First Drill Hole At The Iska Iska Project’s Central Breccia Pipe

TORONTO - Eloro Resources Ltd. reported on its Iska Iska silver-tin polymetallic project in Potosi Department, southern Bolivia. To date, the Company has completed 29 diamond drill holes totaling 11,696 meters to test the Huayra Kasa Mine area, Santa Barbara Breccia Pipe (SBBP) and Central Breccia Pipe (CBP) targets. Hole DCN-01 intersected multiple mineralized intercepts including 196.09 g Ag eq/t (150.25 g Ag/t, 0.10% Sn and 0.05 g Au/t) over 56.2m and containing 342.98 g Ag eq/t (274.0 g Ag/t, 0.16% Sn and 0.16 g Au/t) over 27.53m, from 252.84m to 309.04m in Hole DCN-01. Recently completed hole DSB-10, drilled from a platform at the SBBP, encountered over 500 m of continuous sulphide mineralization in a position several hundred meters below mineralization encountered in hole DCN-01. Assays are pending.

Drill Hole DCN-01, drilled from the northern radial setup on the CBP, intersected a broad 483.3m wide mineralized zone, from 107.2m to the end of the hole at 590.5m. Within this mineralized zone there are 19 intersections greater than 31 g Ag eq/t, representing 61% of the overall mineralized interval, including eight (8) intersections greater than 60 g Ag eq/t. The highest-grade interval returned 196.09 g Ag eq/t (150.25 g Ag/t, 0.10% Sn and 0.05 g Au/t) over 56.2m, including 342.98 g Ag eq/t (274.0 g Ag/t, 0.16% Sn and 0.16 g Au/t) over 27.53m from 252.84m to 309.04m. This intersection appears to be the top of a very extensive mineralized zone in the CBP that may be as much as 500m thick.

Drill Hole DSB-10, drilled on an azimuth of 225 degrees at a dip of -60 degrees, initially intersected 380m of oxidized and leached breccia of the SBBP before intersecting a 500m long section of mineralized intrusion breccia in the northwestern part of the CBP. Within this broad zone, moderate to strong sulphide mineralization extends for a total of 293m from 522m to 586 (64m) and from 650m to 879m (229m). This hole is the longest drilled at Iska Iska thus far, with a final length of 1,019.4m, reflecting the remarkable size of the mineralized system in the CBP. Drill Hole DCN-02 drilled on section with DCN-01 to the southwest at -60 degrees intersected several zones of mineralized intrusion breccia approximately 50m thick before intersecting dacite at the western margin of the breccia pipe. DCN-03 was drilled from the same setup at -60 degrees to the southeast for a length of 464.5m but was stopped in favor of doing a more efficient hole from the southern radial setup. This hole at an azimuth of 90 degrees and a dip of -60 degrees, is currently at 780m and is ongoing. Assay results from all these holes are pending. Further drilling is planned to better define the overall mineralized zone which is very extensive.

Eloro contractor Leduc Drilling has mobilized a high-capacity underground drill to Iska Iska, which is capable of drilling up to 600m long underground drill holes. This drill is currently being setup in Drill Bay #3 at the west end of the Huayra Kasa underground workings to complete a fan of holes to evaluate the area beneath the Santa Barbara adit eastwards to the centre of the caldera complex. The first hole DHK-18, to be drilled at an azimuth of 180 degrees and dip of -10 degrees, will be collared shortly. This hole is designed to test underneath the Santa Barbara adit where a recent continuous channel sample returned 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. An underground drill bay will also be excavated at the west end of the Santa Barbara Adit to allow underground drilling from there. Underground drilling is also possible from the Porco adit.

Tom Larsen, Chairman and CEO, said, “As the technical team receive more geological information and assay results from the accelerated drilling program, it is becoming readily apparent that Iska Iska is proving to be in a massive mineralized system generating elevated metal values from every host rock and structure encountered, especially as one goes deeper. Results from our discovery hole DHK-15, the recent channel sampling of the Santa Barbara adit and current results from Hole DCN-01 show the significant potential for outlining major areas of high-grade mineralization within this extensive mineralized system."

Dr. Bill Pearson, P.Geo., Eloro’s Executive Vice President Exploration, stated: “We are continuing to aggressively explore the very extensive mineralized system at Iska Iska. The target area for mineralization in SBBP and CBP is now more than 1km long and at least 800m wide with mineralization open in all directions. All of the holes drilled to date have intersected mineralization. The recognition of the importance of the third stage of major remobilization by Dr. Arce, has opened up large areas for further testing outside of the immediate breccia pipes, which themselves are major targets. The addition of our third and fourth drills will allow us to continue to aggressively test these targets. We also very much hope that the COVID-19 situation in Lima, Peru will improve so that the ALS Global Laboratory can return to more normal production rates for assaying.”