Eloro Resources Continues to See Long Intercepts of Polymetallic Mineralization at the Santa Barbara Breccia Pipe, Potosi Department, Southern Bolivia

• 
  Mineralization in adjacent Central Breccia Pipe appears to have affinity with a tin porphyry
  
  

TORONTO, Feb. 23, 2021 (GLOBE NEWSWIRE) — Eloro Resources Ltd. (TSX-V: ELO; OTCQX: ELRRF FSE: P2QM)

(“Eloro”, or the “Company”) is pleased to announce further diamond drill results from its Iska Iska Silver-Polymetallic Project in Potosi Department, southern Bolivia. To date, Eloro has completed 22 holes totalling 7,185 metres from both underground (12) and surface drill holes (10). Currently a steeply inclined deep hole, DSB-06, is in progress to test the Santa Barbara Breccia Pipe (“SBBP”) at depth. This release reports results from the last two underground holes (DHK-16 and DHK-17) and the first radial surface hole from SBBP (DSB-01). Results from the first deep radial hole, DSB-02, are delayed for reasons discussed below.

Results for Holes DHK-16, DHK-17 and DSB-01 are listed in Table 1. Due to the polymetallic nature of the deposit, silver equivalent (“Ag eq”) values have been included for comparative purposes. Pending holes are listed in Table 2. Figure 1 is a plan map showing locations of the drill holes completed and in progress with holes in this release highlighted. Figure 2 is a North-South geological cross section of the SBBP.

Highlights of the SBBP drill results are as follows:

Underground Drill Holes

• 
  67.39 g Ag eq/t over 213.10m including 205.17 g Ag eq/t over 13.04m
  
  in Hole DHK-16 drilled at -10 degrees 50m southwest and parallel to Hole DHK-14 (see press release January 26, 2021)
• 
  279.82 g Ag eq/t over 8.57m, 74.21 g Ageq/t over 52.93m and 121.61 g Ag eq/t over 37.85m
  
  in Hole DHK-17 drilled at -50 degrees 50m southwest and parallel to Hole DHK-15 (see press release January 26, 2021)

Radial Surface Drill Hole

• 
  114.43 g Ag eq/t over 33.25m
  
  in Hole DSB-01 drilled at -45 degrees south
  

Eloro also received preliminary analytical results from Hole DSB-02, drilled at -60 degrees south from the radial setup at SBBP. As previously reported, this hole intersected 332m of mineralized breccia in the adjacent Central Breccia Pipe (“CBP”) from 300m to the end of the hole at 632m with the breccia open at depth. Preliminary analytical results indicate that the CBP is chemically distinct from the SBBP. The metal association seen in the lower part of this hole, especially the last 15 m, sees associated Sn (tin) up to 0.23%, Ag (silver) up to 13.3 grams per tonne (gpt) and Au (gold) up to 0.89 gpt with considerably lower Pb (lead), up to 0.052%, and Zn (zinc), up to 0.292%, than what has been seen in the SBBP. Eloro considers that this style of mineralization is more closely aligned with large tin porphyries in the region and that a similar porphyry potentially underlies the CBP and perhaps more of the Iska Iska project area.

Eloro has determined that its current assay protocol is not suited for the style of mineralization described above, especially given the persistent elevated Sn levels seen in recent drilling. Therefore, the Company is changing the assay protocol to utilizing X-ray fluorescence (XRF) to more accurately analyze higher Sn. Tin in the CBP is suspected to occur as cassiterite which is insoluble in acid digestion, and therefore not suited for wet chemical techniques. In addition, other assay protocols are being changed to provide for a more accurate measurement of the wide-ranging suite of polymetallic metals at Iska Iska. Results from Hole DSB-2 will be reported once these more accurate results are available. Unfortunately, the ASL Global laboratory in Lima where the Iska Iska samples are being analyzed has had major delays in turnaround time due to the impact of the recent COVID-19 lockdown of Lima by the Peruvian government. This has restricted availability of critical supplies necessary to carry out analytical work. As a result, there will be delays in reporting of assay results.

Dr. Bill Pearson, P.Geo., Eloro’s Executive Vice President Exploration, commented: “We are seeing increasing evidence of an Sn porphyry at a much shallower depth than previously thought. The SBBP is a major Ag-Zn-Pb target whereas CBP is looking more like an Sn-Ag-Au target. In the Huayra Kasa underground workings we identified a third major target, high-grade Au-Bi. Clearly we have a large scale complex multiphase porphyry-epithermal system driven by a major porphyry at depth.” Dr. Pearson continued: “Our second drill will commence shortly with first pass drilling of the 700m longitudinal extent of the CBP from both the north and south setup areas. The drill currently at SBBP will complete the deep hole then we will follow up areas of higher-grade mineralization in the vicinity of Hole DHK-15 and follow up on the major extension of the SBBP to the west. Drilling will be designed in consultation with Micon International to optimize future resource estimation. Preliminary metallurgical tests have also been initiated with Micon.”

Dr. Osvaldo Arce, P.Geo., Manager of Eloro’s Bolivian subsidiary, Minera Tupiza S.R.L., and an expert on Bolivian geology commenting on the style of mineralization at Iska Iska compared to other major polymetallic deposits in the region said: “Hole DSB-02 intersected at its bottom significant grades ​​of Sn and Au, which is characteristic of other deposits in the district such as Chorolque, located 25 km northwest of Iska Iska. At Iska Iska, the Huayra Kasa breccia pipe could be peripheral higher-level epithermal mineralization with predominantly Zn, Pb, Ag and Au. The SBBP west of Huayra Kasa is likely an intermediate zone with telescoped polymetallic mineralization of Ag, Sn, Zn and Pb. The CBP with Sn-Au association could constitute the core zone similar to the Chorolque tin deposit.”

Dr. Arce continued: “The Au-Bi mineralization outlined in the underground workings of Huayra Kasa and in the beginning of hole DHK-05 is also characteristic of mineral deposits in the district such as Tasna, located 50 km northwest of Iska Iska, In the case of Iska Iska, the mineralized system has a high degree of preservation of the entire porphyry-epithermal system. This is due to proximity of the erosionally resistant basement quartz sandstones and the pervasive silicification within the breccia pipes which prevented significant erosion of the volcanic edifice as compared to other major polymetallic deposits in the district.”

Dr. Quinton Hennigh, P.Geo., Senior Technical Advisor to Eloro, commented: “The preliminary results for hole DSB-02 strongly suggest we are rapidly approaching an underlying Sn-Ag-Au porphyry system as we test the deeper part of the CBP area. Given the strong Sn as cassiterite component of this mineralization, we have had to step back and rethink our analytical protocols to analyze this exciting newly discovered porphyry mineralization. This coupled with the struggles at the lab in Lima have resulted in delays in getting numbers out. These delays are anticipated to subside as Peru bounces back from the latest COVID-19 surge. In the meantime, we are quickly seeing Iska Iska grow dramatically through mineralized intercepts encountered in recent drilling.”

Table 1: Significant Assay Results Holes DHK-16, DHK-17 and DSB-01, Santa Barbara Breccia Pipe, Iska Iska:


https://www.globenewswire.com/NewsRoom/AttachmentNg/231f1fa7-47c2-4348-beab-1eb83316d9a5

Note: True width of the mineralization is not known at the present time, however based on the current understanding of the relationship between drill orientation/inclination and the mineralization within the breccia pipes and the host rocks such as sandstones and dacites, it is estimated that true width ranges between 70% and 90% of the down hole interval length but this will be confirmed by further drilling.

Metal prices and conversion factors used for calculation of g Ag eq/t are as follows:

Table 2: Summary of Diamond Drill Holes at Iska Iska from press release of February 16, 2021 with assays pending.

<sup>S = Surface


Total drilling completed since the start of the program on September 13, 2020 is 7,185 m in 12 underground holes,10 surface holes and one (1) surface hole in progress as of end of day shift, February 22, 2021.</sup>

Qualified Person

Dr. Osvaldo Arce, P. Geo., Manager of Minera Tupiza S.R.L., and a Qualified Person in the context of National Instrument 43-101 (NI 43-101), has reviewed and approved the technical content of this news release. Dr. Bill Pearson, P.Geo., Executive Vice President Exploration Eloro, and who has more than 45 years of worldwide mining exploration experience including extensive work in South America, manages the overall technical program in consultation with Dr. Quinton Hennigh, P.Geo., Senior Technical Advisor to Eloro and Independent Technical Advisor, Mr. Charley Murahwi P. Geo., FAusIMM of Micon International Limited. Drill samples are prepared in ALS Bolivia Ltda’s preparation facility in Oruro, Bolivia with pulps sent to the main ALS laboratory in Lima, Peru for analysis by fire assay for gold and silver as well as 31 element ICP. Over limits from ICP are analyzed by XRF. 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.

About Iska Iska

Iska Iska silver 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. The property can be classified as a silver polymetallic (Ag, Zn, Pb, Au, Cu, Bi, Sn, In) and porphyry-epithermal complex. This is an important mineral deposit type in the prolific South Mineral Belt of Bolivia.

Silver polymetallic mineralization at Iska Iska occurs within a Miocene possibly collapsed/resurgent caldera that consists of granodioritic stocks and five (5) dacitic domes which are each about 500m in diameter. These rocks intrude/extrude an intensely deformed sequence of Ordovician shales, siltstones, and sandstones, which are partially covered by Miocene pyroclastic rocks. The silver polymetallic mineralization occurs mainly as veins, vein swarms, veinlets, stockworks, disseminations and in breccias associated with intense hydrothermal alteration. The Iska Iska dome complex has several major phases of igneous breccias, quartz porphyries, dikes and dacitic syn-kinematic flows.

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. Diamond drilling intersected a number of extensive mineralized intersections within the major breccia pipe including 54.48 g Ag/t, 1.45% Zinc (Zn) and 1.60% Lead (Pb) over 16.39m (140.91 g Ag eq/t) within a broader interval of 122.74m grading 14.29 g Ag/t, 0.81% Zn and 0.41% Pb (53.67 g Ag/t eq) in Hole DHK-04 (see press release November 18, 2020).

The high-grade gold-bismuth zone outlined in channel samples in the underground working averaged 7.1 g Au/t and 0.2% Bi (8.29 g Au eq/t) over 3.04m width for strike length of 47m. Hole DHK-05 on the strike extension of the high-grade Au-Bi zone intersected 6.51g Au/t, 0.07% Bi and 31.96 g Ag/t (7.68 g Au eq/t) over 11.85m grading including 29.56 g Au/t,0.26% Bi/t and 63.69 g Ag/t (31.94 g Au eq/t) over 2.31m in this high-grade zone.

On January 26, 2021, Eloro announced significant results from drilling at the Santa Barbara Breccia Pipe. Highlights are as follows:

• 129.60 g Ag eq/t over 257.5m (29.53g Ag/t, 0.078g Au/t, 1.45%Zn, 0.59%Pb, 0.080%Cu, 0.056%Sn, 0.0022%In, 0.0064%Bi and 0.0083%Cd) from 0.0m to 257.5m in hole DHK-15, the deepest of the three holes reported within the SBBP;
• 79.00 g Ag eq/t over 121.33m (21.77g Ag/t, 0.034g Au/t, 0.35%Zn, 0.23%Pb, 0.18%Cu, 0.056%Sn, 0.0011%In, 0.004%Bi and 0.0055%Cd) from 0.0m to 121.33m in Hole DHK-14 within the SBBP;
• 74.16 g Ag eq/t over 40.88m (33.43g Ag/t, 0.032g Au/t, 0.04%Zn, 0.33%Pb, 0.13%Cu, 0.045%Sn, 0.0010%In and 0.0012%Bi) from 30.40m to 71.28m in Hole DHK-13 which is within the approximately 100m wide mineralized envelope that surrounds the breccia pipe.
  

Silver-polymetallic mineralization within the Iska Iska system occurs over a potential strike length of more than 2.5km along major ring structures in the caldera complex. A synchrotron study of the underground channel samples (see press release dated June 25, 2020) concluded that the mineral cluster analysis identified four mineralogical domains that cover the entire sampling area suggesting they are related and represent a single, large mineralizing system. Furthermore, the mineralogy of the domains is consistent with minerals identified in hand specimen and are likely related to a telescoped porphyry/epithermal style of mineralization.

About Eloro Resources Ltd.

Eloro is an exploration and mine development company with a portfolio of gold and base-metal properties in Bolivia, Peru and Quebec. Eloro has an option to acquire a 99% interest in the highly prospective Iska Iska Property, which can be classified as a polymetallic epithermal-porphyry complex, a significant mineral deposit type in the Potosi Department, in southern Bolivia. Eloro commissioned a NI 43-101 Technical Report on Iska Iska, which was completed by Micon International Limited and is available on Eloro’s website and under its filings on SEDAR. Iska Iska is a road-accessible, royalty-free property. Eloro also owns an 82% interest in the La Victoria Gold/Silver Project, located in the North-Central Mineral Belt of Peru some 50 km south of Barrick’s Lagunas Norte Gold Mine and Pan American Silver’s La Arena Gold Mine. La Victoria consists of eight mining concessions and eight mining claims encompassing approximately 89 square kilometres. La Victoria has good infrastructure with access to road, water and electricity and is located at an altitude that ranges from 3,150 m to 4,400 m above sea level.

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

.

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

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

Figure 1: Geological Plan Map of the Santa Barbara Breccia Pipe area:


https://www.globenewswire.com/NewsRoom/AttachmentNg/5c613432-feeb-4251-9992-a1c33dde16c3

Figure 2: North-South Geological Cross Section, Santa Barbara Breccia Pipe:


https://www.globenewswire.com/NewsRoom/AttachmentNg/fa646834-fd3e-40bf-a63a-1744a5ba8ae3