silver

Iska Iska, Eloro’s (ELO.T) massive silver/lead/zinc/tin discovery in Bolivia is heading towards a PEA for its starter pit. 35,000 tons a day of high-grade silver with a significant zinc component. With a little more definition drilling there should be a tin component as well. Speaking with Tom Larsen, Eloro’s CEO, it’s very clear that the PEA is well in hand.

“We’re looking at Q2 2025 for a 35,000 ton per day PEA,” said Larsen. “Most of the PEA is complete now. But we’d like to do around like to do around 5000 to 10000 meters of additional drilling. That should give us a very commercial resource initially for a solid 12 year mine life for the PEA.”

“We want to drill enough so that we can confirm around 30 million tons of 0.3 tin to be included in Years 6, 7 and 8 in the PEA,” said Larsen. “As it stands we are looking at a 3.5 year payback on a 500 million CAPEX at current metal prices.”

“We’re focused on the PEA,” said Larsen. “However, in the short term we are looking at going in a different direction. We’d like to put a ramp in.”

“On a bulk mining basis we consistently get 40-50 grams of silver per ton,” said Larsen. “A ramp within about 50 meters of the Santa Barbara adit could produce 200 tons a day of high grade material.”

Basically, a ramp would be cut into the highest grade zone of what will, in time, become the starter pit for Iska Iska. The actual work would be done by Bolivian mining contractors.

“We’re working on the engineering and the economics now,” said Larsen. “This is a mini-project which could be up and running in a matter of months. Round numbers you need 1.5 million for mining equipment, 3 million for a primary and secondary crusher and another 1 million for an XRT ore sorter.”

The crushed rock would be sorted and then shipped to a mill a few kilometres away. Total CAPEX of the mining/crushing/sorting would come in at around 8 million, then 3 million to 5 million for a mill. Add the final payment for the company which owns Iska Iska and Eloro would need about 15 million US to kick off its ramp project.

Larsen and his team have been very careful to avoid dilution. As a former broker, Larsen is well aware of the negative effects of too many shares in the market. Given that ELO.T is trading around $1.00 doing a 15 million US raise would bump the share count over 100 million. Not good. So how to finance the ramp?

As the Eloro CEO, Larsen is not about to talk about Eloro’s financing options. But another Canadian company with Bolivian operations, Orvana Minerals, (ORV.T) has found Bolivian project financing…in Bolivia. The key feature is that the bonds are issued in Bolivia to Bolivian investors and while the bonds are sold in Bolivianos the interest is paid in US dollars. The US dollars make the bonds very attractive to Bolivian investors.

In order to issue a bond the issuer needs two things: assets to pledge as security and income from operations to pay the interest and principal on the bonds. On completion of the purchase of the company which owns Iska Iska, Eloro will have total ownership of a huge asset. And, of course, the crushers, sorter and mine equipment are also assets.

Income would come from the sale of the silver produced from the ramp. 200 tons per day at 50 gpt is 10 kilograms of silver per day at, say, $900/kg for $9000 gross revenue per day, $270,000 per month. Silver trades in US dollars. More than sufficient to cover the interest and principal repayments on a $15,000,000 bond. And that back of the envelope calculation entirely ignores the value of the zinc which is significant at that location at Iska Iska.

“The ramp would answer a lot of questions about the 35,000 ton per day starter pit,” said Larsen. Grade, metallurgy, rock mechanics, all the sorts of questions which need to be answered to move from the PEA to a bankable feasibility study. Things like optimal sorter settings could be worked out. And, of course, it may be possible to mine and process significantly more than 200 tons a day. Plus, the price of silver is set to rise significantly and ELO could catch the rocket.

Best of all, with this sort of bond financing, Eloro could have the ramp up and running in a matter of months without significant dilution.

Eloro will likely do a small private placement in the fairly near term to finance additional drilling at Iska Iska. In particular, Larsen’s team would like to drill more larger diameter holes which give a more accurate estimate of the grades likely to be encountered in a bulk mining scenario. But this would be under 5 million in all likelihood keeping the share count well under 95 million.

“Eloro has a hidden advantage,” said Larsen. “We are plugged in in Bolivia.”

Eloro has updated its corporate presentation with the inclusion of an amazing 3D Model. Well worth taking a few minutes to take a look:

https://vrify.com/embed/decks/03daa298-36dc-4832-9716-7b58a7e27847

Not quite a rocket, yet, but a year ago Bayhorse Silver (BHS.V) was very close to the end. While it had a silver mine, a mill and an ore sorter, it did not have a final permit which would allow it to actually operate its mine. In some jurisdictions, this would not have been a show stopper and the permit would arrive in short order. But the Bayhorse mine is in Oregon, a state where mining is politically unwelcome. The permit was going to take a while.

BHS CEO Graeme O’Neill scrambled to raise money, put a lot of his own money into a couple of small private placements and managed to arrange a lease for the ore sorter. It was enough to keep the company going, barely. BHS shares fell to $0.015

Then, in October 2023, Hercules Silver (BIG.V) announced that it had drilled into what it described as a “blind copper porphyry” at its property at Cuddy Mountain, 44 kilometres down the Snake River on the Idaho side. BIG went from less than $0.20 to a high of over $1.60 in a matter of weeks. It did a deal with Barrick and now has 23 million dollars to drill out its discovery.

Here is the interesting thing, the Hercules discovery is at what geos refer to as a “suture” between the Izee terrane and the Olds Ferry terrane. Its silver is found in a rhyolite structure. The blind copper porphyry looks to have been part of the geological events which created the silver in the rhyolite.

People began to talk about “closeology”. Bayhorse finds its silver in a rhyolite structure. The Bayhorse mine is at a suture of the Izee and Olds Ferry terranes. The argument from similarity can be and was made and O’Neill raised a little over 1 million dollars in a private placement.

The biggest problem Bayhorse has faced over the years is a lack of money. The million dollar private placement, powered by the Hercules discovery, solved that in the short term. For the first time in its existence, Bayhorse had the money to explore and a reason to spend that money.

The Bayhorse value proposition has always been the re-opening of a successful, past-producing, silver mine with high-grade silver, interesting copper and gold credits and a CEO who understood logistics. O’Neill would certainly look at, and sometimes option, greenfields exploration plays, that was never the company’s focus. O’Neill knew that if he could jump through the permitting hoops, the Bayhorse mine had years of unmined, high grade, silver to extract, concentrate and sell. It still does.

Hercules provided the hint. Was the geology at its Izee/Olds Ferry terrane similar to the geology surrounding Bayhorse? O’Neill had the money to start finding out.

VTEM is a helicopter flown magnetic and resistivity survey which can locate “anomalies” down several hundred meters. Bayhorse had never had the money or a reason to fly a VTEM, now it did and in early January of this year it flew both sides of the Snake River.

While BHS may have been inspired by BIG’s success downriver, its own geological team had scouted out what it believed was a substantial rhyolite structure on the Idaho side which the geos postulated was an extension of the Bayhorse mine rhyolite. That same geo team had long speculated that the Bayhorse mine itself was potentially “over” an epithermal gold/copper intrusion. A structure which would line up with the geological theory being tested at the Hercules property.

The results of the Bayhorse VTEM were outstanding. On the Oregon side, there was an area of low resistivity right under the western end of the Bayhorse mine workings. On the Idaho side, there were three areas of low resistivity and a magnetic high right where the Bayhorse geos expected the rhyolite extension to be. And that high was, in fact, higher than the high at the Bayhorse mine itself.

Here is the map of the magnetic signatures:

Here is the map of the resistivity signatures:

All of a sudden Bayhorse Silver went from a company with a plan to re-open a mine to a company which had four resistivity targets and a huge magnetic anomaly to explore.

Bayhorse has been lucky to have senior geologists advising O’Neill as he drove towards recommissioning the Bayhorse mine. That luck was extended when Spokane-based explorationist Mark Abrams was initially signed on as a consultant to finish off the final permitting process and then as a Director.

Abrams is very much the right man at the right time. He is a fully licensed geologist in both Oregon and Idaho and has conducted exploration programs for majors like Placer Dome and Agnico Eagle. He knows how to run a serious exploration program.

I was fortunate to speak to Abrams a few days ago. He was optimistic about Bayhorse’s prospects. He was also very much an explorationist. “You need boots on the ground,” he told me. “We need to be prospecting. Looking at the sediments in the catchment areas. Get into the drainages.”

“You’re putting dots on the map,” said Abrams.

Which is the great paradox O’Neill and his team are faced with. They can see the high magnetics and the low resistivity. They have targets in general. But in the real world of exploration, this is the earliest possible stage.

Right now, BHS can, and should, stick to its knitting and drill the Big Dog, the footwall and the low resistivity at the Bayhorse mine which is exactly what it is doing. It will take a while to get the surface drilling permits in Idaho. Time which can be spent profitably increasing the staked land, perhaps doing an IP survey on one of the blobs, collecting samples and surface “shows” and figuring out where best to begin drilling what may be a significant copper porphyry.

For Bayhorse shareholders the BIG news and the VTEM results have started an increase in value. From $0.015 to .08 in a couple of months. However, that is likely just the beginning. By drilling underground BHS is creating a hard news stream likely to continue well into Fall.  The Idaho targets are a largely unexpected bonus.

(Disclaimer: I own shares in Bayhorse and Graeme O’Neill is a friend. I also own shares in Hercules. At the moment, BHS is not a client of Motherlodetv.net Do your own due diligence. Call Graeme.)

TORONTO, March 13, 2024 (GLOBE NEWSWIRE) — Eloro Resources Ltd. (“Eloro” or the “Company”) (TSX: ELO; OTCQX: ELRRF; FSE: P2QM) is pleased to announce a non-brokered prospectus exempt offering (the “Offering”) of up to 3,300,000 units of the Company at a price of C$1.20 per Unit for gross proceeds of up to C$3,960,000, pursuant to the listed issuer financing exemption available under Part 5A of National Instrument 45-106 – Prospectus Exemptions (the “Listed Issuer Exemption”). There is an offering document relating to the Offering that can be accessed under the Company’s profile at www.sedarplus.ca and at www.elororesources.com. Prospective investors should read this offering document before making an investment decision.

Each Unit will consist of one common share of the Company (a “Common Share”) and one common share purchase warrant of the Company (a “Warrant”). Each Warrant will entitle the holder thereof to acquire one Common Share at an exercise price of C$2.00, with the expiry date of each Warrant being the date which is the earlier of (a) two years following the date of the first closing under the Offering, or (b) two business days after completion of a Change of Control of the Company; provided that in the event that the volume weighted average trading price of the Common Shares on the Toronto Stock Exchange is at ‎‎least C$3.00 per share for a period of five consecutive trading days (the “Triggering ‎Event”), the expiry date of the Warrants may be ‎accelerated by the Company to a date that is not less than 30 days after the date of issuance by the Company of a press release disclosing the occurrence of the ‎Triggering Event.

The Company intends to use the net proceeds from the Offering for (a) a property option payment with respect to the Iska Iska project, (b) continued exploration and development of the Iska Iska project, and (c) general corporate purposes and working capital.

The Offering is expected to close on or about March 27, 2024, or such earlier or later date as Eloro may determine. Completion of the Offering is subject to certain conditions including, but not limited to, a minimum of 2,800,000 Units for gross proceeds of C$3,360,000 (or such greater amount as Eloro may determine) being sold under the Offering, and the receipt of all necessary approvals, including the approval of the Toronto Stock Exchange.

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

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, through 98% owned Minera Tupiza SRL, has an option to acquire a 100% interest in the highly prospective Iska Iska Property, which can be classified as a polymetallic epithermal-porphyry complex, a significant mineral deposit type in the Potosi Department, in southern Bolivia. A recent NI 43-101 Technical Report on Iska Iska, which was completed by Micon International Limited, is available on Eloro’s website and under its filings on SEDAR+. Iska Iska is a road-accessible, royalty-free property. Eloro also owns an 82% interest in the La Victoria Gold/Silver Project, located in the North-Central Mineral Belt of Peru some 50 km south of the Lagunas Norte Gold Mine and the La Arena Gold Mine.

For further information please contact either Thomas G. Larsen, Chairman and CEO, or Jorge Estepa, Vice-President, at (416) 868-9168.

Information in this news release may contain forward-looking information. Statements containing forward-looking information express, as at the date of this news release, the Company’s plans, estimates, forecasts, projections, expectations, or beliefs as to future events or results and are believed to be reasonable based on information currently available to the Company (forward-looking statements in this news release include, without limitation, statements regarding the closing of the Offering, the minimum Offering amount, the proposed use of proceeds from the Offering, and Toronto Stock Exchange approval). 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. The Company does not intend to update any such forward-looking information, except in accordance with applicable laws.

The metallurgical drill holes used at Iska Iska are larger diameter than the regular diamond drill exploration holes. For Eloro (ELO.T) and its CEO, Tom Larsen, this makes all the difference. “The more the better,” said Larsen in a telephone interview. “The Iska Iska minerals are mainly disseminated in stockworks and veinlets. A bulk sample is much more representative of the grades you will encounter when you mine the deposit.”

In the original MRE starter pit section, based on assays of narrow, exploration holes, the silver head grade was estimated at 24 grams per ton silver. In the press release January 24, 2024 which covered the metallurgical holes and two twinned diamond drill holes and the bulk sample taken from that material, ELO reported a head grade of 91 grams per ton silver in the bulk sample in comparison to the 31 gpt from the twinned diamond drill holes.

“We recovered 7-8 tons of material from the met holes,” said Larsen. “We bulk sampled 6 tons of that material. Bulk sampling is the proper way to get a more accurate representation of the deposit. It’s more expensive but a bulk sample is more realistic because we will be bulk mining.”

“The grades can significantly increase with bulk mining,” said Larsen. “We are looking at bulk mining 30-50 thousand tons per day in the starter pit.”

Once you understand the idea of “bulk mining” the rest of this lengthy press release makes a lot more sense. Based on the head grade results of the bulk sample, introducing a pre-concentration stage into the flow sheet can give ELO a huge economic advantage.

“XRT ore sorting is a game changer,” said Larsen. “A lot of people misunderstand ore sorting. They see it as a gimmick to upgrade low grade material. It isn’t. It’s a way to create a high-grade pre-concentrate by separating the higher grade material and stockpiling the less enriched material.”

The press release outlined the success TOMRA had using its XRT ore sorting technology for the coarser sized fractions in the pre-concentration stage and using the well understood Dense Media Separation treatment of the finer fractions so as to pull on the strengths of both technologies.

“All of this will be going into a revised Mineral Resource Estimate,” said Larsen. “We are going to take our time, use proper, conservative, representation and make sure that nothing is under-reported.”

“The met holes plus the infill drilling will enhance the grade and expand the tonnage in the starter pit,” said Larsen. “We’re starting off with the 135 million tons in the first MRE. Our infill drilling will add at least 50 million tons of polymetallic metal value. There is a real chance we’ll report 200 million plus, once everything has been modelled.”

“We are also hoping for 50 million tons of .2-.3% tin,” said Larsen. “This should be included in the updated MRE but it will be in time for the PEA.”

Until the PEA, Larsen cannot discuss the Net Present Value of the project at Iska Iska. But he did allow that the previous cost per ton estimate of just over $9.00 was still seen as correct. “Now that we know the material is amenable to ore sorting we’ll have to factor in the cost of sorting, but that looks to be $3 to $5.00 a ton.”

Larsen can’t run the numbers, yet. However, if you take a potential 200 million tons of 50 gram per ton silver average using a $0.70 per gram price, the silver alone is worth $35.00 a ton. Assuming mining costs at the Santa Barbara starter pit site are US$14 a ton and you deduct the zinc and lead credits to offset the metallurgical recoveries, input costs of processing, transportation and smelter fees(NSR), you are left with an approximate $50 net value per ton of material. Times 200 million tons in the proposed starter pit: 10 billion dollars worth of rock.

When I spoke with Larsen last week, he suggested holding this piece until last Monday. Which usually means news and this was no exception.

On January 29, 2024, Eloro released the results of an expanded induced polarization/resistivity (IP/Res) survey at Iska Iska. Dr. Bill Pearson, Eloro’s VP Exploration is quoted in the release,

“The new chargeability anomaly, extending southeastward from the open pit that defines the MRE, adds at least an additional 600m of potential strike length to the major mineralized structural corridor that is up to 800m wide for an overall strike length of at least 2km. This new target area has not been drilled. In addition, the chargeability anomaly southeast of the pit is very strong, suggesting that it is a prime target for outlining additional higher-grade polymetallic mineralization.”

At first reading, the IP results suggest a very large target outside the bounds of the current conceptual pit shell. It has not been drilled however, Eloro’s previous drilling has been into targets which exhibited much the same IP/Resistivity profiles. A fact made clear in this figure:

Adding this target to an already enormous project offers a huge opportunity while creating large challenges for what is essentially a small exploration company. Drilling to confirm the anomaly and the mineralization and grades it contains is a very big project in itself.

Eloro’s current share price rose a bit on the IP news going to $1.90 and giving the company a market cap of 145 million Canadian dollars. It has fallen back a bit to a current $1.65 for a market cap of 123 million. The disconnect between the asset value and the current market cap is enormous and will become recognized.

Cartier Silver Corporation (CSE:CFE) (“Cartier Silver” or the “Company”) is pleased to announce that it is proceeding with a non-brokered private placement (the “Private Placement”) for proceeds of up to $2 million.

Private Placement

The Private Placement will consist of up to 8,000,000 units of Cartier Silver at a price of $0.25 per unit (“Units”) for gross proceeds of up to $2 million. Each Unit will consist of one common share in the capital of Cartier Silver (a “Common Share”) and one half of one Common Share purchase warrant (each whole, a “Warrant”). Each Warrant will entitle the holder to purchase one Common Share at a price of $0.50 per share for a term of 24 months following the closing of the Private Placement.

The net proceeds of the Private Placement will be used to finance exploration at the Chorrillos Project in the Potosi Department, Bolivia and for working capital purposes. The Private Placement is subject to all required regulatory approval. All securities issued pursuant to the Private Placement will be subject to the applicable statutory four-month hold period.

This press release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act“), or any state securities laws and may not be offered or sold within the United States or to or for the account or benefit of a U.S. person (as defined in Regulation S under the U.S. Securities Act) unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

About Cartier Silver Corporation

Cartier Silver is an exploration and development Company focused on discovering and developing its recently acquired silver property assets, including the Chorrillos Project and claims staked by the Company’s subsidiary, all of which are located in the Potosi Department of southern Bolivia. The Company also holds significant iron ore resources at its Gagnon Holdings in the southern Labrador Trough region of east-central Quebec, and the Big Easy gold property in the Burin Peninsula epithermal gold belt in the Avalon Zone of eastern Newfoundland & Labrador.

For further information please visit Cartier Silver’s website at www.cartiersilvercorp.com

For further information please contact:

The CSE has not reviewed nor accepts responsibility for the adequacy or accuracy of this release.

Statements in this release that are not historical facts are “forward-looking statements” and readers are cautioned that any such statements are not guarantees of future performance, and that actual developments or results, may vary materially from those in these “forward-looking statements”.

PDF available: http://ml.globenewswire.com/Resource/Download/9203d1a1-5973-4d27-a7fc-8d9a631ec1f0

Eloro Resources Ltd. (TSX: ELO; OTCQX: ELRRF; FSE: P2QM) (“Eloro”, or the “Company”) is pleased to announce the final results of its bulk metallurgical test program on the Iska Iska silver-tin polymetallic project in the Potosi Department of southwestern Bolivia.

Tom Larsen, CEO of Eloro commented: “The substantive difference in average silver grade in the bulk sample compared to the twinned holes strongly suggests that the silver grade in the two original twinned holes is likely significantly underreported due to the much smaller sample size. The recently released results from the definition drill program in the same general area within the initial MRE (see Eloro press releases dated December 18, 2023 and January 11, 2024) which yielded a number of higher-grade Ag intersections, also reflected in the improved silver grade equivalent values, further supports this underreported silver grade conclusion. These results highlight the fact that tighter spaced drilling is required to have a more representative sampling of high-grade areas in the Iska Iska deposit to obtain a more accurate estimate of the likely true overall grade.”

Mr. Larsen continued: “While the initial test program focussed on the higher-grade part of the Polymetallic Domain as this is where the bulk of the current mineral resource is, further testwork is planned on the Tin Domain which is very under-drilled. The recent definition drilling reported significant Sn results and it is expected that additional definition drilling will expand and upgrade the tin resource so that it can potentially be included in the preliminary economic assessment (“PEA”) in progress.”

Mike Hallewell, newly appointed as Eloro’s Senior VP Engineering Projects/Metallurgy said: “The results indicate that 91.9% of the Silver and Lead, and 76.0% of the zinc can be pre-concentrated into a relatively high-grade mill feed product constituting only 46.6% of the original tonnage. The upgraded product results in higher flotation plant feed grades that will assist flotation stage recoveries. Both XRT “Ore Sorting” and DMS are well known, low risk separation technologies that provide Eloro with a great opportunity to significantly reduce operating and capital costs, reduce the mine cut-off grade and enhance flotation stage recoveries. The small differences in the -60mm+25 mm and -25mm+9.5 mm size fractions suggests that the top size could be increased above 60 mm. This would increase the percentage of Run-of-Mine (“ROM”) secondary crushed material that would report for pre-concentration, which would enhance the overall benefit of pre-concentration. The much higher Ag grades of 91 g Ag/t in the bulk metallurgical sample as compared to the twinned holes grade of 31g Ag/t is very encouraging. This along with the very high test recoveries for Ag, will have a major positive effect on potential project economics.”

METALLURGICAL TEST PROGRAM

As previously reported (see Eloro press release dated November 1, 2023), three metallurgical drill holes totalling 940 m were completed at the Iska Iska project. Two holes targeted the higher-grade Polymetallic (Ag-Pb-Zn) Domain while the third hole sampled the higher-grade Tin Polymetallic (Sn-Ag-Pb) Domain. These metallurgical holes were drilled using PQ core (~85mm Ø) and were designed to twin previous HQ core drill holes which contained representative mineralization with values for the predominant higher grade Polymetallic (Ag-Zn-Pb) outlined in Table 1. As shown in Figure 1, these metallurgical holes were targeted in the potential higher-grade starter pit area at Santa Barbara which contains an estimated mineral resource at a cutoff of NSR US$25/t of 132 million tonnes at 24.3 g Ag/t, 1.11% Zn and 0.50% Pb (72.06 g Ag eq/t) (see Eloro press release dated October 17, 2023). The drill core selected for testing from these holes, which totaled 7.9 tonnes from 519 m of drill core, was shipped to Wardell Armstrong International (“WAI”) in Cornwall, England, for crushing to 60mm and sizing into five different size fractions. The -60 mm+9.5 mm crushed and sized product was sent to TOMRA GmbH based in Wedel, Germany, for separate cascade “ore-sorting” tests on -60 mm+25 mm and -25mm+9.5 mm.

The testing program reported in this release focussed on the two PQ drill holes in the Polymetallic Domain which contain the majority of the tonnage and metal, namely MET-DSBU-10 and MET-DSB-30. The sample size tested was 6.3 tonnes from 418m of the overall drill core sent to WAI. Further PQ diamond drilling is planned to obtain a bulk metallurgical sample from the sulphide Tin Domain, in addition to testing MET-DSB-32 which is in the oxide zone of the Tin Domain. The Tin Domain, although it contains an inferred mineral resource of 110 million tonnes grading 0.12% Sn, 14.2 g Ag/t and 0.14% Pb (38.02 g Ag eq/t) (see Eloro press release of October 17, 2023), is very under-drilled especially to the west. The recent definition drilling reported significant Sn results and it is expected that additional definition drilling will expand and upgrade the Sn resource so that it can potentially be included in the PEA in progress.

The -9.5 mm+0.85 mm size fractions were subject to heavy liquid analysis performed on two separate size fractions (-9.5mm+5mm and -5mm+0.85 mm) to identify the amenability of the finer size fractions to Dense Media Separation (“DMS”). The -0.85 mm material and the pre-concentrated products from the “ore sorting” and heavy liquid tests will provide testwork material for further PEA level grinding and flotation metallurgical testwork at WAI. This work builds on previous metallurgical test work using representative Iska Iska samples, as summarized in the Company’s National Instrument 43-101 (“NI 43-101”) Technical Report filed on Sedar+ (see Eloro press release dated October 17, 2023).

These metallurgical drill holes also provided an important comparative bulk sample test of mineralization grade relative to the weighted average grade of the twinned holes.

Figure 1: Cross Section of MRE Block Model showing Locations of Metallurgical PQ Holes and Original Holes Twinned

Notes: OP = Open Pit defining mineral resource estimate (MRE), NSR – Net Smelter Revenue, HG = Higher Grade, LG= Lower Grade. Block model from Micon International Limited MRE (see Eloro press release dated October 17, 2023)

SUMMARY HIGHLIGHTS

1. Overall Summary Tests

The main focus of this testwork phase has been on the predominant Ag-Pb-Zn Sulphide Domain which accounts for the majority of the mineral resource tonnage and metal values. Table 1 below shows the compelling results from this preliminary study on the full bulk PQ sample representative of the higher grade Polymetallic (Ag-Zn-Pb) Sulphide domain. The results indicate that 91.9% of the silver and lead, and 76.0% of the zinc can be pre-concentrated into a relatively high-grade mill feed product constituting only 46.6% of the original tonnage. The upgraded product results in higher flotation plant feed grades that will assist flotation stage recoveries. While 91.1% of the bulk sample (-60mm+0.85mm) reports to pre-concentration the remaining 8.9% of the material by-passes pre-concentration and can be blended directly with the pre-concentrated feed ahead of grinding.

Table 1: Overall Pre-concentration Results

Table 2 below compares the individual back calculated head assays coming from the PEA preconcentration test work program with the assays from the 1/2 HQ twinned exploration holes. The overall weighted average Ag assay was significantly higher in the bulk PQ metallurgical hole sample at 91 g/t Ag as compared with the two original HQ geological twinned holes at 31 g/t Ag. This substantive difference in average Ag grade strongly suggests that the silver grade in the two original twinned holes is likely to be significantly underreported due to the much smaller sample size. The recently released results from the definition drill program in the same general area (see Eloro press releases dated December 18, 2023, and January 11, 2024) which yielded a number of higher-grade Ag intersections, further supports this conclusion. These results highlight the fact that tighter spaced drilling is required to have a more representative sampling of high-grade areas in the Iska Iska deposit to obtain a more accurate estimate of the likely true overall grade.

Table 2: Back Calculated Head Assay

2. Ag-Zn-Pb Sulphide Domain -60 mm+25 mm XRT Ore Sorter Result

In test 4.4, metal recoveries of 77.8%, 89.2% and 91.0% of zinc, lead and silver, respectively, were achieved into a pre-concentrate that comprised 38.1% of the feed weight. The pre-concentrate assayed 2.91% Zn, 2.05% Pb and 180g/t Ag (308.37 g Ag eq/t). These “ore” sorter results are presented in Table 3 and Figure 2 below.

Table 3: -60mm+25mm XRT “Ore” Sorter Cascade Results

Figure 2: -60mm+25mm Weight Yield Vs Metal Recovery to product

3. Ag-Pb-Zn Sulphide Domain -25 mm+9.5 mm XRT “Ore” Sorter Result

In test 1.4, metal recoveries of 81.9%, 89.5% and 89.6% for zinc, lead and silver, respectively, were achieved into a pre-concentrate that comprised 41.6% of the sample feed weight. The pre-concentrate assayed 2.96%Zn, 1.72%Pb and 183g/t Ag (305.13 g Ag eq/t). These “ore sorter” results are presented in Table 4 and Figure 3 below.

Table 4: -25mm+9.5mm XRT Ore Sorter Cascade Results

Figure 3 -25mm+9.5mm Weight Yield Vs Metal Recovery to product

4. Ag-Zn-Pb Sulphide Domain -9.5 mm+5.0 mm DMS Heavy Liquid Results

In 2.65 Specific Gravity (“SG”) sinks, metal recoveries of 85.3%, 92.7% and 92.3% of zinc, lead and silver, respectively, were achieved into a pre-concentrate that consisted of 45.9% of the feed weight. The 2.65 SG Sink product assayed 3.47% Zn, 2.38% Pb and 156 g/t Ag (314.61 g Ag eq/t). These heavy liquid test results are presented in Table 5 and Figure 4 below.

Table 5: -9.5mm+5.0mm DMS Heavy Liquid Results

Figure 4: -9.5mm+5.0mm Weight Yield Vs Metal Recovery to product

5. Ag-Zn-Pb Sulphide Domain -5.0 mm+0.85 mm DMS Heavy Liquid Results

In the 2.65 SG sinks, metal recoveries of 91.4%, 95.5% and 92.1% of zinc, lead and silver, respectively, were achieved into a pre-concentrate that comprised 49.5% of the feed weight. The 2.65 SG Sink product assayed 3.68%Zn, 2.37%Pb and 196g/t Ag (356.98 g Ag eq/t). These heavy liquid test results are presented in Table 6 and Figure 5 below.

Table 6: -5.0mm+0.85mm DMS Heavy Liquid Results

Figure 5: -5.0mm+0.85mm Weight Yield Vs Metal Recovery to product

Qualified Person (“QP”)

The metallurgical test program was directed by Mike Hallewell, B.Sc., F.I.M.M.M., F.S,A.I.M.M., F.M.E.S., C.Eng, Senior VP Engineering Projects/Metallurgy, and a Qualified Person (QP) as defined by NI 43-101 in consultation with Richard Gowans, P.Eng., an independent QP as defining by NI 43-101. Previous metallurgical work completed on Iska Iska is summarized in the NI 43-101 Technical Report (see Eloro press release dated October 17, 2023) prepared by Micon International Limited. Independent QPs for the Technical Report are Charley Murahwi, P.Geo., FAusIMM, Richard Gowans, P.Eng., Ing. Alan J. San Martin, MAusIMM (CP) and Abdul Aziz, Drame, P.Eng., all of whom are independent QP’s as defined by NI 43-101. Mr. Murahwi completed site visits in January 2020 and November 2022.

Wardell Armstrong International, based in Cornwall, UK, an internationally respected minerals processing laboratory, carried out the crushing of the bulk sample for shipment to TOMRA and completed metallurgical tests and assays on resulting products.

As part of the Tomra Group, TOMRA Mining, headquartered in Wedel, Germany, is a leading provider of ore sorting technologies, particularly specializing in X-ray Transmission (XRT) sorting. Among the latest advancements to enhance and improve finer particle separation, Tomra introduced a cutting-edge ejection module. This innovative module is specifically designed to increase separation accuracy and significantly reduce air consumption, thereby positively impacting operational expenditures (OPEX). Tomra’s extensive global reach has a proven track record in handling large-scale projects.

Dr. Bill Pearson, P.Geo., Vice President Exploration, Eloro and a QP as defined by NI 43-101 has reviewed and approved the technical content of this news release. Dr. Pearson who has more than 49 years of worldwide mining exploration, development and production experience, including extensive work in South America, manages the overall technical program, working closely with Dr. Osvaldo Arce, P.Geo. General Manager of Eloro’s Bolivian subsidiary, Minera Tupiza S.R.L., and a Qualified Person in the context of NI 43-101, who has supervised all field work carried out at Iska Iska. Dr. Arce supervised the on-site drilling and collection of the PQ core. Shipping to Wardell Armstrong in Cornwall for sample crushing was done through the facilities of Alfred H. Knight (AHK). Crushed material was shipped to Tomra in Germany for the cascade test on the ore-sorter then the concentrates were shipped to WAI for final metallurgical testing and assaying.

Silver equivalent (Ag eq) grades are calculated using 3-year average metal prices of Ag = US$22.52/oz, Zn = US$1.33/lb , Pb = 0.95/lb and Sn = US$12.20/lb, and preliminary metallurgical recoveries of Ag = 88%, Zn = 87%, Pb= 80% and Sn = 50%.

About Iska Iska

Iska Iska silver-tin polymetallic project is a road accessible, royalty-free property, wholly controlled by the Title Holder, Empresa Minera Villegas S.R.L. and is located 48 km north of Tupiza city, in the Sud Chichas Province of the Department of Potosi in southern Bolivia. Eloro has an option to earn a 100% interest in Iska Iska.

Iska Iska is a major silver-tin polymetallic porphyry-epithermal complex associated with a Miocene possibly collapsed/resurgent caldera, emplaced on Ordovician age rocks with major breccia pipes, dacitic domes and hydrothermal breccias. The caldera is 1.6km by 1.8km in dimension with a vertical extent of at least 1km. Mineralization age is similar to Cerro Rico de Potosí and other major deposits such as San Vicente, Chorolque, Tasna and Tatasi located in the same geological trend.

Eloro began underground diamond drilling from the Huayra Kasa underground workings at Iska Iska on September 13, 2020. On November 18, 2020, Eloro announced the discovery of a significant breccia pipe with extensive silver polymetallic mineralization just east of the Huayra Kasa underground workings and a high-grade gold-bismuth zone in the underground workings. On November 24, 2020, Eloro announced the discovery of the SBBP approximately 150m southwest of the Huayra Kasa underground workings.

Subsequently, on January 26, 2021, Eloro announced significant results from the first drilling at the SBBP including the discovery hole 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 164.96 g Ag/t, 0.46%Sn, 3.46% Pb and 0.14% Cu over 166m including 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 DHK-15 which returned 29.53g Ag/t, 0.078g Au/t, 1.45%Zn, 0.59%Pb, 0.080%Cu and 0.056%Sn over 257.5m, Eloro has released a number of significant drill results in the SBBP and the surrounding mineralized envelope which along with geophysical data has defined an extensive target zone. On October 17, 2023, Eloro filed the NI 43-101 Technical Report outlining the initial inferred MRE for Iska Iska, prepared by Micon International Limited. The MRE was reported in two domains, the Polymetallic (Ag-Zn-Pb) Domain which is primarily in the east and south of the Santa Barbara deposit and the Tin (Sn-Ag-Pb) Domain which is primarily in the west and north. The Polymetallic Domain is estimated to contain 560Mt at 13.8 g Ag/t, 0.73% Zn & 0.28% Pb at an NSR cutoff of US$9.20 for potential open pit and an NSR cutoff of US$34.40 for potential underground. The majority of the mineral resource is contained in the constraining pit which has a stripping ratio of 1:1.

The Polymetallic Domain contains a higher-grade mineral resource at a NSR cutoff of $US25/t of 132 million tonnes at 1.11% Zn, 0.50% Pb and 24.3 g Ag/t which has a net NSR value of US$34.40/t which is 3.75 the estimated operating cost of US$9.20/t. The Tin Domain which is adjacent the Polymetallic Domain and does not overlap, is estimated to contain a mineral resource of 110Mt at 0.12% Sn, 14.2 g Ag/t and 0.14% Pb but is very under drilled.

The Company has completed a 5,267.7m definition drill program to upgrade and expand the higher-grade mineral resource in the Polymetallic Domain and has commenced a PEA led by Lycopodium.

About Eloro Resources Ltd.

Eloro is an exploration and mine development company with a portfolio of gold and base-metal properties in Bolivia, Peru and Quebec. Eloro has an option to acquire a 100% interest in the highly prospective Iska Iska Property, which can be classified as a polymetallic epithermal-porphyry complex, a significant mineral deposit type in the Potosi Department, in southern Bolivia. A recent NI 43-101 Technical Report on Iska Iska, which was completed by Micon International Limited, is available on Eloro’s website and under its filings on SEDAR. Iska Iska is a road-accessible, royalty-free property. Eloro also owns an 82% interest in the La Victoria Gold/Silver Project, located in the North-Central Mineral Belt of Peru some 50 km south of the Lagunas Norte Gold Mine and the La Arena Gold Mine.

For further information please contact either Thomas G. Larsen, Chairman and CEO or Jorge Estepa, Vice-President at (416) 868-9168.

Information in this news release may contain forward-looking information. Statements containing forward-looking information express, as at the date of this news release, the Company’s plans, estimates, forecasts, projections, expectations, or beliefs as to future events or results and are believed to be reasonable based on information currently available to the Company. There can be no assurance that forward-looking statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. Readers should not place undue reliance on forward-looking information.

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

https://elororesources.com/

Eloro Resources Ltd. (TSX: ELO; OTCQX: ELRRF; FSE: P2QM) (“Eloro”, or the “Company”) is pleased to announce the final assay results for the last six (6) diamond drill holes in its eleven (11) hole 5,267.7m definition drill program on the Iska Iska silver-tin polymetallic project in the Potosi Department of southwestern Bolivia.

Tom Larsen, CEO of Eloro commented: “I am very pleased with the continuation of significantly higher-grade silver equivalent results from the latest definition drilling program, compared to the initial mineral resource estimate (“MRE”) starter pit area model as previously reported (see Eloro press release dated Oct 17, 2023). These new results highlight the potential to upgrade and expand the higher-grade resource in the Santa Barbara starter pit area.”

Larsen continued: “Tin is proving to be an important metal contributor to these upgraded silver equivalent results. This can enhance NSR values and increase tonnage in future MRE studies. As an example, Hole DSB-63 located in the Northeast section of the Santa Barbara starter pit area, recognized more as a Polymetallic (Ag-Zn-Pb) Domain, returned 0.51% tin over a 23.02-meter drill intercept with a total silver equivalent value of 205.57 g/t.

There is more and more evidence of high temperature sulphidation centres being identified as feeders within the open pit area resulting in upgraded tin and silver values. Higher density definition drilling in the initial Santa Barbara open pit envelope is consistently proving up higher grades as drill density is improved.”

Dr. Osvaldo Arce, P.Geo. General Manager of Eloro’s Bolivian subsidiary Minera Tupiza S.R.L. and an expert on Bolivian mineral deposits said: “The definition drilling is confirming a strong high-grade Ag-Sn association, which is common in the southern Bolivian Tin Belt, including in large systems at Cerro Rico de Potosi, Animas-Siete Suyos-Chocaya and Tatasi deposits that occur along NW-SE striking structural corridors, the same geological environment that is present at Iska Iska.”

Dr. Arce continued: “Recent drilling results have outlined upgraded tin and silver values from near surface down to at least 500m in vertical extent, principally in the sulphide zone. Geophysical information and deep drilling indicate that tin-silver mineralization may extend to depths of 1km or more. Tin mineralization in these zones has been remobilized and redeposited throughout the deposit by brecciation in favorable rock types, especially medium grained porphyritic dacite and intrusion breccia which are the most widespread lithologies at Iska Iska. Moreover, tin-polymetallic mineralization can be locally extensive/continuous as occurs in hole DSB-67, where 477m of the 500m drilled averages about 0.1% Sn, with almost no waste material. This high-grade continuous polymetallic mineralization forms commonly subhorizontal vein-parallel banding along north-northwest trending shear zones, indicating multiple episodes of fracture opening and mineral precipitation.”

DEFINITION DRILL PROGRAM

Table 1 below lists significant results for the six drill holes reported. Figure 1 shows locations of all the definition drill holes completed with the holes reported in this release highlighted. Silver equivalent (g Ag/t) has been calculated using 3-year average metal prices and preliminary metallurgical recoveries (see note below Table 1 for more information). Table 2 lists the coordinates of the definition drill holes reported in this release.

The definition diamond drill program focussed on upgrading and expanding the higher-grade Polymetallic (Ag-Zn-Pb) Domain Type inferred mineral resource, which as previously reported (see Eloro press release dated October 17, 2023) contains an inferred mineral resource of 132 million tonnes at 24.3 g Ag/t, 1.11% Zn and 0.50% Pb (72.06 g Ag eq/t) at an NSR cutoff of $US25/t. The net NSR value of this higher-grade resource is US$34.40/t which is 3.75 times the estimated operating cost of US$9.20/t. Several of these holes also tested the adjacent Tin (Sn-Ag-Pb) Domain where high values of silver (Ag) have previously also been obtained in addition to tin (Sn).

Drill hole locations were planned to fill-in major gaps in the block model as well as upgrade and expand the higher-grade zone both along and across strike in the general area of the potential starter pit. As noted by Micon International Limited (“Micon”), authors of the National Instrument 43-101 (“NI 43-101”) Technical Report detailing the initial Iska Iska MRE (see Eloro press release dated October 17, 2023), the highest-grade areas are also the best drilled. As drill density in the deposit is improved, it is expected that grade will increase due to better sample density. Results previously reported (see Eloro press released dated December 18, 2023) and results reported herein confirm that this is likely the case.

Figures 2 and 3 are west-east sections showing the distribution of tin and silver, respectively, incorporating definition drill results along with distribution of mineral resource blocks with an NSR value greater than US$25 per tonne from the Micon mineral resource model. These sections highlight how the definition drill program has expanded both the higher-grade Sn and Ag zones especially to the west where there has been very little previous drilling.

These new data highlight the potential for expanding the mineral resource particularly outlining a significant higher-grade Sn resource to include for consideration in the PEA. As noted in the Eloro press release of November 1, 2023, the PEA was planned to focus solely on the higher-grade Polymetallic (Ag-Zn-Pb) with Sn being a major exploration target. The results of the definition drill program highlight the potential to significantly expand the higher-grade Sn resource to the west of the current potential pit and to incorporate this new potential resource area into consideration for the PEA.

The following is a summary of significant diamond drill results from the six holes:

Hole DSB-66 intersected several long well mineralized intervals as follows:

• 57.62g Ag/t, 1.26% Zn, 0.94% Pb and 0.12% Sn (139.94g Ag eq/t) over 136.11m from 137.75m to 273.86m including:
  • 136.81g Ag/t, 2.00% Zn, 1.38% Pb and 0.17% Sn (255.19g Ag eq/t) over 34.77m from 187.64m to 222.41m
• 24.67g Ag/t, 1.08% Zn, 0.83% Pb and 0.08% Sn (94.46g Ag eq/t) over 86.39m from 288.92m to 375.31m including:
  • 69.37g Ag/t, 0.41g Au/t, 1.88% Zn, 3.68% Pb and 0.32% Sn (272.27g Ag eq/t) over 6.08m from 307.15m to 313.23m,
  • 23.59g Ag/t, 2.14% Zn, 1.57% Pb and 0.15% Sn (159.64g Ag eq/t) over 6.15m from 328.23m to 334.38m, and
  • 99.40g Ag/t, 1.60% Zn, 1.06% Pb and 0.10% Sn (187.52g Ag eq/t) over 12.24m from 360.02m to 372.26m
• 7.46g Ag/t, 2.51% Zn, 1.02% Pb and 0.06% Sn (129.90g Ag eq/t) over 74.85m from 415.85m to 490.70m
  • 10.80g Ag/t, 0.12 g Au/t, 4.96% Zn, 1.49% Pb and 0.06% Sn (229.62g Ag eq/t) over 16.86m from 430.99m to 447.85m
  • 13.86g Ag/t, 4.20% Zn, 2.35% Pb and 0.34% Sn(277.75g Ag eq/t) over 7.76m from 457.31m to 465.07m

Hole DSB-65 collared 100m west of hole DSB-66 intersected the highest-grade silver sample intersected thus far at Iska Iska in an 80+m wide well mineralized zone as follows:

• 118.86g Ag/t, 0.35% Zn, 0.35% Pb and 0.15% Sn (152.29g Ag eq/t) over 81.28m from 353.49m to 434.77m including:
  • 5,080g Ag/t, 0.12 g Au/t, 0.26% Zn, 1.34% Pb, 1.53% Cu and 1.27% Sn (4,746.46g Ag eq/t) over 1.46m from 362.53m to 363.99m
• Cutting of this very high Ag sample to 1,000g Ag/t based on a statistical probability plot yields a still high average for the 81.28m interval of 45.58 g Ag/t with an overall grade of 87.80 g Ag eq/t
• This very high-grade sample highlights the potential for Iska Iska to host extraordinary grades within the overall extensive mineralized system.

Hole DSB-67 collared 200m south-southwest of DSB-66 intersected a wide zone of mineralization grading 8.17 g Ag/t, 1.40% Zn, 0.48% Pb and 0.06% Sn (79.08g Ag eq/t) over 236.13m from 240.04m to 476.17m including higher grade zones of:

• 2.17g Ag/t, 0.16 g Au/t, 2.65% Zn, 0.52% Pb and 0.06% Sn (118.18g Ag eq/t) over 9.03m from 249.09m to 258.12m and
• 28.10g Ag/t, 4.25% Zn, 1.67% Pb and 0.17% Sn (245.05g Ag eq/t) over 19.45m from 434.06m to 453.51m

Hole DSB-60 intersected a 158.58m long zone of lower grade mineralization with higher-grade zones as follows:

• 16g Ag/t, 0.66% Zn, 0.41% Pb and 0.09% Sn (63.23g Ag eq/t) over 158.58m from 15.33m to 173.91m including:
  • 23.31g Ag/t, 1.18% Zn, 0.56% Pb and 0.16%Sn (105.56 g Ag eq/t) over 6.16m from 34.99m to 41.15m and
  • 115.54g Ag/t, 1.45% Zn and 1.67% Pb (201.17g Ag eq/t) over 4.54m from 139.32m to 143.86m

Hole DSB-63, the eastern most hole in the definition drill program, intersected a significant Sn intersection of 23.37 g Ag/t, 1.77% Zn. 1.22% Pb and 0.51% Sn (205.57g Ag eq/t) over 23.02m from 446.10m to 469.12m. This area is in the Polymetallic (Ag-Zn-Pb) Domain where Sn values have typically been low. This suggests potential to extend the higher-grade Sn zone further east.

Hole DSB-64, the southwestern most hole in the definition drill program, intersected 113.33g Ag/t and 0.12 g Au/t (110.97 g Ag eq/t) over 22.91m from 35.22m to 58.13m and 172.37 g Ag/t and 0.17% Pb% (161.78g Ag eq/t) over 13.46m from 135.83m to 149.29m. This hole was terminated at 240m due to faulting short of its planned depth of 500m.

Table 1 (con’t)

Note: True width is approximately 80% of core length. Silver equivalent (Ag eq) grades are calculated using 3-year average metal prices of Ag = US$22.52/oz, Zn = US$1.33/lb , Pb = 0.95/lb and Sn = US$12.20/lb, and preliminary metallurgical recoveries of Ag = 88%, Zn = 87%, Pb= 80% and Sn = 50%. Au and Cu assay results are provided as they are of potential economic interest however these values are not included in the Ag eq calculation as metallurgical recovery has not yet been established for these elements. In selecting intervals, a cutoff grade of 30 g Ag eq/t has been used. Lower grade material may be included in intersections where geological continuity is warranted.

Figure 1: Location Map of Definition Drill Holes, Santa Barbara, Iska Iska. Holes in this release are highlighted in yellow circles.

Figure 2: West-East Section showing Updated Geological Interpretation of Sn Distribution

Figure 3: West-East Section showing Updated Geological Interpretation of Ag Distribution

Qualified Person (“QP”)

The inaugural MRE for Iska Iska outlined in the NI 43-101 Technical Report (see Eloro press release dated October 17, 2023) has been prepared by Micon International Limited. Independent QPs for the Technical Report are Charley Murahwi, P.Geo., FAusIMM, Richard Gowans, P.Eng., Ing. Alan J. San Martin, MAusIMM (CP) and Abdul Aziz, Drame, P.Eng., all of whom are independent QP’s as defined by NI 43-101. Mr. Murahwi completed site visits in January 2020 and November 2022.

Dr. Bill Pearson, P.Geo., Vice President Exploration, Eloro and a QP as defined by NI 43-101 has reviewed and approved the technical content of this news release. Dr. Pearson who has more than 48 years of worldwide mining exploration, development and production experience, including extensive work in South America, manages the overall technical program, working closely with Dr. Osvaldo Arce, P.Geo. General Manager of Eloro’s Bolivian subsidiary, Minera Tupiza S.R.L., and a Qualified Person in the context of NI 43-101, who has supervised all field work carried out at Iska Iska.

Eloro utilized both ALS and AHK for drill core analyses, both of whom are major international accredited laboratories. Drill samples sent to ALS were 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. 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 were prepared in a preparation facility installed and managed by AHK in Tupiza 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 followed the same analytical protocols used as with ALS and with the same QA/QC protocols.

About Iska Iska

Iska Iska silver-tin polymetallic project is a road accessible, royalty-free property, wholly controlled by the Title Holder, Empresa Minera Villegas S.R.L. and is located 48 km north of Tupiza city, in the Sud Chichas Province of the Department of Potosi in southern Bolivia. Eloro has an option to earn a 100% interest in Iska Iska.

Iska Iska is a major silver-tin polymetallic porphyry-epithermal complex associated with a Miocene possibly collapsed/resurgent caldera, emplaced on Ordovician age rocks with major breccia pipes, dacitic domes and hydrothermal breccias. The caldera is 1.6km by 1.8km in dimension with a vertical extent of at least 1km. Mineralization age is similar to Cerro Rico de Potosí and other major deposits such as San Vicente, Chorolque, Tasna and Tatasi located in the same geological trend.

Eloro began underground diamond drilling from the Huayra Kasa underground workings at Iska Iska on September 13, 2020. On November 18, 2020, Eloro announced the discovery of a significant breccia pipe with extensive silver polymetallic mineralization just east of the Huayra Kasa underground workings and a high-grade gold-bismuth zone in the underground workings. On November 24, 2020, Eloro announced the discovery of the SBBP approximately 150m southwest of the Huayra Kasa underground workings.

Subsequently, on January 26, 2021, Eloro announced significant results from the first drilling at the SBBP including the discovery hole 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 164.96 g Ag/t, 0.46%Sn, 3.46% Pb and 0.14% Cu over 166m including 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 DHK-15 which returned 29.53g Ag/t, 0.078g Au/t, 1.45%Zn, 0.59%Pb, 0.080%Cu and 0.056%Sn over 257.5m, Eloro has released a number of significant drill results in the SBBP and the surrounding mineralized envelope which along with geophysical data has defined an extensive target zone. On October 17, 2023, Eloro filed the NI 43-101 Technical Report outlining the initial inferred MRE for Iska Iska, prepared by Micon International Limited. The MRE was reported in two domains, the Polymetallic (Ag-Zn-Pb) Domain which is primarily in the east and south of the Santa Barbara deposit and the Tin (Sn-Ag-Pb) Domain which is primarily in the west and north. The Polymetallic Domain is estimated to contain 560Mt at 13.8 g Ag/t, 0.73% Zn & 0.28% Pb at an NSR cutoff of US$9.20 for potential open pit and an NSR cutoff of US$34.40 for potential underground. The majority of the mineral resource is contained in the constraining pit which has a stripping ratio of 1:1.

The Polymetallic Domain contains a higher-grade mineral resource at a NSR cutoff of $US25/t of 132 million tonnes at 1.11% Zn, 0.50% Pb and 24.3 g Ag/t which has a net NSR value of US$34.40/t which is 3.75 the estimated operating cost of US$9.20/t. The Tin Domain which is adjacent the Polymetallic Domain and does not overlap, is estimated to contain a mineral resource of 110Mt at 0.12% Sn, 14.2 g Ag/t and 0.14% Pb but is very under drilled.

The Company has completed a 5,267.7m definition drill program to upgrade and expand the higher-grade mineral resource in the Polymetallic Domain and has commenced a preliminary economic evaluation (PEA) led by Lycopodium.

About Eloro Resources Ltd.

Eloro is an exploration and mine development company with a portfolio of gold and base-metal properties in Bolivia, Peru and Quebec. Eloro has an option to acquire a 100% interest in the highly prospective Iska Iska Property, which can be classified as a polymetallic epithermal-porphyry complex, a significant mineral deposit type in the Potosi Department, in southern Bolivia. A recent NI 43-101 Technical Report on Iska Iska, which was completed by Micon International Limited, is available on Eloro’s website and under its filings on SEDAR. Iska Iska is a road-accessible, royalty-free property. Eloro also owns an 82% interest in the La Victoria Gold/Silver Project, located in the North-Central Mineral Belt of Peru some 50 km south of the Lagunas Norte Gold Mine and the La Arena Gold Mine.

For further information please contact either Thomas G. Larsen, Chairman and CEO or Jorge Estepa, Vice-President at (416) 868-9168.

Information in this news release may contain forward-looking information. Statements containing forward-looking information express, as at the date of this news release, the Company’s plans, estimates, forecasts, projections, expectations, or beliefs as to future events or results and are believed to be reasonable based on information currently available to the Company. There can be no assurance that forward-looking statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. Readers should not place undue reliance on forward-looking information.

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

Eloro (ELO.T) CEO, Tom Larsen, has a huge job: he has to explain the geology and commercial potential of the Iska Iska project in Bolivia. An interview with Larsen needs to cover a lot of ground beginning with the market reaction to the company’s most recent news release.

“We need to get back to $3.00 to $4.00,” said Larsen. “We were hurt badly when the regulator would only allow us to use Net Smelter Return rather than silver equivalent which is more common and better understood in our first Mineral Resource Estimate.”

As Bob Moriarty puts it at 321Gold.com, “the change in nomenclature cost investors $129 million or a loss of 55% of what the company was worth in August.”

The regulator was part of the story, the other part was the statistical effect of widely spaced drill holes. It’s a complicated subject but, bottom-line, to improve the modelled resource ELO needed to drill 40 to 50-meter spaced “infill” holes and the first of those holes were reported in the most recent release.

The mineralization encountered in these infill holes is impressive. The headline hole came in with 62.84 meters of 339.82g silver equivalent per ton rock with many other high silver equivalent intervals in this and other holes. As Larsen commented in the release, “They demonstrate substantive higher-grade intervals, especially for silver, in the potential starter pit mineral resource area that may now be potentially upgraded and expanded.”

There are still six infill holes to be reported which will give Eloro further confirmation for an updated, and upgraded, revised MRE. “We want to do it soon,” said Larsen. “But it has to be right.”

“We’re seeing better grades,” said Larsen. “And as grade goes up, especially in the deeper sections of the starter pit, tonnage increases.”

At the same time, work has been progressing on the 10,000 kilos of bulk sampling taken from the metallurgical holes drilled earlier in September. “We shipped this material to Cornwall for metallurgical testing and some of it was sent to TOMRA in Germany for testing with the XRT ore sorting technology we want to deploy,” said Larsen. “These bulk samples will give results which are more indicative than smaller bore drill holes.”

The XRT ore sorter testing is important to the economics of any potential mine. The starter pit at Iska Iska already has a very low 1:1 strip ratio and with sorting technology much of the lower grade rock will be stockpiled when it comes to processing the material. Which, in turn, decreases the CAPEX of the project.

The starter pit at Iska Iska is currently seen as a silver/polymetallic operation. But, at a more granular level, there are different domains. To the North East zinc/silver is the predominant base metal, to the South West there is less zinc and more tin/silver.

A zinc/silver concentrate has become much more interesting as Chinese interests are planning to build two large zinc processing facilities in collaboration with the Bolivian government. 1.5 billion dollars worth of zinc processing will come online in the next three years. These sorts of plants need reliable feedstock and may give Eloro a chance to maximize the return on its zinc/silver concentrate. Typically, plant investments of this size will try to secure supply with multi-year offtake agreements. The zinc/silver resource at Iska Iska could prove to be the largest source of feed in Bolivia.

The tin/silver side of the Iska Iska equation remains a work in progress. “We are seeing higher grades of tin as we drill further south,” said Larsen. “We’re adding tin zones.”

The tin grade is important but what Eloro needs to see is tonnage. Processing the tin requires a “fuming” plant which runs 30-40 million dollars and there has to be enough tonnage to justify the investment.

“We will continue to definition drill to improve the MRE,” said Larsen. “Iska Iska is good rock. We’re not running into any deleterious material, no arsenic. We’re able to drill a hundred meters a day per drill. We want to do more infill drilling and more metallurgical holes. We’re seeing better silver grades in the met holes. Much better.”

The fact is that ELO is doing Preliminary Economic Analysis level work while it is updating its Mineral Resource Estimates. Which actually makes a lot of sense as Iska Iska is so big and so richly endowed that the MRE’s need to be prepared for the deposit one section at a time. Figuring out the “starter pit”, drilling the infill and doing the metallurgy and XRT sorting analysis keeps Eloro geos and consultants very busy. However, as CEO, Larsen also has to consider how best to commercialize the deposit, line up potential partners and maximize the value of Iska Iska for his shareholders.

Getting set back by an overcautious regulator’s requirements had hit the Eloro share price but it changes nothing about the huge Iska Iska deposit. The share price has been marching back as tax selling tapered off. The share price should continue to come back in the New Year as Larsen releases the results of more infill holes, an updated MRE, perhaps an updated and revised MRE and then a PEA later in the year.

“We want to show a billion tons of commercial material,” said Larsen. It is not an idle boast. Tom backed it up with $39,000 in personal market buying from $2.16 to $2.43 reported Christmas Eve.

(Disclaimer: I own Eloro shares and may buy or sell at any time. Do your own due diligence. Give Tom a call.)