640.250.090.110.140.200.0180.001197.66
652.67658.425.752.870.110.690.010.020.020.0040.00159.71
661.42662.881.464.200.010.120.170.020.110.0010.00158.73
680.63682.171.544.700.210.080.060.010.020.5750.001160.73
718.13736.5318.400.300.011.100.010.010.010.0010.00159.67
825.57837.6512.085.580.060.010.010.130.070.0770.00170.86


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 down hole interval length but this will be confirmed by further drilling and geological modelling.

Chemical symbols: Ag= silver, Au = gold, Zn = zinc, Pb = lead, Cu = copper, Sn = tin, Bi = bismuth, Cd = cadmium and g Ag eq/t = grams silver equivalent per tonne. Quantities are given in percent (%) for Zn, Pb Cu, Sn, Bi and Cd and in grams per tonne (g/t) for Ag, Au and Ag eq.

Metal prices and conversion factors used for calculation of g Ag eq/t (grams Ag per grams x metal ratio) are as follows: (Prices updated as of July 21, 2022, to more accurately reflect current metal prices):

ElementPrice $US (per kg)Ratio to Ag
Ag$607.001.0000
Sn$23.550.0589
Zn$2.980.0046
Pb$1.920.0032
Au$54,932.8079.7221
Cu$7.000.0134
Bi$12.760.0177
Cd$5.500.0076

In calculating the intersections reported in this press release 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.

The equivalent grade calculations are based on the stated metal prices and are provided for comparative purposes only, due to the polymetallic nature of the deposit. Metallurgical tests are in progress by Blue Coast Ltd. to establish levels of recovery for each element reported but currently the potential recovery for each element has not yet been established. While there is no assurance that all or any of the reported concentrations of metals will be recoverable, Bolivia has a long history of successfully mining and processing similar polymetallic deposits which is well documented in the landmark volume “Yacimientos Metaliferos de Bolivia” by Dr. Osvaldo R. Arce Burgoa, P.Geo.

Table 2: Summary of Diamond Drill Holes Completed with Assays Pending and Drill Holes in Progress at Iska Iska from October 18, 2022 press release.

SUMMARY DIAMOND DRILLING ISKA ISKA
Hole No.TypeCollar
Easting
Collar
Northing
ElevAzimuthAngleHole
Length (m)
Surface Drilling Santa Barbara Resource Definition South-Southeast Extension
DSB-35S205,0157,656,1804,359225°-60°1,061.4
DSB-37S205,5907,655,8964,087225°-60°917.4
DSB-38S205,8207,655,9794,035225°-60°851.5
DSB-39S205,6817,655,8434,063225°-60°857.4
DSB-40S205,5427,655,6964,091225°-60°1,052.4
DSB-41S205,6517,656,2564,126225°-60°842.4
DSB-42S205,5777,656,3164,156225°-65°845.4
DSB-43S205,1537,656,0414,304225°-55°833.1
DSB-44S205,6117,655,6254,076225°-60°964.1
Subtotal8,225.1
DSB-45S205,2637,656,4264,240225°-60°In progress
DSB-46S205,6827,655,5544,061225°-60°In progress
DSB-47S205,3707,656,1084,227225°-60°In progress
DSB-48S205,7527,655,4834,054225°-60°In progress
Surface Drilling Santa Barbara Resource Definition Northeast Extension
DHK-26S205,7037,656,4554,177225°-65°929.4
DHK-27S205,5287,656,2264,154270°-45°860.0
DHK-28S205,5997,656,4774,152225°-65°968.0
DHK-29S205,4877,656,4884,158225°-70°827.6
DHK-30S205,4957,656,6534,110225°-60°815.4
Subtotal4,400.4
Santa Barbara Underground Metallurgical Hole
METSBUG-03UG205,2817,656,0764,168270°-35°707.8
Subtotal707.8
Mina 2 Target Area – Surface Drill Program Testing Magnetic Inverse Model
DM2-01S2,059,43076,542,15936,63630°-60°860.3
Subtotal860.3
TOTAL14,193.6

S = Surface UG=Underground; collar coordinates in metres; azimuth and dip in degrees. Total drilling completed since the start of the program on September 20, 2020 is 79,473.6m in 118 drill holes (32 underground drill holes and 86 surface drill holes) including 4 holes in progress.

Qualified Person

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, and 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 regularly 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. Eloro 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 prepared 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. Turnaround time continues to improve, as laboratories return to more normal staffing levels.

About Iska Iska

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 in southern Bolivia. Eloro has an option to earn a 99% interest in Iska Iska.

Iska Iska is a major silver-tin polymetallic porphyry-epithermal complex associated with a Miocene possibly collapsed/resurgent caldera, emplaced on Ordovician 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 mineralization 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 SBBP approximately 150m southwest of the Huayra Kasa underground workings.

Subsequently, on January 26, 2021, Eloro announced significant results from the first drilling at the SBBP including the discovery hole DHK-15 which returned 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 and 0.0064% Bi from 0.0m to 257.5m. Subsequent drilling has confirmed significant values of Ag-Sn polymetallic mineralization in the SBBP and the adjacent CBP. A substantive mineralized envelope which is open along strike and down-dip extends around both major breccia pipes. Continuous channel sampling of the Santa Barbara Adit located to the east of SBBP returned 442 g Ag eq/t (164.96 g Ag/t, 0.46%Sn, 3.46% Pb and 0.14% Cu) over 166m including 1,092 g Ag eq/t (446 g Ag/t, 9.03% Pb and 1.16% Sn) over 56.19m. The west end of the adit intersects the end of the SBBP.

Since the initial discovery hole, Eloro has released a number of significant drill results in the SBBP and the surrounding mineralized envelope which along with geophysical data has defined an extensive target zone. In its September 20, 2022 press release, the Company reported that new downhole geophysical data has significantly extended the strike length of the high-grade feeder zone at Santa Barbara a further 250m along strike to the south-southeast from existing drilling. The 3D inverse magnetic model which correlates very strongly with the conductive zone suggests that the high-grade feeder zone may extend across the entire caldera for as much as a further 1 km along strike for a total potential strike length of at least 2 km. As reported, the definition drill program has been modified to sectionally drill this potential extension with the intention of defining a major open pittable deposit in the valley of the caldera. As a result, the estimated completion date for the maiden National Instrument 43-101 mineral resource has been pushed back to the end of Q1 2023.

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 classified as a polymetallic epithermal-porphyry complex, a significant mineral deposit type in the Potosi Department, in southern Bolivia. A recent NI 43-101 Technical Report on Iska Iska, which was completed by Micon International Limited, 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.

For further information please contact either Thomas G. Larsen, Chairman and CEO or Jorge Estepa, Vice-President 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 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 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 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

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Eloro Resources Amends Payment Schedule for Iska Iska Silver-Tin Polymetallic Project, Potosi Department, Bolivia

Eloro Resources Ltd. (TSX-V: ELO; OTCQX: ELRRF; FSE: P2QM) (“Eloro”, or the “Company”) is pleased to announce that, by mutual agreement with Empresa Minera Villegas S.R.L. (“Minera Villegas”), the title holder of the Iska Iska silver-tin polymetallic project in the Potosi Department, southern Bolivia (“Iska Iska”), the payment schedule in connection with the US$10 million payment required for Eloro to earn a 99% interest in Iska Iska has been amended.

Pursuant to the private option agreement to acquire Iska Iska (see Eloro’s press release dated January 9, 2020), Eloro’s Bolivian subsidiary, Minera Tupiza S.R.L. (“Minera Tupiza”) has made advance payments of US$3.4 million to date towards the US$10 million option payment. As per mutual agreement the schedule for the remaining option payments has been amended whereby Eloro, through Minera Tupiza, has agreed to pay Minera Villegas US$1 million on or before October 31, 2022, with the remaining US$5.6 million due on or before July 6, 2024.

Tom Larsen, CEO of Eloro, commented: “As a result of our continuing exploration success which has extended the potential high-grade zone at Iska Iska to as much as 2km along strike (see Eloro’s press release dated September 20, 2022) and the deferral of our inaugural Mineral Resource Estimate to Q1 2023, to allow time for further exploration drilling, both parties felt it prudent to extend the contract date an extra six months.  This extension also provides additional time to receive drilling assay results which have been delayed over the past two years due to Covid-related circumstances.”

About Iska Iska

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 in southern Bolivia. Eloro has an option to earn a 99% interest in Iska Iska.

Iska Iska is a major silver-tin polymetallic porphyry-epithermal complex associated with a Miocene possibly collapsed/resurgent caldera, emplaced on Ordovician 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 mineralization 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 SBBP approximately 150m southwest of the Huayra Kasa underground workings.

Subsequently, on January 26, 2021, Eloro announced significant results from the first drilling at the SBBP including the discovery hole DHK-15 which returned 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 and 0.0064% Bi from 0.0m to 257.5m. Subsequent drilling has confirmed significant values of Ag-Sn polymetallic mineralization in the SBBP and the adjacent CBP. A substantive mineralized envelope which is open along strike and down-dip extends around both major breccia pipes. Continuous channel sampling of the Santa Barbara Adit located to the east of SBBP returned 442 g Ag eq/t (164.96 g Ag/t, 0.46%Sn, 3.46% Pb and 0.14% Cu) over 166m including 1,092 g Ag eq/t (446 g Ag/t, 9.03% Pb and 1.16% Sn) over 56.19m. The west end of the adit intersects the end of the SBBP.

Since the initial discovery hole, Eloro has released a number of significant drill results in the SBBP and the surrounding mineralized envelope which along with geophysical data has defined a target zone 1400m along strike, 500m wide and that extends to a depth of 600m. This zone is open along strike to the northwest and southeast as well as to the southwest. The Company’s nearer term objective is to outline a maiden NI 43-101 compliant mineral resource within this large target area. As outlined in this press release as a result of continuing discoveries from recent drilling that have substantially extended the high-grade feeder zone at Santa Barbara, the Company has pushed back the inaugural mineral resource to the end of Q1 2023.

Qualified Person

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, and 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 regularly 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. Eloro 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 prepared 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. Turnaround time continues to improve, as laboratories return to more normal staffing levels.

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 classified as a polymetallic epithermal-porphyry complex, a significant mineral deposit type in the Potosi Department, in southern Bolivia. A recent NI 43-101 Technical Report on Iska Iska, which was completed by Micon International Limited, 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 mining 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.

For further information please contact either Thomas G. Larsen, Chairman and CEO or Jorge Estepa, Vice-President 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 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 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 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.

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Eloro Resources Intersects 150.47 g Ag eq/t (9.45 g Ag/t, 1.53% Zn, 0.88% Pb and 0.07% Sn) over 441.21m in High-Grade Feeder Zone in Santa Barbara Target Area at the Iska Iska Silver-Tin Polymetallic Project, Potosi Department, Bolivia

  • This intersection in hole DSB-30 includes a higher-grade portion grading 209.30 g Ag eq/t (10.06 g Ag/t, 2.76% Zn, 0.98% Pb and 0.07% Sn) over 102.30m. This hole has the longest continuously mineralized intersection obtained in drilling thus far.
  • Hole DSB-32, drilled on-section to the southeast with hole DSB-30 intersected 185.94 g Ag eq/t (44.55 g Ag/t, 0.57% Pb, 0.14% Cu and 0.25% Sn) over 135.15m including a higher-grade section of 277.34 g Ag eq/t (78.12 g Ag/t, 0.09 g Au/t, 1.01% Pb, 0.27% Cu and 0.33% Sn) over 66.04m.
  • Hole DSB-29 returned 108.31 g Ag eq/t (14.31 g Ag/t, 0.81% Zn and 0.40% Pb) over 110.40m and hole DSB-28 returned 98.98 g Ag eq/t (4.41 g Ag/t, 1.16% Zn and 0.49% Pb) over 96.51m; all holes testing the high-grade feeder zone.
  • Final underground hole DSBU-11 from the Santa Barbara adit intersected 96.24 g Ag eq/t (14.93 g Ag/t, 0.44% Zn and 0.68% Pb) over 128.33m and 85.85 g Ag eq/t (15.76 g Ag/t, 0.55% Zn, 0.13% Pb and 0.08%Sn) over 174.76m. Hole DSBU-09 intersected 136.48 g Ag eq/t (7.20 g Ag/t, 0.14 g Au/t, 2.47% Zn and 0.63% Pb) over 72.33m and 138.75 g Ag eq/t (13.05 g Ag/t, 0.11 g Au/t, 1.66% Zn and 0.42% Pb) over 72.20m.
  • New downhole geophysical data have significantly extended the strike length of the high-grade feeder zone at Santa Barbara a further 250m along strike to the south-southeast from existing drilling.
  • The 3D inverse magnetic model which correlates very strongly with the conductive zone suggests that the high-grade feeder zone may extend across the entire caldera for as much as a further 1 km along strike for a total potential strike length of at least 2 km. Drilling in the Porco area intersected significant values over short intervals on the edge of this conductive zone.
  • The definition drill program has now been modified to sectionally drill this potential extension with the intention of defining a major open pittable deposit in the valley of the caldera. As a result, the estimated completion date for the maiden National Instrument 43-101 mineral resource has been pushed back to the end of Q1 2023.

TORONTO, Sept. 20, 2022 (GLOBE NEWSWIRE) — Eloro Resources Ltd. (TSX-V: ELO; OTCQX: ELRRF; FSE: P2QM) (“Eloro”, or the “Company”) is pleased to announce assay results from twenty-one (21) diamond drill holes from its on-going drilling program at the Iska Iska silver-tin polymetallic project in the Potosi Department, southern Bolivia. Five (5) surface holes (DSB-28 to DSB-30, DSB-32 and DHK-25) tested the high-grade feeder zone in Santa Barbara which was also tested by two (2) underground holes (DSBU-09 and DSBU-011). Six (6) holes (DSB-16 to DSB-19, DSB-23 and DSB-27) tested the northwest extension of Santa Barbara. Eight (8) holes (DPC-04 to DPC-08 and DPC-10 to DPC-12) are reported for the Porco area. Five surface drills are focused on completing drilling in the Santa Barbara Resource Definition Drilling Area and its extension to the south-southeast. This press release also outlines a major update on the geophysical surveys which have greatly expanded the higher-grade feeder area target zone to the south-southeast.

Overall, the Company has completed 74,782m in 113 drill holes to-date at Iska Iska, including five holes in progress, as shown in Figure 1. Tables 1 to 3 list significant assay results for the drill holes reported. Prices used for calculating Ag equivalent grades are as outlined in the July 18, 2022 press release. Table 4 summarizes drill holes with assays pending. Highlights for each major target area are as follows:

Santa Barbara High Grade Feeder Zone Definition Drilling.

Drilling continues to expand the extent of the high-grade feeder zone at Santa Barbara, especially to the south-southeast. New borehole geophysical data have significantly expanded the strike length of this important high-grade zone. The highly conductive zones correlate very well with previously released high grade drill intersections, as described below. The conductivity data from boreholes have extended the high-grade feeder zone a further 250m along strike to the south-southeast. The 3D inverse magnetic model which correlates very strongly with the conductive zone suggests that the high-grade feeder zone may extend across the entire caldera for as much as a further 1 km along strike. The definition drill program has now been modified to sectionally drill this highly prospective extension, with the intention of defining a major open pittable mineral resource in the valley of the caldera.

Tom Larsen, CEO of Eloro said: “The results presented in this press release, combined with the enhanced geological and geophysical interpretation, show the continuing expansion of the already extensive Iska Iska high-grade mineralized system, which has a potential strike length of at least 2km. The new data demonstrate excellent potential to outline a major open pittable deposit in the valley of the Iska Iska caldera. As a result, the estimated completion date for the maiden NI 43-101 mineral resource has been pushed back to the end of Q1 2023 to provide additional time to drill-test this important target. We thank both ALS and AHK laboratories for greatly reducing our backlog of samples over the last several months, enabling us to report the results from a large number of holes in this release.”

Dr. Bill Pearson, P.Geo. Eloro’s Executive Vice President, Exploration commented: “We are continuing our definition diamond drill program with five surface rigs focusing on the south-southeastern extension of the high-grade feeder zone. As each drill hole is completed, we survey the hole using a pole-dipole IP array down the hole as well as cross hole measurements using current in surrounding holes. Our borehole IP team from McKeown Exploration Services, which is supervised by our Chief Geophysicist Dr. Chris Hale, P.Geo., works closely with our drill contractor Leduc Drilling to allow holes to a 1000m depth to be surveyed efficiently. This has greatly enhanced our geophysical program and has led to the tremendous geophysical model disclosed in this press release. We continue to get numerous and extensive mineralized intersections in all our holes as outlined below. In addition, we now know that the DPC series of holes in the Porco area are mainly just on the edge of the massive conductive zone and magnetic susceptibility high that goes through the Porco area at a deeper level.”

Significant results from five (5) additional surface drill holes and two underground holes testing the high-grade feeder zone at Santa Barbara are as follows:

  • Hole DSB-30, drilled to the SW at -60° across the centre of the current high grade feeder zone, intersected 150.47 g Ag eq/t (9.45 g Ag/t, 1.53% Zn and 0.88% Pb) over 441.21m from 28.70m to 469.91m, including a higher-grade portion grading 209.30 g Ag eq/t (10.06 g Ag/t, 2.76% Zn and 0.98% Pb) over 102.30m from 80.05m to 182.35mThis is the longest continuous mineralized intersection obtained in drilling at Iska Iska thus far.
    • Overall, 67% of this 909.85m long hole contains reportable intersections which collectively average 133.49 g Ag eq/t
  • Hole DSB-32, drilled on-section at -60° to the southeast of hole DSB-30 intersected 185.94 g Ag eq/t (44.55 g Ag/t, 0.57% Pb, 0.14% Cu and 0.25% Sn) over 135.15m from 0.00 to 135.15m, including a higher-grade section of 277.34 g Ag eq/t (78.12 g Ag/t, 0.09 g Au/t, 1.01% Pb, 0.27% Cu and 0.33% Sn) over 66.04m from 45.13m to 111.17m.
  • Hole DSB-29, collared at surface to test the southeast extension of the high-grade feeder system, was drilled to the SW at -60° and intersected multiple intersections including:
    • 108.31 g Ag/t (14.31 g Ag/t, 0.08 g Au/t, 0.81% Zn, 0.40% Pb and 0.08% Sn) over 110.40m from 320.94 to 431.34m, including a higher-grade portion of 174.81 g Ag/t (18.66 g Ag/t, 0.17 g Au/t, 1.43% Zn and 0.88% Pb) over 36.06m from 334.66m to 370.72m
  • Hole DSB-28, located approximately 100m northwest of DSB-29, collared at surface to test the high-grade feeder system, was drilled to the SW at -60° and intersected multiple intersections including:
    • 98.98 g Ag/t (4.41 g Ag/t, 1.16% Zn and 0.49% Pb) over 96.51m from 39.49 to 136.00m, including a higher-grade portion of 220.47 g Ag/t (2.99 g Ag/t, 2.68% Zn, 1.13% Pb and 0.11% Sn) over 16.52m from 74.20m to 90.72m,
    • 94.39 g Ag eq/t (5.49 g Ag/t, 1.36% Zn and 0.31% Pb) over 90.18m from 163.17m to 253.35m, and
    • 83.44 g Ag eq/t (31.12 g Ag/t, 0.10 g Au/t, 0.27% Zn and 0.23%Pb) over 86.32m from 455.52m to 541.84m including higher-grade portions of 278.75 g Ag eq/t (56.42 g Ag/t, 0.23 g Au/t, 0.83% Zn, 2.38% Pb and 0.22 Sn) over 6.06m from 458.57 to 464.63m and 197.15 g Ag eq/t (136.45 g Ag/t, 0.22 g Au/t, 0.39% Zn, 0.11% Pb and 0.04 Sn) over 10.59m from 520.85 to 531.44m.
    • Overall, 55% of the overall length of this 831.80m long hole yielded reportable intersections, which collectively average 83.69 g Ag eq/t.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/7a99bfe9-a783-49ac-90c4-a23bef1e5a75

Major Extension of Santa Barbara High Grade Feeder Zone.

As noted above, new borehole geophysical data have significantly expanded the strike length of the important high-grade feeder zone at Santa Barbara. The highly conductive zones correlate very well with previously released high grade drill intersections. Figure 2 is a NW-SE longitudinal section showing the geophysical results in the Santa Barbara high grade feeder zone. Based on current data, this feeder zone has a potential overall strike length of at least 2km. Figure 3 is a view looking south across the Iska Iska caldera valley and Figure 4 shows the conductivity model in the same view as Figure 3.

Eloro’s Chief Geophysicist, Dr. Chris Hale, P.Geo. commented: “The geophysical measurements of the most recent boreholes have contributed to a clear picture extending the mineralization south-southeastwards from the mineralization reported in Eloro’s July 18, 2022 press release. Where we have borehole IP and conductivity data a conductive core of mineralization extends to the south-southeast for 250m. This conductive core is contained within a broad volume of elevated chargeability that reflects disseminated mineralization. The geophysical correlation is open at depth and to the east where it is only limited by the distribution of drill holes for the borehole IP measurements. A strong correlation of mineralization with both conductivity and magnetic susceptibility extends toward the south-southeast and likely continues for a further kilometer or more at depth where the magnetic susceptibility model indicates an extension but where we do not yet have any conductivity data other than for DPC-08 and DPC-09. Conductivity data for DPC-09 show that this south-directed hole is tangential to a strong off-hole conductivity just to the west. This conductivity anomaly merges with the magnetic susceptibility model showing that the Santa Barbara high grade feeder zone extends deep beneath the known Porco mineralization.“

Photos accompanying this announcement are available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/083a6d95-30ed-40d8-bf8d-300a6b3be0a0
https://www.globenewswire.com/NewsRoom/AttachmentNg/d4061dd1-8d77-47b9-9a22-b310d8f54ec0
https://www.globenewswire.com/NewsRoom/AttachmentNg/4ff03a7d-b591-4e32-9ec0-49d4dba57c74

Reinterpretation and Significance of Drilling in the Porco Area.

Results for eight (8) diamond drill holes that tested the magnetic susceptibility anomaly in the Porco area are summarized in Table 2. Locations of these holes are shown on Figure 1. Holes DPC-04, DPC-05 and DPC-06 were drilled from the Porco radial drill platform. Hole DPC-07 was drilled at an azimuth of 235° at -60° across the gap area between the Porco and Central Breccia pipes. Holes DPC-08 (Az 235°, -65°), DPC-10 (Az 225°, -70°) and DPC-11-12 (both Az 235°, -70°) were drilled from the access road to the Porco radial platform. Results from DPC-09 (Az 180°, -75°) were previously released on June 14, 2022. Highlights are as follows:

  • Hole DPC-10 returned 38 reportable intersections including 268.41 g Ag eq/t (30.31 g Ag/t, 2.22% Zn, 1.19% Pb and 0.16% Sn) over 17.88m from 253.77 to 271.65m and 185.50 g Ag eq/t (4.18 g Ag/t, 1.15% Zn, 0.92% Pb and 0.17% Sn) over 5.98m from 193.65 to 199.63m.
  • Hole DPC-11 returned 29 reportable intersections including 126.42 g Ag eq/t (5.09 g Ag/t, 1.77% Zn and 0.13% Pb) over 16.46m from 392.40 to 408.86m, 171.01 g Ag eq/t (16.34 g Ag/t, 0.16 g Au/t, 2.14% Zn and 0.81% Pb) over 8.93m from 241.07 to 250.00m and 595.23 g Ag eq/t (50.32 g Ag/t, 0.48 g Au/t, 8.67% Zn and 1.09% Pb) over 2.99m from 364.47 to 367.46m.
  • Hole DPC-12 returned 26 reportable intersections including 239.74 g Ag eq/t (58.26 g Ag/t, 2.49% Zn and 1.58% Pb) over 2.96m from 410.66 to 413.62m, 132.46 g Ag eq/t (25.58 g Ag/t, 1.57% Zn and 0.30% Pb) over 3.03m from 761.22 to 764.25m and 72.26 g Ag eq/t (13.73 g Ag/t, 0.87% Zn and 0.06% Pb) over 14.85m from 884.40 to 899.25m.
  • Hole DPC-08 returned 14 reportable intersections including:
    • 281.64 g Ag eq/t (15.34 g Ag/t, 0.44 g Au/t, 3.51% Zn, 0.77% Pb and 0.17% Cu) over 2.87m from 77.43m to 80.30m,
    • 140.31 g Ag eq/t (9.07 g Ag/t, 2.14% Zn and 0.61% Pb) over 3.03m from 149.20m to 152.23m,
    • 134.34 g Ag eq/t (6.40 g Ag/t, 2.27% Zn and 0.33% Pb) over 4.56m from 237.84m to 242.40m, and
    • 125.58 g Ag eq/t (5.55 g Ag/t, 0.29 g Au/t, 1.15% Zn and 0.13% Pb) over 9.02m from 443.40m to 452.42m.
  • Hole DPC-07 returned 13 reportable intersections including 286.53 g Ag eq/t (59.08 g Ag/t, 0.37 g Au/t, 1.80% Zn, 0.14% Pb 0.19% Cu and 0.20% Sn) over 3.00m from 587.12 to 590.12m and 158.27 g Ag eq/t (10.41 g Ag/t, 2.51% Zn and 0.09% Pb) over 4.51m from 681.95 to 686.46m.
  • Hole DPC-06 in the radial drill platform returned 11 reportable intersections including:
    • 122.34 g Ag eq/t (4.66 g Ag/t, 2.16% Zn and 0.16% Pb) over 16.43m from 156.01m to 172.44m,
    • 134.13 g Ag eq/t (9.37 g Ag/t, 2.11% Zn and 0.31% Pb) over 7.46m from 215.92 to 223.38,
    • 277.57 g Ag eq/t (50.31 g Ag/t, 3.44% Zn and 1.41% Pb) over 6.03m from 133.55 to 139.58m, and
    • 447.07 g Ag eq/t (4.10 g Ag/t, 0.91% Zn and 3.37% Pb) over 4.41m from 248.95 to 253.36m.

All the Porco holes reported in this release are on the margins of the conductive/magnetic anomalies, hence the presence of widespread higher-grade mineralization on the edge of these anomalies is very encouraging. Further drilling will be carried out to test the core of the geophysical anomalies in these areas.

Surface Diamond Drilling, Northwest Extension, Santa Barbara.

Results for six (6) diamond drill holes that tested the potential northwest extension of the Santa Barbara zone are summarized in Table 1. Locations of these holes are shown on Figure 1. Holes from southeast to northwest are DSB-23, DSB-18 and DSB-19 on the same section, DSB-17, DSB-27 and the northwesternmost hole DSB-16, which collectively cover a strike length of approximately 600m. Highlights are as follows:

  • Hole DSB-23 returned 27 reportable intersections including:
    • 186.67 g Ag eq/t (152.91 g Ag/t, 0.13% Pb and 0.19% Cu) over 6.35m from 264.27m to 270.62m,
    • 122.44 g Ag eq/t (22.28 g Ag/t, 0.22 g Au/t, 0.31% Zn, 0.12% Cu and 0.10% Sn) over 33.11m from 598.13m to 631.24m,
    • 195.93 g Ag eq/t (38.19 g Ag/t, 0.40 g Au/t, 0.12% Zn, 0.22% Cu and 0.19% Sn) over 11.69m from 613.50m to 625.19m, and
    • 97.91 g Ag eq/t (13.29 g Ag/t, 0.16 g Au/t, 0.12% Cu and 0.10% Sn) over 21.16m from 655.17m to 676.33m including a higher-grade section of 153.20 g Ag eq/t (22.87 g Ag/t, 0.32 g Au/t, 0.17% Cu and 0.15% Sn) over 7.66m from 668.67m to 676.33m.
  • Hole DSB-18 returned 32 reportable intersections including 144.53 g Ag eq/t (36.49 g Ag/t, 0.88% Zn, 0.98% Pb and 0.13% Cu) over 17.96m from 243.40 to 261.36m and 71.49 g Ag/t (3.49 g Ag/t, 0.22 g Au/t and 0.09% Sn) over 33.88m from 401.8m to 435.68m.
  • Hole DSB-19 returned 12 reportable intersections including 202.55 g Ag eq/t (10.56 g Ag/t, 0.47% Zn, 0.57% Pb and 0.25% Sn) over 16.52m from 247.28m to 263.80m and 128.74 g Ag eq/t (4.33 g Ag/t, 1.32% Zn and 0.58% Pb) over 13.38m from 217.37m to 230.75m.
  • Hole DSB-17 returned 40 reportable intersections including:
    • 76.59 g Ag eq/t (15.61 g Ag/t, 0.16% Cu and 0.09% Sn) over 85.31m from 80.00m to 165.31m,
    • 479.42 g Ag eq/t (5.19 g Ag/t, 0.11% Cu and 1.18% Sn) over 11.82m from 330.66m to 342.48, 85.69 g Ag eq/t (4.73 g Ag/t and 0.68 g Au/t) over 12.11m from 457.44m to 269.55m, and
    • 127.35 g Ag eq/t (30.61 g Ag/t, 0.23 g Au/t, 0.14% Cu and 0.13% Sn) over 18.14m from 624.82m to 642.96m including a higher-grade section of 410.38 g Ag eq/t (106.47 g Ag/t, 0.51 g Au/t, 0.52% Cu and 0.47% Sn) over 3.01m from 639.95m to 642.96m.
  • Hole DSB-27 returned 7 reportable intersections including 380.33 g Ag eq/t (9.00 g Ag/t, 0.86% Zn, 0.54% Pb and 0.80% Sn) over 1.54m from 130.56m to 132.10m, 143.69 g Ag eq/t (12.00 g Ag/t, 0.30 g Au/t, 1.04% Zn and 0.11% Sn) over 1.50m from 515.37 to 516.87m and 179.30 g Ag eq/t (55.00 g Ag/t, 0.14 g Au/t, 0.22% Cu and 0.20% Sn) over 1.48m from 675.93 to 677.41m.
  • Hole DSB-16, the northernmost hole returned 20 reportable intersections including 123.03 g Ag eq/t (15.26 g Ag/t, 0.82% Zn and 0.23% Cu) over 3.01m from 188.42m to 191.43m, 113.45 g Ag eq/t (15.13 g Ag/t, 0.52% Zn, 0.12% Cu and 0.11% Sn) over 6.03m from 462.67m to 468.70m, and 96.41 g Ag eq/t (20.64 g Ag/t, 0.15% Cu and 0.13% Sn) over 4.60m from 639.80m to 644.40m.

Table 1: Significant Results, Surface Diamond Drilling, Santa Barbara Resource Definition Target Area as at September 20, 2022.

SANTA BARBARA RESOURCE DEFINITION TARGET ZONE
SURFACE DIAMOND DRILLING
Hole No.From (m)To (m)Length (m)AgAuZnPbCuSnBiCdAg eq
g/tg/t%%%%%%g/t
DSB-3010.6222.7612.1414.470.040.010.160.010.050.0090.00147.22
28.70469.91441.219.450.071.530.880.020.070.0040.009150.47
Incl.80.05182.35102.3010.060.022.760.980.030.070.0020.015209.30
Incl.220.10275.7555.6511.870.091.791.690.030.080.0060.018200.61
Incl.308.72344.7236.006.510.102.311.730.040.150.0110.011249.57
477.45489.7312.2830.780.150.140.360.030.210.0070.001149.09
494.28501.777.497.360.011.090.140.010.100.0010.005105.73
516.82554.6037.7843.860.070.040.020.020.100.0080.00195.16
569.68581.7812.1011.080.020.140.020.010.140.0010.00176.82
598.42613.4515.0326.060.040.390.070.010.160.0030.001113.36
622.55651.1328.588.270.010.520.120.010.090.0010.00276.40
658.77670.6611.895.290.020.350.050.010.070.0010.00253.39
682.70691.658.9517.650.020.420.050.000.060.0140.00270.40
703.64709.706.0619.000.080.060.010.070.310.0210.001160.63
723.23726.283.057.070.460.030.010.030.060.0050.00177.99
733.87735.381.5135.000.040.060.010.360.390.1090.001255.55
780.80785.264.463.640.400.050.010.020.040.0050.00162.60
794.38797.383.001.000.010.030.010.000.160.0010.00165.53
803.34804.861.521.000.060.010.010.030.220.0030.00196.30
894.77896.271.5010.000.090.020.010.060.060.0350.00157.35
905.27909.854.582.640.010.830.140.010.030.0010.00360.64

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 down hole interval length but this will be confirmed by further drilling and geological modelling.

Chemical symbols: Ag= silver, Au = gold, Zn = zinc, Pb = lead, Cu = copper, Sn = tin, Bi = bismuth, Cd = cadmium and g Ag eq/t = grams silver equivalent per tonne. Quantities are given in percent (%) for Zn, Pb Cu, Sn, Bi and Cd and in grams per tonne (g/t) for Ag, Au and Ag eq.

Metal prices and conversion factors used for calculation of g Ag eq/t (grams Ag per grams x metal ratio) are as follows: (Prices updated as of July 21, 2022, to more accurately reflect current metal prices):

ElementPrice $US (per kg)Ratio to Ag
Ag$607.001.0000
Sn$23.550.0589
Zn$2.980.0046
Pb$1.920.0032
Au$54,932.8079.7221
Cu$7.000.0134
Bi$12.760.0177
Cd$5.500.0076

In calculating the intersections reported in this press release 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.

The equivalent grade calculations are based on the stated metal prices and are provided for comparative purposes only, due to the polymetallic nature of the deposit. Metallurgical tests are in progress by Blue Coast Ltd. to establish levels of recovery for each element reported but currently the potential recovery for each element has not yet been established. While there is no assurance that all or any of the reported concentrations of metals will be recoverable, Bolivia has a long history of successfully mining and processing similar polymetallic deposits which is well documented in the landmark volume “Yacimientos Metaliferos de Bolivia” by Dr. Osvaldo R. Arce Burgoa, P.Geo.

Table 1 Continued

Hole No.From (m)To (m)Length (m)AgAuZnPbCuSnBiCdAg eq**
g/tg/t%%%%%%g/t
DSB-320.00135.15135.1544.550.070.090.570.140.250.00330.002185.94
Incl.45.13111.1766.0478.120.090.011.010.270.330.00400.003277.34
181.48186.064.586.930.050.640.040.020.020.00370.00156.48
196.53201.054.521.790.260.010.020.030.040.05290.00157.35
205.58207.021.443.400.030.230.040.020.080.01600.00154.18
226.48227.951.475.000.020.351.000.020.050.00500.00177.16
245.08255.6310.558.060.030.510.030.030.040.00400.00156.97
266.12275.108.984.350.060.240.050.060.060.00960.00156.42
281.15284.092.941.300.010.530.120.020.050.00300.00256.04
314.11324.6010.4916.120.030.160.000.040.050.00640.00151.51
328.89331.882.9916.380.070.300.000.050.050.01530.00165.91
334.88337.893.0116.530.020.290.000.050.040.01150.00157.87
357.07358.531.4635.900.040.030.040.050.060.01200.00171.92
369.06370.551.4973.200.040.030.020.040.010.00600.00188.21
390.05403.5413.515.520.050.040.030.040.150.01290.00177.95
408.08409.541.464.000.020.050.050.060.080.00900.00150.70
444.37445.901.537.200.100.130.020.950.210.20100.001257.04
472.97474.421.454.000.010.010.010.000.310.00100.001124.51
483.52485.051.533.400.100.150.010.010.080.00100.00151.50
486.58488.121.541.600.010.090.010.000.140.00100.00161.19
552.02553.521.5013.900.010.010.000.110.100.01600.00170.77
556.52559.512.996.310.010.070.010.120.110.01450.00170.47
609.66611.171.517.800.060.230.120.000.060.00100.00151.43
656.13657.631.504.600.400.010.010.020.020.00500.00152.58
683.40684.901.5011.200.010.440.350.110.090.00100.00191.85
702.91704.381.472.100.850.010.010.010.010.01500.00188.37
897.93908.5010.573.880.050.000.000.300.010.15220.00178.45
911.45916.004.552.580.020.000.000.250.010.09890.00157.20
920.64922.161.521.600.050.000.000.360.000.01800.00152.14
923.68925.221.542.500.030.520.000.250.000.00300.00161.10

 

Table 1 Continued

Hole No.From (m)To (m)Length (m)AgAuZnPbCuSnBiCdAg eq
g/tg/t%%%%%%g/t
DSB-290.0014.1014.1023.680.060.000.260.010.100.0070.00178.83
93.1897.624.444.640.031.350.180.010.000.0010.00883.20
109.60118.709.104.480.011.010.370.000.000.0010.00368.14
121.76123.261.506.000.011.200.370.000.000.0010.00278.70
127.81129.321.516.000.021.080.210.000.000.0020.00168.76
144.33147.312.982.980.031.030.140.040.000.0010.00266.13
153.25191.0037.754.530.041.130.170.010.000.0020.00372.73
Incl.169.88174.444.5614.670.212.570.450.080.000.0110.009187.84
197.07209.1412.073.110.021.170.210.000.000.0010.00371.50
225.70244.0018.3020.050.112.181.000.050.040.0070.008191.20
Incl.225.70234.909.2037.880.183.351.780.100.070.0130.013315.40
253.00278.6825.685.280.011.170.430.020.050.0010.00498.28
310.32311.801.488.000.031.210.360.010.060.0010.005105.55
320.94431.34110.4014.310.080.810.400.010.080.0020.004108.31
Incl.334.66370.7236.0618.660.171.430.880.010.100.0030.007174.81
445.63504.4958.8613.320.220.440.040.010.060.0020.00180.18
521.10525.704.605.670.010.630.020.010.070.0010.00167.17
561.15562.601.455.000.040.910.020.010.020.0010.00262.48
586.31587.781.4712.000.060.830.030.010.010.0390.00170.39
596.84599.822.9822.360.120.340.040.010.020.0510.00172.72
611.86613.401.545.000.010.980.460.010.020.0010.00376.63
634.60645.3010.707.130.030.240.140.010.120.0030.00173.89
666.32679.9513.6311.900.060.490.080.010.110.0920.002106.53
707.22714.777.558.590.011.000.130.010.030.0040.00477.61
749.54751.031.4910.000.011.490.090.010.050.0010.008109.33
757.06758.581.522.000.011.290.160.020.010.0020.00579.93
785.57787.071.5015.000.022.020.510.010.340.0010.013265.39
799.10800.601.501.000.650.360.020.010.020.0680.001101.97
809.56814.024.462.460.980.390.080.010.010.0340.001125.91
823.11836.5813.474.410.190.380.040.030.030.0200.00259.64
847.11875.8728.769.820.220.160.090.070.030.0190.00163.48
880.40881.881.481.000.100.020.000.020.170.0020.00179.70
954.12982.4028.286.230.080.360.210.030.090.0040.00178.38
993.01995.962.952.020.130.220.210.020.060.0330.00164.88
1011.101021.5710.4752.140.040.110.200.040.090.0110.001111.05
1086.261087.791.5316.000.050.030.050.050.060.0030.00152.50
1102.831104.341.5115.000.060.320.020.080.050.0070.00164.79
1125.411127.001.5942.000.070.010.020.020.010.0130.00156.70

Table 1 Continued

Hole No.From (m)To (m)Length (m)AgAuZnPbCuSnBiCdAg eq
g/tg/t%%%%%%g/t
DSB-280.0024.1024.1013.970.020.010.180.010.050.0030.00144.83
39.49136.0096.514.410.021.160.490.030.040.0020.00898.98
Incl.74.2090.7216.522.990.022.681.130.030.110.0060.018220.47
142.02146.664.640.660.010.860.150.010.010.0010.00754.06
163.17253.3590.185.490.051.360.310.010.010.0030.00494.39
262.40263.911.512.000.010.820.850.020.020.0010.00380.45
269.92272.973.053.540.020.850.320.020.010.0010.00261.67
275.96277.481.527.000.012.290.690.010.010.0010.006147.23
283.45287.974.522.010.021.150.330.010.000.0010.00272.93
307.50339.3231.826.500.121.110.290.010.020.0020.00489.74
357.49388.9131.422.050.170.830.130.010.020.0010.00272.64
Incl.371.07376.875.802.010.831.030.230.000.070.0050.001163.61
401.03408.527.492.000.040.940.270.010.030.0010.00171.60
413.12419.176.052.510.080.690.290.000.030.0010.00164.41
423.84428.514.672.340.010.810.230.010.020.0010.00259.83
440.42443.402.985.000.010.940.240.000.030.0010.00172.29
455.52541.8486.3231.120.100.270.230.010.050.0020.00183.44
Incl.458.57464.636.0656.420.230.832.380.010.220.0020.002278.75
Incl.520.85531.4410.59136.450.220.390.110.030.040.0030.001197.15
564.39578.0013.6160.400.010.090.010.010.030.0010.00179.07
581.04582.591.552.000.010.100.010.000.140.0010.00163.44
587.07588.581.5110.000.011.320.010.010.050.0010.00698.38
620.44638.5818.1411.660.030.700.020.010.070.0070.00378.79
650.68653.753.073.980.010.980.010.010.040.0010.00470.00
700.45707.987.534.220.010.630.110.010.030.0010.00150.83
715.42719.924.507.300.010.490.230.010.040.0010.00155.63
824.14831.807.662.010.160.190.030.010.060.0150.00152.98

Table 1 Continued

Hole No.From (m)To (m)Length (m)AgAuZnPbCuSnBiCdAg eq
g/tg/t%%%%%%g/t
DHK-256.6541.1434.4934.300.031.140.860.040.010.0060.006129.99
Incl.23.0530.717.6648.350.022.041.400.020.010.0010.010200.48
68.3769.881.5145.000.053.781.010.040.020.0110.014282.41
80.4081.901.502.000.011.180.130.010.010.0010.00969.07
119.40120.921.525.000.010.910.120.020.010.0010.00359.80
134.48136.001.5210.000.011.510.290.010.010.0010.004100.81
151.05152.551.509.000.171.950.330.020.020.0010.005141.98
182.80185.803.000.755.190.670.120.020.010.0250.002519.34
203.86212.899.031.080.010.850.060.010.000.0010.00147.79
217.40218.921.522.000.010.890.700.010.000.0010.00370.82
221.90223.401.503.000.011.000.330.010.010.0010.00367.05
226.48227.981.508.000.012.510.490.020.010.0010.012152.28
238.54240.041.5015.000.042.110.470.020.020.0010.006147.62
244.53246.041.516.000.080.870.390.010.010.0010.00475.05
250.61252.101.497.000.051.240.620.010.020.0010.007100.96
268.57270.081.515.000.010.950.060.010.000.0010.00456.21
286.63289.582.956.490.011.470.250.010.010.0010.00491.91
321.12349.6428.5215.790.011.770.430.010.010.0010.005123.25
Incl.321.12334.6413.5223.120.012.940.630.010.020.0010.009197.65
366.29388.9522.6623.370.011.450.810.010.020.0010.005129.94
Incl.366.29373.857.5642.530.023.351.720.020.050.0010.012286.76
397.98400.993.014.510.011.220.190.010.010.0010.00376.94
410.06420.4710.415.790.021.620.340.010.020.0010.006108.03
446.08458.1812.104.460.011.260.280.010.020.0010.00583.28
474.67476.211.548.000.033.200.610.010.040.0010.012203.02
486.75489.763.010.750.011.250.190.000.010.0010.00471.96
503.40507.904.500.670.012.000.430.000.010.0010.004119.35
515.40516.901.502.000.010.960.280.000.010.0010.00362.70
524.50528.984.480.670.010.890.210.010.010.0010.00355.64
542.50554.6112.110.560.010.890.150.010.010.0010.00254.57
565.27571.396.121.500.011.000.240.010.010.0010.00366.45
581.94583.421.480.500.011.640.430.000.000.0010.00697.28
595.30616.1420.842.630.031.350.240.000.010.0060.00285.88
620.65623.602.952.000.010.740.150.010.030.0010.00156.38
628.15629.661.514.000.610.650.030.000.010.0150.00298.42
638.67646.107.4319.970.190.310.030.010.020.0280.00169.20
659.65662.592.940.750.270.500.060.030.000.0010.00156.39
671.69677.716.0210.620.011.540.350.030.050.0010.006119.89
691.24701.6910.4511.550.011.060.280.000.020.0010.00283.43
704.61706.111.5019.000.020.360.320.000.060.0010.00171.05
721.09751.1830.099.740.120.450.280.020.030.0020.00165.12
767.70769.301.600.500.630.030.010.010.000.0010.00161.99
889.43890.921.4923.000.110.010.010.120.120.0100.00195.68
949.83951.341.5110.000.091.190.060.020.020.0460.00199.34
1011.681013.201.526.000.041.290.100.110.070.1350.003143.17
1019.271020.791.521.000.060.000.000.050.010.2980.00176.61
1042.131043.631.5039.000.060.010.000.080.020.1690.00196.80
1058.871060.401.534.000.020.010.010.180.010.2140.00177.41
1080.001081.561.563.000.050.020.010.220.010.1390.00166.89
1102.781107.334.554.010.030.010.000.280.010.0960.00164.69
1119.261120.751.492.000.010.060.020.160.030.0770.00153.03
1132.781135.963.187.250.020.351.050.240.050.0250.001112.55
1152.471154.001.533.000.540.050.010.150.010.0290.00181.42


Table 2: Significant Results, Underground Diamond Drilling, Santa Barbara Resource
Definition Target Area as at September 20, 2022.

SANTA BARBARA RESOURCE DEFINITION TARGET ZONE
UNDERGROUND DIAMOND DRILLING
Hole No.From (m)To (m)Length (m)AgAuZnPbCuSnBiCdAg eq
g/tg/t%%%%%%g/t
DSBU-110.00128.33128.3314.930.050.440.680.070.060.0020.00496.24
134.45135.961.510.500.011.380.190.020.010.0010.00382.16
143.51184.4240.912.380.040.820.400.020.040.0020.00375.55
193.46207.124.653.670.031.350.610.020.040.0010.007109.60
217.80225.417.617.570.211.560.300.020.040.0010.005132.41
232.86252.5019.644.420.700.680.080.020.040.0050.002121.87
260.03263.163.1313.470.070.280.340.010.030.0010.00255.46
270.60290.1819.5817.010.241.110.510.020.140.0020.005167.84
297.72314.1016.383.110.760.270.060.010.050.0080.001106.61
322.94340.6617.7218.400.360.920.400.010.080.0120.005145.61
351.22352.821.6011.000.020.870.430.010.030.0020.00481.85
366.26381.5915.3322.400.010.280.100.020.110.0010.00186.41
389.18403.9814.8019.850.420.210.010.010.020.0060.00177.40
419.08420.591.5116.000.220.330.010.020.020.0020.00162.68
426.65428.151.5022.000.020.330.010.030.030.0010.00156.23
431.18432.681.5024.000.100.360.010.010.020.0010.00161.39
449.27624.03174.7615.760.050.550.130.010.080.0010.00285.35
629.80631.141.343.000.020.540.040.010.070.0010.00161.91
637.03654.1317.108.950.040.710.200.010.040.0020.00270.71
660.17661.701.533.000.011.000.090.000.060.0010.00479.57
675.26750.2574.998.000.201.680.230.010.040.0190.006138.03
761.31762.741.431.000.011.030.090.010.020.0010.00263.70
766.20769.203.001.500.030.950.080.020.020.0010.00362.80
780.70785.644.942.600.010.850.090.020.020.0010.00156.90
DSBU-090.0048.3448.3446.930.190.230.560.130.080.0070.004140.75
Incl.22.7839.3116.53112.290.440.010.730.260.070.0080.001235.56
72.3575.332.981.500.021.020.140.020.020.0020.00368.12
79.8496.5616.720.820.011.150.530.020.020.0010.00485.58
110.16140.3730.213.910.010.190.430.020.030.0010.00142.83
165.37212.0046.6311.300.031.860.850.010.040.0040.010152.47
225.55297.9072.357.200.141.850.430.020.020.0100.006136.48
Incl.270.71291.8121.1015.930.202.470.630.040.030.0080.011192.92
310.13313.102.971.240.020.930.080.010.000.0010.00253.78
334.10335.791.692.000.021.150.080.010.010.0010.00366.52
338.99346.127.131.790.010.900.160.010.010.0010.00355.31
364.14373.098.954.550.041.370.160.010.010.0010.00583.52
427.07428.651.585.000.041.200.150.010.000.0010.00474.79
431.53438.957.429.630.010.960.230.010.010.0010.00367.83
448.03449.341.3126.000.043.880.600.020.010.0050.016246.68
464.33478.0013.677.960.010.650.230.010.000.0010.00251.62
493.03494.611.586.000.420.260.150.020.010.0450.00174.91
499.13503.954.821.700.010.800.130.010.000.0010.00148.29
506.63508.141.514.000.011.600.170.020.010.0010.00794.04
514.01530.5116.505.730.010.860.160.010.010.0010.00256.75
558.80567.949.1410.030.010.600.230.000.000.0010.00249.89
576.91585.898.9810.590.010.560.320.010.010.0010.00252.42
596.58617.2220.646.310.010.780.190.010.000.0010.00254.11
633.77656.5422.778.200.010.600.290.010.010.0010.00152.02
685.02757.2272.2013.050.111.660.420.020.050.0020.006138.75
Incl.691.02700.008.9848.010.122.791.650.020.130.0030.011303.26
Incl.715.11722.647.5318.150.535.400.360.030.060.0070.021374.34
763.23787.5924.365.180.100.850.180.010.030.0010.00275.93
808.88831.4622.585.190.031.050.320.010.030.0010.00483.82
837.74840.712.979.880.011.490.500.010.030.0010.007113.61
890.16891.661.506.000.041.450.850.020.050.0010.005131.11

 See Note Table 1.

Table 2: Significant Results, Surface Diamond Drilling, Porco Target Area as at September 20, 2022.

PORCO AREA DIAMOND DRILLING
Hole No.From (m)To (m)Length (m)AgAuZnPbCuSnBiCdAg eq
g/tg/t%%%%%%g/t
DPC-1265.1566.631.4817.000.021.040.610.030.010.0050.00495.88
156.73162.535.801.890.010.980.150.000.000.0030.00257.71
235.87237.391.524.900.011.120.250.010.010.0030.00172.63
328.41329.901.491.900.021.220.170.000.000.0010.00570.85
352.35359.837.489.180.031.060.190.060.000.0010.00477.82
410.66413.622.9658.260.012.491.580.020.010.0010.014239.74
437.65439.101.459.800.011.380.240.000.010.0010.00691.92
458.64460.101.4611.800.011.280.700.010.010.0010.003103.96
565.44566.921.485.200.040.780.050.010.010.0030.00454.09
571.54573.051.516.200.021.350.110.010.000.0010.00780.21
607.54613.435.894.560.130.590.020.010.010.0070.00353.99
673.90678.464.5649.010.050.120.040.050.010.1060.00194.79
684.59685.991.4040.400.060.030.040.050.010.0930.00176.14
719.05720.581.5334.500.190.980.050.210.060.0350.004154.13
744.51747.613.1029.820.080.100.040.180.060.1530.001120.04
761.22764.253.0325.580.021.570.300.090.010.0200.007132.46
770.28771.741.4623.800.021.480.100.070.010.0460.009122.41
777.82779.401.5884.100.141.260.450.580.010.0950.006262.25
807.76809.221.469.200.011.480.260.040.010.0040.005102.03
825.65828.703.054.100.010.950.110.010.010.0020.00563.39
851.28852.761.4816.800.191.210.410.050.040.2740.005184.43
863.29864.791.509.200.090.860.490.020.010.1360.004109.73
884.40899.2514.8513.730.020.870.060.040.020.0030.00572.26
917.40918.901.5013.200.040.830.530.020.010.0060.00581.37
923.45924.951.5011.100.010.720.210.010.010.0010.00460.60
927.90929.401.5013.300.010.400.250.030.030.0040.00156.69

See Note Table 1.

Table 2 Continued

Hole No.From (m)To (m)Length (m)AgAuZnPbCuSnBiCdAg eq
g/tg/t%%%%%%g/t
DPC-110.0011.5311.532.690.010.010.030.000.130.0010.00155.46
94.1595.691.541.100.010.900.030.010.010.0010.00351.49
178.70180.181.4824.400.231.720.960.010.010.0060.007165.73
185.52187.001.483.200.010.480.780.000.010.0010.00155.82
211.12212.631.510.300.011.330.010.000.010.0010.00169.18
241.07250.008.9316.340.162.140.810.020.020.0030.012171.01
271.20277.256.053.410.141.110.170.010.010.0020.00580.85
331.21332.741.533.100.011.520.100.010.010.0010.00585.40
364.47367.462.9950.320.488.671.090.050.050.0530.041595.23
377.92380.862.940.510.030.400.030.000.110.0010.00168.27
385.32386.741.420.300.010.300.010.000.110.0010.00159.84
392.40408.8616.465.090.051.770.130.010.060.0010.005126.42
421.33425.814.485.180.061.230.030.020.010.0010.00380.48
434.95436.411.463.500.320.710.060.020.010.0090.00178.37
451.12452.681.5615.800.021.620.340.010.050.0010.005127.02
543.99545.521.53199.301.291.410.810.090.420.0310.008592.96
560.58562.101.521.500.010.060.310.010.230.0010.001104.77
572.60577.154.551.700.011.360.010.020.010.0010.00177.26
599.78601.281.50124.900.160.060.050.090.160.0100.001218.11
617.88619.351.473.600.150.590.010.010.020.0010.00254.34
627.01628.461.451.900.011.010.100.010.020.0010.00162.98
694.34695.861.5259.500.011.352.580.020.030.0010.003222.07
715.29749.7034.4113.980.040.320.270.020.070.0020.00271.00
757.21758.711.5013.900.040.120.040.040.060.0090.00155.53
796.24797.741.50105.400.020.020.640.030.270.0020.001235.91
856.01857.491.480.300.010.010.000.010.150.0010.00160.21
881.55883.081.532.600.170.010.000.050.040.0820.00156.74
958.15965.777.623.450.100.030.020.120.030.0110.00144.16
1029.231032.222.9912.400.240.330.140.070.070.0470.00298.43

Table 2 Continued

Hole No.From (m)To (m)Length (m)AgAuZnPbCuSnBiCdAg eq
g/tg/t%%%%%%g/t
DPC-100.0034.7534.752.630.010.010.020.000.090.0010.00160.92
139.93144.454.521.000.010.990.070.010.030.0010.00465.79
157.90163.835.932.760.021.010.420.010.030.0020.00481.48
193.65199.635.984.180.011.150.920.000.170.0010.004185.50
229.75231.231.483.000.010.850.400.000.130.0010.004134.22
235.75238.672.922.510.010.540.200.010.040.0010.00260.28
253.77271.6517.8830.310.042.221.190.010.160.0090.009268.41
276.25277.731.481.000.010.360.080.010.060.0010.00155.16
286.77323.1436.373.230.010.690.070.010.020.0020.00253.75
332.35333.881.5310.000.061.130.200.020.030.0050.00391.96
377.08378.551.4714.000.011.250.560.010.010.0270.005103.70
389.02390.321.3011.000.120.960.100.020.050.0040.00197.08
404.81406.271.461.000.260.370.070.010.010.0040.00148.42
410.40413.403.004.500.020.660.130.010.030.0010.00357.50
422.40425.423.022.990.120.180.040.020.030.0010.00140.02
431.40437.406.0013.030.330.030.100.010.050.0050.00177.23
456.90461.384.483.990.030.280.050.010.120.0010.00192.25
482.42488.405.982.050.100.790.010.020.020.0030.00160.42
495.90497.421.521.000.040.020.010.010.110.0010.00171.17
512.50516.954.451.410.030.230.020.020.100.0030.00175.59
532.05533.551.5014.000.150.020.040.040.060.0040.00168.36
541.05542.581.533.000.330.090.050.050.030.0110.00162.34
547.10556.088.983.360.610.160.050.020.020.0200.00177.12
560.54562.031.4914.000.220.010.030.020.040.0010.00156.98
574.02578.464.4412.400.020.120.180.010.060.0010.00163.06
588.76590.341.586.900.060.040.010.060.050.0010.00150.09
594.83596.341.5119.600.370.020.300.020.060.0070.00199.89
624.90629.404.504.940.060.990.030.030.030.0120.00282.89
692.43699.907.474.260.021.010.110.020.060.0010.00595.34
734.47737.422.954.560.060.080.010.060.050.0150.00153.99
797.45802.094.640.700.520.010.010.070.020.0260.00166.94
838.17839.651.4821.700.040.460.050.020.030.0110.00272.50
851.70853.201.509.200.010.010.010.070.060.0010.00151.74
856.15859.203.0529.030.060.160.060.150.100.0160.001125.80
899.85901.351.501.500.230.110.020.070.020.0390.00152.62
940.44943.453.011.201.290.160.000.050.020.0190.001133.49
958.53964.536.001.980.050.010.000.130.050.0590.00160.31
1050.381053.383.001.850.070.090.000.130.030.0230.00149.72

Table 2 Continued

Hole No.From (m)To (m)Length (m)AgAuZnPbCuSnBiCdAg eq
g/tg/t%%%%%%g/t
DPC-0877.4380.302.8715.340.443.510.770.170.000.0360.010281.64
149.20152.233.039.070.032.140.610.010.000.0010.009140.31
161.28162.751.474.000.011.060.310.020.010.0010.00773.31
201.83203.301.473.000.020.990.140.030.010.0020.00667.16
218.31222.824.514.940.150.980.130.010.010.0040.00676.18
237.84242.404.566.400.012.270.330.020.000.0010.011134.34
284.32285.821.5012.000.031.970.250.040.000.0100.014127.83
386.23387.701.478.000.011.950.280.010.010.0010.010117.45
443.40452.429.025.550.291.150.130.050.060.0070.006125.58
508.00509.541.543.000.010.830.150.000.010.0010.00353.06
592.05593.501.457.000.032.020.030.020.010.0010.009116.41
638.60641.582.983.550.010.800.070.010.030.0010.00360.17
730.02731.451.432.000.011.020.050.000.000.0010.00356.24
737.36738.881.5215.000.022.500.050.050.010.0010.016150.28
DPC-0733.6236.803.1828.060.010.010.150.160.010.0010.00154.20
187.39188.901.510.300.011.030.020.010.010.0010.00157.35
262.79264.301.5111.000.020.750.420.050.060.0010.00191.48
288.39289.921.535.000.061.690.460.010.160.0010.008172.11
427.32430.383.0638.470.010.010.010.010.020.0010.00150.19
468.06469.541.4837.000.140.750.020.080.080.0750.003142.91
587.12590.123.0059.080.371.800.140.190.200.0060.001286.53
632.30635.303.0013.510.020.040.040.060.060.0060.00150.17
645.77648.783.016.260.290.040.020.030.030.0010.00148.54
681.95686.464.5110.410.032.510.090.020.040.0040.001158.27
712.03733.0120.988.600.040.100.020.040.040.0300.00146.15
Incl.725.61728.522.9120.800.170.080.020.090.090.1480.001115.07
768.86771.903.049.730.050.010.050.040.050.0760.00154.96
DPC-0669.2975.195.9006.440.0061.2250.3010.0080.0040.0020.00576.99
133.55139.586.03050.310.0093.4431.4110.0200.0150.0150.015269.26
145.58147.101.52041.000.0107.1801.4200.0180.0250.0010.034435.41
156.01172.4416.4304.660.0082.1570.1550.0040.0120.0010.008117.33
187.39188.871.4802.000.0900.9880.0210.0180.0120.0010.00364.86
215.92223.387.4609.370.0222.1110.3150.0200.0110.0080.009129.04
244.32245.831.5104.000.0100.9680.1360.0090.0170.0010.00565.17
248.95253.364.4104.100.0080.9113.3680.0070.2270.9600.005459.30
465.24466.701.46012.000.0400.7360.2720.0110.0060.0150.00365.46
490.70492.231.5301.000.0801.4100.0110.0110.0030.0250.00179.57
645.02646.521.500128.000.0100.7260.1590.0130.0910.0010.002222.75
DPC-0542.6747.134.461.660.011.610.160.000.000.0010.01388.83
114.51118.984.470.660.010.790.010.000.000.0010.00141.53
160.89162.391.500.500.440.080.010.010.000.0010.00146.50
242.84244.411.571.000.150.520.080.010.000.0010.00144.69
260.94262.391.450.500.030.810.150.000.000.0010.00149.30
297.00298.441.441.000.010.780.140.000.000.0010.00245.48
DPC-0435.0436.531.495.000.050.030.880.010.020.0030.00547.67
290.34293.332.993.980.011.050.120.010.010.0060.00064.61


Table 3: Significant Results, Surface Diamond Drilling, Northwest Extension, Santa Barbara Target Area as at September 20, 2022.

Hole No.From (m)To (m)Length (m)AgAuZnPbCuSnBiCdAg eq
g/tg/t%%%%%%g/t
DSB-2742.3743.911.540.500.010.000.020.420.010.0010.00153.54
130.56132.101.549.000.010.860.540.020.800.0010.003380.33
515.37516.871.5012.000.301.040.030.060.110.0160.001143.69
539.40546.977.575.790.050.260.000.100.120.0140.00184.24
623.47624.961.490.500.010.960.000.010.010.0010.00152.57
675.93677.411.4855.000.140.010.010.220.200.0300.001179.30
749.47752.462.9912.990.040.010.000.150.120.0050.00181.74
DSB-23245.09246.571.4837.000.030.010.240.010.020.0020.00156.34
255.34258.302.965.490.010.010.080.350.010.0010.00152.39
264.27270.626.35152.910.020.030.130.190.010.0010.003186.67
275.04280.975.9310.100.030.530.110.020.020.0040.02254.55
324.71339.7715.064.910.020.530.180.050.050.0060.00464.29
351.65353.081.4312.000.060.060.050.030.060.0060.00150.41
357.57368.1010.535.760.040.110.010.020.090.0010.00155.11
392.14405.7013.564.850.060.010.010.020.100.0140.00156.31
417.81422.204.399.030.110.070.030.090.200.0050.001113.63
429.70432.723.024.970.100.010.010.070.100.0010.00161.80
435.76444.879.113.990.140.050.020.100.090.0130.00169.35
561.83563.381.551.000.050.940.280.010.000.0010.02564.60
566.48576.9210.447.570.160.070.060.010.080.0060.00661.82
598.13631.2433.1122.280.220.310.070.120.100.0430.004122.44
613.50625.1911.6938.190.400.120.070.220.190.0570.005195.93
655.17676.3321.1613.290.160.070.040.120.100.0580.01297.91
Incl.668.67676.337.6622.870.320.070.050.170.150.0900.007153.20
680.75683.732.986.500.430.050.020.070.070.0330.00188.79
701.79703.301.5112.000.010.010.000.150.140.0040.00186.28
713.87718.274.409.750.520.130.050.030.010.0340.00179.80
728.73730.221.496.000.080.040.020.050.040.3680.001115.26
733.22734.721.506.000.020.020.020.130.070.0450.00159.43
758.94760.421.487.000.010.020.010.130.110.0470.00176.91
766.35767.871.5227.000.040.030.010.190.160.0100.001120.01
779.96781.461.508.000.020.290.010.150.110.0410.00193.03
833.43834.941.514.000.050.040.010.270.080.2080.001117.51
837.95839.511.5611.000.220.060.030.310.110.2060.001157.70
850.05851.571.523.004.050.020.010.080.030.4600.001487.81

See Note Table 1.

Table 3 Continued

Hole No.From (m)To (m)Length (m)AgAuZnPbCuSnBiCdAg eq
g/tg/t%%%%%%g/t
DSB-19115.80151.6035.804.480.030.650.270.010.010.0010.03757.93
173.96188.8614.901.860.050.660.240.010.010.0020.01351.00
217.37230.7513.384.330.051.320.580.010.060.0130.011128.74
247.28263.8016.5210.560.010.470.570.010.250.0010.002202.55
275.80287.8212.025.640.010.340.140.000.050.0010.00155.97
343.37346.342.9712.950.180.630.190.010.010.0060.03174.71
445.42446.901.489.000.280.040.030.010.180.0040.001142.14
458.90464.845.941.380.010.020.010.010.090.0010.00156.01
469.36470.851.494.000.150.090.020.080.090.0020.00182.56
608.15609.641.4913.000.080.060.020.440.020.0990.001114.15
665.20666.701.506.000.040.240.000.250.010.1450.00187.05
680.17681.671.506.000.050.250.000.570.010.1400.001125.89
DSB-1865.0574.018.963.190.030.010.050.350.010.0010.00551.97
81.52103.9722.4525.100.020.020.080.210.020.0010.00561.32
132.54135.402.863.620.021.260.230.010.020.0010.04185.13
154.87156.391.5212.000.010.010.010.010.100.0010.00552.77
180.40183.382.986.490.040.050.060.020.120.0040.00465.46
201.40202.901.505.000.020.720.100.020.030.0010.00557.99
207.37208.871.5015.000.101.310.380.080.090.0090.010147.71
214.89216.391.5027.000.010.010.020.020.040.0010.00548.68
231.40232.861.4620.000.010.180.480.010.030.0010.00556.76
243.40261.3617.9636.490.030.880.980.130.040.0020.008144.53
268.91274.926.0114.310.040.190.170.020.090.0070.00473.14
279.39280.851.4621.000.020.060.540.060.050.0010.00569.82
288.36291.403.0422.940.030.080.350.030.050.0050.00564.33
349.52351.051.5314.000.020.030.120.080.140.0140.00588.02
357.13363.025.8918.670.040.020.100.070.130.0130.00587.58
366.00369.073.074.560.010.010.020.010.110.0040.00551.94
384.18385.661.485.000.010.020.010.060.120.0010.00558.95
401.80435.6833.883.490.220.010.020.070.090.0120.00571.49
453.25454.481.236.000.070.030.010.040.080.0070.00552.09
510.45513.823.378.940.270.520.020.070.050.0110.01088.90
563.27581.2417.9715.460.070.040.010.090.070.0210.00568.21
605.26612.787.526.980.190.100.010.100.080.0580.00582.91
618.77620.231.4610.000.480.080.010.020.010.0360.00572.28
626.27627.751.488.000.100.020.010.070.060.0130.00553.27
651.74662.2210.481.560.020.200.010.110.060.0510.00559.81
713.27714.741.471.000.190.020.050.050.010.1130.00554.22
764.28765.781.501.000.550.030.010.040.000.0610.00571.42
779.36780.851.494.000.140.020.010.150.100.0090.00576.02
795.89797.361.471.000.230.010.010.080.030.0240.00550.29
851.48855.914.434.960.040.010.000.340.020.0820.00573.07
863.50869.475.974.750.020.110.040.300.020.0250.00559.54
881.48884.442.964.520.060.040.010.300.040.0410.00569.95

Table 3 Continued

Hole No.From (m)To (m)Length (m)AgAuZnPbCuSnBiCdAg eq
g/tg/t%%%%%%g/t
DSB-1723.2026.052.8512.490.040.010.081.480.000.0010.005191.80
68.2069.701.505.000.080.041.110.010.000.0040.00552.73
75.6677.101.449.000.010.021.480.040.000.0120.00566.26
80.00165.3185.3115.610.060.010.100.160.090.0020.00576.59
177.17178.641.4733.000.080.010.210.010.030.0010.00558.07
185.76187.261.5027.000.020.010.020.010.050.0020.00551.31
196.18201.905.7220.090.120.050.150.040.050.0030.00562.28
206.42207.911.4911.000.010.010.030.170.060.0010.00556.50
228.69229.921.231.000.010.010.080.410.010.0010.00555.34
245.00264.2519.2525.400.010.010.080.260.020.0010.00567.37
276.48277.991.511.000.020.010.020.010.120.0010.00552.26
289.85292.792.9443.100.030.010.030.010.030.0010.00559.64
303.08305.952.871.510.010.010.150.000.120.0040.00556.35
314.72316.201.481.000.010.010.030.020.210.0010.00585.85
330.66342.4811.825.190.030.010.030.111.180.0010.005479.42
400.49401.991.5044.000.100.020.080.360.330.0380.005235.71
404.99406.481.4910.000.080.010.030.060.050.0380.00553.83
421.48422.981.5011.000.040.010.020.140.120.0010.00578.33
427.47430.533.063.990.010.010.010.010.120.0010.00552.69
457.44469.5512.114.730.680.010.000.060.030.0070.00585.69
537.11538.591.4825.000.020.020.010.280.250.0300.005163.38
549.10550.601.505.000.040.010.010.080.070.0240.00551.93
561.14562.631.4921.000.080.010.010.170.160.0220.005115.81
579.13580.621.496.000.110.010.010.090.080.0070.00561.27
589.74592.743.008.530.060.030.010.130.110.0490.00584.08
603.13609.156.026.020.110.050.010.110.090.0070.00567.35
616.82618.801.9810.000.190.080.020.040.030.0710.00564.16
624.82642.9618.1430.610.230.020.010.140.130.0370.005127.35
Incl.639.95642.963.01106.470.510.030.010.520.470.0560.005410.38
648.98653.344.3610.900.060.040.010.160.150.0780.005113.03
670.36671.891.5312.000.190.020.030.100.090.0930.00597.58
675.12676.641.525.000.090.360.020.150.080.0180.00582.47
679.60684.174.576.300.150.080.010.110.070.0170.00568.44
689.20690.631.431.000.550.010.010.040.030.0090.00569.79
707.14710.183.043.990.080.020.010.130.060.0310.00559.01
731.16734.203.041.510.030.120.030.200.010.2280.00586.82
741.70743.291.591.000.020.060.070.050.000.2590.00569.60
774.78776.952.171.000.030.310.020.200.010.0380.00554.56
783.28786.403.121.000.011.860.010.010.010.0060.00599.41
809.90812.822.921.000.010.010.010.140.010.1570.00554.12
818.59826.167.571.840.160.010.010.220.000.1340.00572.98

Table 3 Continued

Hole No.From (m)To (m)Length (m)AgAuZnPbCuSnBiCdAg eq
g/tg/t%%%%%%g/t
DSB-160.003.753.7556.000.020.010.010.010.000.0010.00560.83
128.55134.525.976.520.030.540.140.040.050.0010.00563.66
152.50156.984.485.300.010.720.040.010.020.0010.00550.56
179.45180.981.531.000.010.090.010.030.140.0010.00565.47
188.42191.433.0115.260.070.820.050.230.080.0020.005123.03
201.94203.441.508.000.011.170.020.020.030.0010.00580.81
218.47231.9613.498.950.020.740.080.010.030.0010.00663.04
251.38252.931.557.000.010.860.020.010.010.0030.00557.65
290.40291.921.5210.000.020.030.010.090.090.0060.00559.68
293.44294.941.5017.000.190.070.030.020.030.0080.00553.88
339.95341.431.489.000.060.060.040.100.100.0150.00574.13
366.90374.317.416.810.060.390.040.020.030.0090.00547.90
462.67468.706.0315.130.060.520.010.120.110.0560.005113.45
476.26477.751.493.000.820.110.010.060.040.0490.005114.02
501.73506.144.415.040.120.120.020.050.050.0640.00560.71
584.20585.751.5515.000.230.100.020.100.130.0010.005103.21
603.17604.731.5611.000.030.020.010.080.080.0040.00557.35
639.80644.404.6020.640.040.010.010.150.130.0060.00596.41
718.08721.083.0010.490.010.010.010.190.040.0060.00552.70
746.10747.601.501.000.290.350.010.030.010.0040.00552.21

 Table 4: Summary of Diamond Drill Holes Completed with Assays Pending and Drill Holes in Progress at Iska Iska from September 20, 2022 press release.

SUMMARY DIAMOND DRILLING ISKA ISKA
Hole No.TypeCollar
Easting
Collar
Northing
ElevAzimuthAngleHole Length
(m)
Surface Drilling Santa Barbara Resource Definition South-Southeast Extension
DSB-31S205652.47656108.44088.0225°-60°1055.6
DSB-33S205259.47655997.84262.7225°-60°869.4
DSB-34S205088.47656105.54339.1225°-60°851.4
DSB-35S205274.07655896.14224.5225°-60°1061.4
DSB-36S205016.07656179.14360.0225°-60°935.4
DSB-37S205729.97656034.64054.8225°-60°917.4
DSB-38S205588.07655893.04087.0225°-60°851.5
DSB-39S205823.17655981.94035.0225°-60°857.4
DSB-40S205684.37655839.54062.3225°-60°1052.4
DSB-41S205540.37655695.54092.7225°-60°842.4
DSB-42S205653.07656253.04125.0225°-60°845.4
DSB-43S205277.07656316.04156.3225°-65°833.1
Subtotal10,972.8
DSB-44S205157.07656038.04301.0225°-55°In progress
Santa Barbara Geotechnical Drill Holes
DHK-26S205700.37656454.44180.0225°-65°In progress
DHK-27S205529.47656222.54153.1270°-45°In progress
DHK-28S205597.37656479.64151.4225°-65°In progress
DHK-29S205485.77656489.54158.0225°-70°In progress
Santa Barbara Underground Metallurgical Hole
METSBUG-03UG205284.57656080.04167.1270°-35°707.8
Subtotal707.8
Mina 2 Target Area – Surface Drill Program Testing Magnetic Inverse Model
DM2-01S20594476542113674.030°-60°860.3
Subtotal860.3
TOTAL12,540.9

S = Surface UG=Underground; collar coordinates in metres; azimuth and dip in degrees. Total drilling completed since the start of the program on September 20, 2020 is 74,782m in 113 drill holes (32 underground drill holes and 82 surface drill holes) including 5 holes in progress.

Qualified Person

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, and 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 regularly 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. Eloro 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 prepared 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. Turnaround time continues to improve, as laboratories return to more normal staffing levels.

About Iska Iska

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 in southern Bolivia. Eloro has an option to earn a 99% interest in Iska Iska.

Iska Iska is a major silver-tin polymetallic porphyry-epithermal complex associated with a Miocene possibly collapsed/resurgent caldera, emplaced on Ordovician 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 mineralization 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 SBBP approximately 150m southwest of the Huayra Kasa underground workings.

Subsequently, on January 26, 2021, Eloro announced significant results from the first drilling at the SBBP including the discovery hole DHK-15 which returned 129.60 g Ag eq/t over 257.5m (29.53 g Ag/t, 0.078 g Au/t, 1.45%Zn, 0.59%Pb, 0.080%Cu, 0.056%Sn, 0.0022%In and 0.0064% Bi from 0.0m to 257.5m. Subsequent drilling has confirmed significant values of Ag-Sn polymetallic mineralization in the SBBP and the adjacent CBP. A substantive mineralized envelope which is open along strike and down-dip extends around both major breccia pipes. Continuous channel sampling of the Santa Barbara adit located to the east of SBBP returned 442 g Ag eq/t (164.96 g Ag/t, 0.46%Sn, 3.46% Pb and 0.14% Cu) over 166m including 1,092 g Ag eq/t (446 g Ag/t, 9.03% Pb and 1.16% Sn) over 56.19m. The west end of the adit intersects the end of the SBBP.

Since the initial discovery hole, Eloro has released a number of significant drill results in the SBBP and the surrounding mineralized envelope which along with geophysical data has defined a target zone 1400m along strike, 500m wide and that extends to a depth of 600m. This zone is open along strike to the northwest and southeast as well as to the southwest. The Company’s nearer term objective is to outline a maiden NI 43-101 compliant mineral resource within this large target area. As outlined in this press release as a result of continuing discoveries from recent drilling that have substantially extended the high-grade feeder zone at Santa Barbara, the Company has pushed back the inaugural mineral resource to the end of Q1 2023.

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 classified as a polymetallic epithermal-porphyry complex, a significant mineral deposit type in the Potosi Department, in southern Bolivia. A recent NI 43-101 Technical Report on Iska Iska, which was completed by Micon International Limited, 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 mining 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 3,150m to 4,400m above sea level.

For further information please contact either Thomas G. Larsen, Chairman and CEO or Jorge Estepa, Vice-President 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 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 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 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.

Figure 1Figure 2Figure 3Figure 4
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Grid Metals Corp. Announces Strategic Financing

Grid Metals Corp. (the “Company“) (TSXV:GRDM) is pleased to announce a non-brokered private placement of securities of the Company to issue up to 56 million shares of the company and raise gross proceeds of up to C$ 8,520,000 (the “Offering”). The Offering will include cornerstone investments by AMCI – a globally diversified mining and investment group specializing in the natural resource industry and Primero Group – a highly specialized engineering and operations company. Churchill Strategic Investments Group Pty Ltd of Perth Australia will be an investor and will act as a finder in the private placement.

” With the electrification and decarbonization dynamic accelerating globally Grid Metals is looking to meet its capital needs by aligning with strategic investors that will assist in not only providing capital but industry expertise in the lithium and base metals sectors as well ” said Robin Dunbar President and CEO of Grid. Dave Peck P.Geo and VP Exploration added ” We are focused on advancing our lithium assets and nickel-copper PGM assets in southeastern Manitoba. In base metals we look to accelerate exploration and development of our PEA stage Makwa Mayville Project. We are also looking to begin exploration of our high potential mineral leases in northern Manitoba, where we have a camp scale Raglan Nickel Belt nickel look alike target which is drill ready and a Nova Bollinger type nickel copper PGM target where we will be completing an airborne EM survey later this fall.”

The Offering will be comprised of a combination of the following:

  • Ordinary common shares of the Company(the “Shares“) to be sold at a price of C$0.12 per Share; and
  • Charitable flow-through common shares of the Company (the “Charity Shares“) to be sold at a price of C$0.21 per Charity Share.

Each Charity Share will be issued as a “flow-through share” within the meaning of the Income Tax Act (Canada). The exact number of Shares and Charity Shares sold will be determined prior to the closing of the Offering.

Churchill Strategic Investments Group Pty Ltd (“Churchill”) will be acting as finder in connection with the majority of the Offering and will receive a cash finder’s fee of 4% of the total gross proceeds from subscribers introduced by Churchill. Churchill will also be entitled to receive finder’s warrants in connection with the Offering. Other qualified finders may also receive finder’s fees in cash and warrants for subscribers introduced by such finders. The Charity Shares are being issued as part of a charity arrangement structured by Peartree Securities Inc.

The net proceeds from the Shares will be used for exploration of the Company’s property portfolio in Manitoba and Ontario and general working capital purposes. Proceeds from the sale of Charity Shares will be used to incur “Canadian exploration expenses” as defined in subsection 66.1(6) of the Income Tax Act that qualify for the federal 30% Critical Mineral Exploration Tax Credit announced in the federal budget on April 7, 2022 and will be eligible for the 30% Manitoba Mineral Exploration Tax Credit (“Qualifying Expenditures“). Such proceeds will be renounced to the subscribers with an effective date not later than December 31, 2022, in the aggregate amount of not less than the total amount of gross proceeds raised from the issue of Charity Shares.

The closing of the Offering is expected to occur on or about September 15, 2022 and is subject to receipt of all applicable regulatory approvals, including approval of the TSX Venture Exchange. The Shares, Charity Shares, and any ordinary common shares issuable upon the exercise of finders’ warrants issued with respect to the Offering will be subject to a hold period of four months and one day in accordance with applicable securities laws.

The securities offered have not been registered under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act“), or any applicable state securities laws, and may not be offered or sold to, or for the account or benefit of, persons in the United States or “U.S. persons,” as such term is defined in Regulation S promulgated under the U.S. Securities Act, absent registration or an exemption from such registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

AMCI Group is a globally diversified mining and investment group specializing in the natural resource industry. AMCI owns assets and businesses involved in the mining, processing, logistics and marketing of several commodities including raw materials critical for the electrification economy. Today, AMCI maintains a substantial presence in Australia and Canada with a large portion of its current investment portfolio located in these key mining jurisdictions.

Australia based Managing Director Patrick Murphy noted that “Grid Metals represents an undervalued opportunity in a tier one jurisdiction that is demonstrating increasing support for battery and critical mineral extractive industries and Grid’s nickel and copper sulphide orebodies and lithium pegmatite ground is prospective for further exploration success and ultimately successful mine development”.

Primero Group is a highly specialised engineering and operational company focussing on the assessment, development and operations of minerals processing and energy projects globally. The company operates as a subsidiary of the ASX listed NRW Holdings Group (ASX:NWH) with annual revenues more than AUD$2.5B. With offices located in Montreal, Canada and Houston, USA and investments alongside AMCI Group in the ASX listed Green Technology Metals in Ontario, Canada (ASX:GT1) the group is a complete project life cycle development business that aligns with owners and project developers following investment through into operations.

Primero Group Managing Director Cameron Henry stated ‘following our first successful investment into Canada in battery materials with ASX:GT1, alongside AMCI Group this opportunity in Grid Metals makes sense to continue our exposure to the North American supply constrained market for future facing metals. The nickel and lithium assets that Grid possess in their portfolio have significant potential for development and make a lot of sense with their strategic locality in the region. We look forward to working with the Grid team and creating more value for current and incoming shareholders.’

About Grid MetalsCorp.

Grid Metals Corp. is an exploration and development Company that has a diversified portfolio of projects focused on nickel-copper-platinum group metals and lithium. Grid’s projects are located in the provinces of Manitoba and Ontario Canada. The Company is focused on timely advancement of its property portfolio through prudent exploration and development activities. To find out more about Grid Metals Corp., please visit www.gridmetalscorp.com.

On Behalf of the Board of Grid Metals Corp.

Robin Dunbar – President, CEO & Director Telephone: 416-955-4773 Email: rd@gridmetalscorp.com David Black – Investor Relations Email: info@gridmetalscorp.com

Dave Peck, P.Geo., has reviewed the contents of this press release and is the qualified person for purposes of National Instrument 43-101.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

We seek safe harbour. This news release contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward-looking information within the meaning of the Securities Act (Ontario) (together, “forward-looking statements”). Such forward-looking statements may include the Company’s plans for its properties, the overall economic potential of its properties, the availability of adequate financing and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements expressed or implied by such forward-looking statements to be materially different. Such factors include, among others, risks and uncertainties relating to potential political risk, uncertainty of production and capital costs estimates and the potential for unexpected costs and expenses, physical risks inherent in mining operations, metallurgical risk, currency fluctuations, fluctuations in the price of nickel, cobalt, copper and other metals, completion of economic evaluations, changes in project parameters as plans continue to be refined, the inability or failure to obtain adequate financing on a timely basis, and other risks and uncertainties, including those described in the Company’s Management Discussion and Analysis for the most recent financial period and Material Change Reports filed with the Canadian Securities Administrators and available at www.sedar.com.

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Eloro Resources Intersects 160.00 g Ag eq/t (27.37g Ag/t, 0.62% Zn, 0.52% Pb and 0.11% Sn) over 251.87m and 133.45 g Ag eq/t (19.10g Ag/t, 0.20 g Au/t, 0.42% Zn, 0.64% Pb and 0.08% Sn) over 289.45m in the Santa Barbara Target area at the Iska Iska Silver-Tin Polymetallic Project, Potosi Department, Bolivia

Eloro Resources Ltd. (TSX-V: ELO; OTCQX: ELRRF; FSE: P2QM) (“Eloro”, or the “Company”) is pleased to announce assay results from an additional four (4) diamond drill holes from its on-going drilling program at the Iska Iska silver-tin polymetallic project in the Potosi Department, southern Bolivia. Holes DSBU-08, DSBU-07 and DSBU-04 are underground holes drilled from the Santa Barbara adit to test the southwestern and southern extension of the higher-grade mineralized zone. Surface drill hole DSB-26 tested the northwest extension of the Santa Barbara mineralized zone approximately 800m northwest of the Santa Barbara adit underground drill bay. Drilling is currently focussed primarily on the Santa Barbara Resource Definition Drilling Area with two surface drills and one underground drill. One surface drill is completing holes in the Porco area to test for a potential tin porphyry as suggested by the 3D inverse magnetic model (see Eloro press release dated March 1, 2022).

Overall, the Company has completed 56,863m in 92 drill holes to-date, including four holes in progress, as shown in Figures 1 and 2. Tables 1 and 2 list significant assay results for the drill holes in the major target areas. Prices used for calculating Ag equivalent grades are as outlined in Eloro’s February 1, 2022, press release. Table 3 summarizes drill holes with assays pending. Highlights are as follows:

Santa Barbara Mineral Resource Definition Target Area – Underground Drilling

Hole DSBS-07 was drilled underground at an azimuth of 2350 and dip of -500 to test the southwestern extension of the potential higher-grade area in the Santa Barbara Adit area. Hole DSBS-08 was drilled at the same inclination at an azimuth of 2000 while DSBU-04 was drilled due south at an angle of -200. All three holes intersected very long higher-grade intersections:

  • Hole DSBU-07 intersected 160.00 g Ag eq/t (27.37 g Ag/t, 0.62% Zn, 0.52% Pb and 0.11% Sn) over 251.87m from 0.00m to 251.87m, including a higher-grade section of:
    • 178.37 g Ag eq/t (28.84 g Ag/t, 0.69% Zn, 0.62% Pb, and 0.13% Sn) over 208.47m from 0.00m to 208.47m.
  • This hole had a second major intersection of 83.72 g Ag eq/t (6.67 g Ag/t and 0.11%Sn) over 208.93m from 272.87m to 481.8m. This included higher grade sections of:
    • 115.37g Ag eq/t (5.34 g Ag/t and 0.16%Sn) over 40.98m from 328.54 to 369.52m and
    • 224.01g Ag eq/t (1.50 g Ag/t and 0.35% Sn) over 21.58m from 438.11m to 459.69m.
  • Hole DSBU-08 intersected 133.45 g Ag eq/t (19.10 g Ag/t, 0.20 g Au/t, 0.42% Zn, 0.64% Pb, 0.06% Cu and 0.08% Sn) over 289.45m from 0.00m to 289.45m which included higher grade sections of:
    • 152.70 g Ag eq/t (44.65 g Ag/t, 0.08 g Au/t, 0.01% Zn, 0.58 %Pb, 0.20 %Cu and 0.09% Sn) over 22.56m from 0.00m to 22.56m,
    • 150.23 g Ag eq/t (47.17 g Ag/t, 0.03g Au/t, 0.01% Zn, 0.58 %Pb, 0.20% Cu and 0.09% Sn) over 10.82m from 57.10m to 67.92m,
    • 182.92 g Ag eq/t (40.31 g Ag/t, 0.13 g Au/t, 0.30% Zn, 0.88% Pb, 0.05% Cu and 0.14% Sn) over 27.09 m from 90.71m to 117.80m.
    • 222.51 g Ag eq/t (20.38 g Ag/t, 0.12 g Au/t, 1.09% Zn, 1.45% Pb, 0.05% Cu and 0.15% Sn) over 51.24 m from 163.14m to 214.38m, and
    • 254.55 g Ag eq/t (31.50 g Ag/t, 1.17 g Au/t, 0.73% Zn, 0.27% Pb, 0.08% Cu and 0.13% Sn) over 16.42 m from 244.48m to 260.90.
    • Overall, 65% of this 641.9m long hole had reportable intersections which collectively average 107.73 g Ag eq/t.
  • Hole DSBU-04 intersected 97.09 g Ag eq/t (30.11 g Ag/t, 0.41% Pb, 0.06% Cu and 0.07% Sn) over 154.62m from 0.00m to 154.62m which included higher grade sections of:
    • 126.66 g Ag eq/t (7.00 g Ag/t, 0.63 %Pb and 0.15% Sn) over 16.78m from 0.00m to 16.78m,
    • 174.32 g Ag eq/t (70.30 g Ag/t, 0.45 %Pb and 0.12% Sn) over 15.02m from 61.79m to 76.81m

Dr. Bill Pearson, P.Geo. Executive Vice President, Exploration commented: “As shown in Figure 3, a N-S cross section looking east, holes DSBU-07, DSBU-08 and DSBU-4 define a significant extension to the southwest and south of the major high grade mineralized area in the southern part of Santa Barbara. These results combined with previously released drill results for the underground drilling are defining a potential major feeder structure for the Ag-Sn polymetallic mineralization in the Santa Barbara area. Data from on-going borehole induced polarization surveys (BHIP) further reinforce the potential extent of this feeder zone.”

Dr. Chris Hale, P.Geo., Chief Geophysicist for Eloro commented: “Field personnel from MES Geophysics have advanced the borehole induced polarization (BHIP) survey technique to achieve excellent IP/Res data over 1000 m downhole, by reading while the drill is still on the hole. Preliminary analysis of Pole-dipole data at 25m intervals shows that the conductivity within about 10m of the axis of hole DHK-25 increases with depth between 500m and the end of the hole. Chargeability is highest near 525m but remains high (> 10 mV/V) over the entire interval to 975m. Cross hole chargeability and resistivity data have also been collected to a depth of 1000 m, between this hole and both DHK-24 and DSB-06. Data were also collected to 900m in DHK-24. Cross hole data from both DHK-24 and DHK-25 will be used for inverse modelling of the chargeable mineralization. Future BHIP surveys will use the “through-the-drill” technique to collect data, resolving fine detail in the geophysical models even at depths over a kilometer.”

Dr. Osvaldo Arce, P.Geo., General Manager of Eloro’s Bolivian subsidiary Minera Tupiza S.R.L. (“Minera Tupiza”), further commented: “Recent drill assay results from the Santa Barbara zone continue to expand a large and robust tin-silver polymetallic likely feeder zone located to the southeast of the Santa Barbara breccia pipe that is wide open at depth. Holes DSBU-4, DSBU-07 and DSBU-08 encountered numerous intervals of polymetallic oxide and sulphide mineralization that confirm multiple mineralizing events that occurred during the Miocene, which is an important feature of other large polymetallic deposits in the Eastern Andes of southern Bolivia.”

Northwest Extension, Santa Barbara Mineral Resource Definition Target Area

Hole DSBS-26 was collared 800m northwest of the Santa Barbara adit drill bay at an azimuth of 225 and dip of -400. This hole intersected 23 reportable mineralized intersections of which the most significant were as follows:

  • 76.10 g Ag eq/t (2.78 g Ag/t and 0.50% Cu) over 22.19m from 50.22 to 72.41m including a higher-grade section of:
    • 214.83 g Ag eq/t (10.90 g Ag/t and 1.48% Cu) over 4.44m from 50.22 to 54.66m
  • 735.49 g Ag eq/t (615.71 g Ag/t, 0.40 g Au/t, 0.20% Zn, 0.40% Pb and 0.17% Cu) over 10.46m from 134.74 to 145.20m
  • 93.02 g Ag eq/t (41.08 g Ag/t and 0.36% Zn) over 26.75m from 335.85 to 362.60m.
  • 264.05 g Ag eq/t (14.04 g Ag/t, 0.20% Zn, 0.38% Cu, and 0.31% Sn) over 20.06m from 407.51m to 427.57m
  • 70.56 g Ag eq/t (6.31 g Ag/t, 0.08 % Cu and 0.08 % Sn) over 67.50m from 591.71m to 659.21m including higher-grade sections of:
    • 93.46 g Ag eq/t (5.07 g Ag/t, 0.09% Cu and 0.11% Sn) over 18.06m from 594.72 to 612.78m and
    • 105.19 g Ag eq/t (13.00 g Ag/t, 0.11% Cu and 0.12% Sn) over 13.45m from 636.69 to 650.14m

Table 1: Significant Results, Underground Diamond Drilling, Santa Barbara Resource Definition Target Area as at May 25, 2022.

SANTA BARBARA RESOURCE DEFINITION TARGET ZONE
UNDERGROUND DRILL HOLES – SANTA BARBARA ADIT
Hole No.From (m)To (m)Length (m)AgAuZnPbCuSnBiCdAg eq
g/tg/t%%%%%%g/t
DSBU-080.00289.45289.4519.100.200.420.640.060.080.0070.003133.45
Incl.0.0022.5622.5644.650.080.010.580.200.090.0160.001152.70
Incl.57.1067.9210.8247.170.030.010.890.150.090.0020.001150.23
Incl.90.71117.8027.0940.310.130.300.880.050.140.0050.004182.92
Incl.163.14214.3851.2420.380.121.091.450.050.150.0070.006222.51
Incl.244.48260.9016.4231.501.170.730.270.080.130.0180.003254.55
305.90308.882.9823.590.170.020.120.030.070.0120.00187.58
322.42325.392.9732.450.380.030.070.030.040.0160.00199.55
353.90410.3356.4348.530.080.100.030.050.050.0100.00196.73
Incl.353.90373.3019.40105.690.100.110.050.090.080.0150.001184.92
417.77420.773.007.500.230.180.100.050.040.0050.00170.29
428.29429.801.516.000.201.300.020.160.040.0040.001126.85
434.15438.584.4312.140.140.330.010.060.040.0050.00171.88
458.16472.9814.825.920.250.110.060.020.150.0050.001122.90
488.01503.0315.024.900.800.050.010.030.090.0080.001129.61
524.08527.093.014.010.200.060.010.310.510.0110.001363.98
534.58552.6318.0510.270.390.030.010.050.070.0160.00197.09
563.17578.2815.116.380.190.190.120.030.120.0080.001110.23
585.79587.321.537.000.390.110.010.020.060.0410.00187.49
596.56619.1022.546.940.300.050.050.000.090.0140.00188.81
628.10632.634.537.560.480.310.020.020.050.0240.00196.64
641.70643.211.511.000.010.350.010.010.060.0010.00154.10
656.54659.442.905.970.050.600.010.020.020.0040.00152.15
664.40669.054.657.330.060.570.030.020.010.0090.00150.98
681.10682.651.554.000.070.040.030.010.220.0020.001146.14
811.56813.061.504.000.030.510.040.040.040.0090.00160.25
835.90842.006.1012.970.060.470.120.040.050.0030.00178.19
DSBU-070.00251.87251.8727.370.100.620.520.080.110.0080.007160.00
Incl.0.00208.47208.4728.840.080.690.620.090.130.0080.008178.37
272.87481.80208.936.670.030.080.030.020.110.0120.00183.72
Incl.328.54369.5240.985.340.020.110.040.020.160.0180.002115.37
Incl.438.11459.6921.581.500.060.070.030.040.350.0280.001224.01
535.76540.344.582.670.160.070.020.010.110.0700.00198.79
556.84558.381.543.000.320.030.010.030.070.0160.00176.69
565.93585.4819.552.580.140.100.080.030.070.0240.00170.81
Incl.565.93570.434.507.010.370.250.310.100.160.0710.001179.75
589.98591.401.426.000.100.050.010.000.070.0010.00159.90
594.40595.871.473.000.320.050.010.010.050.0040.00161.97
609.38613.954.571.660.060.120.010.000.080.0040.00162.70
636.47660.2723.801.560.140.030.010.050.050.0130.00152.97
669.34670.921.586.000.850.020.040.070.080.1310.001157.15
685.90690.534.6313.000.050.410.160.010.060.0010.00175.96
693.73695.241.514.000.031.050.010.000.010.0010.00661.12
740.65742.181.5313.000.210.010.010.120.110.0570.001121.41
DSBU-040.00154.62154.6230.110.030.010.410.040.070.0040.00597.09
Incl.0.0016.7816.787.000.080.010.630.020.150.0040.005126.66
Incl.61.7976.8115.0270.300.020.020.450.090.120.0050.005174.32
256.93272.0215.0914.060.030.970.410.010.040.0010.007100.31
276.62278.101.487.000.010.020.490.010.070.0010.00566.06
288.64290.141.5040.000.046.152.720.020.260.0080.020572.30
360.98368.437.451.000.010.910.130.020.040.0010.00471.39
377.41385.047.632.000.010.930.210.010.030.0020.00274.41
414.12415.631.511.000.010.850.590.000.000.0010.04464.52
427.17445.1517.9816.830.022.790.470.010.040.0020.019186.76
496.44499.262.822.040.011.440.110.000.020.0010.00683.24
504.88506.431.551.000.011.190.030.010.010.0010.00263.57
513.00514.481.488.000.010.751.810.000.040.0010.002123.93
524.85532.247.396.930.011.440.340.000.070.0020.004127.29
551.78553.301.521.000.071.190.070.000.070.0030.003106.03

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 down hole interval length but this will be confirmed by further drilling and geological modelling.

Chemical symbols: Ag= silver, Au = gold, Zn = zinc, Pb = lead, Cu = copper, Sn = tin, Bi = bismuth, Cd = cadmium and g Ag eq/t = grams silver equivalent per tonne. Quantities are given in percent (%) for Zn, Pb Cu, Sn, Bi and Cd and in grams per tonne (g/t) for Ag, Au and Ag eq.

Metal prices and conversion factors used for calculation of g Ag eq/t (grams Ag per grams x metal ratio) are as follows (Prices updated as of February 1, 2022, to more accurately reflect current metal prices):

ElementPrice $US
(per kg)
Ratio to Ag
Ag$722.561.0000
Sn$42.560.0589
Zn$3.300.0046
Pb$2.330.0032
Au$57,604.0079.7221
Cu$9.680.0134
Bi$12.760.0177
Cd$5.500.0076

In calculating the intersections reported in this press release 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.

The equivalent grade calculations are based on the stated metal prices and are provided for comparative purposes only, due to the polymetallic nature of the deposit. Metallurgical tests are in progress by Blue Coast Ltd. to establish levels of recovery for each element reported but currently the potential recovery for each element has not yet been established. While there is no assurance that all or any of the reported concentrations of metals will be recoverable, Bolivia has a long history of successfully mining and processing similar polymetallic deposits which is well documented in the landmark volume “Yacimientos Metaliferos de Bolivia” by Dr. Osvaldo R. Arce Burgoa, P.Geo.

Table 2: Significant Results, Surface Diamond Drilling, Santa Barbara Resource Definition Target Area – Northwest Extension as at May 25, 2022.

SANTA BARBARA RESOURCE DEFINITION TARGET ZONE
SURFACE DIAMOND DRILLING – NORTHWEST EXTENSION
Hole No.From (m)To (m)Length (m)AgAuZnPbCuSnBiCdAg eq
g/tg/t%%%%%%g/t
DSB-2650.2272.4122.192.780.010.010.030.500.010.0010.00176.10
Incl.50.2254.664.4410.900.020.000.051.480.000.0010.001214.83
104.71121.2716.5611.320.120.350.080.010.020.0090.00155.20
Incl.104.71106.221.5184.001.250.100.140.010.040.0950.001231.91
134.74145.2010.46615.710.400.200.410.170.070.0090.001735.49
194.50195.991.4943.000.210.080.150.070.080.0130.002126.20
203.69205.191.507.000.400.370.140.010.080.0130.035113.80
241.27262.3221.050.920.010.770.270.010.010.0010.00356.00
295.20298.203.0014.000.160.400.010.050.030.0040.00171.28
304.22313.208.9831.520.100.110.010.090.080.0070.001102.83
335.85362.6026.7541.080.080.360.020.060.030.0150.00293.02
357.97362.604.63195.650.050.330.010.080.040.0220.001255.05
407.51427.5720.0614.040.050.200.020.380.310.0180.001264.05
446.96449.922.965.410.060.140.010.150.120.0130.001108.61
476.98478.451.476.000.130.140.000.090.060.0120.00171.41
487.42488.931.516.000.070.010.010.100.090.0250.00184.30
530.79532.351.563.000.030.010.000.100.070.0060.00163.06
538.29572.3734.082.210.120.250.000.090.020.0030.00149.76
591.71659.2167.506.310.060.040.000.080.080.0130.00170.56
Incl.594.72612.7818.065.070.070.080.000.090.110.0210.00193.46
Incl.636.69650.1413.4513.000.030.020.000.110.120.0110.001105.19
665.21666.721.519.000.120.040.010.210.180.1070.001170.93
693.35696.403.0528.950.270.050.010.630.550.0670.001474.73
725.89727.531.640.501.200.460.000.010.000.0030.001120.48
766.09770.694.608.080.130.570.010.240.090.1720.001160.65
789.80791.301.507.000.320.720.040.410.010.7220.001256.32
806.33807.801.476.000.140.390.050.270.000.3850.001142.79

See Note Table 1.

Figure 1 – Geological Plan Map showing Major Drilling areas. Santa Barbara drilling is shown in more detail in Figure 2.
https://www.globenewswire.com/NewsRoom/AttachmentNg/d72bf44c-804d-43c5-8a0d-6d488775ab10 

Figure 2: Geological Plan Map of the Santa Barbara Mineral Resource Target Area with Diamond Drill Holes
https://www.globenewswire.com/NewsRoom/AttachmentNg/1d597c7a-be89-4fef-b7dc-ae0c15c8c1eb

Figure 3: Northeast-Southwest Geological Section looking Northwest Showing Potential Higher Grade Feed Zone in the Santa Barbara Adit Area
https://www.globenewswire.com/NewsRoom/AttachmentNg/310b1001-0864-4f3c-a249-7b31cb081f2e

Table 3: Summary of Diamond Drill Holes Completed with Assays Pending and Drill Holes in Progress at Iska Iska from May 25, 2022 press release.

SUMMARY DIAMOND DRILLING ISKA ISKA
Hole No.TypeCollar
Easting
Collar
Northing
ElevAzimuthAngleHole length
(m)
Surface Drilling Santa Barbara Breccia
DHK-24S205529.47656222.54153.4225°-60°812.5
DHK-25S205526.97656384.74178.1225°-55°803.2
Subtotal1615.7
Surface Drilling Northwest Extension Santa Barbara
DSB-16S204973.97657053.14147.1225°-65°862.0
DSB-17S205136.37656770.84168.1225°-40°841.0
DSB-18S205209.37656683.34172.5225°-40°890.4
DSB-19S205209.97656684.04172.5225°-65°803.3
DSB-23S205343.37656534.44176.1225°-40°863.2
DSB-27S205044.57656982.64150.0225°-65°800.4
Subtotal5060.3
DSB-28S205512.07656112.04162.0225°-60°In progress
DSB-29S205511.07655966.94134.0225°-60°In progress
Underground Drilling Santa Barbara Adit
DSBU-09UG205284.57656080.04167.190°-60°904.0
Subtotal904.0
DSBU-10UG205284.57656080.04167.140°-60°In Progress
Surface Drilling South Extension Santa Barbara
DSBS-02S205300.07655563.04195.0-45°1023.4
Subtotal1,724.2
Porco Target Area – Surface Drill Program Testing Magnetic Inverse Model
DPC-07S205090.17655340.94310.0235°-60°791.4
DPC-08S205585.07655423.64089.0235°-65°800.4
DPC-09S205456.77655516.64125.0180°-75°1124.4
DPC-10S205396.57655701.24148.0225°-60°1088.4
DPC-11S205456.77655516.64125.0235°-70°1065.0
DPC-12S205650.07655200.04100.0235°-70°941.4
Subtotal5,811.0
DM2-01S2059447654211367430°-60°In Progress
Total15,115.2

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 to December 17, 2021 is 40,468 m in 73 holes (26 underground holes and 47 surface holes). From re-start of drilling on January 17, 2022, an additional 16,395m has been completed bringing the overall total to 56,863m in 92 drill holes (30 underground drill holes and 62 surface drill holes) including 4 holes in progress.


Qualified Person

Dr. Osvaldo Arce, P. Geo., General Manager of Minera Tupiza, 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, and 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., Manager of Minera Tupiza. Dr. Quinton Hennigh, P.Geo., Senior Technical Advisor to Eloro and Independent Technical Advisor, Mr. Charley Murahwi P. Geo., FAusIMM of Micon International Limited are regularly consulted on technical aspects of the project.

The magnetic survey was carried out by MES Geophysics using a GEM Systems GSM-19W Overhauser magnetometer. Dr. Chris Hale, P.Geo. and Mr. John Gilliatt, P.Geo. of Intelligent Exploration provided the survey design, preparation of the maps and interpretation from data processed and quality reviewed by Rob McKeown, P. Geo. of MES Geophysics. Messrs. Hale, Gilliatt and McKeown are Qualified Persons as defined under NI 43-101. Mr. Joe Mihelcic, P.Eng., P.Geo., of Clearview Geophysics, a QP under NI 43-101, completed the 3D magnetic inversion model in consultation with Dr. Hale and Mr. Gilliatt. The Borehole IP surveys are being carried out by MES Geophysics under the supervision of Dr. Hale and Mr. Gilliatt.

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. Eloro 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 prepared 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. Turnaround time continues to improve, as laboratories return to more normal staffing levels.

About Iska Iska

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 in southern Bolivia. Eloro has an option to earn a 99% interest in Iska Iska.

Iska Iska is a major silver-tin polymetallic porphyry-epithermal complex associated with a Miocene possibly collapsed/resurgent caldera, emplaced on Ordovician 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 mineralization 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 SBBP approximately 150m southwest of the Huayra Kasa underground workings.

Subsequently, on January 26, 2021, Eloro announced significant results from the first drilling at the SBBP including the discovery hole DHK-15 which returned 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 and 0.0064% Bi from 0.0m to 257.5m. Subsequent drilling has confirmed significant values of Ag-Sn polymetallic mineralization in the SBBP and the adjacent CBP. A substantive mineralized envelope which is open along strike and down-dip extends around both major breccia pipes. Continuous channel sampling of the Santa Barbara Adit located to the east of SBBP returned 442 g Ag eq/t (164.96 g Ag/t, 0.46%Sn, 3.46% Pb and 0.14% Cu) over 166m including 1,092 g Ag eq/t (446 g Ag/t, 9.03% Pb and 1.16% Sn) over 56.19m. The west end of the adit intersects the end of the SBBP.

Since the initial discovery hole, Eloro has released a number of significant drill results in the SBBP and the surrounding mineralized envelope which along with geophysical data has defined a target zone 1400m along strike, 500m wide and that extends to a depth of 600m. This zone is open along strike to the northwest and southeast as well as to the southwest. The Company’s nearer term objective is to outline a maiden NI 43-101 compliant mineral resource within this large target area. This work is advancing well with the mineral resource targeted to be completed in Q3 2022. Exploration drilling is also planned on other major targets in the Iska Iska Caldera Complex, including the Porco and Mina 2 areas.

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 classified as a polymetallic epithermal-porphyry complex, a significant mineral deposit type in the Potosi Department, in southern Bolivia. Eloro 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 mining 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.

For further information please contact either Thomas G. Larsen, Chairman and CEO or Jorge Estepa, Vice-President 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 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 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 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.

Figure 1Figure 2Figure 3
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