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Bayhorse Silver Substantially Increasing Idaho Mineral Tenements

ayhorse Silver Inc, (TSXV: BHS) (OTCQB: BHSIF) (FSE: 7KXN) (the “Company” or “Bayhorse”) announces that preliminary results of the recently completed Geotech Ltd. helicopter-borne VTEM and Horizontal Magnetic Gradiometer Geophysical Survey over its Bayhorse Silver Mine Property, Oregon and Idaho, USA have been received.

On the basis of the preliminary results, the Company is substantially increasing the number of its claims and exploration area in Idaho to 2,460 acres.

A comprehensive review of the final VTEM results when received will be undertaken by the Company’s geophysical and geological consultants. The Company expects to receive the final VTEM report within the next two weeks.

The VTEM survey over the entire Bayhorse property in both Idaho and Oregon was to determine whether a long-postulated feeder anomaly is present at the Bayhorse Mine that could indicate the presence of either more high-grade silver mineralization or a porphyry copper deposit.

The Bayhorse and Hercules Silver property, 44 Km to the northeast of the Bayhorse Mine, have similar geological settings and copper/silver mineralization, including significant copper, antimony, and zinc credits.

The Company’s senior geological consultants believe that it is also possible that the silver-rich Bayhorse epithermal mineralization may also be underlain by a gold-rich zone, as suggested by Buchanan’s 1981 model.

This News Release has been prepared on behalf of the Bayhorse Silver Inc. Board of Directors, which accepts full responsibility for its content. Mark Abrams, AIPG Certified Professional Geologist, a Qualified Person and Director of 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

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/antimony concentrate ranging between 7,500 to 15,000 g/t silver and 10-12% copper, 10-12% antimony, and 15-18% zinc 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: Bulk Sampling for Bulk Mining…and a New, Huge, Target

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.

IP at Iska Iska

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.

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Cartier Silver Announces $2 Million Financing

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:

Thomas G. LarsenJorge Estepa
Chief Executive OfficerVice-President
(800) 360-8006(800) 360-8006
(416) 360-8006(416) 360-8006


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

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Bulk Tonnage Metallurgical Tests Return Significantly Higher Silver Head Grade of 91 g Ag/t Compared with the 31 g Ag/t Average Grade from the Original Twinned Holes in the Polymetallic Domain at Iska Iska, Potosi Department, Southwestern Bolivia

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

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

Test ParametersMill Feed
Size FractionPre-conc TechniqueUnoptimised SettingWt%g/t Ag%Pb%ZnAg eqAg Rec %Pb Rec %Zn Rec %
-60mm+25mmXRT “Ore” SortingEject Medium Low Grade12.9180.02.052.91308.3725.327.623.7
-25mm+9.5mmXRT “Ore” SortingEject Medium Low Grade17.7183.01.722.96305.1337.531.824.9
-9.5mm+5.0mmDMS2.65 SG Sinks2.0156.02.383.47314.613.55.04.4
-5.0mm+0.85mmDMS2.65 SG Sinks5.1196.02.373.68356.9811.012.711.9
-0.85mmNoneN/A8.9149.01.581.96236.7414.614.711.0
Mill Feed46.6176.01.882.86299.1591.991.976.0
Notes:
Abbreviations are as follows: mm = millimetres, Pre-conc= Pre-concentration, XRT=X-Ray Transmission. SG = Specific Gravity, Wt% = Weight percent,
 XRT=X-Ray Transmission, DMS = Dense Media Separation, SG = Specific Gravity, Wt% = Weight percent, g/t = grams per tonne, Ag=Silver, Pb=Lead,
Zn = Zinc, Ag eq = Silver equivalent, Rec = Recovery.  Silver equivalent (Ag eq) grades are calculated using 3-year average metal prices of Ag = US$22.52/oz,
Zn = US$1.33/lb and Pb = 0.95/lb and preliminary metallurgical recoveries of Ag = 88%, Zn = 87%, Pb= 80%.

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

Size FractionWt kgWt%%Pb%Zng/t AgAg eq
-60mm+25mm213733.80.871.4275136.16
-25mm+9.5mm268942.50.801.5089149.68
-9.5 mm 45m m2784.41.181.8778161.83
-5mm+0.85mm65310.31.231.99105190.98
-0.85mm5638.91.581.96149236.74
PQ Drill Core6320100.00.951.5891157.73
1/2 HQ Twinned Holes898 1.101.9231120.38
See Notes on Table 1.  kg = kilograms


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

Sample IDMass Assay Metal Distribution, % 
kg%Σ Mass %
to Product
Σ% Zn
Product
Σ% Pb
Product
Σg/t Ag
Product
Σ Ag eq
Product
Σ Zn
Product
Σ Pb
Product
Σ Ag
Product
Test 4.1 Eject High Grade86.54.194.196.858.068321160.0220.138.546.2
Test 4.2 Eject High Medium Grade105.55.119.305.515.22534784.8535.955.465.8
Test 4.3 Eject Medium Grade269.013.0422.343.823.03283453.7559.977.183.5
Test 4.4 Eject Medium Low Grade325.515.7738.112.912.05180308.3777.889.291.0
Test 4.5 Eject Low Grade505.524.5062.612.081.35106197.8091.496.295.3
Test 4.5 Non-Eject Waste771.537.39100.001.350.8774132.82100.0100.0100.0
2063.3100.00
Test 4.5 Non-Eject Waste -20mm73.73.45
TOTAL2137.2
See NotesTable 1. Σ = Sum


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

-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

Sample IDMassAssay, %Metal Distribution, %
kg%Σ Mass%
to Product
Σ% Zn
Product
Σ% Pb
Product
Σg/t Ag
Product
Σ Ag-eq
Product
Σ Zn
Product
Σ Pb
Product
Σ Ag
Product
Test 1.1 Eject High Grade170.56.466.467.836.768451175.9133.754.764.3
Test 1.2 Eject High Medium Grade225.08.5214.985.413.74435659.9654.070.276.7
Test 1.3 Eject Medium Grade350.513.2828.263.842.35257415.8472.383.085.4
Test 1.4 Eject Medium Low Grade352.513.3541.622.961.72183305.1381.989.589.6
Test 1.5 Eject Low Grade566.521.4663.082.181.20123212.8291.694.995.5
Test 1.5 Non-Eject Waste974.536.92100.001.400.7787143.70100.0100.0100.0
2639.5100.00
Test 1.5 Non-Eject Waste -8mm49.31.83
TOTAL2688.8
See NotesTable 1. Σ = Sum


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

-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

Product WeightAssay, % (ppm) Distribution, % 
Σ Mass% to
Product
Σ %Pb to
Product
Σ %Zn to
Product
Σg/t Ag to
Product
Σ Ag eq
Product
Σ Pb
Product
Σ Zn
Product
Σ Ag
Product
2.65 SG45.942.383.47156314.6192.6685.2592.27
2.70 SG29.543.524.86263484.1388.2076.8389.45
2.75 SG22.904.385.82339604.7385.2271.2586.78
2.80 SG16.755.727.18463792.7881.2564.3484.53
2.85 SG10.908.069.317111140.2274.6054.3378.49
2.90 SG9.259.1610.338381313.3771.9151.1275.36
See NotesTable 1. Σ = Sum, SG-Specific Gravity


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

-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

ProductWeightAssay, % (ppm)Distribution, %
Σ Mass% to
Product
Σ %Pb to
Product
Σ %Zn to
Product
Σg/t Ag to
Product
Σ Ag-eq
Product
Σ Pb
Product
Σ Zn
Product
Σ Ag
Product
2.65 SG49.502.373.68196356.9895.4891.3992.12
2.70 SG29.113.865.63361605.3791.3382.2888.73
2.75 SG26.264.236.11400665.1690.4380.5287.97
2.80 SG18.285.837.93575920.3186.6672.7285.14
2.85 SG13.657.499.727701193.3983.1566.5481.92
2.90 SG12.308.1510.398541306.1981.5564.1180.50
See NotesTable 1. Σ = Sum, SG-Specific Gravity


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

-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/

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Eloro Resources Intersects 57.62g Ag/t, 1.26% Zn, 0.94% Pb and 0.12% Sn (139.94g Ag eq/t) over 136.11m in Definition Drilling at the Iska Iska Project, Potosi Department, Southwestern Bolivia

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: Diamond Drill Results as of January 11, 2024, Santa Barbara Deposit, Iska, Iska
SANTA BARBARA DEFINITION DRILLING
Hole No.From (m)To (m)Length (m)AgAuZnPbCuSnAg eq
g/tg/t%%%%g/t
DSB-6015.33173.91158.5816.000.040.660.410.030.0963.23
Incl.34.9941.156.1623.310.051.180.560.050.16105.56
Incl.56.2965.409.1112.950.040.950.570.020.24103.35
Incl.139.32143.864.54115.540.041.451.670.020.05201.17
178.30179.911.6120.900.040.050.160.330.2774.56
184.41185.961.5541.000.230.090.040.310.2484.44
196.56211.6415.0813.660.050.010.020.120.3476.21
217.59223.686.0915.220.030.930.020.010.1981.42
228.13229.671.548.400.021.090.130.020.0660.78
240.25243.253.0053.300.140.180.010.080.0868.41
258.30259.771.4756.200.130.010.060.060.1069.24
265.84268.832.9956.230.030.070.090.120.1174.36
280.84286.976.13139.570.030.070.250.120.02134.78
302.01306.514.50135.360.030.180.170.110.24174.44
315.62336.6921.0715.950.030.330.420.020.2175.11
353.25359.306.0577.110.350.240.320.260.44165.36
371.34375.784.4461.400.060.060.040.310.27106.97
458.92463.724.8025.110.050.030.010.070.1856.96
468.20471.303.108.200.110.030.020.190.3370.19
474.34475.911.574.800.160.040.020.561.06202.69
DSB-6333.7535.251.505.600.010.013.380.000.12105.60
67.0979.2812.195.150.010.840.630.010.0150.68
83.8288.414.5913.220.021.680.500.010.0285.89
97.49103.516.027.130.010.940.270.000.0147.54
117.06129.1612.1014.850.021.230.590.010.0273.77
197.04219.8022.768.300.091.320.390.020.0165.18
228.98239.6010.623.490.121.090.260.010.0149.07
257.63260.562.936.820.051.680.340.000.0174.06
331.33332.851.524.700.011.650.300.010.0170.84
344.91346.431.527.400.641.850.290.020.0179.75
446.10469.1223.0223.370.081.771.220.010.51205.57
DSB-6435.2258.1322.91113.330.120.000.080.000.05110.97
135.83149.2913.46172.370.030.000.170.010.03161.78
159.89167.397.5075.910.060.000.170.010.1088.68
177.98191.3813.405.220.060.000.040.000.3774.68
209.43212.342.917.310.040.000.010.000.55109.77
255.80264.008.205.910.250.000.030.000.3775.08

Table 1 (con’t)

Hole No.From (m)To (m)Length (m)AgAuZnPbCuSnAg eq
g/tg/t%%%%g/t
DSB-6517.9522.464.51190.560.160.000.060.000.22210.39
74.18108.8334.6536.450.010.350.030.080.0554.09
119.38143.3023.9215.920.021.030.180.060.0970.40
167.56173.576.016.010.011.040.160.020.0453.72
188.68191.662.985.010.010.190.000.020.2557.12
211.21212.671.465.000.010.660.050.010.62143.90
229.00230.491.492.000.130.010.010.010.72135.92
244.25245.781.5345.000.020.040.010.190.1467.42
256.27257.861.5918.000.060.030.040.220.2157.11
268.44274.476.034.450.040.040.030.000.2858.54
289.59291.111.524.000.010.340.010.010.2358.20
294.19306.7012.5168.350.100.020.040.170.1894.41
314.23327.8613.6367.040.070.120.050.080.0879.03
*353.49434.7781.28118.860.030.350.350.050.15152.29
*Incl.362.53363.991.465080.000.120.261.341.531.274746.46
445.27500.4055.1312.870.020.450.330.010.1969.06
Incl.448.33454.336.0037.400.010.851.750.020.63219.35
*cut353.49434.7781.2845.580.030.350.350.050.1587.80
*cut362.53363.991.461000.000.120.261.341.531.271156.06
DSB-6655.2089.5334.334.010.021.400.580.030.1187.33
Incl.83.7389.535.801.730.072.341.140.020.23153.05
112.22124.2212.0010.920.011.320.870.030.23119.07
128.70130.211.511.000.013.920.910.020.24204.44
137.75273.86136.1157.620.021.260.940.020.12139.94
Incl.187.64222.4134.77136.810.032.001.380.020.17255.19
288.92375.3186.3924.670.041.080.830.010.0894.46
Incl.307.15313.236.0869.370.411.883.680.030.32272.27
Incl.328.23334.386.1523.590.012.141.570.010.15159.64
Incl.360.02372.2612.2499.400.021.601.060.030.10187.52
415.85490.7074.857.460.032.511.020.010.06129.90
Incl.430.99447.8516.8610.800.124.961.490.020.06229.62
Incl.457.31465.077.7613.860.014.202.350.010.34277.75
DSB-670.008.808.809.140.050.000.130.000.3881.25
39.3072.6333.3318.180.030.000.060.000.1952.14
80.2284.764.5444.960.060.000.090.000.1263.71
99.82143.3843.5647.010.030.100.410.070.0870.03
158.46208.3349.8719.970.130.870.700.030.0878.49
212.91215.943.032.010.100.900.520.020.0453.08
223.53226.533.001.250.071.860.320.020.0378.69
240.04476.17236.138.170.051.400.480.010.0679.08
Incl.249.09258.129.032.170.162.650.520.020.06118.18
Incl.434.06453.5119.4528.100.074.251.670.010.17245.05

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.

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

 

Table 2: Summary of Diamond Drill Hole Coordinates for Holes Reported
at Iska Iska as of January 11, 2024.
SUMMARY DIAMOND DRILLING ISKA ISKA
Hole No.TypeCollar EastingCollar NorthingElevAzimuthAngleHole Length (m)
Santa Barbara Surface Definition Drill Holes Reported
DSB-60S205356.57656220.64239.8235°-50°500.3
DSB-63S205575.47656049.84111.7235°-65°491.3
DSB-64S205145.07656048.04305.3270°-85°264.0
DSB-65S205222.77656170.04315.490°-85°500.4
DSB-66S205318.07656172.04251.790°-85°500.5
DSB-67S205256.77655998.94264.110°-85°500.5
TOTAL2757.0
S = Surface UG=Underground; collar coordinates in metres; azimuth and dip in degrees. Total drilling completed since the start of the program on September 20, 2020, is 103,198,5m in 148 drill holes (34 underground holes and 114 surface holes).

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

West-East Section showing Updated Geological Interpretation of Sn Distribution

 

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

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.

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Eloro: Infill Drilling, Bulk Samples and Silver/Zinc/Tin at Iska Iska in Bolivia

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.)

 

 

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Eloro Resources Intersects 279.22 g Ag/t, 0.47% Pb and 0.43% Sn (339.82g Ag eq/t) over 62.84m in Definition Drilling at the Iska Iska Project, Potosi Department, Southwestern Bolivia

Eloro Resources Ltd. (TSX: ELO; OTCQX: ELRRF; FSE: P2QM) (“Eloro”, or the “Company”) is pleased to announce the first assay results from five (5) of the 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: “These latest drill hole results are very encouraging. 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.”

Larsen continued, “Significant tin is present in several holes with grades up to 0.5 percent, highlighting the chances to expand and increase the grade of the tin resource which is a high priority exploration target in 2024. As we expected, the higher-grade silver and tin intercepts from this definition drill program are demonstrating selective higher-grade metal zonation within the starter pit area and the Tin (Sn-Ag-Pb) Domain. We expect to release results from the six (6) remaining definition drill holes in the first part of January 2024, concluding our first phase infill definition drilling program aimed to enhance grade and expand tonnage in the Santa Barbara starter pit area.”

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.

Dr. Bill Pearson, P.Geo. Executive Vice President, Exploration said: “The bulk of mineralization at Iska Iska, especially the high-grade Ag zones, occur within veins, vein breccias and veinlets that overall have a general west-northwest trend (300o). Channel sampling of a typical high-grade structure in the Santa Barbara adit (see Eloro press release dated April 21, 2021) returned 165 g Ag/t, 3.46% Pb and 0.46% Sn (310.25g Ag eq/t) over 166m which included a very high-grade section of 446 g Ag/t, 9.03% Pb and 1.16% Sn (817.38g Ag eq/t) over 56.19m. This gives an excellent indication of the potential strike length of these high-grade Ag structures, as well as the potential for bonanza-type grades in them. Closer spaced drilling as expected, provides a better definition of these important mineralized structures, especially those with higher grade silver, which has the potential to increase the overall resource grade as well as expand resource tonnage.”

Pearson continued: “Work is continuing on the “ore-sorting” tests with metallurgical work on the concentrate samples produced at TOMRA in Germany being completed at Wardell Armstrong in Cornwall. In addition, our geophysicists are processing new IP data which will provide important information on potential extensions of the remarkable Iska Iska mineralizing system.”

Table 1 below lists significant results for the five drill holes reported. Figure 1 shows locations of all the definition drill holes completed with the holes with results released 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).

DEFINITION DRILL PROGRAM

The definition drill program has been designed 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, authors of the National Instrument 43-101 (“NI 43-101”) Technical Report detailing the initial Iska Iska mineral resource estimate (“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. Initial results reported herein confirm that this is likely the case.

Table 2 lists the coordinates of the Definition Drill Holes with assay results reported in this release and holes for which assay results are pending. Figure 1 shows the locations of the definition drill holes with holes reported in this release highlighted in yellow.

Significant results in Hole DSB-61 are as follows:

  • 279.22g Ag/t, 0.47% Pb and 0.43% Sn (339.82g Ag eq/t) over 62.84m from 87.44m to 150.28m
  • 37.15g Ag/t, 0.16% Zn, 0.78% Pb and 0.52% Sn (152.20g Ag eq/t) over 37.57m from 171.27m to 208.84m
  • 33.83g Ag/t, 1.53% Zn, 0.93% Pb and 0.14% Sn (130.88g Ag eq/t) over 178.99m from 229.78m to 408.77m including:
    • 17.03 g Ag/t, 4.13% Zn, 1.30% Pb and 0.15% Sn (217.71g Ag eq/t) over 19.48m from 286.67m to 306.15m,
    • 120.37 g Ag/t, 2.13% Zn, 1.57% Pb and 0.19% Sn (252.19g Ag eq/t) over 18.25m from 364.92m to 383.17m, and
    • 175.23 g Ag/t, 2.44% Zn, 0.56% Pb and 0.12% Sn (275.45g Ag eq/t) over 9.11m from 398.20m to 407.31m
  • 36.69 g Ag/t, 1.00% Zn, 2.73% Pb and 0.34% Sn (193.19g Ag eq/t) over 13.46m from 424.04 to 437.50m
  • 43.54 g Ag/t, 0.63% Zn, 1.79% Pb and 0.18% Sn (135.24g Ag eq/t) over 9.07m from 457.08m to 466.15m

Hole DSB-62 intersected a very long mineralized intersection of 265.89m from 130.59m to 396.48m grading 7.84 g Ag/t, 1.51% Zn and 0.64% Pb (85.39g Ag eq/t) including higher grade sections:

  • 25.65 g Ag/t, 2.24% Zn and 1.77% Pb (160.16g Ag eq/t) over 45.23m from 183.57m to 228.80m and
  • 110.92 g Ag/t with minor Zn and Pb (107.98g Ag eq/t) over 21.25m from 477.85m to 499.10m

Holes DSB-59, DSB-58 and DSB-57 returned the following significant intersections:

  • 51.19g Ag/t, 0.75% Zn and 0.44% Pb (98.85g Ag eq/t) over 55.93m from 28.81m to 84.74m (DSB-59) including:
    • 31.65g Ag/t, 3.19% Zn, 1.21% Pb and 0.19% Sn (203.15g Ag eq/t) over 10.55m from 30.31m to 40.86m
    • 192.92 g Ag/t with minor Zn and Pb (178.76g Ag eq/t) over 7.46m from 77.28m to 84.74m
  • 34.96 g Ag/t, 0.69% Zn, 0.70% Pb and 1.64% Sn (71.98g Ag eq/t) over 15.00m from 184.86m to 199.86m (DSB-58)
  • 15.74 g Ag/t, 1.39% Zn and 0.54% Pb (77.01g Ag eq/t) over 66.20m from 237.39m to 303.59m (DSB-58) including:
    • 33.68 g Ag/t, 1.32% Zn and 1.18% Pb (105.15g Ag eq/t) over 7.50m from 237.39m to 244.89m and
    • 19.27 g Ag/t, 2.13% Zn and 0.65% Pb (109.37g Ag eq/t) over 22.48m from 281.11m to 303.59m
  • 44.91 g Ag/t and 0.11%Sn (65.25 g Ag eq/t) over 25.97m from 13.91m to 39.88m (DSM-57)
  • 43.68 g Ag/t, 0.42% Zn and 0.38% Pb (71.70 g Ag eq/t) over 74.53m from 63.23m to 137.76m (DSM-57)
  • 132.33 g Ag/t, 0.23% Zn and 0.25% Pb (136.70g Ag eq/t) over 15.14m from 87.76m to 102.90m (DSM-57)
  • 55.24 g Ag/t, 0.96% Zn, 0.83% Pb and 0.26% Sn (149.47g Ag eq/t) over 10.58m from 235.89m to 246.47m (DSM-57)
  • 41.83 g Ag/t, 0.28% Zn, 0.23% Pb and 0.10% Sn (69.70g Ag eq/t) over 28.86m from 257.06m to 285.92m (DSM-57)
  • 43.45 g Ag/t, 0.24% Zn, 0.23% Pb and 0.12% Sn (74.56g Ag eq/t) over 10.56m from 361.44m to 372.00m (DSM-57)

 

Table 1: Diamond Drill Results as of December 18, 2023, Santa Barbara Deposit, Iska, Iska
SANTA BARBARA DEFINITION DRILLING
Hole No.From (m)To (m)Length (m)AgAuZnPbCuSnAg eq
g/tg/t%%%%g/t
DSB-6286.6588.181.5318.000.010.691.180.010.0168.90
92.6998.766.073.240.022.330.700.010.05110.37
107.84110.843.001.740.011.340.210.020.0154.92
118.42121.412.990.500.011.320.280.010.0358.20
130.59396.48265.897.840.131.510.640.030.0685.39
Incl.183.57228.8045.2325.650.042.241.770.110.09160.16
413.17414.671.509.000.011.240.600.000.1389.44
477.85499.1021.25110.920.040.050.010.020.04107.98
DSB-616.018.542.5372.800.030.000.290.020.1598.71
19.7124.374.6630.310.030.011.210.050.36121.07
31.8033.321.5292.700.020.000.140.020.0594.43
40.8048.307.5031.660.070.011.060.010.2191.63
87.44150.2862.84279.220.080.090.470.530.43339.82
160.78162.281.5053.200.100.130.610.110.40139.30
171.27208.8437.5737.150.070.160.780.080.52152.20
219.31220.791.4828.500.040.051.920.010.1089.37
229.78408.77178.9933.830.061.530.930.020.14130.88
Incl.286.67306.1519.4817.030.134.131.300.040.15217.71
Incl.364.92383.1718.25120.370.112.131.570.020.19252.19
Incl.398.20407.319.11175.230.032.440.560.030.12275.45
424.04437.5013.4636.690.041.002.730.020.34193.19
442.14443.651.516.300.021.290.390.010.0468.10
445.16446.631.478.400.041.091.240.010.1194.55
452.74454.061.327.300.012.460.690.010.02113.34
457.08466.159.0743.540.820.631.790.010.18135.24
472.30476.834.5315.730.020.751.000.020.1082.60
Hole No.From (m)To (m)Length (m)AgAuZnPbCuSnAg eq
g/tg/t%%%%g/t
DSB-5928.8184.7455.9351.190.070.750.440.030.0998.85
Incl.30.3140.8610.5531.650.023.191.210.060.19203.15
Incl.77.2884.747.46192.920.290.020.040.060.04178.76
345.82350.314.4998.230.110.010.010.760.63204.11
DSB-58174.31175.801.491.400.021.420.32<0.01<0.0159.06
184.86199.8615.0034.960.010.690.700.01<0.0171.98
210.35219.449.0912.000.021.960.530.010.0193.22
237.39303.5966.2015.740.081.390.540.010.0177.01
Incl.237.39244.897.5033.680.171.321.180.010.01105.15
Incl.281.11303.5922.4819.270.082.130.650.010.01109.37
314.14315.641.509.700.562.000.420.010.0190.46
357.68359.181.501.700.021.500.120.010.0158.65
375.72378.682.966.670.011.670.190.010.0170.60
DSB-5713.9139.8825.9744.910.190.000.200.010.1165.25
63.23137.7674.5343.680.030.420.380.040.0571.70
Incl.87.76102.9015.14132.330.040.230.250.110.04136.70
152.80192.1239.326.970.010.710.230.020.0444.23
208.61213.224.6152.860.220.390.240.180.1796.76
235.89246.4710.5855.240.020.960.830.010.26149.47
257.06285.9228.8641.830.050.280.230.010.1069.60
293.44310.0416.6014.650.040.840.310.010.1067.95
320.63323.633.0057.500.030.140.380.020.0268.93
361.44372.0010.5643.450.060.240.230.050.1274.56
387.05388.621.57114.000.020.170.040.050.17137.98
399.12402.123.0083.500.040.060.100.010.0689.19
432.44433.921.48204.000.540.250.080.491.31433.64
441.51443.011.5056.000.920.100.090.020.80203.66

Note: True width is approximately 80% of core length. Ag eq is 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%.

 

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

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

 

 

Table 2: Summary of Diamond Drill Hole Coordinates for Holes Reported and with Assays Pending
at Iska Iska as of December 18, 2023.
SUMMARY DIAMOND DRILLING ISKA ISKA
Hole No.TypeCollar EastingCollar NorthingElevAzimuthAngleHole Length (m)
Santa Barbara Definition Drill Holes Reported
DSB-57S205418.27656281.24208.8235°-50°500.3
DSB-58S205618.07656188.04115.3235°-60°500.3
DSB-59S205353.07656218.04239.8270°-60°500.4
DSB-61S205291.87656099.44269.2180°90509.4
DSB-62S205448.07656073.14182.4235°-60°500.3
Subtotal2510.7
Santa Barbara Surface Definition Drill Holes with Assays Pending
DSB-60S205356.57656220.64239.8235°-50°500.3
DSB-63S205575.47656049.84111.7235°-65°491.3
DSB-64S205145.07656048.04305.3270°-85°264.0
DSB-65S205222.77656170.04315.490°-85°500.4
DSB-66S205318.07656172.04251.790°-85°500.5
DSB-67S205256.77655998.94264.110°-85°500.5
Subtotal2757.0
TOTAL5267.7
S = Surface UG=Underground; collar coordinates in metres; azimuth and dip in degrees. Total drilling
completed since the start of the program on September 20, 2020 is 103,198.5m in 148 drill holes
(34 underground drill holes and 114 surface drill holes).


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 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.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/b371bbe1-442d-4350-a18e-4916487e0846

 

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Cartier Silver: High Grade Silver Closing in on Production in Bolivia

Superficially, Cartier Silver (CFE.C) and Eloro Resources (ELO.T) look very similar. Same CEO, same management team, same geos, same tight share structure…silver in Bolivia! In fact, they are very different animals. Eloro’s Iska Iska deposit is a giant (over 670 million tons), silver plus tin plus zinc, polymetallic, project with complex geology and solid grades. Cartier’s Gonalbert property in the Chorrillos silver project is lower tonnage with but higher grades of silver-lead.

There is already a small mine at Gonalbert which mines around 20 tons of 200 gram per ton silver head grade daily and delivers a lead/silver concentrate running 1300 grams Ag per ton. Cartier has recently made the second payment of USD 220,000 and has full access to these workings and recently released systematic channel samples from eight principal areas over a strike length of 2km. The sampling program completed 368 channel samples each of which was cut with a hammer and “a sharp pointed end chisel made of drill steel. While the sampler cuts the channel, a second person collected chips, fragments, and fines in a clean box, sack, or on a canvas sheet spread on the floor. A sample of 1 m length weighed approximately 1-2 kg which was then sent for assay.”

When looking at the location of the channel samples, they demonstrate high-grade silver continuity within several underground haulage working drifts. Drift – 140 (140 meters below surface) reached 257 meters horizontally.

The silver grades ranged from impressive to extraordinary, with significant showings of lead and zinc. In the release, Dr. Osvaldo Arce, P.Geo., General Manager of Cartier Silver’s Bolivian subsidiary, Minera Cartier S.R.L. comments: “Systematic channel sampling in underground workings at the Gonalbert property has confirmed the high-grade nature and extensions of silver-rich structures with increasing grades at depth. These are important targets for further diamond drilling.”

In a phone interview, Tom Larsen, Cartier’s CEO told me, “The Gonalbert project is in a potentially high-grade silver system and has a much greater than 2-kilometer strike length.”

“Dr. Arce is suggesting a 3000 to 6000 meter drill program,” said Larsen. “There could be potential here for a custom mining, toll milling operation. We’ll drill then do a Mineral Resource Estimate.”

The development trajectory of Gonalbert is very different from Iska Iska with the possibility of a near-term strategic partnership. “We have to do some infill drilling,” said Larsen. “And we would have to upgrade the permits to allow, say, 500 tons a day to be mined. This could take several months but should not be a problem.”

Larsen sees the custom mining as a mine, crush and then an XRT ore sort operation. “If you sort you can reduce the waste you have to transport and produce a high-grade pre-concentrate which can be trucked or sent by rail to one of the many mills in the Gonalbert region.”

The point is that Gonalbert is not far away from potential production. “We’ll have to do a raise to pay for the infill drilling,” said Larsen.

In a lot of ways, Cartier is the pocket piece for Iska Iska. While Eloro is very much the main play, Cartier is likely to go into production sooner. And Gonalbert may be a bit of a “sleeper”. It may be significantly larger than it initially looks. It has never been systematically drilled, however, Cartier has done IP chargeability studies over the property.

The channel sampling recently reported matches up with the IP studies to a remarkable degree. The samples confirm that the increase in chargeability as you go deeper in the artisanal mine correspond to an improvement in grade at depth.

However, the IP chargeability study went far beyond the actual artisanal workings where the channel samples were taken and the very limited drilling.

While Cartier will certainly be drilling where the channel samples indicate attractive silver grades, it will also be drilling where the IP chargeability suggests more mineralization may be found.

Cartier enjoyed a run in the early summer of 2023 rising up over $0.80 partially on the excitement surrounding Eloro. It has fallen back to the $0.30 support level. For the investor, Cartier offers optionality on silver at an attractive price. It will drill in the New Year and those results may be released into a rising silver market. There will likely be a raise in the New Year to pay for the drilling. So there should be a steady news flow.

Gonalbert is a very different project from Iska Iska. Its high grade characteristics may well mean that it comes into silver production more quickly and Cartier’s share price may very well begin to reflect that fact.

 

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Eloro: Too Big to Understand in Bolivia

Eloro’s (ELO.T) CEO, Tom Larsen, is “Blown away.”

Eloro’s share price has been in free fall since the company put out its maiden 43-101 compliant Mineral Resource Estimate at the end of August. It was a whopper of a silver/polymetallic resource: “670 million tonnes containing 1.15 Billion In-situ Ounces Silver Equivalent”.

“It’s totally unique,” said Larsen in a phone interview. “The Exchange and Micon wanted us to use NSR rather than Silver Equivalent ounces. In a PEA you can do both. But on a NSR basis, in the upper pit we would be getting $35 per ton back from the smelter on an operating cost of around $9.40, the arithmetic is clear.”

“But the MRE was misinterpreted,” said Larsen. “First, we were criticized for the delay in getting the MRE out. Then people started complaining that the “grades are too low”.

“The late MRE was my responsibility. The timeline didn’t reflect the fact that the metallurgical testing would be a time-consuming process,” said Larsen. “I won’t be making that mistake again.”

“The reality is that the grades are more than adequate. People seem to ignore that, for the first ten years of mine life on the upper pit the strip ratio is 1:1. One of the lowest in large scale silver mining in the world. Adding ore sorting to the equation will drop costs even further.”

The real problem for Eloro’s share price was that these very encouraging results dropped into the current, depressed, market. “We’re not in a solid market,” said Larsen. “People’s temperament and patience are stretched.”

Releasing news that three metallurgical drill holes had been completed and that work had commenced on testing both the silver/polymetallic and the tin/silver domains with a view to understanding the metallurgy and amenability to XRT ore sorting was just another excuse to sell ELO. As Larsen put it, “Things are not correlating.”

“We are completing a 4000 meter infill drilling program at Iska Iska right now. Our first round of drill holes, all of which were mineralized, had 100 to 150 meter spacings,” said Larsen. “The infill holes will be drilled in the higher grade areas with 50-meter spacings. We expect the grades to be higher with the infill.”

In many ways, the market’s reaction to ELO’s press releases reflects the fact that Iska Iska is very, very, big. It can make communications a struggle. “Just working on the upper zone of the silver polymetallic would give us 8-10 years of profitable mining,” said Larsen. “We’re getting great recoveries and we are not even including the tin values.”

Larsen, having been burnt putting a timeline on the MRE, is not going to be pinned down on what happens next or when. However, the results from the infill holes will likely be released as part of an updated MRE. Then it is a countdown to the Preliminary Economic Assessment, the PEA.

The maiden MRE had quite a few PEA-like features. Actually, taking a preliminary pass at sorting out the metallurgy of both the silver polymetallic domain and the tin silver domain were large strides in a PEA direction. The silver/polymetallic PEA will likely detail 150-200 million tons of high grade rock in the upper, open pitable, zone.

After interviewing Larsen he suggested I watch Dr. Bill Pearson’s well-received presentation to the Toronto Geological Discussion Group on Iska Iska. Dr. Pearson has 48 years of direct exploration, development and production of minerals world wide. Well worth watching at this link.

Speaking about the polymetallic domain Dr. Pearson states, “It’s in the bank. We’ll improve and expand it, but it’s in the bank. As an explorationist I’ve done my job.”

“Now I want to go after the tin,” said Pearson. “We already have 110 million tons but it is getting bigger.”

“We have two world class projects on one property,” said Larsen. “Two domains. Maybe it will make sense to do two PEAs.”

“I am upset about the share price, but I know how it will go,” said Larsen. “Optionality for non-dillutive financing. Or a major might look at picking up 5-10% of Iska Iska on the strength of the PEA.”

“Looking at the bigger picture, there is a rail line about 6 kilometers from Iska Iska. Which makes custom mining, crushing and ore sorting on, say, a 25,000 ton per day, 12,500 tpd preconcentrate set up potentially very attractive,” said Larsen. “There are processing facilities for pre-con within Boliva.”

Larsen himself is heavily invested in Eloro. “I have 7, 8 million shares,” said Larsen. “I might buy more.”

The take away on Eloro is that the upper portion of one of the two domains contains 150-200 million tons of rock which could be mined and sold NSR $35, operating cost of $9.40, suggest substantial NAV numbers, in the billions, which will be substantiated in the PEA. The current market cap is $116,349,000.

Larsen can do the math.

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Cartier Reports High-Grade Silver, Lead and Zinc Values from Systematic Channel Sampling of the Underground Artisanal Workings at its Gonalbert Property, Southern Bolivia

Cartier Silver Corporation (CSE: CFE) (“Cartier Silver” or the “Company”) is pleased to report results from an extensive underground channel sample in eight principal areas over a strike length of 2km on the Gonalbert property, Potosi Department, Bolivia. The Company also recently completed a 3-hole, 1,364.8m reconnaissance drill program to test geophysical and geological targets for epithermal Ag-Pb-Zn mineralization. Results from the final two holes are reported.

Tom Larsen, CEO of Cartier Silver, commented: “We are very encouraged by the widespread high-grade silver values along with significant lead and zinc values obtained in the systematic underground channel sampling of artisanal workings across a 2km strike length on the property. The strong correlation of the target areas defined by this work with the strong chargeability anomalies is impressive. Results from initial drill hole DGL-01 which intersected 49.19 g Ag/t, 1.35% Zn & 1.31% Pb over 44.76m below the Mina Central Adit workings confirms the potential to outline much wider higher grade silver zones in areas with artisanal workings and coincident strong chargeability anomalies.”

Dr. Osvaldo Arce, P.Geo., General Manager of Cartier Silver’s Bolivian subsidiary, Minera Cartier S.R.L. said: “Systematic channel sampling in underground workings at the Gonalbert property has confirmed the high-grade nature and extensions of silver-rich structures with increasing grades at depth. These are important targets for further diamond drilling. Additionally, the surface geological reconnaissance of the Bolivian polymetallic-type mineralization away from the historic mines, reveals mineral continuity in an area that has not been historically explored, which significantly expands the enormous exploration potential.”

UNDERGROUND CHANNEL SAMPLING

Table 1 lists the underground channel sampling and sample record for the Gonalbert property. A total of 368 channel samples were collected. Average sample width was 1.1m. Sampling was carried out along both the ENE and NNW-oriented drifts on the principal production levels, including Level 0, -40, -60, -80, -100, -125, -150, -160 and -180 at the Mina Central adit, and at the La Hoyada, Tacoyoj and Victoria adits. Underground workings are distributed over an area 2 km along strike as shown in Figure 1.

Table 1. Underground channel sampling and samples record at the Gonalbert property.

UG WORKINGLEVELSAMPLES COLLECTEDASSAYS RECEIVEDASSAYS PENDING
MINA CENTRAL012120
MINA CENTRAL-20330
MINA CENTRAL-4019190
MINA CENTRAL-60660
MINA CENTRAL-80880
MINA CENTRAL-10021210
MINA CENTRAL-125660
MINA CENTRAL-14021210
MINA CENTRAL-150220
MINA CENTRAL-16014140
MINA CENTRAL-180660
LA HOYADA2026260
LA HOYADA055550
LA HOYADA-3042420
VICTORIA 1020200
VICTORIA 2013130
RIELES026260
TACOYOJ015150
TACOYOJ 10909
CELIA027270
ISABEL017170
TOTAL3683599

Systematic channel sampling was performed by cutting channels across the mineralized zone in the underground mine workings including the mine face, walls, and back. The area was first cleaned to remove dust, dirt, slime, and soluble salts. A linear horizontal channel was then cut between two marked lines at a uniform width and depth. The width was about 10 cm at a depth of 10 mm. Sample length varied depending on variation in mineralization but typically channels were between 1 and 2 m across the mineralized zone. The standard tools were hammer and a sharp pointed end chisel made of drill steel. While the sampler cuts the channel, a second person collected chips, fragments, and fines in a clean box, sack, or on a canvas sheet spread on the floor. A sample of 1 m length weighed approximately 1-2 kg which was then sent for assay.

Underground channel samples and drill samples 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. In addition, other assay protocols have been changed to provide for a more accurate measurement of the wide-ranging suite of polymetallic metals at the Gonalbert property. Cartier Silver 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.

DISCUSSION OF RESULTS

Table 2 summarizes the channel sample results from the major artisanal workings. Figure 1 is a geological map showing the main potential high grade Ag mineralization targets as indicated by channel sampling of underground workings. Figure 2 is a geological and sampling plan map of Mina Central, Level -40, the first level with high values of silver and Figure 3 is a geological and sampling map of Mina Central, Level -100.

Table 2. Summary of Underground Channel Sampling Results at Gonalbert property.

UG WorkingLevelMineralized intervals
No. of samplesInterval Length (m)Average channel width (m)Ag (g/t)Pb (%)Zn (%)
MINA CENTRAL GROUP 10102700.972.61.70.06
MINA CENTRAL GROUP 202370.922.30.80.01
MINA CENTRAL-202121.7137.24.60
-201120.852.31.40
MINA CENTRAL GROUP 1-407580.5512.5140.02
MINA CENTRAL GROUP 2-40101170.4132.47.10.07
MINA CENTRAL GROUP 3-40190.247.83.10.02
MINA CENTRAL-604200.9153.770.02
MINA CENTRAL-805300.7488.313.40.02
MINA CENTRAL GROUP 1-10081250.9239.5110.04
MINA CENTRAL GROUP 2-100101640.7242.510.70.05
MINA CENTRAL GROUP 3-1003400.8343.214.50.03
MINA CENTRAL GROUP 1-1252130.3563.614.57.7
MINA CENTRAL GROUP 2-1254330.8172.99.812.2
MINA CENTRAL-140202570.7104.34.510.3
MINA CENTRAL-150240.6311.513.710.7
MINA CENTRAL GROUP 1-16041361.21355.517.4
MINA CENTRAL GROUP 2-1605760.868.53.66.9
MINA CENTRAL GROUP 1-1802640.9216.88.82.8
MINA CENTRAL GROUP 2-1802362.1230.711.8
QUIMBALETE ADIT GROUP 120181291.521.61.30.2
QUIMBALETE ADIT GROUP 220429164.72.31.8
MINA LA HOYADA GROUP 106291.338.21.91.8
MINA LA HOYADA GROUP 206411.276.33.10.4
MINA LA HOYADA GROUP 3019901.167.83.15
MINA LA HOYADA GROUP 1-30322411.214.90.71.3
MINA LA HOYADA GROUP 2-3011561.537.31.93.5
VICTORIA ADIT GROUP 103351.3184.43.80.3
VICTORIA 1 ADIT GROUP 2017971.433.11.20.2
VICTORIA 2 ADIT0110.51.551.11.50.2
RIELES ADIT GROUP 10844.5131.11.40
RIELES ADIT GROUP 205151.846.42.10
RIELES ADIT GROUP 304221.388.81.10
TACOYOJ ADIT015981.420.30.60.01
CELIA ADIT GROUP 101793149.32.50.03
CELIA ADIT GROUP 20648160.21.80
ISABEL ADIT015611.2133.94.70.1

Figure 1: Geological plan map showing locations of principal underground workings sampling and the main potential high grade Ag mineralization targets as indicated by results of channel sampling of underground workings.

Geological plan map showing locations of principal underground workings sampling and the main potential high grade Ag mineralization targets as indicated by results of channel sampling of underground workings.

Figure 2 – Geological and sampling map of Mina Central, Level -40, the first level with high values of silver

Geological and sampling map of Mina Central, Level -40, the first level with high values of silver

 

Figure 3 – Geological and sampling map of Mina Central, Level -100, with high values of silver across the level

Geological and sampling map of Mina Central, Level -100, with high values of silver across the level

 

RECONNAISSANCE DIAMOND DRILLING

Three (3) holes totaling 1,364.8m were drilled on the Gonalbert property. As shown in Figure 1, Holes DGL-01 to DGL-03 were drilled in the southern side of the property. Drill holes were designed mainly to test geophysical and geological targets (Figure 2) for epithermal Ag-Pb-Zn mineralization (Figure 1 and Table 3).

Table 3. Diamond Drill Hole Coordinates at Gonalbert Property

Hole No.EastingNorthingElev.AzimuthInclinationEnd of Hole
DGL-01219000.07637460.03669.560°-70°457.0
DGL-02219214.77637583.93581.860°-70°275.5
DGL-03218742.27637542.23596.360°-50°632.3
TOTAL METERAGE1364.8

Previously released Hole DGL-01 intersected 49.19 g Ag/t, 1.35% Zn, and 1.31% Pb over 44.76m which includes a higher-grade interval of 137.42 g Ag/t, 7.91% Zn and 5.6% Pb over 5.60m.

Other significant intersections in DGL-01 include:

  • 57.74 g Ag/t and 1.75% Pb over 18.25m including 79.90 g Ag/t and 2.53% Pb over 6.63m
  • 109.54 g Ag/t, 3.68% Zn and 4.44% Pb over 11.09m including 170.01 g Ag/t, 2.51% Zn and 7.00 % Pb over 5.81m

Drill hole DGL-02 did not intercept any significant mineralization and did not reach the designed targets because of difficult ground conditions (intense faulting).

Drill hole DGL-03, was drilled to test the Central Vein mineralization, intersecting some mineralized base metals intervals hosted in Ordovician sediments cut by tectonic breccias and dacitic dykes. This hole intersected widespread lower-grade sphalerite, galena, pyrite, siderite, and quartz in vein breccias, veins, veinlets, and dissemination. Significant results are listed in Table 4. Highlights are as follows:

  • 32.0 g Ag/t, 4.16% Zn and 0.98% Pb over 0.5m.
  • 89.4g Ag/t, 0.26% Zn and 2.99% Pb over 2.57m.
  • 37.0g Ag/t, 1.25% Zn and 1.0% Pb over 0.5m.
  • 36.0 g Ag/t, 1.2% Pb over 2.07m

Table 4. Significant Results of Hole DGL-03 at Gonalbert property, Chorrillos Project

Hole No.From (m)To (m)Length (m)AgAuZnPbCuSnBiCd
g/tg/t%%%%%%
DGL-0348.6449.681.0425.00.0200.0040.130.0070.0140.00050.0005
185.93186.430.5032.00.0504.160.980.0180.0240.00400.0210
262.30265.384.637.360.0760.0820.0640.0500.0080.03240.0005
317.42324.487.069.590.0210.380.380.0170.0070.00160.0017
402.20403.731.537.000.0050.300.210.0020.0120.00050.0020
456.10456.600.5037.00.0401.251.010.0180.0180.01500.0060
470.56473.132.5789.40.0260.262.990.0160.0140.00080.0011
497.66499.732.0736.00.0100.0281.240.0090.0030.00100.0005
592.24596.13.8625.00.0100.0040.130.0370.0150.04800.0005

Figure 4 shows the locations of potential high grade Ag mineralization targets on the n=4 chargeability grid that corresponds to a depth of approximately 100m below the surface. A strong chargeability anomaly extends northward from the Mina Central Area for approximately 700m and represents a priority target for drilling. Figure 5 is a chargeability section showing drill holes DGL-01 and DGL-02. DGL-01, which returned the most significant intersections intersected the deeper strong chargeability anomaly below Mina Central whereas hole DGL-03 was on the flank of this anomaly, explaining the relatively few intersections in this hole.

On the plan chargeability map in Figure 4, it is evident that there is gap in the mineralization or possible structural break between the deeper chargeability anomaly intersected in hole DGL-03 and the shallower chargeability anomaly to the north. This strong correlation of the chargeability anomaly with the significant intersection in hole DGL-01 and with the artisanal mine workings hosting high-grade Ag veins is very encouraging. This indicates that there is potential for much wider higher grade silver zones on Gonalbert.

Figure 4: Plan Map with Drill Holes Completed Showing Model Chargeability and Correlation of Chargeability with Potential High Grade Silver Target Areas Outlined by Underground Channel Sampling.

Plan Map with Drill Holes Completed Showing Model Chargeability and Correlation of Chargeability with Potential High Grade Silver Target Areas outlined by Underground Channel Sampling

Figure 5: Cross Section of Model Chargeability with Drill Holes DGL-01 and DGL-02

Cross Section of Model Chargeability with Drill Holes DGL-01 and DGL-02

Qualified Person

Dr. Bill Pearson, P.Geo., a Qualified Person (QP) as defined under National Instrument 43-101 (NI 43-101), has reviewed & approved the scientific & technical content of this press release. Dr. Chris Hale, P.Geo., supervised the geophysical surveys. Geological surveys, diamond drill logging and underground channel sampling were supervised by Dr. Osvaldo Arce, P.Geo.  Messrs. Hale and Arce, are QPs as defined by NI 43-101.

Cartier Silver utilizes both ALS & 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 & the preparation facility operated by AHK in Tupiza with pulps sent to the main ALS Global laboratory in Lima for analysis. Cartier Silver employs an industry standard QA/QC program with standards, blanks & 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 & managed by AHK in Tupiza with pulps sent to the AHK laboratory in Lima, Peru. Check samples between ALS & AHK are regularly done as a QA/QC check. AHK follows the same analytical protocols used as with ALS & with the same QA/QC protocols.

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:

Thomas G. LarsenJorge Estepa
Chief Executive Officer
(800) 360-8006
(416) 360-8006
Vice-President
(800) 360-8006
(416) 360-8006

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

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