Drilling Uncovers Stronger Silver Zone in Bolivia, Exceeding Projections

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Eloro Resources Ltd. (ELO:TSX.V; ELRRF:OTCBB) has reported the highest-grade silver intersection recorded to date at its Iska Iska silver-tin polymetallic project in Bolivia. The latest definition drilling program at the Santa Barbara area continues to return robust assay results, further confirming the presence of high-grade silver mineralization.

The highlight from the recent drilling campaign is Hole DSB-75, which returned 135 meters grading 151.47 grams per tonne (g/t) silver (Ag) within a broader 309-meter section grading 90.92 g/t Ag. This interval includes a high-grade core of 9.75 meters at 962.23 g/t Ag within a 34.50-meter section grading 440.09 g/t Ag. These results surpass previous intersections at Iska Iska and indicate a continuation of high-grade mineralization within the Santa Barbara potential starter pit area.

Hole DSB-75 was drilled 200 meters northwest of Hole DSB-68, which had previously returned 122.03 meters grading 126.10 g/t Ag within a broader 289.13-meter section grading 66.90 g/t Ag. The proximity of these results suggests an extensive high-grade silver zone within the Santa Barbara area.

Definition drilling has now expanded to cover a greater portion of the deposit, with tighter infill drilling demonstrating that areas previously classified as low-grade or barren contain higher grades than the current resource model indicates. The company has completed 5,799.4 meters of diamond drilling across eleven holes in this phase of the program, utilizing PQ core size to obtain larger and more representative samples.

Metallurgical testing further supports the potential for underreported silver grades. Bulk tests on a 6.3-tonne PQ drill core sample from the higher-grade polymetallic domain returned a calculated silver head grade of 91 g/t Ag, significantly higher than the weighted average grade of the original twinned hole at 31 g/t Ag. This suggests that the original resource estimate may be conservative.

CEO Tom Larsen stated in a company news release, "It is imperative that the company move forward quickly with more infill and step-out diamond drilling initiatives in these newly defined high-grade metal zones both in the tin domain and the silver polymetallic domain. These results should add greatly to the potential economic value in the next phase PEA study."

Dr. Osvaldo Arce, Eloro's Executive VP of Latin American Operations, noted, "Hole DSB-75 intersected significant Ag grades including a new blind high-grade mineralized structure (962.23 g/t silver over 9.75 meters) that defines a broad and enriched zone of silver mineralization at Santa Barbara, together with high-grade tin and polymetallic mineralization, suggesting the potential of discovering larger mineralized volumes together with more blind enriched structures."

Eloro continues to explore the potential of Iska Iska as a significant Bolivian polymetallic deposit. The company has referenced historical mining regions such as Cerro Rico de Potosí and Llallagua, suggesting that Iska Iska could be developed into a world-class deposit.

Silver's Rising Demand Reshapes the Market

According to the Silver Institute's 2025 forecast on January 29, silver industrial demand was on track to hit a record high this year, driven largely by green energy applications, including solar panel production. Despite concerns over the impact of U.S. tariff policies under President Donald Trump, the institute noted that economic and geopolitical uncertainties had supported a recovery in silver prices since the beginning of the year. The organization forecast that global silver demand would remain stable at 1.2 billion ounces, with industrial applications continuing to drive long-term market trends.

On February 25, Investing News Network reported that Keith Neumeyer, CEO of First Majestic Silver, reaffirmed his long-standing call for US$100 silver, citing continued supply deficits and growing industrial demand. He noted that 2024 marked the sixth consecutive year of a supply shortfall and projected that 2025's deficit could be even larger due to mining output failing to keep up with consumption. Neumeyer has been a consistent proponent of silver's revaluation, stating, "We're six years into this deficit. The deficit in 2024 looks like it's gonna be bigger than 2023, and why is that? Because miners aren't producing enough silver for the needs of the human race."

On March 3, Eric Sprott emphasized the structural shortage of silver in an interview with Kitco Mining, citing surging industrial demand — particularly in solar energy applications, where silver usage grew 27% in 2024. He projected that silver prices could skyrocket, highlighting supply constraints and rising investor interest as key factors driving the market. Sprott also pointed out that the gold-silver ratio remained significantly above historical averages, suggesting silver was undervalued relative to gold.

According to a March 5 report from The Economist, silver had nearly matched gold's performance over the past year and had outperformed it over the past five years. The publication noted that investment demand for silver was accelerating, with traders draining London's silver vaults at an unprecedented rate. The report also pointed to growing interest from central banks, referencing Russia's reported plans to begin accumulating silver reserves as a sign of the metal's increasing global significance.

The Silver Institute reiterated on March 8 that silver's supply-demand imbalance remained a dominant market force, with industrial fabrication expected to surpass 700 million ounces for the first time in 2025. The organization projected continued strength in silver's use in renewable energy and AI-driven electronics while also cautioning that economic headwinds in China could influence investor sentiment in the coming months.

Advancing Resource Definition and Unlocking Iska Iska's Economic Potential

Eloro's investor presentation highlights several key catalysts that could enhance the economic potential of Iska Iska. The ongoing definition drilling program aims to upgrade the current inferred resource to the indicated category, which is a significant step toward completing a Preliminary Economic Assessment (PEA). By increasing drilling density, the company seeks to refine grade estimates and define the extent of high-grade silver-bearing and tin-bearing structures.

The Santa Barbara potential starter pit area remains a focal point, with recent drilling suggesting that higher-grade zones extend beyond previously defined resource limits. Infill drilling is expected to continue to convert areas categorized as waste or low grade into economically viable mineralized zones.

Additionally, metallurgical advancements are key to unlocking further value. The introduction of ore sorting and dense media separation (DMS) has been identified as a potential game-changer, as it allows for more efficient processing and cost reduction. Preliminary metallurgical testing has demonstrated that these methods could improve recovery rates while lowering operational expenses, which could positively impact the project's overall economics.

Eloro is also positioning Iska Iska for long-term expansion. The company has identified a major tin zone within the deposit, suggesting that Iska Iska could host two distinct world-class mineral systems. The presence of a porphyry tin system adjacent to the silver-zinc-lead mineralization could provide additional upside, particularly as global tin demand continues to grow.

Moving forward, Eloro plans to conduct additional step-out drilling to test newly identified high-chargeability targets. These exploration efforts could lead to further resource expansion and refinement of the deposit's economic potential. With an ongoing commitment to definition drilling, metallurgical testing, and resource modeling, the company is working toward establishing Iska Iska as a significant player in Bolivia's mining sector.

Eloro Resources Gains Positive Outlook as Drilling Expands High-Grade Tin Potential

Eloro Resources Ltd. received a positive assessment from Cantor Fitzgerald in its February 20, 2025, equity research report, highlighting the expanding tin potential at its Iska Iska Silver-Tin Polymetallic Project in Bolivia. The report noted that Eloro's definition drilling program had returned promising assay results, with Hole DSB-74 intersecting 0.34% Sn over 91.5 meters, including a high-grade interval of 0.55% Sn over 49.5 meters. According to the firm, these results reinforced the potential for a higher-grade tin corridor that could significantly impact the project's overall economic value.

Cantor Fitzgerald maintained its Speculative Buy rating on Eloro Resources Ltd., with a target price of CA$3.60 per share, representing a 243% potential return from the price at the time of the report of CA$1.05. The firm emphasized that the next phase of drilling would focus on further expanding this tin-rich corridor, which it described as "significant in determining overall metal value and economics in the PEA." Additionally, the report highlighted Eloro's strategy of defining a higher-grade resource within the Santa Barbara starter pit area, with the goal of supporting a mine life of 10 to 15 years at a production rate of approximately 35,000 tonnes per day.

The research further noted that Iska Iska hosts both a large silver-zinc-lead dominant system and a high-grade tin system, with ongoing exploration aiming to refine resource estimates and enhance project economics. Cantor Fitzgerald concluded that the company's valuation remained unchanged, applying a blended EV/Resource valuation with a 70% weighting to base metals at US$0.01/lb ZnEq and a 30% weighting to silver at US$0.50/oz AgEq. The firm reaffirmed its confidence in Eloro's long-term prospects, stating that the ongoing exploration success and forthcoming PEA expected in late 2025 could further strengthen the project's investment appeal.

Ownership and Share Structure

Refinitiv provided a breakdown of the company's ownership and share structure, where management and insiders own approximately 14.43% of the company.

CEO Thomas Geoffrey Larsen owns 8% of the company, Director Francis Sauve owns 2.13%, Vice President Jorge Estepa owns 1.79% of the company,  Lead Director Alexander S. Horvath owns 1% of the company.

Institutional investors own approximately 15.89% of the company, as Crescat Capital, L.L.C. owns 15.89% of the company.

There are 84.49 million shares outstanding with 72.3 million free float traded shares, while the company has a market cap of CA$51.75 million and trades in the 52-week period between CA$0.55 - 1.55.