Eloro Resources (ELO) - Gold-Silver Player Growing Resource

Eloro Resources is a Toronto-based polymetallic exploration development company that is listed on the TSX-V and FWB. It owns a portfolio of gold and base-metal properties in Bolivia, Peru & Quebec. The metals in question are gold, silver and zinc with some lead also thrown into the mix.

The company has an option to earn a 99% interest in the Iska Iska Silver-Polymetallic project, a Bolivian gold-silver-zinc prospect on the South Mineral Belt that has never been drilled before. Iska Iska is road accessible and is entirely royalty-free. It is situated 48km North of Tupiza City in the Sud Chichas Province of the Department of Potosi; quite a mouthful. What this means is that Iska Iska is located on closed proximity to some world class silver deposits including Tasna, Choroma, Siete Suyos, San Bartolomé, Pulacayo, San Cristobal, San Vicente, Silver Sand and Chorolque. With silver experiencing such a meteoric rise at long last to around US$27/oz, it is little surprise that Iska Iska is now the central focus for Eloro Resources. Its rise to prominence was caused by issues at Eloro Resources' next project...

The secondary priority, La Victoria, is a gold-silver project that Eloro holds an 82% interest in. It is located in the North-Central Mineral Belt of Peru, around 5km south of Barrick Gold's renowned Lagunas Norte Gold Mine and Pan American Silver’s La Arena Gold Mine. La Victoria is a 89km² land package that consists of 8 mining concessions and claims. Eloro claims that the project has good infrastructure with access to road, water and ample power, but has been around the block a bit with few takers over the past few years. La Victoria's location of around 4,000m above sea level has resulted in some problems with the local community who probably aren't all that familiar with mining companies.

Lastly, Eloro Resources holds a portfolio of gold and base metal properties that are situated in northern and western Québec.

It looks like the strategy is to acquire projects, regardless of their jurisdiction, that are situated in close proximity to established major mines with good existing infrastructure. When its works it works, and when it doesn't it doesn't. So we want to see the company start to talk about fundamentals for each project and a clear path to monetisation. Whilst the precious metals prices are high it is easy to fraise capital but it is also easy to forget that each asset needs be able to be mined economically.

La Victoria is being farmed into by an Australian mining company, EHR Resources, brought onboard in 2017-18 at the asset level to provide $5M to earn up to 25% interest in the asset. A land purchase rental agreement is imminent and the company should be able to start drilling the project again. He expects EHR Resources to fund this to earn its 25% interest, with 2,000m of diamond drilling intended to confirm high-value, high-grade gold-silver veins. The aim is to test targets to outline potential resources at San Markito via trenching and sampling.

Back at signature asset Iska Iska, it has recently been confirmed that Eloro Resources' Bolivian subsidiary, Minera Tupiza SRL, has contracted Empresa Minera Villegas SRL to start underground drill bay preparations required for a 3,500m underground diamond drilling program. Drill bays will be prepared and the rehabilitation of 400m of underground workings will have to take place. The aim is to produce a 43-101 maiden resource that outlines the potential of this previously untapped asset.

Over in Québec, the Lac Henri property, the Delta Property, the Eastmain property and the Lemoyne North Property all appear to be on the backburner for now. It will be interesting to see how Larsen intends to monetise these projects as his company grows. Will then simply be sold on or is there more to them?

Back in June, Eloro Resources raised around $1.5M in a non-brokered private placement to assist in the exploration of Iska Iska. This financing was aided by Dr. Quinton Hennigh, a well-known figure, particularly in the gold space and at NOVO Resources and Aztec Silver. He liked the Bolivian concept, and he has since been appointed the company's Technical and Senior Business Advisor. He will bring a commercial edge to Eloro Resources along with plenty of technical prowess.

Larsen is an ex-financier and was pragmatic on this call. While he states that although he and his team could build a small-scale mining operation, it is much more likely that he will exit this project in a similar way to how he has a track record of doing: de-risking it, reaching a PFS and selling it on. He doesn't want to "kid" anyone; these guys are not really mine builders.

Expect Eloro Resources to leverage its "fairly strong network" in South America to prove Iska Iska to be an economically favourable, shallow, open-pit, bulk tonnage polymetallic asset. He thinks he can deliver proof of ounces in ground very quickly and at a low cost; we are only dealing in 200m holes after all. With US$1M in the bank, Larsen thinks this will be enough to tell him if Iska Iska is in a big mineralised system or not. It certainly won't be enough to show scale yet, which is what he is after, but that could come once the the potential of the resource is shored up with meaningful data from the drill bit.

This company still has a lot more work to do to impress, but in this bull market, anything is possible.

Company Website: https://www.elororesources.com/