Eloro Resources (TSX-V:ELO, OTC:ELRRF) continues to prove up a very large silver-tin polymetallic deposit at its Iska Iska Project in Bolivia. Hole DSBU-07 intersected wide intervals of polymetallic mineralization including 28.84 grams/tonne silver, 0.69% zinc, 0.62% lead, and 0.13% tin over 208.47 meters. The four holes reported this morning expand the higher grade mineralized zone at Santa Barbara to the south and southwest:
Dr. Osvaldo Arce commented on this morning's results:
“Recent drill assay results from the Santa Barbara zone continue to expand a large and robust tin-silver polymetallic likely feeder zone located to the southeast of the Santa Barbara breccia pipe that is wide open at depth. Holes DSBU-4, DSBU-07 and DSBU-08 encountered numerous intervals of polymetallic oxide and sulphide mineralization that confirm multiple mineralizing events that occurred during the Miocene, which is an important feature of other large polymetallic deposits in the Eastern Andes of southern Bolivia.”
For the next 6-8 weeks, Eloro is focused on resource definition drilling to complete the drilling required to produce a maiden resource estimate for the Santa Barbara Area in Q3 of this year. Three drill rigs are at Santa Barbara and one rig is doing exploration drilling at the El Porco Area to the south of the main Santa Barbara Deposit Area.
The trend of drill results at Iska Iska is also encouraging with the 3 best holes drilled at the project to date reported in 2022:
Eloro is entering an important next few months that will include the following events (not particularly in this order):
- Metallurgical testing results
- Maiden Resource Estimate for the Santa Barbara Area
- Ongoing drill results
There is also the potential for Eloro to uplist from the OTC to an AMEX listing in the United States, however, there is no set timeline for an uplisting. The metallurgy test results will go a long way towards derisking Iska Iska and proving to the market just how much of the project's massive metal endowment is recoverable. I also expect that the MRE will exceed the market's current ~300 million tonnes consensus estimate.
Like many junior mining stocks today, Eloro’s chart is deeply oversold and shows a potential double-bottom at last week’s low ($3.09 vs. the December low at $3.08):
Eloro is well funded after closing a C$9.8 million financing last week that gives the company ample capital for the remainder of 2022. I have been a buyer of ELO shares in recent weeks and I continue to view Iska Iska as an exceptional polymetallic deposit with potential world class scale.
Disclosure: Author owns ELO.V shares at the time of publishing and may choose to buy or sell at any time without notice. The author of this article has been compensated for marketing services by Eloro Resources Ltd.
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