Eloro Resources reports 442 grams silver equivalent/tonne (Ag eq/t) over 166m including 1,092 g Ag eq/t (446 g Ag/t, 9.03%Pb and 1.16%Sn) over 56.2m in Continuous Channel Sampling of Santa Barbara Adit, Iska Iska Silver-Tin Polymetallic Project, Potosi Department, Southern Bolivia

TORONTO, April 13, 2021 (GLOBE NEWSWIRE) —

Eloro Resources Ltd. (TSX-V: ELO; OTCQX: ELRRF FSE: P2QM)

(“Eloro”, or the “Company”) is pleased to provide an update on its Iska Iska silver-tin polymetallic project in Potosi Department, southern Bolivia. To date, the Company has completed 28 diamond drill holes totalling 10,677 metres to test the Huayra Kasa Mine area, Santa Barbara Breccia Pipe (“SBBP”) and Central Breccia Pipe (“CBP”) targets. This press release reports further drilling results from five additional holes (DSB-02 to DSB-06) on SBBP and detailed continuous channel sampling in the Santa Barbara adit. Two new holes (DCN-01 and DCN-02) have been completed on the CBP with results pending. Figure 1 is a geological plan map showing locations of the drill holes and updated geological interpretation. Figure 2 is a geological cross section along the axis of the SBBP showing location of the main mineralized zone. Figure 3 is a N-S cross section through the SBBP. Figure 4 is map of the continuous channel sampling at the Santa Barbara adit. Tables 1 gives significant drilling results, Table 2 gives complete continuous channel sampling results for the Santa Barbara Adit and Table 3 lists holes completed with assays pending. Highlights are as follows:

Highlights

• 
  442 g Ag eq/t (165 g Ag/t, 3.46% Pb and 0.46% Sn) over 166m including 1,092 g Ag eq/t (including 446 g Ag/t, 9.03% Pb and 1.16% Sn) over 56.19m
  
  in continuous channel sampling of the Santa Barbara adit. This high-grade interval includes two exceptional sections with
  
  2,445.88 g Ag eq/t (1,024 g Ag/t, 25.0% Pb and 1.16% Sn) over 8.11m
  
  and
  
  1.941 g Ag eq/t (870 g Ag/t, 7.58% Pb and 2.43% Sn) over 12.3m.
  
• 
  155.15 g Ag eq/t including notably high Sn, 0.43 %Sn over 73.29m
  
  in drill hole DSB-06
• 
  115.76 g Ag eq/t over 84.0m and 66.44 g Ag eq/t over 217.9m
  
  in Hole DSB-03
• 
  96.71 g Ag eq/t over 29.4m and 120.03 g Ag eq/t over 13.57m
  
  in Hole DSB-05
• 
  65.72 g Ag eq/t over 83.3m including 120.91 g Ag eq/t over 25.0m
  
  in Hole DSB-02
  

Major Mineralized Zone Delineated at Santa Barbara Breccia Pipe

As shown in the geological cross section along the longitudinal axis of the SBBP (Figure 2) and the updated N-S geological cross section (Figure 3), first pass drilling has outlined a major mineralized zone which extends for at least 800m across the full long axis of the SBBP and is at least 400m wide with thickness ranging from approximately 200m to 400m. Recent drilling has doubled the extent of the breccia pipe from 400m to at least 800m in a northwest direction. The grade and intensity of mineralization appears to be increasing to the east, with the Santa Barbara adit returning the highest grades yet discovered at Iska Iska. The mineralized zone appears to be controlled by a major structure that dips shallowly westward and that cuts across both the breccia pipe and the surrounding fractured and altered dacitic dome. The higher-grade mineralization, which is more prevalent in the eastern half of the SBBP including discovery hole DHK-15 which returned 129.6 g Ag eq/t over 257.5m (see press release January 26, 2021), appears to be related to structural overprinting of an earlier epithermal stage of mineralization. Additional drilling under the adit and to the east is planned to further test this highly prospective area.

Drilling Central Breccia Pipe


Drill hole DSB-02 drilled at -60 degrees south from the radial setup at SBBP, intersected 332m of mineralized breccia in the northeast corner of the CBP as previously reported (see press release dated February 23, 2021) This hole returned a number of significant intersections including

65.72 g Ag eq/t over 83.3m including 120.03 g Ag eq/t over 25.0m.

The host rocks at CBP are primarily granodioritic intrusion breccias, in contrast to the SBBP, which is dominated by dacitic fragments. Notably, the chemistry of the CBP is different with mineralization dominantly Sn and Ag with low values of Pb and Zn in contrast to the adjacent SBBP. This indicates that the CBP was probably originally formed at a deeper level. Two additional holes (DCN-01 and DCN-02) from the northern radial setup have been completed as shown in Figure 1 with a third hole (DCN-03) in progress. Results for these holes are pending.

Tom Larsen, Chairman & CEO commented: “These new drilling and continuous channel sampling results are demonstrating some very high metal values; especially silver and tin, within this immense mineralized system at Iska Iska. We continue to encounter mineralization in every drill hole to date, showing potential for a world-class bulk mineable deposit, blending higher grade metal values within the lower grade wide-spread mineralization at Iska Iska. We are well financed to continue pursuing an aggressive exploration program.”

Mr. Larsen, continued: “The technical team will shortly be commencing geophysical surveys, utilizing magnetic surveys to outline potential structures/breccia pipes and down hole Induced Polarization (IP) that will assist in pinpointing higher grade metal sections of the Iska Iska polymetallic-epithermal mineralized complex. The Santa Barbara Breccia Pipe has almost doubled in potential size from our radial drilling program demonstrating large tonnage potential. The Company believes along with the Santa Barbara and Central Breccia Pipes so far outlined, that the Porco (South) target has similar size potential and that there could be other comparable-size breccia pipes obscured by cover within the Iska Iska Caldera Complex.”

Dr. Bill Pearson, P.Geo., Eloro’s Executive Vice President Exploration, commented: “We continue to intersect widespread silver-tin polymetallic mineralization in all our holes and have now doubled the extent of the SBBP. Our understanding of this remarkable mineralizing system continues to advance; however, we are still at a very early stage in the exploration. Following completion of our first pass drilling on SBBP, we will move the drill to test below the Santa Barbara adit and complete a section of holes to test east of the breccia pipe into the centre of the caldera complex. We will be working with Micon International to design further follow-up drilling on SBBP in order to define a National Instrument 43-101 mineral resource. Drilling will continue to test the CBP from both the north and south setups. As previously announced, we will be bringing in a third drill in early May to begin testing the very prospective Porco (South) target (see press release February 29, 2021).”

Dr. Osvaldo Arce, P.Geo., General Manager of Eloro’s Bolivian subsidiary, Minera Tupiza SRL, and an expert on Bolivian geology, stated: “The polymetallic mineralization at Iska Iska likely formed in three stages: an early high temperature tin mineralization-stage that is overprinted by a second-stage lower temperature epithermal silver, zinc, lead and gold mineralizing event; and finally, a third stage of redeposition and remobilization/upgrading during Andean tectonism.”

Dr. Arce further commented: “The first stage of mineralization comprising principally tin appears to be related to intrusion breccias such as those seen in the CBP. This style of mineralization is comparable to other known tin deposits such as Chorolque 25km to the northwest which is hosted in an intrusion breccia. The second stage epithermal mineralization is hosted in phreatomagmatic and phreatic breccia pipes in volcanic and sedimentary rocks. The brecciation of all rocks during this phase generated veins, veinlets, disseminations and multidirectional stockworks, generally enriched in several metals. All the rocks were also commonly pervasively silicified, sericitized, argillized and propylitized during this time. The remarkable tin and/or silver-polymetallic enriched zones such as in the Santa Barbara adit likely formed in the third phase due to faulting and fracturing during major Andean deformation, which led to development of favourable sites for redeposition and remobilization/upgrading of the pre-existing tin and silver-polymetallic mineralization. This last stage was likely a prolonged multi-stage event with considerable telescoping of mineralization.”

Table 1: Significant Diamond Drilling Results, Iska Iska as at April 13, 2021



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Note: True width of the mineralization is not known at the present time, but 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, 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 (grams Ag per grams x metal) are as follows:

In calculating the intersections reported in this press release a sample cutoff of 30 g Ag eq/t was used with generally a maximum dilution of 3 continuous samples below cutoff included within a mineralized section unless more dilution is justified geologically.

Table 2: Continuous Channel Sampling Results, Santa Barbara Adit



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Table 3: Summary of Diamond Drill Holes at Iska Iska from press release of April 13, 2021 with assays pending.

S = Surface; collar coordinates in metres; azimuth and dip in degrees

Total drilling completed since the start of the program on September 13, 2020 is 10,677m m in 12 underground holes and 16 surface holes with two surface holes in progress.

Qualified Person

Dr. Osvaldo Arce, P. Geo., General 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 and channel 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, As announced in the press release of February 26, 2021, Eloro has changed 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 have been changed to provide for a more accurate measurement of the wide-ranging suite of polymetallic metals at Iska Iska. 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.

Unfortunately, the ALS Global laboratory in Lima where the Iska Iska samples are being analyzed has had major delays in turnaround time due the impact of the 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.

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. The property can be classified as a silver-tin 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-tin 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-tin 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



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Figure 2: Geological Cross Section on the Longitudinal Axis of the Santa Barbara Breccia Pipe, Iska Iska Project



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Figure 3: North-South Geological Cross Section, Santa Barbara Breccia Pipe and Northern Central Breccia Pipe, Iska Iska Project



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Figure 4: Plan Map of Channel Sampling at Santa Barbara Adit, Iska Iska Project



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