Eloro announces restart of definition diamond drilling at the Iska Iska silver-tin polymetallic project, Potosi Department, Southwest Bolivia

• Updated models of the potential seed pit area at Santa Barbara indicate that areas of higher grade mineralization tend to have much better drill densities, while holes outside the core area are too far apart to provide an accurate estimate of grade. This increased drill densities are particularly important for determining the extent of the high-grade Ag-bearing and Sn-bearing structures, and for categorizing the mineral resources from Inferred to Indicated, which have a significant impact on the overall grade and resource base that will contribute to the Preliminary Economic Assessment (“PEA”).
  
• An initial program of 5,700 m of diamond drilling in 13 holes in the Santa Barbara starter pit area is planned to better define the vertical and lateral extent of high-grade Ag mineralization; infill holes currently categorized as low-grade or waste in the resource model but most likely mineralized; extend the higher-grade Sn mineralization to the west; and complete an additional 1,400 m in two large PQ holes for further metallurgical testing. Drill pads are expected to be completed by mid-September for the start of this initial diamond drilling program.
• The Santa Barbara Adit and surrounding area are of particular interest and concern, where previous systematic continuous channel sampling along the adit yielded average levels of 164.96 g Ag/t, 0.46% Sn, 3.46% Pb, and 0.14% Cu over 166 m, including 446 g Ag/t, 9.03% Pb, and 1.16% Sn over 56.19 m.
• Once this initial drill program of 7,100 m is completed, an additional drill program of 7,000 m is planned in the polymetallic Ag-Zn-Pb and Sn-Ag domains to produce an independent updated Mineral Resource Estimate (‘MRE’) that will be reported and included in the PEA.
• The Eloro team continues to explore opportunities to process tin zones for cassiterite recovery, either after the termination of the aforementioned Ag-Zn-Pb project by adding a tin plant to the existing flotation plant infrastructure already in place or by constructing a stand-alone tin plant. A silver-rich by-product is expected from the processing of the tin-silver domain which would be marketed separately. The tin-silver sulphide domain will be metallurgically tested for inclusion in the PEA study.
• A conceptual scoping study has been initiated to identify opportunities for the development of an underground ramp to the core of the Santa Barbara area, with the following objectives:
  • Take systematic bulk and channel samples to confirm the quality and continuity of the mineralization, particularly for Ag and Sn
  • Generate samples for external laboratory bulk metallurgical test work
  • Potentially leading to a small pre-concentration plant to generate additional metallurgical data on this important stage in the process and to allow pre-concentrated “ore” to be treated at Empresa Minera Villegas SRL’s lead-zinc-silver differential flotation plant located 15 km from Iska Iska to produce silver-rich lead and zinc concentrates. This could potentially provide a short-term source of revenue to support the capital and operating costs of this initiative.
  • It would also demonstrate the technical feasibility of the pre-concentration plant processes in preparation for the 35,000 t/d open pit mine model envisaged for the PEA.
  • Extensive geological and engineering work to further assess groundwater quality, contamination risks, predict geological hazards, characterize mineral resources and their extraction costs, produce geotechnical information, determine the location of waste disposal sites and general education.
  • Provide access for targeted underground diamond drilling to further enhance mineral resources

TORONTO, September 4, 2024 (GLOBE NEWSWIRE) — Eloro Resources Ltd. (TSX: ELO; OTCQX: ELRRF; FSE: P2QM) (“Eloro: or the “Company”) is pleased to provide an update on Eloro’s Iska Iska silver-tin polymetallic project in the Potosi department of southern Bolivia.

Tom Larsen, CEO of Eloro, commented: “Our geological team has conducted a detailed analysis of all drill information, including updated models, to develop a highly targeted diamond drilling program commencing in late September 2024. The initial focus will be near the Santa Barbara aditzone to help define the potential “Starter Pit Area” and then moving west to upgrade and expand the polymetallic and Ag-Sn mineralization. This new drilling would be targeted to generate extensive mineral resources in the Santa Barbara starter pit area and provide a mine life of 10-15 years at a preliminary optimized production rate of 35,000 tonnes per day, which will be evaluated in the PEA.”