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Eloro Resources Intersects 169.11 g Ag eq/t (64.30 g Ag/t, 0.96% Zn, 0.37% Pb and 0.07% Sn) over 235.55m to further Expand Higher Grade area to the North in the Eastern Part of the Santa Barbara Target 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 six (6) 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-05 and DSBU-06 are underground holes drilled from the Santa Barbara adit to test the northern extension of the higher-grade mineralized zone. Hole DSBS-01 was collared in the southern part of the Santa Barbara target zone and drilled at an azimuth of 300 and dip of -300 to test the same target. Holes DSB-24, DSB-14 and DSB-22 were drilled at azimuths of 2250 to test the northwest extension of the Santa Barbara mineralized zone approximately 100m, 200m, and 1,000m, respectively, northwest of the Santa Barbara adit underground drill bay. Drilling is continuing in the Porco area to test for a potential Sn porphyry as suggested by the 3D inverse magnetic model (see Eloro press release March 1, 2022). Thus far, 4,870 m in five (5) holes have been completed in the Porco target area with assays pending.

Overall, the Company has completed 52,384m in 89 drill holes to-date, including four holes in progress, as shown in Figures 1 and 2. Currently there are three (3) surface drills and one (1) underground drill operating at Iska Iska. Tables 1, 2 and 3 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 4 summarizes drill holes with assays pending. Highlights are as follows:

Santa Barbara Mineral Resource Definition Target Area – Underground Drilling

Underground holes DSBU-06 and DSBU-05 were both drilled on azimuth 00 and dips of -65and -400, respectively, from the Santa Barbara adit to test the northern extent of higher-grade mineralization in the eastern part of the Santa Barbara target area.

  • Hole DSBU-06 intersected 169.11 g Ag eq/t (64.30 g Ag/t, 0.96% Zn, 0.37% Pb and 0.07% Sn) over 235.55m from 0.00m to 235.55m, including a higher-grade section of 314.52 g Ag eq/t (192.18 g Ag/t, 0.22 g Au/t, 0.07% Zn, 0.41% Pb, and 0.11% Sn) over 50.68m from 24.40m to 75.08m.
    • This hole had a second major intersection of 110.57 g Ag eq/t (17.38 g Ag/t, 0.09 g Au/t, 0.30% Zn, 0.21% Pb and 0.11%Sn) over 128.44m from 264.14m to 392.58m.
    • Overall, 86% of this 599.8m long hole had reportable intersections which collectively average 129.70 g Ag eq/t.
  • Hole DSBU-05 intersected 141.05 g Ag eq/t (22.99 g Ag/t, 0.07 g Au/t, 0.18% Zn, 0.16% Pb, 0.21% Cu and 0.12% Sn) over 153.25m from 0.00m to 153.25m which included high grade sections of:
    • 201.23 g Ag eq/t (21.77 g Ag/t, 0.06 g Au/t, 0.36% Zn, 0.30 %Pb, 0.63 %Cu and 0.12% Sn) over 34.97m from 0.00m to 34.97m,
    • 206.03 g Ag eq/t (24.52 g Ag/t, 0.18 g Au/t, 0.14% Zn, 0.16 %Pb, 0.11% Cu and 0.23% Sn) over 9.05m from 76.94m to 85.99m, and
    • 242.83 g Ag eq/t (31.67 g Ag/t, 0.04 g Au/t, 0.23% Zn, 0.19% Pb, 0.17% Cu and 0.28% Sn) over 25.60m from 109.93m to 135.53m.
    • Hole DSBU-05 has a second major intersection lower in the hole from 348.08m to 526.17m of 92.47 g Ag eq/t (23.86 g Ag/t, 0.96% Zn, 0.21% Pb) over 178.09m.
    • Overall, 65% of this 641.9m long hole had reportable intersections which collectively average 107.73 g Ag eq/t.

Dr. Bill Pearson, P.Geo. Executive Vice President, Exploration commented: “As shown in Figure 3, a N-S cross section looking east, holes DSBU-06 and DSBU-05 define a significant extension to the north of the major high grade mineralized area in the southern part of Santa Barbara. Further drilling, especially deeper, is in progress to define the full extent of this important high-grade zone. Analysis of borehole IP data and the 3D inverse magnetic model by Eloro’s geophysicists Dr. Chris Hale, P.Geo. and John Gilliatt, P.Geo. shows that the Mx Chargeability indicates stronger mineralization at greater depth as shown in Figure 4. The spatial agreement between the interpolated chargeability and the mineralization intersected in these holes also suggests that the mineralized zone may dip steeply to the south. Further deeper drilling will be carried out to test this highly prospective target. Drilling will also be carried out from the southwest to test the Northwest Extension target as the best mineralization intersected thus far is in the southern part of this target zone.”

Dr. Pearson continued, “The addition of a fourth drill and the more rapid turnaround from both our assay laboratories at ALS and AHK has allowed us to increase the pace of the exploration drill program considerably. In the next 2-3 weeks we expect to have the GeologicAI core scanner on site. We have worked closely with GeologicAI to build the database for the scanner from all our available geological and geochemical information. The scanner will allow us to better outline and track the mineral and metal zonation at Iska Iska, which is critical to efficiently explore this remarkable mineralizing system which remains open in all directions.”

Dr. Osvaldo Arce, P.Geo., General Manager of Eloro’s Bolivian subsidiary Minera Tupiza S.R.L. (“Minera Tupiza”), further commented: “The dacitic volcanic domes and breccia pipes at Iska Iska, which are the primary hosts of the epithermal polymetallic Ag-Zn-Pb-Sn mineralization, appear to extend to a depth of at least 1km. These intrude altered granodiorite and intrusion breccias that are the primary hosts of xenothermal tin and other higher temperature metals such as bismuth and tungsten. The mineralization is quite complex in detail with extensive breccias, veins, veinlets, stockworks and disseminations. The likely primary distribution of both epithermal and xenothermal mineralization is indicated by the metal zonation, alteration zonation and geophysical responses. This data indicates that the mineralized system strengthens with depth and may be much more extensive than indicated in shallower drill holes.”

Santa Barbara Mineral Resource Definition Target Area – Surface Drilling

Hole DSBS-01 was collared in the southern part of the Santa Barbara target zone as shown in Figure 2. This hole was drilled at an azimuth of 300 with a dip of 300 to a length of 700.8m.

  • 163.23 g Ag eq/t (2.07 g Ag/t and 0.27% Sn) over 33.23m from 58.66m to 90.94m including 560.74 g Ag eq/t (2.07 g Ag/t and 0.94% Sn) over 7.61m from 63.15m to 70.76m,
  • 54.95 g Ag eq/t (2.94 g Ag/t, 0.14% Pb, and 0.30% Cu) over 22.58m from 225.36m to 247.94m including 129.69 g Ag eq/t (3.00 g Ag/t and 0.88% Cu) over 3.04m from 225.36m to 228.40m.
  • 90.79 g Ag eq/t (5.36 g Ag/t, 0.85% Zn and 0.44% Pb) over 43.60m from 285.56m to 329.16m including 146.04 g Ag eq/t (2.01 g Ag/t, 1.36% Zn, 0.49% Pb and 0.09% Sn) over 4.59m from 294.43m to 299.02m and 200.55 g Ag eq/t (12.68 g Ag/t, 1.95% Zn, 0.93% Pb and 0.11% Sn) over 8.97m from 320.19m to 329.16m
  • 110.40 g Ag eq/t (6.66 g Ag/t, 1.80% Zn and 0.40% Pb) over 55.63m from 414.88m to 470.51m including 351.80 g Ag eq/t (28.05 g Ag/t, 0.19 g Au/t, 4.99% Zn, 1.26% Pb and 0.22% Cu) over 4.45m from 416.39m to 40.84m and 153.44 g Ag eq/t (4.34 g Ag/t, 2.95% Zn and 0.32% Pb) over 9.04m from 437.41m to 446.45m.
  • 108.55 g Ag eq/t (12.96 g Ag/t, 0.11 g Au/t, 1.43 % Zn and 0.43% Pb) over 31.71m from 491.56 to 523.27m including 192.64 g Ag eq/t (27.91 g Ag/t, 0.25 g Au/t, 2.29% Zn and 0.89% Pb) over 10.63m from 509.62m to 520.25m.
  • 68.66 g Ag eq/t (8.94 g Ag/t, 1.02% Zn and 0.20% Pb) over 25.49m from 611.34m to 636.83m including 114.99 g Ag eq/t (19.98 g Ag/t, 1.65% Zn and 0.35% Pb) over 8.93m from 627.90 to 636.83m
  • with further intervals of reportable mineralization continuing to near the terminus of the hole representing the furthest east and some of the deepest mineralization yet encountered at Santa Barbara.

Further drilling is planned south-southeast of this area to continue to trace the full extent of the Ag-Au-Zn-Pb-Cu-Sn polymetallic epithermal system.

Northwest Extension, Santa Barbara Mineral Resource Definition Target Area

Results for three (3) additional drillholes all drilled at an azimuth of 2250 in the Northwest Extension Target Area of Santa Barbara (see Figure 2) have been received. Holes DSB-24 (-650), DSB-14 (-650) and DSB-22 (650) were collared 100m, 200m and 1000m, respectively northwest of the Santa Barbara adit drill bay.

Hole DSB-24 intersected 22 reportable intersections as shown in Table 2 of which the best results were deeper in the hole as follows:

  • 120.18 g Ag eq/t (41.22 g Ag/t, 0.34% Zn, 0.23% Pb, and 0.09% Sn) over 33.23m from 371.50m to 386.58m,
  • 132.43 g Ag eq/t (16.72 g Ag/t, 0.30% Zn, 0.10% Pb, and 0.16% Sn) over 25.36m from 398.61m to 423.97m, and,
  • 197.26 g Ag eq/t (5.25 g Ag/t, 0.73% Zn, 0.08% Pb, and 0.26% Sn) over 23.63m from 483.64m to 507.27m.

Hole DHK-14, which was collared 100m northwest of Hole DSB-24, intersected 29 reportable intersections of which the best results were as follows:

  • 87.26 g Ag eq/t (17.05 g Ag/t, 0.06 g Au/t, 0.51% Pb and 0.28% Cu) over 37.57m from 120.36m to 157.93m
  • 58.63 g Ag eq/t (5.26 g Ag/t, 0.31%Zn and 0.21% Pb) over 33.11m from 314.33m to 347.44m, including a higher-grade section with 96.83 g Ag eq/t (7.83 g Ag/t, 0.57%Zn, 0.25% Pb and 0.09% Sn) over 10.54m from 314.33m to 324.87m
  • 87.26 g Ag eq/t (17.05 g Ag/t, 0.06 g Au/t, 0.51% Pb and 0.28% Cu) over 37.57m from 120.36m to 157.93m
  • 185.94 g Ag eq/t (10.38 g Ag/t, 0.09 g Au/t, 1.43% Zn, 0.20% Pb, 0.09% Cu and 0.14% Sn) over 16.86m from 597.64m to 614.50m

Hole DHK-22 is the most northwesterly drill hole completed thus far, approximately 1,000m (1km) northwest of the Santa Barbara Drill Bay (see Figure 2). There were 10 reportable intersections returned from this hole with the best results as follows:

  • 70.09 g Ag eq/t (2.99 g Ag/t and 0.42% Cu over 28.73m from 38.77m to 67.50m including 110.81 g Ag eq/t (2.75 g Ag/t and 0.75% Cu) over 12.15m from 52.33m to 64.48m
  • 107.19 g Ag eq/t (11.81 g Ag/t, 0.12 g Au/t, 0.23% Zn, 0.13% Cu and 0.10 %Sn) over 46.38m from 479.32m to 525.70m including 398.55 g Ag eq/t (39.32 g Ag/t, 0.18% Zn. 0.50% Cu and 0.46% Sn) over 7.50m from 479.32m to 486.82m

Table 1: Significant Results, Underground Diamond Drilling, Santa Barbara Resource Definition Target Area as at April 27, 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-060.00235.55235.5564.300.090.690.370.060.070.0160.007169.11
Incl.24.4075.0850.68192.180.220.070.410.090.110.0590.005314.52
264.14392.58128.4417.380.090.300.210.010.110.0020.001110.57
Incl.274.69292.8618.1711.620.010.450.320.010.250.0010.002190.81
Incl.319.04331.0311.9914.870.010.280.250.020.260.0010.001193.82
401.61415.1313.5247.180.090.580.090.010.030.0030.002101.67
421.19434.6713.4812.230.010.400.110.010.020.0020.00250.62
445.18482.8037.6219.380.040.840.160.010.060.0020.002104.11
497.86520.4822.6222.320.040.510.110.010.030.0130.00171.31
528.92592.3063.389.910.210.540.140.010.040.0020.00280.81
DSBU-050.00153.25153.2522.990.070.180.160.210.120.0100.003141.05
Incl.0.0034.9734.9721.770.060.360.300.630.110.0070.003201.23
Incl.76.9485.999.0524.520.180.140.160.110.230.0130.004206.03
Incl.109.93135.5325.6031.670.040.230.190.170.280.0140.001242.83
190.40212.9422.546.060.040.420.410.020.040.0130.01273.74
229.48235.546.066.190.020.430.100.050.050.0040.00367.75
249.08261.1012.0218.110.270.070.230.020.010.0050.01162.92
285.03306.0020.9757.040.060.060.140.040.030.0080.00794.58
249.08261.1012.0218.110.270.070.230.020.010.0050.01162.92
348.08526.17178.0923.860.030.960.210.010.020.0130.00492.47
535.29541.406.116.680.090.840.120.000.050.0040.00285.49
551.91553.441.5326.000.092.560.080.010.050.0380.007189.67
583.55585.041.492.000.031.440.010.010.020.0010.00484.03
605.90610.324.424.610.052.000.040.010.010.0010.007111.87

 

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 as at April 27, 2022.

SANTA BARBARA RESOURCE DEFINITION TARGET ZONE
SURFACE DIAMOND DRILLING – SOUTH SANTA BARBARA AREA
Hole No.From (m)To (m)Length (m)AgAuZnPbCuSnBiCdAg eq
g/tg/t%%%%%%g/t
DSBS-0113.4230.2916.870.910.010.000.010.000.090.0010.00152.59
58.6690.9432.282.070.010.000.030.000.270.0010.001163.23
Incl.63.1570.767.613.730.020.000.040.010.940.0010.001560.74
98.94100.451.514.000.010.000.030.010.090.0010.00161.61
225.36247.9422.582.940.010.030.140.300.010.0010.00154.95
Incl.225.36228.403.043.000.010.070.070.880.000.0010.001129.69
270.52271.951.435.000.020.041.410.020.020.0010.00164.90
285.56329.1643.605.360.030.850.440.020.050.0020.01090.79
Incl.294.43299.024.592.010.071.360.490.050.090.0040.012146.04
Incl.320.19329.168.9712.680.031.950.930.010.110.0010.012200.55
344.23345.571.341.000.011.100.260.000.010.0010.00667.32
357.63359.191.563.000.011.310.270.000.010.0010.00275.16
374.14375.691.552.000.021.350.280.010.000.0010.00476.69
414.88470.5155.636.660.031.800.400.030.000.0030.005110.40
Incl.416.39420.844.4528.050.194.991.260.220.010.0320.019351.80
Incl.437.41446.459.044.340.012.950.320.010.000.0010.008153.44
484.02485.541.523.000.011.270.140.010.000.0010.00368.15
491.56523.2731.7112.960.111.430.430.020.010.0040.005108.55
Incl.509.62520.2510.6327.910.252.290.890.030.010.0080.009192.64
541.79549.587.792.690.011.380.100.000.000.0010.00572.22
591.69594.703.013.510.021.240.130.010.000.0010.00368.82
599.26600.791.5313.000.134.030.320.010.010.0030.018224.85
611.34636.8325.498.940.031.020.200.010.000.0010.00368.66
Incl.627.90636.838.9319.980.041.650.350.010.000.0030.006114.99
668.88670.411.53111.000.010.273.640.000.000.0010.001242.99
683.93689.865.939.730.112.690.350.020.000.0030.013157.74

See Note Table 1.

Table 3: Significant Results, Surface Diamond Drilling, Santa Barbara Resource Definition Target Area – Northwest Extension as at April 27, 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-1460.1761.691.529.002.080.000.030.040.000.0010.001182.35
82.8084.441.6427.000.390.000.020.040.000.0010.00165.49
97.86100.832.9768.630.010.000.130.160.000.0010.00197.15
120.36157.9337.5717.150.060.010.510.280.020.0040.00187.26
180.45196.9116.467.950.040.010.190.260.010.0010.00158.44
202.91213.5510.648.750.010.010.210.150.040.0010.00162.48
231.57236.384.812.010.010.040.170.290.010.0010.00554.82
267.76293.3625.601.570.010.710.190.010.020.0010.00354.95
314.33347.4433.115.260.010.310.210.010.050.0010.00458.63
Incl.314.33324.8710.547.830.020.570.250.010.090.0010.00396.83
367.01368.541.538.000.010.260.580.010.090.0040.00591.01
382.18389.597.4123.890.010.320.120.010.070.0030.00187.18
398.65410.6812.0326.580.060.140.050.010.040.0030.00165.02
430.28431.781.506.000.600.150.190.020.030.0080.00185.91
448.25454.205.953.980.030.680.200.020.020.0010.00258.96
464.72467.783.0618.830.011.240.990.020.040.0010.006137.60
475.27478.202.935.470.010.581.120.000.010.0010.04176.07
481.22482.721.509.000.020.010.190.000.020.0010.01077.26
518.20521.072.8729.090.100.401.190.010.450.0030.008360.91
528.61530.101.498.000.030.160.250.020.100.0010.01189.86
549.27555.125.856.620.010.270.210.020.060.0010.00167.81
567.11570.113.007.820.020.640.160.020.070.0010.00386.20
597.64614.5016.8610.380.091.430.200.090.140.0070.005185.94
632.50633.921.427.000.051.270.080.070.060.0020.001118.00
650.26654.834.574.900.051.410.090.110.030.0020.001112.37
841.10842.601.504.000.020.180.040.450.020.0020.00185.19
884.56886.051.491.000.050.490.030.140.020.0230.00264.76
889.06890.561.504.000.020.760.140.150.030.0070.00281.53
893.59895.061.475.000.020.730.190.230.020.0050.00389.45
955.14959.624.482.330.060.090.020.170.000.1530.00163.84
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-240.008.798.794.480.210.010.120.010.060.0050.00160.86
75.19106.4831.2914.700.030.020.150.100.010.0010.00144.47
137.98142.434.450.830.450.200.160.010.010.0010.01661.21
162.03163.571.543.000.020.940.410.080.090.0020.026126.97
171.08198.0827.006.750.030.340.230.030.030.0010.03256.40
213.00225.0612.0617.980.090.640.370.040.020.0050.00286.19
231.20232.611.4110.000.040.160.080.060.050.0020.00161.51
240.13244.644.517.000.130.400.170.030.030.0060.00463.72
255.14258.143.0015.450.120.400.140.010.020.0140.00362.14
262.59264.081.4924.000.010.180.110.000.030.0560.00162.66
280.53295.4614.939.510.030.480.080.020.020.0090.00249.93
340.05344.534.488.760.010.480.430.010.020.0040.01559.13
371.50386.5833.2341.220.030.340.230.010.090.0010.002120.18
Incl.353.35368.5215.1734.920.020.480.310.010.100.0010.003130.97
398.61423.9725.3616.720.020.300.100.010.160.0010.001132.43
450.91461.5010.5922.910.020.030.010.020.040.0010.00152.03
483.64507.2723.635.250.030.730.080.000.260.0010.005197.26
529.03533.644.618.010.070.110.060.000.090.0010.00174.66
562.00563.501.509.000.070.430.220.020.070.0010.00184.64
593.43594.961.539.000.020.090.020.080.080.0010.00171.81
656.43663.917.482.220.260.590.090.010.030.0020.00273.60
680.29684.934.644.950.110.300.030.040.030.0090.00151.68
701.50702.971.473.000.040.410.010.060.050.0010.00164.81
Hole No.From (m)To (m)Length (m)AgAuZnPbCuSnBiCdAg eq
g/tg/t%%%%%%g/t
DSB-2238.7767.5028.732.990.010.000.080.420.010.0010.00170.09
Incl.52.3364.4812.152.750.010.000.080.750.010.0010.001110.81
117.90119.411.512.000.990.020.060.010.010.0180.01392.81
140.44142.061.623.000.100.790.110.010.010.0010.07263.27
209.50211.021.522.000.010.100.000.010.120.0010.00178.13
268.23269.691.4642.000.040.030.160.030.090.0010.001108.86
280.22281.751.53133.000.130.310.030.020.020.0500.001180.55
280.22296.718.935.470.021.160.070.010.010.0010.00170.72
455.21456.731.5225.002.020.400.010.090.070.0690.001267.16
479.32525.7046.3811.810.120.230.000.130.100.0120.001107.19
Incl.479.32486.827.5039.320.090.180.010.500.460.0300.001398.55
593.08609.6416.567.420.180.760.030.130.020.0020.00184.87

See Note Table 1.

Figure 1 – Geological Plan Map showing Major Drilling areas. Santa Barbara is shown in more detail in Figure 2.
https://www.globenewswire.com/NewsRoom/AttachmentNg/984e7eb9-89cc-4d12-af54-aeab0ffceac2

Figure 1
Figure 2: Geological Plan Map of the Santa Barbara Mineral Resource Target Area with Diamond Drill Holes
https://www.globenewswire.com/NewsRoom/AttachmentNg/c780052e-57da-4d04-9158-3c2958d0e26d

Figure 2

Figure 3: North-South Geological Section looking East across High Grade Target Area in Santa Barbara
https://www.globenewswire.com/NewsRoom/AttachmentNg/d07121ff-91b3-4145-9982-35fe7147ad31

Figure 3

Figure 4: Borehole Induced Polarization (IP) Mx Chargeability Section with Holes DSBU-05 and DSBU-06 looking east.
https://www.globenewswire.com/NewsRoom/AttachmentNg/76c9de76-9191-4af4-90de-8be1b4d8d5b5

Figure 4

Table 4: Summary of Diamond Drill Holes Completed with Assays Pending and Drill Holes in Progress at Iska Iska from April 27, 2022 press release.

SUMMARY DIAMOND DRILLING ISKA ISKA
Hole No.TypeCollar EastingCollar NorthingElevAzimuthAngleHole length (m)
Surface Drilling Santa Barbara Breccia
DHK-24S205529.47656222.54153.4225°-60°In Progress
DHK-25S205526.97656384.74178.1225°-55°In Progress
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-26S205044.57656982.64150.0225°-40°815.4
DSB-27S205044.57656982.64150.0225°-65°800.4
Subtotal5,875.7
Underground Drilling Santa Barbara Adit
DSBU-04UG205283.77656071.64168.2180°-20°570.0
DSBU-07UG205284.57656080.04167.1235°-50°800.9
DSBU-08UG205284.57656080.04167.1200°-50°866.8
DSBU-09UG205284.57656080.04167.190°-60°904.0
Subtotal3,141.7
DSBU-10UG205284.57656080.04167.140°-60°In Progress
Surface Drilling South Extension Santa Barbara
DSBS-01S205300.07655563.04195.030°-30°700.8
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
Subtotal4,869.6
DPC-12S205650.07655200.04100.0235°-70°In Progress
Subtotal15,611.2

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 11,196m has been completed bringing the overall total to 52,384m in 89 drill holes (30 underground drill holes and 59 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.

https://www.elororesources.com/

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Grid Metals Completes 14 Drill Holes at Makwa Nickel Deposit, Manitoba Canada

Grid Metals Corp. (the “Company“) (TSXV:GRDM)(OTCQB:MSMGF) today provided a drill update on its Makwa Nickel Property. Makwa which is part of the Makwa Mayville Ni-Cu-PGM Project located in southeastern Manitoba – where the Company has just completed 14 exploration drill holes. The current Makwa drill program focused on four geophysical targets (MK02-MK05) all located close to the 2014 pit-constrained Makwa Ni-Cu-PGM resource. Results from the first drill hole at the MK02 target intersected two separate intervals of <1 metre of massive sulfide mineralization with nickel grades greater than 1.5% within a broader mineralized package including 15 metres of 0.64% and 3.5 metres of 1.14% nickel equivalent grade. Drilling at Makwa is ongoing. Drilling is also continuing at the Company’s Donner Lake Lithium Project located 35 km north.

Drill hole MK22-02 was drilled underneath the former producing Dumbarton Mine horizon at the Makwa Property. Assays successfully confirm that there is nickel copper cobalt sulfide mineralization remaining below the former mine workings. The geophysical anomaly (MK02) that was targeted has a minimum strike length of 400 meters and extends at least 300 metres below the mined out part of the Dumbarton deposit. Six additional drill holes have been completed on the MK02 target with results pending. Initial results from MK22-02 are tabulated below.

Hole IDFrom (m)To (m)Length (m)Ni (%)Cu (%)Co (%)Pd (g/t)Pt (g/t)Au (g/t)NiEq* (%)
MAK22-02174.76190.0215.260.390.290.040.010.010.020.64
inc.181.00189.008.000.500.360.040.010.010.020.81
and inc.183.00186.553.550.790.280.070.020.010.011.14
and inc.184.53186.552.020.970.240.080.020.020.011.34
with184.53185.110.581.630.120.120.020.010.012.07
and with186.19186.550.361.530.120.120.030.030.011.97

Above: Highlights for MAK22-02, Dumbarton Zone, Makwa nickel property. NiEq (%) = the nickel equivalent grade that was calculated using the equation: NiEq (%) = Ni (%) + 0.469 * Cu (%) + 3.125 Co (%) + 0.319 Pd (g/t) + 0.21 * Pt (g/t) + 0.319 Au (g/t). The metal price assumptions in $US used to determine the equivalency factors are: Ni – $8.00/lb; Cu – $3.75/lb; Co – $25.00/lb; Pd – $1,750/oz; Pt – $1,150/oz; Au – $1,750/oz. na = not analyzed. The true thickness of the Dumbarton Zone intercepts reported here is estimated to be 60-70% of the reported interval lengths.

DiagramDescription automatically generated

Above: Plan view map of MK02 EM conductor plates and Grid Metal’s 2022 drilling locations. The modeled plates have a near vertical orientation. The Dumbarton Zone was underground mined between 1970 and 1973 to a depth of ~ 150m ( source Manitoba Mineral Inventory File No.999 ) The Grid 2022 drill holes intersected the Dumbarton Zone below the historical mine workings. Historical drill hole MM09-139 (far left) intersected 3m @ 0.85% nickel and 0.23% copper from 141m depth. The B series holes (1953) shown on this map were drilled by Falconbridge Ltd. in the area that was mined out or just below the historical underground mine workings. They include historical intersections of the Dumbarton Zone as reported by Falconbridge Ltd. (internal company drill report) of 18.3m of 1.05% Ni including 11.0m of 1.52% Ni in hole B50 and 7.6m of 1.16% Ni in hole B46.

Makwa Nickel Project – Overview and Current Drill Program

  • The Makwa Nickel Deposit was the subject of a standalone positive feasibility study completed in 2007 (Micon International) for the mining and production of nickel concentrate for sale to a smelter. National Instrument 43-101 resources at Makwa included in the 2014 PEA ( RPA Inc) are 7.2Mt grading 0.61% nickel; 0.13% copper 0.36 g/t Pd and 0.10 g/t Pt in the Indicated category – all open pit constrained. The Makwa resource does not include any material from the Dumbarton Zone.
  • The Makwa Deposit was incorporated into a 2014 PEA (RPA Inc.) combining the Makwa Deposit and the Mayville Cu-Ni-PGM Deposit located ~35 km to the north of Makwa. The Mayville NI 43-101 resource is a pit constrained 26.6 Mt grading 0.44% Cu; 0.18%Ni; 0.14 Pd – Indicated.
  • The last drilling at Makwa was in 2010.
  • The current exploration drilling program is partially guided by an extensive 2018 ground EM survey at Makwa which defined many new exploration targets
  • The 14 drill holes completed this winter have tested four of the identified geophysical targets in close proximity to the Makwa open pit resource.
  • The main targets are 1) MK04 – the deeper extension of the main mineralized zone underneath the resource pit shell; 2 and 3MK02 and MK03, both of which are associated with the along strike extension of the Dumbarton Zone ; and 4) the MK05 target, which may represent a southern offset of the main Makwa Ni-Cu-PGM deposit. MK-05 is currently being drill tested from the south.
DiagramDescription automatically generated

Above: Location of the 14 diamond drill holes completed at the Makwa nickel property in January and February. Also shown are the EM conductor plate targets discussed above and relevant historical drill hole ( red line traces ) that intersected the edges of these plates. Drilling is continuing at the MK05 Plate target.

EM plate targets were generated from the Company’s 2018 ground EM survey. Most of these EM conductors have been partially drill tested by limited historical drilling that, combined with the 2022 drilling results, will give a sense of their resource potential. Hole specifications for each of the 14 holes completed this winter are provided in the Appendix.

Makwa Mayville Ni-Cu-PGM-Co Project

The project has many key attributes including defined NI 43-101 resources, the project location in southeastern Manitoba serviced with renewable power and all season roads, extensive metallurgical work and previous economic studies, e.g., the 2007 PFS authored by Micon International and the 2014 PEA on the combined Makwa and Mayville deposits in 2014 authored by RPA Inc. Importantly the Company has an exploration agreement in place with the Sagkeeng First Nation on whose traditional lands the projects are situated. Additional information about exploration results and a project development schedule will be released in the coming weeks

Dr. Dave Peck, the Company’s Vice President of Exploration and Business Development stated: “The resumption of activity at our Makwa nickel project is ideally timed to rising nickel prices and heightened investor and end user interest in nickel sulfide projects with strong ESG credentials located in Tier 1 mining jurisdictions. The new drilling at Makwa was designed to test prominent geophysical targets associated with known trends of nickel-copper sulfide +/- PGM mineralization that sit outside the current pit constrained mineral resources.”

Donner Lake Lithium Project – Drilling Continuing

Drilling is also ongoing at the Company’s 75% owned Donner Lake lithium project, located directly south of the Mayville Cu-Ni-PGM deposit in the northern part of the Bird River greenstone belt – see location map, below. The new drilling is targeting spodumene-bearing granitic pegmatite dykes that are part of the world class Winnipeg River pegmatite field, which hosts Canada’s only current spodumene producer – the Tanco Mine, which has been producing cesium and/or tantalum +/- lithium from the Bernic Lake pegmatite deposit since 1968. The first two drill results from Donner Lake were announced on April 5, 2022 by the Company. Additional drilling results will be released over the coming weeks.

DiagramDescription automatically generated

Above: Location of Grid Metals’ Makwa and Mayville Ni-Cu-PGM properties and Donner Lake lithium property in the Bird River greenstone belt, southeastern Manitoba.

Quality Assurance and Quality Control

Grid Metals applies best practice quality assurance and quality control (“QAQC”) protocols on all of its exploration programs. For the Makwa drilling program, core was logged and sampled at the Company’s core facility located on the Makwa Property. Standard 1.0 metre sample lengths were used. Samples were bagged and tagged and then transported by secure carrier to the Actlabs (Thunder Bay) laboratory for sample preparation and analysis for nickel, copper, cobalt and selected major and trace element abundances using a multi-acid digestion method followed by ICP-OES analysis. Samples were also analyzed for Pd, Pt and Au using a lead collection 30 g fire assay method followed by ICP-OES analysis. The Company is using two certified reference materials (“CRMs”) and one analytical blank for the Makwa program to monitor analytical accuracy and check for cross contamination between samples. The analytical results for the two CRMs and the blank for MAK22-02 results reported here did not show any significant bias compared to the certified values and the fell within the acceptable limits of variability.

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

About Grid Metals Corp.

Grid Metals Corp. has a portfolio of exploration and development stage properties focused on battery metals (nickel, copper, platinum group metals, cobalt, palladium and lithium) which are located in the Provinces of Manitoba and Ontario, Canada. In Manitoba the Company is currently drilling at both its Makwa Nickel Property and its Donner Lake Lithium Property.

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: 647 201 6844 Email: rd@gridmetalscorp.com
David Black – Investor Relations Email: info@gridmetalscorp.com 416 955-4773

Appendix: Specifications for drill holes MAK22-01 to 14, Makwa nickel property. Collar coordinates are based on a NAD83 UTM Zone 15N projection.

Hole NumberTarget PlateEasting (m)Northing (m)Elevation (m)Azimuth (degrees)Dip (degrees)Length (m)
MAK22-01MK053259275593239298180-45432
MAK22-02MK023266995593745310180-45446
MAK22-03MK053259275593239298160-45356
MAK22-04MK023266995593745310180-60371
MAK22-05Met Test3253915592980287360-60224
MAK22-06MK023266995593745310205-55404
MAK22-07MK043254705592913287295-62329
MAK22-08MK023266995593745310155-55398
MAK22-09MK043254705592913287275-52302
MAK22-10MK04325470559291328716-61338
MAK22-11MK023254705592913287135-52302
MAK22-12MK033259275593239298322-45299
MAK22-13MK023265795593652309160-45130
MAK22-14MK023265795593652309210-60260

SOURCE: Grid Metals Corp.

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Eloro Resources Intersects 182.34g Ag eq/t (29.85g Ag/t, 1.01% Zn, 0.64% Pb, 0.11% Cu and 0.11% Sn) over 351.0m in Southern Part of Santa Barbara Target at 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 two (2) diamond drill holes from its on-going drilling program at the Iska Iska silver-tin polymetallic project in the Potosi Department, southern Bolivia. Hole METSBUG-01 is an underground hole drilled for metallurgical sampling purposes from the Santa Barbara adit, while step-out hole DSB-25 was drilled approximately 400m northwest of hole METSBUG-01. Both holes intersected major new extensions of the already large Santa Barbara mineralized zone.

The Company has completed 53,445m in 83 drill holes, including three holes in progress, as shown in Figure 1. Table 1 lists significant assay results from holes METSBUG-01 and DSB-25. Prices used for calculating Ag equivalent grades are as outlined in Eloro’s February 1, 2022, press release. Table 2 summarizes drill holes with assays pending. Highlights are as follows:

Santa Barbara Mineral Resource Target Area

Hole METSBUG-01, an underground hole drilled for metallurgical sampling purposes from the Santa Barbara adit, was drilled at azimuth 10 degrees at a dip of -35 degrees to intersect the midpoint of an intercept of 184.97g Ag eq/t (29.53g Ag/t, 0.08g Au/t, 1.45% Zn, 0.59% Pb, 0.08% Cu, 0.056% Sn) over 257.5m in discovery hole DHK-15 (see Eloro’s January 26, 2021 press release; 164.87g Ag eq/t recalculated, up from 129.60 g Ag eq/t, using current metal pricing) to provide a representative sample in the higher-grade mineralized area of the Santa Barbara breccia pipe (Figures 1 and 2 and Table 1).

This hole intersected 182.34g Ag eq/t (29.85g Ag/t, 1.01% Zn, 0.64% Pb, 0.11% Cu and 0.11% Sn) over its full length of 351.0m including higher-grade sections of:

  • 261.14g Ag eq/t (24.65g Ag/t, 0.15% Zn, 0.14% Pb, 0.81% Cu and 0.19% Sn) over 22.56m from 2.94m to 25.50m,
  • 599.26g Ag eq/t (208.14g Ag/t, 0.28% Zn, 0.51% Pb, 0.56% Cu and 0.41% Sn) over 17.60m from 46.66m to 64.26m. This section included a remarkable sample over 1.42m from 55.43m to 56.85m which assayed 5,106g Ag eq/t (1,730g Ag/t, 0.42g Au/t, 2.15% Bi, 6.33% Cu and 3.55% Sn),
  • 324.72g Ag eq/t (12.49g Ag/t, 1.88% Zn, 1.26% Pb, 0.02% Cu and 0.31% Sn) over 30.01m from 92.89m to 122.90m,
  • 292.78g Ag eq/t (55.64g Ag/t, 2.70% Zn, 1.31% Pb, 0.02% Cu and 0.12% Sn) over 31.72m from 241.28m to 273.00m

As shown in Figure 2, a SW-NE cross section looking northwest, hole METSBUG-01, along with previously released drill holes METSBUG-02 (see Eloro’s February 23, 2022 press release) and DSBU-03 (see Eloro’s March 1, 2022 press release) define a major high grade mineralized area that extends across a width of approximately 600m to a depth of a least 600m and is open along strike to the northwest and at depth. It is significant to note that hole METSBUG-01 was mineralized from top to bottom and terminated in mineralization.

Importantly, mineralization, especially areas with higher tin grades, appears coincident with elevated magnetic susceptibility (Figure 2). Areas of elevated magnetic susceptibility appear much more expansive than current volumes of rock that have been drill tested, a good indication that more mineralization is yet to be discovered.

Step-out hole DSB-25, drilled approximately 400m northwest of hole METSBUG-01, intersected 25 reportable intersections with a best result of 205.13g Ag eq/t (25.01g Ag/t, 0.1 g Au/t, 0.13% Cu and 0.25% Sn) over 81.11m from 356.93m to 439.04m including a higher-grade section of 428.83g Ag eq/t (55.88 g Ag/t, 0.19 g Au/t, 0.28% Cu and 0.53 %Sn) over 17.93m from 379.18m to 397.11m. This hole continues to confirm the extent of significant mineralization in the northwest extension area of Santa Barbara.

Tom Larsen, CEO of Eloro, commented: “We are continuing to intersect wide areas of higher-grade mineralization which will enhance our planned inaugural National Instrument 43-101 mineral resource estimate. Longer holes are planned in this very prospective area of the Santa Barbara target to better define the full extent of the higher-grade areas which remain open both along strike and downdip.”

Dr. Bill Pearson, P.Geo., Eloro’s Executive Vice President Exploration, added: “We are continuing to expand the extent of the remarkable silver-tin polymetallic mineralized system at Iska Iska. Additional holes are in progress to test the downdip and along strike extent of the high-grade zone in the southeastern part of the Santa Barbara target area. Drilling is also in progress, as outlined in the Eloro press release of March 1, 2022, to test the major targets in the Porco area indicated by the 3D inverse magnetic susceptibility model.”

Dr. Osvaldo Arce, P.Geo., General Manager of Eloro’s Bolivian subsidiary Minera Tupiza S.R.L. (“Minera Tupiza”), further commented: “Recent assays from drillholes METSBUG 1 and 2 and DSBU-03 have intersected highly enriched zones of Sn, Ag, Pb and Cu with local Au and Bi in stockworks, disseminations and a variety of breccia types including both volcanic explosive and later structurally controlled breccias. The strength and intensity of mineralization in these holes along with the elevated magnetic susceptibility which extends much further along strike and downdip suggests the possibility of a major feeder in this area.”

Table 1: Significant Results, Diamond Drilling, Santa Barbara Resource Definition Target Area as at March 16, 2022.

SANTA BARBARA RESOURCE DEFINITION TARGET ZONE
UNDERGROUND METALLURGICAL DRILL HOLE
Hole No.From (m)To (m)Length (m)AgAuZnPbCuSnBiCdAg eq
g/tg/t%%%%%%g/t
METSBUG-010.00351.00351.0029.850.031.010.640.110.110.020.01182.34
Incl2.9425.5022.5624.650.050.150.140.810.190.010.00261.14
Incl46.6664.2617.60208.140.070.280.510.560.410.210.01599.26
Incl92.89122.9030.0112.490.031.881.260.020.310.000.01324.72
Incl241.28273.0031.7255.640.022.701.210.020.120.000.01292.78
NORTHWEST EXTENSION DRILL HOLE
DSB-2528.4629.801.3413.000.250.011.970.050.000.0420.001112.56
74.10114.6040.507.340.040.000.170.010.080.0020.00164.16
147.02148.401.3830.000.070.010.270.010.080.0140.00197.17
188.92191.963.0453.790.040.000.980.010.020.0010.001101.78
205.45232.4627.0139.470.050.010.370.060.040.0030.00189.29
253.43260.907.471.100.030.090.750.030.030.0010.01053.58
268.39284.9616.5716.470.030.180.840.020.040.0020.00480.33
308.96347.9739.016.710.050.180.080.090.040.0020.00355.16
356.93439.0482.1125.010.110.010.030.130.250.0310.001205.13
Incl.379.18397.1117.9355.880.190.010.040.220.530.0860.001428.83
463.20511.8648.661.090.020.030.470.010.120.0010.02994.26
539.20542.203.004.500.080.870.200.010.010.0060.03067.28
564.70570.695.992.610.040.020.010.050.090.0060.00365.41
591.03593.992.964.480.070.010.000.150.140.0350.001120.46
612.04615.032.996.990.120.000.010.080.080.0050.00173.20
630.04643.5213.483.990.170.010.000.090.040.0050.00157.42
663.01664.511.507.000.060.040.020.570.020.3630.001168.61
682.50685.533.0310.530.020.050.000.260.140.0040.001133.31
691.50697.506.004.370.160.100.010.050.040.0780.00167.41
703.50713.8710.379.460.530.390.010.080.060.1830.001145.81
719.90725.825.924.290.030.390.150.060.050.0140.00167.07
739.43742.412.983.000.070.300.070.060.040.0610.00169.46
755.97760.524.554.890.170.180.030.080.070.0430.00186.36
766.54768.031.497.000.040.190.030.190.090.0320.001101.64
772.54778.596.056.230.100.750.050.200.060.0420.003121.20
796.54798.031.493.000.090.110.090.060.030.3470.001107.40

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: Summary of Diamond Drill Holes Completed with Assays Pending and Drill Holes in Progress at Iska Iska from March 16, 2022 press release.

Hole No.TypeCollar EastingCollar NorthingElevAzimuthAngleHole Length m
Surface Drilling Northwest Extension Santa Barbara
DSB-14S205283.07656587.24175.0225-65968.5
DSB-16S204973.17657053.84165.0225-65862.0
DSB-17S7656765.4205131.34173.0225-40841.0
DSB-18S7656676.3205207.14175.0225-40890.4
DSB-19S7656676.3205207.14175.0225-65803.3
DSB-22S7657208.4204799.44145.0225-40258.4
DSB-23S205341.07656535.04177.0225-40661.3
DSB-24S205341.07656535.04177.0225-65343.4
DSB-26S205044.57656982.64150.0225-40815.4
DSB-27S205044.57656982.64150.0225-65800.4
Subtotal7244.1
Underground Drilling Santa Barbara Adit
DSBU-4UG205285.27656074.84165.0180-20570.0
DSBU-5UG205285.27656074.84165.00-40491.7
DSBU-6UG205285.27656074.84165.00-65253.5
DSBU-7UG205284.57656080.04167.1235-50800.9
Subtotal2116.1
DSBU-8UG205284.57656080.04167.1200-50In progress
Surface Drilling South Extension Santa Barbara
DSBS-01S205300.07655563.04204.030°-30700.8
Subtotal700.8
DSBS-02S205300.07655563.04204.0-45In progress
Porco Target Area – Surface Drill Program
DPC-04S205457.27655110.94175.00-60371.4
DPC-05S205457.27655110.94175.090-60407.5
DPC-06S205457.27655110.94175.0243-60716.4
DPC-07S205090.07655343.74310.0235-65791.4
DPC-08S205456.27655113.44175.9243-60800.4
Subtotal2295.7
DPC-09S205090.07655343.74310.0235-65In progress
TOTAL12,356.7

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 12,977m has been completed bringing the overall total to 53,445m in 83 drill holes (28 underground drill holes and 55 surface drill holes) including 3 holes in progress.

Figure 1: Geology of the Iska Iska Caldera Complex showing locations of Major Breccia Pipe targets, the Santa Barbara Resource Definition Target Zone and diamond drill holes completed and planned.
https://www.globenewswire.com/NewsRoom/AttachmentNg/ddad13c1-182e-4aef-a844-9d1ecde42769

Figure 2: Preliminary W-E Geological Cross Section with Drill Holes METSBUG-01, METSBUG-02 and DSBU-03 (looking northwest)
https://www.globenewswire.com/NewsRoom/AttachmentNg/0f84cd4c-4e09-41a7-b3de-9ae3b13d66dc

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., a QP under NI 43-101, of Clearview Geophysics completed the 3D magnetic inversion model in consultation with Dr. Chris Hale, P.Geo. and Mr. John Gilliatt, P.Geo. of Intelligent Exploration.

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 and it is hoped that most of the sample backlog will be cleared in the next 4-6 weeks.

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 Q2 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 2
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Eloro Resources Intersects 172.43 g Ag eq/t (40.16 g Ag/t, 0.51% Zn, 0.41% Pb and 0.13% Sn) over 303.05m in Southern Part of Santa Barbara Target at 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 six (6) additional diamond drill holes from its on-going drilling program at the Iska Iska silver-tin polymetallic project in the Potosi Department, southern Bolivia. Hole METSBUG-02 is an underground hole drilled northeast from the Santa Barbara adit for metallurgical purposes and to complete fill-in drilling. The remaining five (5) holes tested the NW extension in the Santa Barbara Mineral Resource Target Area (DSB-12, -13, -15, -20 and -21) on a series of NE-SW sections as shown in Figure 1.

As previously announced (see Eloro’s press release dated January 18, 2022) drilling recommenced on January 17, 2022, with two surface drill rigs and one underground rig. Since the restart, the Company has completed an additional 4,649m of drilling, for an overall total of 45,117m in 80 drill holes, including three holes in progress as shown in Figure 1. Table 1 lists significant assay results. Prices used for calculating Ag equivalent grades are as outlined in Eloro’s February 1, 2022, press release. Table 2 summarizes drill holes with assays pending. Highlights are as follows:

Underground Metallurgical Hole, Santa Barbara Mineral Resource Target Area

Underground hole METSBUG-02, collared in the Santa Barbara adit and drilled at an azimuth of 40 degrees at -10 degrees dip, intersected significant mineralization (Figure 1 and Table 1) over the full length of the hole:

  • 172.43 g Ag eq/t (40.16 g Ag/t, 0.51% Zn, 0.41% Pb and 0.13% Sn) over 303.05m from 0.00 to 303.05 m including higher-grade sections of 507.64 g Ag eq/t (119.36 g Ag/t, 0.14 g Au/t, 0.57 %Pb and 0.52 %Sn) over 49.55m from 0.0 to 49.55m and 196.67 g Ag eq/t (66.93 g Ag/t, 1.03% Zn, 0.67% Pb and 0.08% Sn) over 77.77m from 180.95m to 258.72m.
  • This hole was designed to intersect midway across the intersection in Hole DHK-18 which returned 129.65 g Ag eq/t over 300.75m (see press release July 28, 2021; grade is 172.18 g Ag eq/t with updated metal prices) in the mineralized envelope to the east of the Santa Barbara Breccia Pipe.

Sectional Drill Holes NW Extension Santa Barbara Mineral Resource Target Area

Significant results have been returned from the five (5) initial sectional drill holes testing the NW Extension of the Santa Barbara mineralized trend. This area is marked by a prominent magnetic anomaly and is underlain by several dacitic domes, possibly related to a secondary caldera. An additional 11 holes totaling 7,859m have been completed to provide coverage on 100m spaced sections over much of the NW Extension target area as shown in Figure 1. Assay results on these holes are pending. Figure 2 is a section along hole DSB-20. Highlights are as follows:

  • Hole DSB-20, which is in approximately the centre of the NW Extension target area, intersected 22 reportable intersections with a best result of 129.42 g Ag eq/t (21.79 g Ag/t, 0.27% Zn, 0.36% Pb and 0.12% Sn) over 73.65m from 247.56m to 321.21m including a higher-grade section of 204.03 g Ag eq/t (27.54 g Ag/t, 0.40% Zn, 0.55% Pb and 0.21% Sn) over 28.57m from 267.08m to 295.65m.
  • Hole DSB-21, on the northwesternmost section, intersected 14 reportable intersections including a high-grade Cu zone grading 152.04 g Ag eq/t (9.48 g Ag/t and 1.02% Cu) over 25.27m from 58.85m to 84.12m and 114.77 g Ag eq/t (40.85 g Ag/t, 0.09 g Au/t, 0.69% Zn and 0.18% Pb) over 16.28m from 163.98m to 180.28m.
  • Hole DSB-15, 100m southeast of Hole DSB-21, intersected 12 reportable intersections including 112.43 g Ag eq/t (9.98 g Ag/t, 0.10 g Au/t, 0.21% Zn, 0.34% Pb, 0.09% Sn and 0.12% Cd) over 10.53m from 293.70m to 304.23m and 186.75 g Ag eq/t (14.67 g Ag/t, 0.13 g Au/t, 0.27% Zn, 0.17% Cu and 0.19% Sn) over 19.65m from 710.97m to 730.62m.
  • Hole DSB-12, collared 200m southeast of hole DSB-15 and 100m northwest of hole DSB-20, intersected 20 reportable mineralized intersections of which nine ranged from 10.41m to 24.07m long. Best results were 130.28 g Ag eq/t (92.32 g Ag/t, 0.06% Cu) over 10.41m from 332.64 to 311.90, 129.54 g Ag eq/t (10.19 g Ag/t, 0.22 % Zn, 0.15% Cu, 0.13% Sn) over 18.04m from 487.76m to 505.80m, 116.73 g Ag eq/t (10.18 g Ag/t, 0.12% Cu, 0.10 % Sn and 0.13% Bi) over 24.07m from 594.44m to 618.51m and 164.01 g Ag eq/t (7.80 g Ag/t, 0.11 g Au/t, 0.39% Zn, 0.21% Cu, 0.11% Bi) over 21.05m from 753.50m to 771.49m.
  • Hole DSB-13, drilled on the same section but shallower than hole DSB-12, intersected 15 reportable mineralized intersections of which the best results were 48.53 g Ag eq/t (5.66 g Ag/t and 0.29% Zn) over 37.58m from 161.71m to 199.29m, 171.55 g Ag eq/t over 9.01m (21.45 g Ag/t, 0.54 g Au/t, 0.38% Zn, 0.14% Sn) from 221.66m to 230.67m, 51.89 g Ag eq/t (3.48 g Ag/t and 0.24% Zn) over 39.13m from 320.57m to 361.18m and 71.71 g Ag eq/t over 8.93m (7.07 g Ag/t, 0.11% Cu and 0.06% Sn) from 601.95m to 610.88m.

Tom Larsen, CEO of Eloro, commented: “This new underground hole is the longest and highest-grade intersection obtained thus far in our diamond drill program. Results from the step-out holes on the NW extension are also very encouraging. Turnaround at both the ALS and AHK laboratories continues to improve so we anticipate being able to have a more regular release of results going forward. Drilling productivity continues to be very high with more than 4,600m completed by the three drills since our restart last month. We will shortly complete our underground drilling and will exchange this drill for a high capacity surface rig which will further increase our production.”

Dr. Bill Pearson, P.Geo., Eloro’s Executive Vice President Exploration, added: “The 100m-spaced sectional drilling has been completed on the NW Extension, however it is evident that much further drilling will be required to fully evaluate this exciting target area. Underground drilling is continuing from the Santa Barbara adit to test the major magnetic anomaly to the southwest. The first of a series of surface holes testing the southern Santa Barbara target area is in progress, with the aim of further expanding the high-grade mineralization already identified in this area. Hole DPC-07 in the Porco area is testing a major magnetic anomaly, while additional drill holes are planned to further test the Porco Breccia Pipe deeper. Hole DM2-01, to be drilled in the Mina 2 area in the southeast part of the property, will test for a potential tin porphyry at depth. Channel sampling and geological mapping are in progress in the Mina 2 workings.”

Table 1: Significant Results, Diamond Drilling, Santa Barbara Resource Definition Target Area as at February 23, 2022.

SANTA BARBARA RESOURCE DEFINITION TARGET ZONE
UNDERGROUND DRILL HOLE – METALLURGICAL HOLE
Hole No.From (m)To (m)Length (m)AgAuZnPbCuSnBiCdAg eq
g/tg/t%%%%%%g/t
METSBUG-020.00303.05303.0540.160.060.510.410.090.130.0060.004172.43
Incl.0.0049.5549.55119.360.140.060.570.380.520.0100.001507.64
Incl.180.95258.7277.7766.930.041.030.670.060.080.0130.011196.67
SANTA BARBARA NW EXTENSION SECTIONAL DRILLING
Hole No.From (m)To (m)Length (m)AgAuZnPbCuSnBiCdAg eq
g/tg/t%%%%%%g/t
DSB-2121.1522.611.468.000.230.000.070.020.060.0220.00168.81
58.8584.1225.279.480.020.010.051.020.000.0010.001152.04
163.98180.2616.2840.850.090.690.180.040.030.0190.012114.77
228.21243.2715.0624.110.060.500.100.040.040.0020.00287.05
255.28261.265.9827.070.060.610.140.020.030.0010.00183.85
268.78270.281.5032.000.080.300.030.150.150.0180.001165.47
309.61315.616.0015.700.020.680.440.010.010.0010.00267.35
453.86455.381.5225.000.050.020.030.060.050.0250.00174.03
513.92515.421.5068.000.030.030.000.030.010.0020.00183.83
521.39525.884.4924.090.060.060.010.050.040.0050.00164.40
578.55581.402.851.510.012.610.000.010.000.0010.001125.26
638.51640.001.4959.000.030.150.010.310.280.0130.001277.24
649.04656.557.5120.090.020.640.010.120.110.0080.001135.84
665.75667.251.5044.000.140.030.020.290.280.5470.001354.97
DSB-2046.6651.204.549.690.010.010.191.210.000.0010.001180.58
82.6185.562.955.540.020.370.460.010.010.0040.07351.71
118.70123.224.528.760.032.140.420.010.060.0020.060166.00
150.28162.2611.9817.680.030.620.490.010.050.0020.02694.64
188.89221.8832.995.290.020.350.140.010.100.0020.00885.30
233.97235.501.5317.000.020.590.320.010.060.0020.00292.39
247.56321.2173.6521.790.070.270.360.010.120.0280.001129.42
Incl.267.08295.6528.5727.540.080.400.550.020.210.0370.001204.03
352.73357.244.514.690.010.540.250.010.020.0010.00151.73
360.23361.731.504.000.011.380.010.010.010.0010.00176.68
399.15402.092.943.020.030.340.170.010.050.0010.00159.64
408.26409.831.574.000.010.630.020.010.050.0010.00164.50
426.27427.721.454.000.020.010.010.010.120.0030.00180.50
499.10500.531.432.000.010.020.010.030.080.0010.00155.86
518.38536.1817.8012.010.060.370.080.030.040.0450.00171.11
552.63568.4015.7716.710.150.080.030.100.100.0590.001116.90
591.30598.707.409.410.210.050.020.050.060.0140.00173.18
697.09698.501.416.000.020.000.000.100.100.0070.00182.51
719.40723.904.509.340.060.030.010.110.100.0150.00194.70
743.47749.506.0321.420.180.110.030.590.300.0070.001297.99
770.56791.4320.875.240.080.050.010.270.050.0750.00193.75
814.25820.155.902.580.020.060.010.230.030.3640.001118.69
866.21868.001.793.000.030.000.000.430.040.0340.00190.39
SANTA BARBARA NW EXTENSION SECTIONAL DRILLING (CON’T)
Hole No.From (m)To (m)Length (m)AgAuZnPbCuSnBiCdAg eq
g/tg/t%%%%%%g/t
DSB-1523.7629.836.0722.140.060.000.080.010.100.0030.00193.29
55.3358.302.972.000.050.010.021.340.020.0010.001196.03
173.61178.124.5221.350.140.620.200.020.030.0020.00186.78
293.70304.2310.539.980.100.210.340.080.090.0220.121112.43
314.20322.748.544.130.040.590.330.050.060.0080.00989.94
435.66437.191.530.500.010.110.000.000.140.0010.00188.97
461.30462.801.502.000.010.130.010.010.140.0040.00190.73
474.55476.051.5024.000.060.030.030.200.150.0310.001153.19
480.55486.535.987.520.020.120.010.110.100.0110.00190.20
532.48533.971.4934.000.040.010.010.130.110.0340.001126.43
582.19583.741.551.000.012.030.000.010.030.0010.001113.31
710.97730.6219.6514.670.130.270.000.170.190.0700.001186.75
DSB-1350.5066.674.4818.110.010.010.080.200.020.0010.00557.64
111.90124.0212.124.670.010.710.080.010.020.0010.00454.94
161.71199.2937.585.660.070.290.090.020.030.0010.00448.53
208.19211.203.0116.020.270.480.030.090.030.0010.00590.12
221.66230.679.0121.450.540.380.070.020.140.0090.005171.55
272.71274.221.5127.000.300.060.060.040.070.0190.005105.33
287.75292.254.505.670.031.180.310.020.060.0020.003108.69
308.70311.642.943.000.020.370.250.010.040.0010.00252.61
320.57361.1839.133.480.080.240.070.020.040.0020.00551.89
405.83410.504.678.630.100.730.030.050.030.0170.00578.28
432.52434.061.545.002.420.180.020.060.010.5060.005312.23
525.10526.621.523.000.110.030.010.050.110.0440.00593.10
537.14540.233.096.940.020.010.010.080.080.0290.00574.07
601.95610.888.937.070.030.020.010.110.060.0470.00571.71
695.03696.501.4712.000.100.070.020.260.110.130.01147.95
DSB-12157.18172.0314.8545.470.080.120.110.020.040.0030.00389.84
209.63221.6011.9728.820.040.030.100.030.050.0090.00471.87
301.26311.9010.6454.310.020.010.000.040.020.0070.00578.19
332.64343.0510.4192.320.050.020.010.060.040.0050.004130.28
377.74379.191.459.000.100.010.010.060.070.0020.00566.35
428.94430.581.643.000.010.020.010.020.090.0010.00561.28
453.15466.7313.5811.530.030.030.010.080.070.0070.00568.58
487.76505.8018.0410.190.040.220.030.150.130.0350.005129.54
510.30517.797.491.790.080.080.010.040.050.0140.00548.24
523.80529.685.883.550.320.030.010.100.100.0120.005105.18
561.32562.841.523.000.030.040.010.120.120.0080.00597.29
568.86574.845.983.770.020.060.010.080.070.0420.00565.41
586.83588.401.573.000.010.030.000.120.110.0170.00590.61
594.44618.5124.0710.180.070.050.010.120.100.1280.005116.73
639.64641.151.515.000.010.000.010.130.090.0080.00580.70
660.57663.583.015.010.170.260.010.230.020.0600.00582.79
669.60672.582.985.010.140.110.010.200.070.0600.005102.57
686.16690.634.474.970.360.070.010.150.030.0390.00581.16
717.52738.5721.057.800.110.390.030.210.140.1090.005164.01
753.50771.4917.991.810.060.060.030.210.030.180.0191.66

 

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 January 30, 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: Summary of Diamond Drill Holes Completed with Assays Pending and Drill Holes in Progress at Iska Iska from February 23, 2022 press release.

Hole No.TypeCollar
Easting
Collar
Northing
ElevAzimuthAngleHole Length
m
Surface Drilling Northwest Extension Santa Barbara
DSB-14S205283.07656587.24175.0225-65968.5
DSB-16S204973.17657053.84165.0225-65862.0
DSB-17S7656765.4205131.34173.0225-40841.0
DSB-18S7656676.3205207.14175.0225-40890.4
DSB-19S7656676.3205207.14175.0225-65803.3
DSB-22S7657208.4204799.44145.0225-40258.4
DSB-23S205341.07656535.04177.0225-40661.3
DSB-24S205341.07656535.04177.0225-65343.4
DSB-25S205283.07656587.24175.0225-40615.3
DSB-26S205044.57656982.64150.0225-40815.4
DSB-27S205044.57656982.64150.0225-65800.4
Subtotal7,859.4
Underground Drilling Santa Barbara Adit
DSBU-3UG205285.27656074.84165.0270-20443.5
DSBU-4UG205285.27656074.84165.0180-20570.0
DSBU-5UG205285.27656074.84165.00-40491.7
DSBU-6UG205285.27656074.84165.00-65253.5
DSBU-7UG205284.57656080.04167.1235-50800.9
Subtotal2,559.6
DSBU-8UG205284.57656080.04167.1200-50In progress
Underground Metallurgical Drill Holes Santa Barbara
METSBU-01UG205285.27656074.84165.010-35351.0
Subtotal351.0
Surface Drilling South Extension Santa Barbara
DSBS-01S205300.07655563.04204.030°-30In progress
Porco Target Area – Surface Drill Program
DPC-04S205457.27655110.94175.00-60371.4
DPC-05S205457.27655110.94175.090-60407.5
DPC-06S205457.27655110.94175.0243-60716.4
DPC-08S205456.27655113.44175.9243-60800.4
Subtotal2,295.7
DPC-07S205090.07655343.74310.0235-65In progress
TOTAL13,065.7

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 4,649m has been completed bringing the overall total to 45,117m in 80 drill holes (27 underground drill holes and 53 surface drill holes) including 3 holes in progress.

Graphics accompanying this announcement are available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/67563307-0861-40ba-81e4-12246f6bfdc1

https://www.globenewswire.com/NewsRoom/AttachmentNg/7737fb7a-f5a8-4af7-8127-9c07cdda5c0c

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.

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 ALS Bolivia Ltda’s preparation facility in Oruro, Bolivia 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 sent to their preparation laboratory in Oruro with pulps sent to the AHK laboratory in Lima, Peru. 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, which has been impacted by the recent surge in Covid-19, has been improving following the Christmas break and it is hoped that most of the sample backlog will be cleared in the next 4-6 weeks.

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 Q2 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.  https://www.elororesources.com

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 2
https://www.elororesources.com/
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Clean Air Metals: Palladium, Platinum, Copper and Nickel near Thunder Bay

The market is usually right about exploration and development companies. The good ones get cashed up, the others have a hard time raising funds.

Clean Air Metals (AIR.V) recently announced that it was increasing a proposed private placement from 9 million dollars to 12.5 million dollars. This suggests a lot of confidence. The market is clearly impressed with Clean Air’s Thunder Bay North platinum, palladium, copper, nickel Project.

There is a surge of interest in reducing the emission of greenhouse gases. The technologies critical to a zero-emissions future such as catalytic converters on gasoline engines and hydrogen fuel cell hybrid electric vehicles require palladium and platinum and Clean Air Metals is developing a polymetallic deposit in Ontario to mine those metals. The shift to battery electric vehicles is also creating significant demand for copper and nickel both for the cars themselves and the infrastructure required to support them. The Thunder Bay North project contains both those metals, in addition to by-product gold and silver.

Clean Air Metals recently published a technical report outlining a financially robust Preliminary Economic Assessment (PEA) on development of two PGE/Copper and Nickel deposits on the Thunder Bay North Project near Thunder Bay, Ontario.

The PEA is a key benchmark for a project and a critical tool for planning and future feasibility studies. It gives management, shareholders and potential partners or acquirers an appraisal of the resource, the metallurgy, the infrastructure and the mine plan and includes the estimate of the potential returns from a project. In the news release Executive Chair Jim Gallagher states, “The initial PEA for the Thunder Bay North Project brings together two previously independent deposits into one mining plan which is relatively low risk, low capital, quick to production and generates robust financial metrics. Given the significant potential upside with continued exploration drilling along the known conduits and with the already identified massive sulphide targets we believe that this PEA is a minimum base case that Clean Air Metals will continue to attempt to de-risk towards pre-feasibility.”

Speaking with Abraham Drost, Clean Air’s CEO, he said. “This is very much a base case PEA that we can grow the project on. At a minimum, we have ten years of new mill feed in the camp. For a project that we purchased two years ago from our predecessors Rio Tinto and Panoramic Resources, the new underground mine plan and breakthroughs in metallurgy and PGE recoveries now indicates a $400 million project on a fully discounted basis.”

The PEA mine plan is based on the mineral resource published January, 2021. That particular mineral resource does not yet reflect the results of 30,000 meters of drilling undertaken for the balance of 2021. Additional drill results were released January 5, 2022 and Drost is quoted in the release, “step-out drilling on the margins of the Escape South High Grade Zone (HGZ) continues to deliver impressive assay results. Under the results of the recent PEA press release, the Escape South High Grade Zone (HGZ) (>5g/t Pt+Pd) is identified as a high value potential mining area at the base of the Escape Deposit in years 5 and 6 of the PEA mine plan”.

The metallurgy for the area has been encouraging. The company is seeing mid-80% recoveries for platinum and palladium and 95% for copper in a clean concentrate with 50g/t PGE’s. However, there is another aspect to the project: nickel.

“We will be looking at how to improve the mine plan by developing a clean nickel concentrate as well as a third stage cleanup bulk sulphide concentrate to capture PGE’s that normally would go out to tailings in barren sulphides. Metallurgical optimization means drill testing the proposed stopes year by year through the mine plan,” said Drost. “We hope to obtain large diameter drill bulk sample material for metallurgical testing. If all goes as planned, we hope to add Rhodium and Cobalt to the payables mix in the first five years of the future mine life.”

The Thunder Bay North Project checks all the common infrastructure boxes: it is accessible by logging roads just off a highway and a high voltage power crosses the mining claims and can be brought to the project. The Lac des Iles palladium mine operated by Impala Platinum is located 60km away to the northwest.

Important as infrastructure is, investors always look at a company’s management. Drost is modest about his own, substantial accomplishments as a geoscientist and mining entrepreneur, pointing instead to Jim Gallagher, his Executive Chair. “Jim is a mining engineer,” said Drost. “He’s committed to generating mineral feed in the Thunder Bay region.” Gallagher was the CEO of North American Palladium which operated in the Thunder Bay area and where he led an operational turn-around which culminated in the sale of the company to Impala Platinum of South Africa late in 2019.

Clean Air has all the pieces in place and its shares are trading significantly below their levels in early 2021. Which, while frustrating for Clean Air management, is an opportunity for savvy investors. The path ahead for Clean Air is expanding the resource and de-risking the plan. Currently, the market is pricing Clean Air as if it were an exploration play when it is, in fact, an early-stage development company. When the market realizes this there should be a substantial rerating of Clean Air Metals shares.

 

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Renforth Resources: Building Asset Value

In the middle of roiling markets, strange metal prices and slow assay labs, Renforth Resources’ (RFR:CNX) CEO Nicole Brewster is pressing forward. Right now her focus is on a small 6 km long section of the company’s >300 km2  Surimeau District Property the company refers to as Victoria West.

Renforth completed a flow through private placement for $1,376,260 in late December 2021, later bumped to $1,576,260. In the press release announcing this Brewster stated, “At Surimeau we will work to extend and deepen the polymetallic “future facing” minerals in the Victoria West area of our vast, >260 km2, wholly owned and road accessible battery metals property, also contiguous to Canadian Malartic. We look forward to a New Year filled with new results and exciting field activities on our properties and, with some success, continued asset growth”. And that is exactly what Renforth is doing.

At Victoria, West Renforth has stripped the overburden on a section 275 meters long. “It’s not a lot of overburden,” said Brewster in a phone call. “Between zero and three meters. And we were stripping between two drill holes.”

“We’ve seen more of the two systems on surface. Nickel and copper. More copper than we expected,” said Brewster. “The mag survey showed the nickel but not the copper.”

The stripped section was channel sampled to get a better idea of the mineralization. The results of the channel sampling were reported in a January 18, 2022 press release. In the release Brewster states, “I am happy to deliver results to shareholders which demonstrate that our discovery of a polymetallic, nickel/cobalt and copper/zinc, mineralized system at Victoria West, stretching over >5km and hiding in plain sight, is a surface system.”

Every channel demonstrated consistent elevated nickel and cobalt values, along with elevated copper and zinc values. Which was very encouraging. Now Brewster is waiting for the assay results from the seven, fairly shallow, drill holes which were collared in the stripped area. “We see visible mineralization in each hole,” said Brewster. “Now we are waiting for the assays. We want to release all seven at the same time.”

Going forward, while Renforth is focused on Surimeau, it has also commissioned a structural study of its Parbec Gold Deposit. This analytical work will give Renforth a better idea of the structural controls at the deposit. It will also identify the work needed to better define those controls and target additional gold mineralization. “It will take a bit of work,” said Brewster. “But when it’s done we’ll be able to drill test the structural theory. We may do a resource estimate based on this work as well as the drilling to date.”

At Surimeau, as Brewster waits for the assays, the first thing which will happen is that the property will be flown. “We’re using a helicopter and doing a continuous line survey,” said Brewster. “We want to look at the entire anomaly. With the EM we’ll be able to see sulfides. We’re expecting the survey results by the end of March.”

“We’ll use the survey, as well as the work we have already done, to select drill targets,” said Brewster. “We hope to have a drill in the field in mid-April. We’re thinking about an inferred resource.”

“We’re also bringing in a QP group,” said Brewster. “It’s early but they will be right up to speed.”

“Right now Victoria West is about 6 kilometres, but it might be up to 20 kilometres of mineralized ground.”

The need for copper, nickel and cobalt continues to grow. What Brewster wants to see at Surimeau is a significant resource near surface. The rest of the infrastructure pieces, roads, workforce, power are all in place and the property is only an hour away from Canada’s only copper smelter.

What Brewster has built and is building at Renforth is an asset rich company which is adding value to its assets through a practical, well managed, cost effective, exploration program. So far, the market has consistently missed the point of Renforth. I hold shares and, while they have doubled from my insanely low entry point, they seem to have a hard time breaking out of a $0.07-$0.09 range.

Brewster is keenly aware of the market’s under valuation of Renforth. However, she realizes that the best way to create shareholder value is to find and define substantial mineral deposits. Which is exactly what she is doing.

 

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Bayhorse Commences Milling Operations at Its New Milling Facility for the Bayhorse Silver Mine, Oregon, USA

Bayhorse Silver Inc, (TSXV: BHS) (OTCQB: BHSIF) (FSE: 7KXN) (the “Company” or “Bayhorse”) announces that milling operations have commenced at the Company’s newly upgraded 50-60 ton/day mill facility, Payette, Idaho, USA.

The silver and copper enriched pre-processed mineralized material from the Company’s Steinert Ore-Sorter, from the Bayhorse Silver Mine, in nearby Oregon, is now being processed into a highly enriched flotation concentrate. The silver and copper rich end product concentrate will enable the Company to fulfill the Silver Offtake Agreement with Ocean Partners UK Limited (“Ocean”) for delivery of the first 300 tonnes of silver concentrate.

Both the Mine and Mill are designed to have a minimal environmental footprint through the use of Ore-Sorting and material recycling.

The operation has an additional grinding mill, providing a grind and regrind capacity to ensure an optimal 80 micron grind size. This specification was developed during testing during 2017-2020 at Metsolve Metallurgical Laboratories of Langley, BC, Canada, in order to achieve maximum recovery of mineralization.

In addition, the Company has added three stages of dewatering and fines recovery, as well as a precipitation circuit to enable the tailings to be recycled into eco-blocks, and to reduce dissolved contaminants to comply with the minimum requirements of the Idaho DEQ for waste water disposal.

Bayhorse CEO Graeme O’Neill comments, “Despite the challenges provided by Government Covid restrictions during the past two years, our mining and milling teams, under the leadership of our Mine Manager, Jon Farrell, have persevered in completing the mill upgrading and bringing it back on-line to continue our processing capabilities in record time.” Graeme also comments, “Based on our view of the long-term market trends, and current market analysis and commentary, we believe silver prices should continue to rise. I wish thank our shareholders for their continuing support as we completed the Bayhorse Mine and Mill development.”

The Company is not basing any decision to produce on a feasibility study of mineral reserves demonstrating economic and technical viability and advises there is an increased uncertainty and specific economic and technical risk of failure with any production decision. These risks include, but are not limited to, (i) a drop in price of commodities produced, namely silver, copper, lead and zinc, from the pricing used to make a production decision; (ii) failure of grades of the produced material to fall within the parameters used to make the production decision; (iii) an increase in mining costs due to changes within the mine during development and mining procedures; and (iv) metallurgical recovery changes that cannot be anticipated at the time of production.

This News Release has been prepared on behalf of the Bayhorse Silver Inc. Board of Directors, which accepts full responsibility for its content. Dr. Stewart Jackson, P.Geo., a Qualified Person and Consultant to the Company has prepared, supervised the preparation of, and approved the technical content of this press release.

On Behalf of the Board.

Graeme O’Neill, CEO
866-399-6539, 604-684-3394

About Bayhorse Silver Inc.

Bayhorse Silver Inc. is an exploration and production company with a 100% interest in the historic Bayhorse Silver Mine located in Oregon, USA. With state of the art Steinert Ore-Sorting technology reducing waste rock entering the processing stream by up to 85%, we have created a minimum environmental impact facility capable of mining 200 tons of mineralization per day and the ability to process and supply 3,600 tons per year of silver/copper concentrate ranging between 7,500 to 15,000 g/t using standard flotation processing at its milling facility in nearby Payette County, Idaho, USA, with an offtake agreement in place with Ocean Partners UK Limited. The Company also has an option to acquire an 80% interest in the Brandywine high grade silver/gold property located in B.C. Canada. The Company has an experienced management and technical team with extensive mining expertise in both exploration and building mines.

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.

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Eloro Resources Intersects 239.72 g Ag eq/t (39.58 g Ag/t, 1.04% Pb, 0.26% Cu and 0.20% Sn) over 82.74m in Southern Part of Santa Barbara Target at 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 further assay results from seven (7) additional diamond drill holes from its on-going drilling program at the Iska Iska silver-tin polymetallic project in the Potosi Department, southern Bolivia. Two (2) of these holes (DSBU-01 and DSBU-02) are underground holes drilled from the Santa Barbara adit. Three (3) of the holes tested the Central Breccia Pipe (“CBP”) target (DCN-06 and DCN-07 from the Central North radial drilling platform and DCS-04 from the south platform). The final two (2) holes reported in this release tested the Porco Breccia Pipe (“PBP”) target.

As previously announced (see press release of January 18, 2022) drilling recommenced on January 17, 2022, with two surface drill rigs and one underground rig. Since the restart, the Company has completed an additional 1,989m of drilling, bringing the overall total to 42,457m in 76 drill holes, including three holes in progress at Iska Iska, as shown in Figure 1. Tables 1, 2 and 3 list significant assay results from each of the major target areas. Note that the prices used for calculating Ag equivalent grades have been updated due to significant increases in Sn, Zn, Pb and Cu prices and a decrease in the Ag price. Table 4 summarizes drill holes with assays pending as of the date of this release. Highlights are as follows:

Underground Holes, Santa Barbara Mineral Resource Target Area

Underground holes DSBU-01, drilled due east at -10 degrees and DSBU-02, drilled due west at -20 degrees both intersected significant mineralization (Figures 1 and 2):

  • 239.72 g Ag eq/t (39.58 g Ag/t, 1.04 %Pb, 0.26 %Cu and 0.20 %Sn) over 82.74m from 0.00 to 82.74m in Hole DSBU-01, including a higher-grade section of 318.15 g Ag eq/t (53.58 g Ag/t, 1.43 % Pb, 0.32 %Cu and 0.27 %Sn) over 51.09m in DSBU-01.
  • 134.47 g Ag eq/t (10.79 g Ag/t, and 0.15 %Sn) over 115.44m from 1.50 to 116.94m in Hole DSBU-02, including a higher-grade section of 160.87 g Ag eq/t (9.65 g Ag/t, 0.21% Cu, and 0.17 %Sn) over 37.55m from 25.50 to 63.05m.
  • Hole DSBU-02 also had additional intersections of 145.12 g Ag eq/t over 17.53m from 165.00 to 182.53m and 395.12 g Ag eq/t over 18.0m from 300.20 to 318.20.
  • The promising results from these holes across a well mineralized width of 200+m opens significant possibilities in the southern extension of the Santa Barbara target area where additional drilling is now planned.

Central Breccia Pipe

DCN-06 and DCN-07, which completed the first pass drilling on the northern radial drilling platform testing the CBP, returned 14 and 21 reportable mineralized intervals, respectively, with the best results as follows:

  • 104.05 g Ag eq/t (24.76 g Ag/t and 0.13% Sn) over 39.03m from 150.30m to 189.33m and 226.19 g Ag eq/t (117.03 g Ag/t, 0.40 g Au/t and 0.11% Sn) over 4.47m from 539.40m to 543.78m in DCN-06 drilled due south at -80 degrees.
  • 183.00 g Ag eq/t (133.05 g Ag/t and 0.49 g Au/t) over 8.99m from 132.93m to 141.92m, 539.96 g Ag eq/t (222.00 g Ag/t and 0.41% Sn) over 1.42m from 324.94m to 326.36m and 220.81 g Ag eq/t (9.54 g Ag/t, 0.13 g Au/t, 0.27% Cu and 0.25 % Sn) over 7.50m from 555.94m to 563.44m in DCN-07 drilled due west at -60 degrees.

Porco Breccia Pipe

Surface drill holes DPC-02 and DPC-03 from the radial drill platform at PBP were drilled south-southwest at -40 degrees and southeast at -60 degrees, respectively.

  • Hole DPC-02 intersected a 3.02m wide zone from 754.83m to 757.85m that graded 409.55 g Ag eq/t (57.92 g Ag/t, 0.22 g Au/t, 0.48% Cu and 0.44 %Sn) which is approximately 340 m below and likely the same mineralized structure as in the Porco adit which returned comparable high-grade results as previously reported (see press release November 17, 2021).
  • Hole DPC-03 returned 13 reportable intersections including 334.98 g Ag eq/t (46.13 g Ag/t, 4.75% Zn and 1.43% Pb) over 11.98m from 296.05 to 308.03m. This intersection may reflect higher level mineralization associated with the recently identified secondary caldera in the southeast part of the property (see press release January 18, 2022).
  • Previously reported drill hole DPC-01 had the best results where it clipped the edge of the inverse magnetic susceptibility model while the other five radial drill holes at Porco were too shallow to intersect the model (see press release November 17, 2021). As a result, deeper drill holes, as shown in Figure 1 in both the Porco and Mina 2 areas, are planned to test for the potential source porphyry at depth.

Tom Larsen, CEO of Eloro, commented: “I am pleased to report that the return rate of sample results from our assay laboratories has improved significantly after the Christmas holidays, and we are hopeful that most of our backlog will be cleared up within the next month to 6 weeks. This will allow us to remain on schedule to deliver the initial National Instrument 43-101 (“”NI 43-101”) compliant mineral resource estimate in Q2 2022. Of note, it has been approximately one year since the Company reported the discovery of high grade mineralization in hole DHK-15, which intersected 257.5m grading 129.6 g Ag eq/t in the Santa Barbara Breccia Pipe. The new results reported in this release from the underground drilling in the Santa Barbara target area of significant high-grade mineralization, which include more than a 200m width, opens up significant opportunities in the southern part of this major target area. This emphasizes the immensity of the Santa Barbara Breccia Pipe complex, which is still only a subset of the overall Iska Iska silver-tin polymetallic system.”

Dr. Bill Pearson, P.Geo., Eloro’s Executive Vice President Exploration, added: “We continue to get excellent drill results. More drilling is planned in the southern part of the Santa Barbara target zone as shown in Figure 1. In addition, we are planning downhole IP surveys on the bore holes in the Central and Porco target areas to define vectors to more strongly mineralized areas. The intersections obtained in these initial reconnaissance holes although too shallow based on the magnetic susceptibility model, suggest that there is potential for significant discoveries deeper in these major target areas which will be drill-tested. The secondary caldera recently identified by Dr. Osvaldo Arce’s geological team in the southeast part of the property appears to overprint the main Iska Iska caldera. The high-grade Ag-Zn-Pb intersection in Hole DPC-03 is suggestive of the possibility that this may be higher level mineralization associated with this later caldera. Mapping and channel sampling is currently in progress in underground workings at Mina 2 and San Juan with reconnaissance exploration holes planned in these target areas to test this possibility.”

Table 1: Significant Results, Underground Drilling, Santa Barbara Resource Definition Target Area.
https://www.globenewswire.com/NewsRoom/AttachmentNg/b31c933f-9555-41f4-b297-bb7359378337

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 January 30, 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 Drilling, Central Breccia Pipe, North and South Radial Platforms
https://www.globenewswire.com/NewsRoom/AttachmentNg/de901ec8-291a-4b67-86a3-b9606d348d0d

See note under Table 1

Table 3: Significant Results, Surface Drilling, Porco Breccia Pipe, Radial Drilling Platform
https://www.globenewswire.com/NewsRoom/AttachmentNg/41ce884a-bfac-4191-aa5d-a53437b23fa8

See note under Table 1

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

Hole No.TypeCollar EastingCollar NorthingElevAzimuthAngleHole Length m
Surface Drilling Northwest Extension Santa Barbara
DSB-12S205072.77656867.54165.0225-40806.2
DSB-13S205072.77656867.54165.0225-60696.5
DSB-14S205283.07656587.24175.0225-65968.5
DSB-15S204973.17657053.84165.0225-40731.2
DSB-16S204973.17657053.84165.0225-65862.0
DSB-17S7656765.4205131.34173.0225-40841.0
DSB-18S7656676.3205207.14175.0225-40890.4
DSB-19S7656676.3205207.14175.0225-65803.3
DSB-20S7656765.4205131.34173.0225-65896.5
DSB-21S7657138.0204870.04135.0225-40557.3
DSB-22S7657208.4204799.44145.0225-40258.4
DSB-23S205341.07656535.04177.0225-40661.3
DSB-24S205341.07656535.04177.0225-65343.4
DSB-25S205283.07656587.24175.0225-40615.3
Subtotal9,931.3
Underground Drilling Santa Barbara Adit
DSBU-3UG205285.27656074.84165.0270-20443.5
DSBU-4UG205285.27656074.84165.0180-20570.0
DSBU-5UG205285.27656074.84165.00-40491.7
DSBU-6UG205285.27656074.84165.00-65253.5
Subtotal1758.7
DSBU-7UG205284.57656080.04167.1235-50In progress
Underground Metallurgical Drill Holes Santa Barbara
METSB-01UG205285.27656074.84165.010-35351.0
METSB-02UG205285.27656074.84165.040-10303.1
Subtotal654.1
Porco Target Area – Surface Drill Program
DPC-04S205457.27655110.94175.00-60371.4
DPC-05S205457.27655110.94175.090-60407.5
DPC-06S205457.27655110.94175.0243-60716.4
DPC-08S205456.27655113.44175.9243-60800.4
Subtotal1495.3
DPC-07S205090.07655343.74310.0235-65In progress
TOTAL 

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 addition 1,989m has been completed bringing the overall total to 42,457m in 76 drill holes (27 underground drill holes and 49 surface drill holes) including 3 holes in progress.

Figure 1: Geology of the Iska Iska Caldera Complex showing locations of Major Breccia Pipe targets, the Santa Barbara Resource Definition Target Zone and diamond drill holes completed and planned.
https://www.globenewswire.com/NewsRoom/AttachmentNg/4865b4e2-39ad-46dc-bfca-436c4ae9da37

Figure 2: W-E Geological Cross Section Drill Holes DSBU-2 and DSBU-1 looking north.
https://www.globenewswire.com/NewsRoom/AttachmentNg/5106cfd5-97c8-46f8-a0a8-3b2becdd37e0

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.

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 ALS Bolivia Ltda’s preparation facility in Oruro, Bolivia 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 sent to their preparation laboratory in Oruro. With pulps sent to AHK laboratory in Lima, Peru. Check samples between ALS and AHK are regularly cone 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, which has been impacted by the recent surge in Covid-19, has been improving following the Christmas break and it is hoped that most of the sample backlog will be cleared in the next 4-6 weeks.

Borehole IP surveys are being carried out by MES Geophysics with data processing, modeling and interpretation by Dr. Chris Hale, P.Geo. and Mr. John Gilliatt, P.Geo. of Intelligent Exploration.

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 discovery hole on the SBBP, Eloro has released a number of significant drill results on this target, including:

  • 122.66 grams g Ag eq/t (35.05 g Ag/t, 0.72% Zn, 0.61% Pb, 0.11% Sn and 0.06 g Au/t) over 123.61m including 205.74 g Ag eq/t (92.30 g Ag/t, 0.57% Zn, 0.85% Pb, 0.18% Sn and 0.07 g Au/t) over 32.32m (DSB-07).
  • 105.41 g Ag eq/t (8.55 g Ag/t, 1.01% Zn, 0.48% Pb, 0.06% Sn and 0.38 g Au/t) over 173.58m including 199.77 g Ag eq/t (21.90 g Ag/t, 1.18% Zn, 0.93% Pb 0.12% Sn and 0.94 g Au/t) over 39.08m (DSB-07).
  • 69.89 g Ag eq/t over 252.89m from 355.12 to 608.02m including several higher-grade sections of 196.60 g Ag eq/t including 131.13 g Ag/t over 14.52m, 134.62 g Ag eq/t including 93.25 g Ag/t over 21.08m and 145.35 g Ag eq/t including 2.38% Zn over 10.11m (DSB-08).
  • 114.96 Ag eq/t including 0.325% Sn over 56.2m including a higher-grade section of 187.98 g Ag eq/t including 0.535% Sn over 28.86m; 80.71 g Ag eq/t including 0.213% Sn over 74.39m and 118.69 g Ag eq/t over 10.77m (DSB-10).
  • 129.65 g Ag eq/t (18.38 g Ag/t, 2.14% Zn, 0.67%Pb, and 0.047% Sn) over 300.75m from 65.14m to 365.91m, including higher grade intervals of 215.54 g Ag eq/t over 72.76m, 163.35 g Ag eq/t over 31.83m and 224.48 g Ag eq/t over 19.39m. 82% of this 446.5m long hole contained reportable intervals (DHK-18).
  • 234.19 g Ag eq/t (70.58 g Ag/t, 2.31% Zn, 2.74% Pb and 0.042% Sn) over 53.2m including a higher-grade portion of 931.73 g Ag eq/t (367.29 g Ag/t, 5.64% Zn, 13.67% Pb and 0.10% Sn) over 9.26m (DHK-20).
  • 108.24 g Ag eq/t (3.14g Ag/t, 0.24 g Au/t, 2.03% Zn and 0.58% Pb) over 48.2m including a higher-grade interval grading 180.76 g Ag eq/t (4.46 g Ag/t, 0.35 g Au/t, 3.57% Zn and 1.05% Pb) over 15.02m (DHK-19). 160.22 g Ag eq/t (36.53 g Ag/t, 1.63% Zn, 1.20% Pb and 0.10% Sn) over 194.14m (DHK-21) including higher grade portions of:
    • 250.50 g Ag eq/t (51.31 g Ag/t, 3.35% Zn, 1.78% Pb and 0.10% Sn) over 18.24m.
    • 257.40 g Ag eq/t (75.83 g Ag/t, 2.29% Zn, 2.40% Pb and 0.12% Sn) over 16.33m.
    • 350.91 g Ag eq/t (112.57 g Ag/t, 1.41% Zn, 3.08% Pb and 0.33% Sn) over 30.06m.
    • 64% of this 512.9m long hole contains reportable intersections.
  • 94.68 g Ag eq/t (3.87 g Ag/t, 0.067 g Au/t, 1.63% Zn, 0.43% Pb and 0.05% Sn) over 169.93m including a higher-grade zone that graded 158.64 g Ag eq/t (9.35g Ag/t, 0.016 g Au/t, 3.43% Zn, 0.71% Pb and 0.03%Sn) over 29.84m (DHK-22).
  • 100g Ag eq/t (including 38.71 g Ag/t, 0.88%Zn and 0.51%Pb) over 188.5 m from 58.67m to 247.13m including a higher-grade portion of 154 g Ag eq/t (including 75.51 g Ag/t, 0.96% Zn, 0.65% Pb and 0.16%Cu) over 65.8m (DHK-23).

On May 4, 2021, Eloro released results from the first drill hole on the CBP. Hole DCN-01 intersected multiple mineralized intercepts including 196.09 g Ag eq/t (150.25 g Ag/t, 0.10% Sn and 0.05 g Au/t) over 56.2m and containing 342.98 g Ag eq/t (274.0 g Ag/t, 0.16% Sn and 0.16 g Au/t) over 27.53m.

Hole DCN-04 drilled at -80 degrees to the north from the northern radial platform of the CBP, intersected seventeen (17) mineralized intersections, principally Sn-Ag-bearing, over its 851.4m length. Best results include: 71.54 g Ag eq/t (32.58 g Ag/t and 0.10% Sn) over 97.10m from 134.40 to 231.5m; 101.52 g Ag eq/t (28.74 g Ag/t and 0.19% Sn) over 62.01m; 70.42 g Ag eq/t (28.74 g Ag/t and 0.16% Sn) over 22.59m; and 236.96 g Ag eq/t (92.21 g Ag/t and 0.25% Sn) over 17.45m. Hole DCS-02 was drilled southeast at -60 degrees from the south radial platform of the CBP. This hole, which was drilled to 800.5m, intersected nine (9) reportable Ag-Zn-Pb-Sn mineralized intervals. Best results include 79.53 g Ag eq/t (including 0.21% Sn) over 19.42m, 101.01 g Ag eq/t (32.76 g Ag/t, 0.76% Zn, 0.75% Pb) over 10.47 and 130.95g Ag eq/t (34.14 g Ag/t, 0.10 g Au/t, 1.35% Zn and 0.56 % Pb over 7.40m.

A detailed ground magnetic survey of the Iska Iska property, reported on June 6, 2021, confirmed the extent of the Iska Iska Caldera as determined from geological mapping and satellite interpretation, including Aster data. The SBBP and CBP, both of which have been confirmed by drill-testing, are marked by prominent low anomalies reflecting strong alteration. The magnetic data suggests that the Central and Porco Breccia Pipes likely merge at depth. In addition, there is a prominent area of low intensity magnetics northwest of the SBBP which was reported on in this press release.

Geological mapping and satellite interpretation identified a third major breccia pipe target, Porco (South), that is approximately 600m in diameter (South) located southeast of the CBP in the southern part of the Iska Iska caldera complex. The Porco (South) Breccia Pipe target has a similar magnetic signature to the Santa Barbara and Central Breccia Pipes, further confirming the likelihood of it being a major breccia pipe. Six (6) drill holes have been completed on Porco; assay results are pending. Previous channel sampling in the Porco adit located adjacent the target area 200m to the southeast returned 50m grading 519.35 g Ag eq/t including 236.13 g Ag/t, 1.89 g Au/t, 0.87% Cu, 0.22% Bi and >0.05% Sn over an average sample width of 2.49m.

Currently three diamond drill rigs are active at Iska Iska, two surface rigs and one underground drill. Planned drilling in the current program for Iska Iska is 51,000m of which 40,000m has been completed with the aim of outlining an initial inferred NI 43-101 compliant mineral resource by Q2 2022. The target zone at the SBBP and the surrounding mineralized envelope is 1400m along strike, 500m wide and extends to a depth of 600m. This zone is open along strike to the northwest and southeast as well as to the southwest. A borehole induced polarization/resistivity (IP/Res) survey is in progress to further define drill targets and aid resource definition drilling. Preliminary metallurgical tests are also in progress. An updated NI 43-101 Technical Report is being prepared by independent consultant Micon International Ltd.

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.

Table 1Table 2Table 3Figure 1Figure 2
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CLEAN AIR METALS ANNOUNCES $9 MILLION BEST EFFORTS PRIVATE PLACEMENT

Clean Air Metals Inc. (“Clean Air Metals” or the “Company“) (TSXV: AIR) (OTCQB: CLRMF) (FRA: CKU) is pleased to announce that it has entered into an agreement with Paradigm Capital Inc. on behalf of a syndicate of agents (collectively, the “Agents“), in connection with a “best efforts” private placement financing (the “Offering“) for gross proceeds of up to $9 million, consisting of up to  (i) 17,887,200  flow-through units (“FT Units“) of the Clean Air Metals Inc. (the “Company“), of which 10,869,600 will be issued at a price of $0.23 per FT Unit (the “FT Issue Price”) and  7,017,600 of which will be issued at a price of $0.285 (the “Premium FT Issue Price”), and (ii) 22,500,000 non-flow-through units (“Units“) at a price of $0.20 per Unit (the “Unit Issue Price“).

Each FT Unit will consist of one common share of the Company and one common share purchase warrant (each whole common share purchase warrant a “Warrant“) that will each qualify as a flow-through share (within the meaning of subsection 66(15) of the Income Tax Act (Canada)).

Each Unit will consist of one non-flow-through common share of the company and one Warrant.

Each Warrant will entitle the holder thereof to acquire one common share of the Company at a price of $0.25 for a period of 2 years following the closing of the Offering.

In addition, the Company will grant the Agent an option (the “Agent’s Option”) to sell that number of additional FT Units at the FT Issue Price, FT Units at the Premium FT Issue Price and/or Units at the Unit Issue Price , for additional aggregate gross proceeds of up to $1 million exercisable 48 hours prior to the Closing Date.

Michael Gentile, a leading strategic investor in the junior mining sector, will purchase $1.5 million of the Units  as part of the Offering.

The Company will use an amount equal to the gross proceeds received by the Company from the sale of the FT Units to incur eligible “Canadian exploration expenses” that will qualify as “flow-through mining expenditures” as such terms are defined in the Income Tax Act (Canada) (the “Qualifying Expenditures“) related to the Company’s projects in Ontario. All Qualifying Expenditures will be renounced in favour of the subscribers of the FT Units effective December 31, 2022.

The Offering is expected to close on or about February 23, 2022 and is subject to certain closing conditions including, but not limited to, the receipt of all necessary approvals including the conditional listing approval of the TSX Venture Exchange and the applicable securities regulatory authorities.

The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the 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 State in which such offer, solicitation or sale would be unlawful.

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 Current and Escape deposits forming the basis for a positive preliminary economic assessment around a ramp access underground mine reported December 1, 2021.

Executive Chair Jim Gallagher and CEO Abraham Drost lead an experienced team of geologists and engineers who are using the Norilsk magma conduit stratigraphic and mineral deposit model to guide ongoing exploration and development studies 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 2019Jim Gallagher and team are credited with the mine turnaround and creation of significant value for shareholders.

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 TSXV approval, use of proceeds of the Offering, tax treatment of the flow-through shares and flow-through units, and renunciation of the Qualifying Expenditures 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, risk 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, Chief Executive Officer of Clean Air Metals Inc., Phone: 807-252-7800, Email: adrost@cleanairmetals.ca, Website: www.cleanairmetals.ca

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Drilling Underway At Grid Metals Manitoba Nickel Targets

Grid Metals Corp. (the “Company“) (TSXV:GRDM)(OTCQB:MSMGF) today provided a shareholder update with respect to its nickel-copper-cobalt-PGM and lithium exploration and development projects in Manitoba and Ontario. The Company has commenced drilling at its advanced exploration stage Makwa Nickel property in southeastern Manitoba and expects to complete ~3,000 metres focusing on several large and untested geophysical anomalies in an effort to expand and improve on the existing pit-constrained nickel resources at the property. The Makwa drilling will be completed by early February. The Company will then commence with a 8,000 to 10,000 meter exploration and resource delineation drilling program on the nearby Mayville lithium property, targeting multiple lithium-rich pegmatite dyes (the “Donner Lake pegmatites”) that have been identified to date.

Makwa and Mayville Winter Drilling Program

Drilling commenced in early January at the Makwa Nickel Property in Manitoba with the program well underway. The Company plans to drill a total of up to 9 holes targeting three discrete electromagnetic (EM) anomalies generated by a high resolution ground survey completed by Abitibi Geophysics in 2018. The three targets include:

  1. A ~500m long, vertically extensive and strong conductance EM anomaly that starts immediately below historical exploration and resource drilling at the west end of the former producing Dumbarton Nickel-Copper Deposit. The Dumbarton Deposit supported a shallow underground mine operated by a subsidiary of Falconbridge Limited in the 1970s.
  2. A second ~500m long EM anomaly located directly south of a past producing open pit mine covering the shallow parts of the Makwa Nickel Sulfide Deposit.
  3. A >500m long moderate conductance EM anomaly located at the west end of the Makwa open pit. This anomaly overlaps with the current pit-constrained resources for the Makwa Deposit but extends further west from those resources such that it is interpreted to represent a possible western extension to the deposit. Some material from these three holes are expected to be used for future metallurgical testwork to augment that described in the current technical report for the property completed by RPA and associates in 2014 (available on SEDAR).

Major Drilling is the drill contractor for the project and there are presently two drills at site.

Following completion of the Makwa nickel drilling exploration drilling will commence on multiple lithium pegmatite targets referred to as the Donner Lake pegmatite project. A >8,000 metre program targeting three main clusters of mapped and/or drill defined lithium-enriched pegmatite dyke sets is planned for completion before the spring thaw commences. Drilling includes exploration drilling on two of the dyke sets and initial resource drilling one of the dyke sets (the “Main Dyke” and adjacent pegmatites which were previously drilled by the Company in 2018 – see Grid’s Sept 21st, 2021 news release).

The Company will provide additional information about the Makwa and Mayville drill programs in subsequent press releases.

Grid Metals’ Nickel-Copper-PGM Portfolio

Grids Nickel-Copper-PGM-Cobalt portfolio currently consists of:

  1. The Mayville Ni-Cu-PGM Co Project (comprising the PEA-stage Makwa and Mayville Ni-Cu-Co-PGM sulfide deposits );
  2. The Bannockburn Nickel Property (a bulk tonnage disseminated nickel property near Timmins);
  3. The East Bull Lake Palladium Property located near Sudbury.
  4. Manitoba Exploration Licences – the Company has successfully applied for several exploration licences in northern Manitoba covering: (i) over 90 km of the western part of the Fox River Belt – a direct analogue of the Raglan Nickel Mining Camp in Northern Quebec; and, (ii) two nickel targets located in a granulite facies terrain located ~30 km east of the Thompson nickel mining operations and the Thompson Nickel Belt which , include both Nova Bollinger-type and Thompson Belt-type Ni-Cu-PGM-Co prospects.

Additional details on exploration plans for all of Grid’s Ni-Cu-Co-PGM properties will be provided for in the coming weeks.

Grid Metals’ Lithium Assets

Grid’s lithium assets include the Donner Lake Lithium Project located in the northern limb of the Bird River Greenstone Belt in southeast Manitoba and the Campus Creek property located 245 km northwest of Thunder Bay, near the town of Ignace. Both properties are subject to a 75/25 joint venture interest with Lithium Royalty Corp. Grid’s lithium assets will be transferred to a wholly-owned subsidiary with a corporate objective being to monetize part or all the lithium portfolio during the current strong lithium market.

The Donner Lake Lithium Project hosts numerous spodumene-bearing pegmatites which appear to have intruded into northeast-striking structures within a laterally extensive contact zone between the Bird River greenstone belt in the north and a major granitic batholith terrane to the south. The location of the known lithium-bearing pegmatites correlate well to historical geochemical survey anomalies and the Company intends to conduct additional surface geochemical exploration over areas of limited or no exposure in the upcoming summer field season. Grid views the exploration potential of the Donner Lake area as being very high.

Part of the Donner Lake Property is subject to a first right of commercial offtake to Tanco Mining Corporation of Canada Limited (“Tanco”) who have recently commissioned a lithium spodumene circuit. The Bird River Greenstone belt hosts the world class Bernic Lake Pegmatite which is a highly fractionated zoned pegmatite that has been actively mined for rare metals for over 50 years.

A unique aspect of the The Donner Lake lithium project is that it is located in the southern part of the Mayville property – which also hosts a pit constrained Ni-Cu-PGM resource (M2 deposit) described in the aforementioned 2014 PEA study and an exploration-stage PGM discovery (PGM Zone). If time permits, resource extension drilling below the current M2 resources and exploration drilling on untested conductor targets around the M2 deposit is planned for March of this year. Additional exploration drilling may also be directed on the PGM Zone.

The Company has submitted a drill permit application for its early-exploration stage Campus Creek property 245 km northwest of Thunder Bay. The property hosts a new discovery of spodumene-bearing pegmatite as reported in the Company’s September 14th, 2021 news release. The Company hopes to begin drilling on the property in the spring of this year.

ESG With the exception of the Manitoba Explorations Licences Grid’s projects are located in road accessible parts of Manitoba and Ontario Canada. Both provinces have significant sources of renewable power. Grid has entered into exploration agreements with the affected First Nations in all of the areas it currently operates and is committed to high standards of corporate governance.

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

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: 4647 201 6844- Email: rd@gridmetalscorp.com
David Black – Investor Relations Email: info@gridmetalscorp.com 416 955-4773

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