Silver Explorer Launches 40,000m Drill Program in Bolivia

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1. Ownership and Share Structure Information

The information listed above was updated on the date this article was published and was compiled from information from the company and various other data providers.

Eloro Resources Ltd. (ELO:TSX; ELRRF:OTCQX; P2QM:FSE) announced that it has entered into a contract with Major Drilling Group International Inc., the world's leading provider of specialized drilling services in the metals and mining industry, to carry out an initial 40,000-meter drill program at its Iska Iska silver-tin polymetallic project in Potosi, Bolivia, according to a February 20 release.

According to the agreement, two drill rigs are currently being mobilized to the project, with a third expected to join in the coming weeks.

"With Major Drilling now engaged, the company will be able to complete a sufficient amount of 50-meter and 25-meter infill drill hole spacings in the Santa Barbara corridor and to drill the other five mineralized zones at Iska Iska to enhance the resource footprint for our economic studies and also drill other prospective targets within the perimeter of the Iska Iska Caldera," Eloro Executive Vice President Operations, Latin America, Dr. Osvaldo Arce said.

Eloro's Chief Executive Officer, Thomas Larsen, added: "We welcome Major Drilling resuming operations in Bolivia to service our drilling requirements, with Iska Iska as their first project. Since the general elections that were held in Bolivia last fall, there are demonstrations of renewed optimism, encouraged by policy changes underway in the country, which are attractive to the mining sector."

Poised as One of Bolivia's Largest Finds in Centuries

Iska Iska, a 9-square-kilometer silver-tin discovery, is poised to become one of Bolivia's largest finds in centuries and one of the biggest bulk tonnage operations globally, according to a February 5 article by BTV. Despite being located in a mineral-rich region of the Andes, Iska Iska remained hidden for centuries due to surface leaching that removed all sulfide metals, making the upper portion of the deposit appear barren, even though a rich resource lay just beneath.

"We took an underexplored, never-been-drilled property, and created one of the most significant greenfield discoveries of the past 25 years," Larsen said in the article.

Based on a 2023 Mineral Resource Estimate (MRE), Iska Iska boasts a substantial silver-tin polymetallic deposit of nearly 670 million metric tonnes.

Bolivia, long known for its abundant mineral wealth, is undergoing a significant political and economic transformation that could redefine its mining sector and attract a surge of foreign investment, according to a December 5, 2025, article by the Grand Pinnacle Tribune. After years of regulatory stagnation and political uncertainty, the new government, led by President Rodrigo Paz and Finance Minister José Gabriel Espinoza, is signaling a shift toward market openness, foreign partnerships, and strong investment protection. This change comes at a crucial time for Bolivia’s mining industry, which has both a rich history and untapped potential.

For centuries, Bolivia’s mineral resources have been prominent on the global stage. The famed Cerro Rico mountain, once the world's most productive silver mine, fueled the Spanish empire's wealth. Today, Bolivia remains a leading silver producer and holds some of the largest lithium reserves globally. However, despite this mineral abundance, modern investment has often been hindered by slow permitting processes, inconsistent regulations, and a sometimes challenging business environment. Investors and mining companies have observed from the sidelines, cautious of the risks but drawn by the potential rewards.

"President Paz's ascent to power — following a run-off election on October 19 and his swearing-in on November 8, 2025 — ended nearly two decades of socialist MAS party rule," the article said. "The administration's new centrist, pro-business stance has been welcomed by the mining industry, which views the government's emphasis on legal security and pro-investment policies as a marked departure from previous barriers to business."

The promising nature of Bolivia’s resource industry is further supported by at least two other Canadian-based companies, Santacruz Silver Mining (TSX.V:SCZ) and New Pacific Metals (TSX: NUAG), which entered Bolivia as explorers before Eloro and have grown their market caps to over $1 billion, the report said.

Analyst Raises Target Price

Following discussions with the company's management, Haywood Securities Analyst Pierre Vaillancourt increased his firm's target price for Eloro by 67% to reflect the anticipated enhanced resource in a January 19 research note.

"Following the drilling success in 2025, the improving economic climate in Bolivia, as well as record silver prices, we believe the economic prospects for Iska Iska have improved materially," Vaillancourt wrote.

Haywood's new target price for the mineral explorer is CA$5 per share, up from CA$3 previously. At the time of the analyst's report, Eloro was trading at about CA$3.07 per share, reflecting a discount of 0.47x net asset value compared to peers at 0.67x. The difference between the target and current prices suggests a potential return for investors of 63%. Eloro remains a Buy.

Eloro's 2025 drill program at the project successfully reduced spacing between holes and filled gaps in areas with higher silver grades in the resource envelope. As a result, Haywood expects the Iska Iska resource in the polymetallic domain to be about 200 million tons of 40 grams per ton silver and 1.5% zinc. These grades would be significantly higher than those in the previous August 2023 resource estimate, which were 13.6 grams per tonne silver (g/t Ag) and 24.3 g/t Ag, as well as 0.69% and 1.11% zinc (Zn). High silver prices materially enhance the silver value in the Iska Iska resource, especially at a 40 g/t grade, making Iska Iska a silver-dominant project, the analyst said.

The new mineral resource estimate will contribute to a preliminary economic assessment (PEA) of Iska Iska, which Eloro plans to complete in the second half of 2026. The PEA would consider a polymetallic mine with a mill throughput of about 25,000 tons per day, producing zinc-silver and lead-silver concentrates, followed by a second stage with a 10,000 tons per day tin circuit producing a tin concentrate, over a 15-year mine life. Capital expenditure for the polymetallic mine is estimated at CA$400–500 million and for the tin circuit, about CA$150–200 million.

The Catalyst: A Top-Performing Major Asset of 2026

Silver began 2026 with remarkable momentum, according to a report by Piyush Shukla for The Economic Times on February 8. In early January, spot silver prices surpassed US$121 per ounce, reaching an all-time high fueled by macroeconomic concerns, uncertainty surrounding the Federal Reserve, and significant retail investor involvement.

By early February, silver was trading around US$88 per ounce, still elevated for the year but significantly below its peak. Despite the crash, silver remains one of the top-performing major assets of 2026 so far. The iShares Silver Trust (SLV) has increased by more than 12% year to date, compared to roughly 2% gains in the S&P 500, highlighting silver’s ongoing appeal as both a speculative and defensive asset, the article said.

Both gold and silver have shifted away from their traditional roles as safe havens and have entered a high-volatility phase, altering the investment landscape, according to precious metals analysts at Heraeus, wrote Ernest Hoffman for Kitco News on February 9. In their latest update, the analysts noted that gold has transitioned from a safe haven to a speculative asset.

"The seeds of the price decline were sown in the preceding rally that for a supposedly low-volatility safe-haven asset was exceptional," they stated, according to Hoffman. "The price of gold has increased fivefold in 10 years, yet the dollar index remains at the same level as in 2015. With such a sharp price drop, there was likely an element of leveraged positions being unwound, with stop losses being triggered and rising margin requirements. Exchanges are still raising margin requirements for futures positions."

They advised investors to brace for more price volatility in the coming weeks and months. "Last week the gold price rebounded more strongly than the other precious metals, recovering more than 50% of its decline, but the rebound faded later in the week," the analysts observed. "That still leaves the gold price clearly higher than at the start of the year, which is more than can be said for the white metals."

Ownership and Share Structure¹

About 17% of Eloro Resources Ltd. is owned by insiders, approximately 28% by institutions, and around 2% by strategic investor Cartier Silver. The remainder is held by retail investors.

Top shareholders include Crescat Capital LLC with 15.78% and CEO Larsen with 6.89%.

Its market cap is CA$316.54 million with 110.29 million shares issued and outstanding. It trades in a 52-week range of CA$0.77 to CA$3.42.