Report: Resource Co. Has 'Gigantic' Opportunity 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.'s (ELO:TSX; ELRRF:OTCQX; P2QM:FSE) Iska Iska flagship project in southern Bolivia, a 9-square-kilometer silver-tin discovery, has the potential to be one of Bolivia's largest finds in centuries and one of the biggest bulk tonnage operations globally, according to an article by BTV on February 5.

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," said Chairman and Chief Executive Officer Tom Larsen, according to the report.

After five years and over 150,000 meters of drilling, the results are impressive.

Based on a 2023 Mineral Resource Estimate (MRE), Iska Iska boasts a substantial silver-tin polymetallic deposit of nearly 670 million metric tonnes. However, the MRE initially caused concern due to lower-than-expected grades, leading to a sell-off that dropped Eloro's stock from around CA$3 to CA$1.80 in a single day.

"What investors didn’t understand, is that these results were based on first-pass drilling with 100-meter drill spacings," the BTV article said. "Later, Eloro started a 50-meter infill drilling campaign around the upper part of this system (part of the open pit model), and the results from the last six to eight months has been quite remarkable."

Larsen confirmed, "We're now getting up to 200-gram silver. So, there are high pockets and lower pockets of silver in this deposit."

Bolivia's Political Transformation Redefining Mining Sector

Bolivia, a country long associated with abundant mineral wealth, is experiencing a significant political and economic transformation that could redefine the future of its mining sector and invite a surge of foreign investment, according to a piece published by the Grand Pinnacle Tribune on December 5, 2025. 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 clear 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, the article said. 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."

In the first quarter of this year, Eloro is set to start up to 50,000 meters of drilling with 25-meter spacings in preparation for a Pre-Feasibility Study scheduled for the end of the year.

Although mining has been a key economic pillar in Bolivia since the 16th century, restrictive policies from the previous socialist government deterred most potential foreign investment, the BTV piece continued. However, Paz's government is opening up new opportunities and renewing interest from foreign mining investors.

"I had no intentions of going into Bolivia just because of what I'd heard for so many years," Larsen said, according to BTV. "They warned, 'Don't go, you're going to lose all your money due to government restrictions.' Today, that couldn't be further from the truth. Things have changed significantly, and I can tell you that Bolivia is a fantastic place to work…as long as you respect their ways. That’s why 95% of our workforce is Bolivian-based. We don’t bring a lot of foreign advisors down there."

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. This convinced Larsen to enlist Dr. Osvaldo Arce, former head of the Geological Society of Bolivia, to lead Eloro’s exploration team. Arce introduced the Iska Iska opportunity to Larsen, and in January 2020, Eloro took the plunge. One of the attractions for Larsen was the existing infrastructure around the project.

"We’re very fortunate in regard to infrastructure. We have road access from Iska Iska; we are less than 40 kilometers away from a town of 50,000; about 10 kilometers from active hydro; and 20 kilometers away from a rail line — all of which significantly lowers our cost of operations."

Analyst Raises Target Price

Eloro plans to update the mineral resource estimate for the Iska Iska project in Bolivia this quarter, focusing on improved grades, according to Haywood Securities Analyst Pierre Vaillancourt in a January 19 research note following discussions with the company's management. Haywood increased its target price for Eloro by 67% to reflect the anticipated enhanced resource. "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: One of the Top-Performing Major Assets of 2026 So Far

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. COMEX futures data indicated record trading volumes, while silver-backed exchange-traded funds experienced their strongest inflows in years.

However, this optimism quickly unraveled on January 30, 2026, when silver prices plummeted by more than 30% in a single session, erasing weeks of gains, Shukla wrote. This decline was one of the most severe one-day drops for silver in modern market history. 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 the company 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$337.69 million with 106.86 million shares issued and outstanding. It trades in a 52-week range of CA$0.77 to CA$3.42.