Highest and most extensive silver grades intersected
Eloro Resources announced assay results from eight more diamond drill holes from its drilling programme at the Iska Iska silver-tin polymetallic project in the Potosi Department, South Bolivia. With consistent high silver grades averaging 69.80g Ag/t over a length of 325.48m in drill hole DHK-27, intercepts and grades continue to be highly remarkable in the Santa Barbara deposit, in our view. In addition, Eloro could outline a second, potential world-class tin deposit below the Iska Iska porphyry, extending into the newly acquired Mina Casiterita property. With this, news flow should remain strong, since the company is preparing, after 84,495m in 122 holes drilled, to resume diamond drilling in early February and is going to publish the inaugural mineral resource estimate for Santa Barbara by the end of Q1/2023e. We therefore reiterate our Buy rating for the shares of Eloro Resources and our fully diluted share price target of CAD 16.20, derived from an in-situ valuation of Iska Iska’s Santa Barbara Breccia Pipe.
Eloro Resources again reported remarkable assay results from eight additional diamond drill holes at the silver-tin polymetallic Iska Iska project in southern Bolivia. The silver grades reported in drill hole DHK-27 were the highest and most extensive intersected to date in the Santa Barbara deposit. According to the company, 50% of this 860m drill hole returned reportable intersections with mineralization intercepts averaging 172.09g Ag eq/t (equivalents per tonne). One drill hole (DHK-27) intersected 202.43g Ag eq/t over 325.48m including a higher grade portion of 395.98g Ag eq/t over 109.60m.
Not only did Eloro Resources report multiple reportable intersections, the definition drilling has also more than doubled the volume of the high grade zone (defined as grading greater than 90g Ag eq/t) to approximately 880mn m3 from 369mn m3. In addition, the zone is open to the south, west, and northwest as well as at depth, according to the company, with magnetic inverse modelling and limited depth drilling indicating that the largest tin porphyry is probably below the Iska Iska porphyry.
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