Eloro Resources intersects Significant Tin Mineralization (0.17% Sn over 52.75m) in Mina Casiterita Property and also Receives Strong Results from Infill Holes at Santa Barbara Deposit, Potosi Department, Bolivia

• Tin mineralization at Casiterita is located 2km southwest of the Santa Barbara deposit indicating that the overall Iska Iska mineralizing system is much more extensive, as predicted from geophysical data. Further drilling is required to fully evaluate this prospective target area.
• Holes DHK-31, DSB-53 and DSB-54, drilled to fill-in gaps in drill coverage in the eastern part of the Santa Barbara deposit, returned well mineralized intersections as follows:
  • 125.99g Ag eq/t (12.99g Ag/t, 1.76% Zn and 0.45% Pb) over 125.79m including 257.66 g Ag eq/t (44.82g Ag/t, 3.34% Zn and 1.17% Pb) over 8.94m (DHK-31)
  • 177.41g Ag eq/t (28.89g Ag/t, 1.02% Zn, 0.43% Pb and 0.19% Sn) over 60.14m including 1,228 g Ag eq/t (305.21g Ag/t, 0.21 g Au/t, 2.81% Zn, 2.74% Pb and 1.64% Sn) over 4.49m (DHK-31)
  • 128.23g Ag eq/t (7.86g Ag/t, 2.06% Zn and 0.37% Pb) over 85.52m including 165.82 g Ag eq/t (7.99g Ag/t, 2.69% Zn and 0.44% Pb) over 29.95m (DSB-54)
  • 185.07g Ag eq/t (12.38g Ag/t, 0.11 g Au/t, 2.95% Zn and 0.38% Pb) over 24.04m including 483.12 g Ag eq/t (31.24g Ag/t, 0.24 g Au/t, 7.94% Zn and 0.89% Pb) over 7.62m (DSB-54)
  • 83.98g Ag eq/t (5.88g Ag/t, 1.27% Zn and 0.21% Pb) over 34.56 and 67.14 g Ag eq/t (10.25g Ag/t, 0.79% Zn and 0.32% Pb) over 34.33m (DSB-53)
• Holes DSB-55 and DSB-56 drilled in the southern extension of the Santa Barbara deposit 100m and 200m, respectively, south of previous drilling intersected:
  • 145.69g Ag eq/t (6.37g Ag/t, 0.17 g Au/t, 1.94% Zn and 0.29% Pb) over 70.79m including 341.78g Ag eq/t (12.75g Ag/t, 0.66 g Au/t, 4.31% Zn and 0.54% Pb) over 10.55m (DSB-55),
  • 159.55g Ag eq/t (13.97g Ag/t, 0.36g Au/t, 1.16% Zn, 0.20% Pb and 0.29% Cu) over 54.10m including 329.05g Ag eq/t (36.32g Ag/t, 0.85g Au/t, 1.89% Zn, 0.36% Pb and 0.68% Cu) over 12.01m (DSB-56), and
  • 241.06g Ag eq/t (12.77g Ag/t, 0.33 g Au/t, 2.70% Zn, 0.34% Pb and 0.44% Cu) over 22.59m including 411.52g Ag eq/t (22.71g Ag/t, 0.43g Au/t, 4.70% Zn. 0.58% Pb and 0.82% Cu) over 10.54m (DSB-56)
  • These holes extend the strike length of the Santa Barbara deposit to over 1,400m, still open in all directions.

Eloro Resources Ltd. (TSX: ELO; OTCQX: ELRRF; FSE: P2QM) (“Eloro”, or the “Company”) is pleased to announce assay results from reconnaissance drilling on the Mina Casiterita Property (8 holes totalling 5,726.8m), additional definition drilling on the eastern margin and southern extension of the Santa Barbara deposit (5 holes totalling 4,223.7m) and reconnaissance drilling in the Porco-Mina 2 area (3 holes totalling 2,544.9m). In total 16 holes totaling 12,495.4m have been completed as shown in Figure 1 (Casiterita/Porco-Mina 2) and Figure 2 (Santa Barbara). Table 1 provides the coordinates of the drill holes for which results are reported in this press release and Table 2 lists information for holes for which assay results are still pending. Significant results are listed in Tables 3 (Casiterita), 4 and 5 (Santa Barbara) and 6 (Porco-Mina 2).

Tom Larsen, CEO of Eloro, said: “We are encouraged by the initial drilling results from Mina Casiterita, especially considering the reconnaissance nature of the drill program. The grade and width intersected in hole DCT-03, considering the recently reported positive “ore-sorting” results (see Eloro press release dated July 26, 2023), is attractive particularly with the higher-grade sections. Continued diamond drilling is being delayed pending the finalization of the granting of the mining rights process for the Mina Casiterita and Mina Hoyada properties (“Additional Properties”), through the signing of Administrative Mining Contracts between the regional Jurisdictional Administrative Mining Authority in Bolivia and the Additional Properties Title Holder, from whom the properties are being acquired.”

Mr. Larsen further noted: “Upon completion of this internal process within the Bolivian mining regulator AJAM, Eloro’s Bolivian subsidiary, Minera Tupiza S.R.L. will consolidate its one hundred percent (100%) participation in the Additional Properties, pursuant to its option agreement with the vendor. In connection with this transaction, 200,000 common shares of Eloro will be issued to acquire the capital quotas of the Additional Properties Title Holder (see Eloro press release dated November 22, 2022).”

Dr. Bill Pearson, P.Geo. Eloro’s Executive Vice President, Exploration commented: “The inaugural mineral resource is near completion and is expected to be released by the end of August. Following completion of the recent $6.9 million bought deal financing (see Eloro press release dated August 3, 2023), the planned next phase of work at Iska Iska has begun. The work plan consists of an initial 5,600m of definition drilling at Santa Barbara to better define higher grade areas in the shallower parts of the potential pit to enhance earlier payback; drilling of four PQ metallurgical holes totaling 1,250m for further metallurgical tests including “ore-sorting”; and preparation of a PEA, including required site work, on the Santa Barbara deposit. The project budget includes allowances for important ESG and community support programs, a gravity survey over Iska Iska to test for the deeper tin porphyry and for exploration, including geophysical surveys on the outside properties.”

Reconnaissance Diamond Drilling Mina Casiterita

The Mina Casiterita property which ties on to the southwest part of the Iska Iska (Porvenir) property as shown in Figure 1, is underlain by Ordovician sedimentary rocks which have been intruded by a large dacitic dome which is in the central part of the property. Geophysical surveys outlined an extensive strong conductivity anomaly at least 1km long in the centre of the property (see Eloro press release dated February 14, 2023). There are numerous artisanal tin workings on the property with production from 1962 to 1964 reported by the Departamento Nacional de Geología (National Department of Geology) in Bolivia to be 69.85 tonnes grading 50.60% Sn, which is a typical grade of Sn concentrate achieved by conventional gravity separation.

Eight (8) holes totalling 5,726.8m were drilled on the Casiterita property. As shown in Figure 1, Holes DCT-01 and DCT-02 were drilled in the eastern side of the property. Hole DCT-03, drilled in the northwestern corner of the property, tested an area with numerous artisanal tin workings while holes DCT-04 to DCT-08 inclusive tested a section across the centre of the property. These latter five holes intersected the large dacitic dome that underlies the centre of the property.

Widespread lower grade sulphide mineralization was intersected in all holes in vein breccias, veins, veinlets and replacement zones. Typical minerals were pyrite, sphalerite, hematite, jarosite, cassiterite with local arsenopyrite and chalcopyrite. Oxidation typically extends to a depth of 50m followed by a 10-15m thick transitional zone. The widespread sulphides explain the strong conductivity anomaly over the area.

The best results were obtained from hole DCT-03, collared in vicinity of the artisanal mine workings in the northwestern part of the property, which returned 0.17% Sn, 5.48 g Ag/t and 0.15 g Au/t over 52.75m from 70.20m to 122.95m which included higher grade intersections of 0.35% Sn and 0.35 g Au/t over 6.11m from 89.59m to 95.70m and 1.02% Sn and 0.14 g Au/t over 4.54m from 116.96m to 121.50m. The higher-grade tin occurs as cassiterite in quartz veins/vein breccias cutting the Ordovician sediments on the margin of the dacitic intrusion.

Sn mineralization at Casiterita is located 2km southwest of the Santa Barbara deposit indicating that the overall Iska Iska mineralizing system is much more extensive as predicted from geophysical data (see Eloro press release February 14, 2023). Further drilling outside the dacitic dome in the Ordovician sediments and deeper for the source of the tin mineralization is required to fully evaluate this prospective target area.

Santa Barbara Drilling Eastern/Southern Extension

Initial modeling of the Santa Barbara mineralization indicated that there were gaps in drilling in the eastern part of the deposit that needed to be filled in.

Hole DHK-31 drilled in the northeastern part of the Santa Barbara deposit, returned well mineralized intersections as follows:

• 125.99g Ag eq/t (12.99g Ag/t, 1.76% Zn and 0.45% Pb) over 125.79m from 174.32 to 300.11m including:
  • 255.65 g Ag eq/t (11.41g Ag/t, 0.30 g Au/t, 1.76% Zn and 10.45% Pb) over 8.07m from 174.32m to 182.39m,
  • 257.66 g Ag eq/t (44.82g Ag/t, 3.34% Zn and 1.17% Pb) over 6.00m from 256.55m to 265.49m, and
  • 259.18 g Ag eq/t (36.64g Ag/t, 3.43% Zn and 1.10% Pb) over 8.94m from 277.53 to 283.53m.
• 177.41g Ag eq/t (28.89g Ag/t, 1.02% Zn, 0.43% Pb and 0.19% Sn) over 60.14m including
  • 244.92 g Ag eq/t (13.69g Ag/t, 0.21 g Au/t, 2.81% Zn, 2.74% Pb and 1.64 %Sn) over 13.69m
  • 1,228 g Ag eq/t (305.21g Ag/t, 0.21 g Au/t, 2.81% Zn, 2.74% Pb and 1.64 %Sn) over 4.49m

Holes DSB-53 and DSB-54, drilled to fill-in a drilling gap as shown in Figure 2, returned well mineralized intersections as follows:

• 128.23g Ag eq/t (7.86g Ag/t, 2.06% Zn and 0.37% Pb) over 85.52m from 280.88. to 366.40m including 165.82 g Ag eq/t (7.99g Ag/t, 2.69% Zn and 0.44% Pb) over 29.95m from 294.33m to 324.28m (DSB-54)
• 185.07g Ag eq/t (12.38g Ag/t, 0.11 g Au/t, 2.95% Zn and 0.38% Pb) over 24.04m from 459.88m to 483.92m including 483.12 g Ag eq/t (31.24g Ag/t, 0.24 g Au/t, 7.94% Zn and 0.89% Pb) over 7.62m from 473.34 to 480.96m (DSB-54)
• 83.98g Ag eq/t (5.88g Ag/t, 1.27% Zn and 0.21% Pb) over 34.56 from 373.35m to 407.91m and 67.14 g Ag eq/t (10.25g Ag/t, 0.79% Zn and 0.32% Pb) over 34.33m 529.40m to 563.73m (DSB-53)

The results from these two holes have been incorporated into the drill database for estimation of the inaugural mineral resource estimate expected in the latter part of August. Results from DHK-31 as well as DSB-55 and DSB-56 outlined below were received after the cutoff date for the assay database of the inaugural MRE.

Holes DSB-55 and DSB-56 were drilled to further test the southern extension of the Santa Barbara deposit as shown in Figure 2. Hole DSB-55 was collared 100m south of previous drilling while hole DSB-56 was collared a further 100m south. Significant results are as follows:

• 145.69g Ag eq/t (6.37g Ag/t, 0.17g Au/t, 1.94% Zn, and 0.29% Pb) over 70.79m from 417.80m to 488.59m (DSB-55), including:
  • 341.78g Ag eq/t (12.75g Ag/t, 0.66g Au/t, 4.31% Zn, 0.54% Pb and 0.03%Sn) over 10.55m from 417.80m to 428.35m (DSB-55)
• 159.55g Ag eq/t (13.97g Ag/t, 0.36g Au/t, 1.16% Zn, 0.20% Pb and 0.29% Cu) over 54.10m from 303.05m to 357.15m including:
  • 329.05g Ag eq/t (36.32g Ag/t, 0.85g Au/t, 1.89% Zn, 0.36% Pb and 0.68% Cu) over 12.01m from 307.52m to 319.53m (DSB-56),
• 241.06g Ag eq/t (12.77g Ag/t, 0.33 g Au/t, 2.70% Zn, 0.34% Pb and 0.44% Cu) over 22.59m from 307.52m to 319.53m including:
  • 411.52g Ag eq/t (22.71g Ag/t, 0.43g Au/t, 4.70% Zn. 0.58% Pb and 0.82% Cu) over 10.54m from 420.42m to 430.96m (DSB-56)

These two holes collectively extend the strike length of the Santa Barbara deposit to over 1,400m; still open in all directions.

Reconnaissance Drilling Porco – Mina 2 Area

Three (3) reconnaissance drill holes, two at Porco (DPC-14 and DPC-15) and one at Mina 2 were completed to test across the valley between the Iska Iska Caldera and Mina Casiterita (Figure 1). All of these holes intersected Ordovician sediments that form the basement rocks of the caldera.

Hole DPC-15 intersected 81.99 g Ag eq/t (12.52 g Ag/t, 0.16g Au/t, and 0.11% Sn) over 15.14m from 225.31m to 240.45m as well as a number of shorter lower grade sections. The Ordovician sediments are typically the least favourable host rocks at Iska Iska but the high intensity of the Iska Iska mineralizing system has mineralized even these sediments. Assays for DPC-13 and DPC-14 are pending.

Figure 1: Geological Map of the Mina Casiterita and Porco-Mina 2 Target Areas Showing Locations of Diamond Drill Holes. Holes reported in this release are highlight in red circles.

Figure 2: Geological Map of the Santa Barbara Deposit area in Iska Iska Showing Locations of Diamond Drill Holes. Holes reported in this release are highlighted in yellow circles. 

Table 1: Summary of Drill Hole Coordinates and Collar Orientations for Holes Reported in this Release.

S = Surface UG=Underground; collar coordinates in meters; azimuth and dip in degrees. Total drilling completed since the start of the 2023 program on February 26, 2023, is 12,495.4m in 16 holes. Total drilling since start of the Iska Iska project in September 2020 is 96,990.9m in 138 holes.

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, 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 and geological modelling.

Chemical symbols: Ag= silver, Au = gold, Zn = zinc, Pb = lead, Cu = copper, Sn = tin, Bi = bismuth, Cd = cadmium and g Ag eq/t = grams silver equivalent per tonne. Quantities are given in percent (%) for Zn, Pb Cu, Sn, Bi and Cd and in grams per tonne (g/t) for Ag, Au and Ag eq.

Metal prices and conversion factors used for calculation of g Ag eq/t (grams Ag per grams x metal ratio) are as follows: (Prices updated as of July 21, 2022, to more accurately reflect current metal prices):

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.

The equivalent grade calculations are based on the stated metal prices and are provided for comparative purposes only, due to the polymetallic nature of the deposit. Metallurgical tests are in progress by Blue Coast Ltd. to establish levels of recovery for each element reported but currently the potential recovery for each element has not yet been established. While there is no assurance that all or any of the reported concentrations of metals will be recoverable, Bolivia has a long history of successfully mining and processing similar polymetallic deposits which is well documented in the landmark volume “Yacimientos Metaliferos de Bolivia” by Dr. Osvaldo R. Arce Burgoa, P.Geo.

See Note Table 3

See note Table 3

See Note Table 3

Qualified Person

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, 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, working closely with Dr. Osvaldo Arce, P.Geo. Dr. Quinton Hennigh, P.Geo., Senior Technical Advisor to Eloro and Independent Technical Advisor, Mr. Charley Murahwi P. Geo., FAusIMM of Micon are regularly consulted on technical aspects of the project.

Eloro is utilizing both ALS and 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 and the preparation facility operated by AHK in Tupiza with pulps sent to the main ALS Global laboratory in Lima for analysis. More recently Eloro has had ALS send pulps to their laboratory at Galway in Ireland. 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 are prepared in a preparation facility installed and managed by AHK in Tupiza with pulps sent to the AHK laboratory in Lima, Peru. Au and Sn analysis on these samples is done by ALS Bolivia Ltda in Lima. Check samples between ALS and AHK are regularly done as a QA/QC check. AHK is following 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 DHK-15 which returned 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 and 0.0064% Bi 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 442 g Ag eq/t (164.96 g Ag/t, 0.46%Sn, 3.46% Pb and 0.14% Cu) over 166m including 1,092 g Ag eq/t (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, 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. In its September 20, 2022 press release, the Company reported that new downhole geophysical data has significantly extended the strike length of the high-grade feeder zone at Santa Barbara a further 250m along strike to the south-southeast from existing drilling. The 3D inverse magnetic model which correlates very strongly with the conductive zone suggested that the high-grade feeder zone may extend across the entire caldera for as much as a further 1 km along strike for a total potential strike length of at least 2 km. As reported, the definition drill program was modified to sectionally drill this potential extension with the intention of defining a major open pittable deposit in the valley of the caldera. As a result, the estimated completion date for the maiden National Instrument 43-101 mineral resource was pushed back to the end of Q1 2023.

The Company completed 84,495m of drilling in 122 holes from the definition drill program in the Santa Barbara target area, as previously announced on November 27, 2022.

On November 22, 2022, Eloro announced the pending acquisition of the Mina Casiterita and Mina Hoyada properties covering 14.75 km² southwest and west of Iska Iska. These properties connect with the TUP-3 and TUP-6 claims previously staked by Eloro. Eloro has also staked additional land in the area. Subject to the finalization of the granting of the mining rights process and the completion of the acquisition transaction for the Mina Casiterita and Mina Hoyada properties, the total land package in the Iska Iska area to be controlled by Eloro will total 1,935 quadrants covering 483.75 km².

Artisanal mining in the 1960’s identified high grade tin (Sn) veins on the Mina Casiterita property that are hosted in an intrusive dacite. Production from 1962 to 1964 is reported by the Departamento Nacional de Geología in Bolivia to be 69.85 tonnes grading 50.60% Sn.

Recently completed magnetic surveys by Eloro has outlined an extensive, near surface, magnetic intrusive body on the Mina Casiterita property immediately southwest of Iska Iska. This intrusive hosts the previously mined high-grade tin veins and is very likely the continuation of the porphyry tin intrusion projected to be below the epithermal Ag-Sn-Zn-Pb mineralization at Iska Iska.

The Porco adit from which previously reported channel sampling returned 103m grading 521 g Ag eq/t (including g 117g Ag/t, 1.44 g Au/t, 0.54% Cu and 0.66% Sn) in altered basement sediments, is located near the northeast part of the magnetic anomaly, attesting to the potential strength and high-grade nature of the mineralized system in the area.

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 Barrick’s Lagunas Norte Gold Mine and Pan American Silver’s 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.