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Eloro Resources (TSX: ELO) has released an inaugural mineral resource estimate for its Iska Iska silver-tin polymetallic project in southwestern Bolivia.
Due to the polymetallic nature of the deposit, the resources were reported using net smelter return (NSR) cut-off values.
The potentially open pittable inferred resource is 541 million tonnes at 0.69% zinc, 0.28% lead, and 13.6 grams silver per tonne for an NSR value of $20.32 per tonne at a cut-off of $9.20 per tonne. This includes a higher-grade near-surface inferred mineral resource of 132 million tonnes at 1.11% zinc, 0.50% lead, and 24.3 grams silver for an NSR value of $34.50 at an NSR cutoff of $25 per tonne.
The estimate shows 298 million oz. of silver, 4.09 million tonnes of zinc, 1.74 million tonnes of lead, and 130,000 tonnes of tin, amassing 1.15 billion oz. silver equivalent across a robust 670 million tonnes of ore.
“Although we classify the resource as inferred, we believe further drilling will upgrade much of this to the indicated category,” said Tom Larson, Eloro’s CEO, in a statement.
The company’s stock Wednesday fell to a new 12-month low at C$2.65, down 14% on the news, taking the 12-month trajectory 25% into the negative.
Further, the zinc-lead-silver material has an NSR cut-off value of $9.20 per tonne for open pit mining and $34.00 per tonne for underground mining, while the tin-silver-lead material has an NSR cut-off value of $6.00 per tonne for open pit mining.
The potentially open pit inferred mineral resource in the tin domain is 110 million tonnes at 0.12% tin, 0.14% lead, and 14.2 grams silver per tonne for an NSR value of $12.22 per tonne at an NSR cutoff of $6.00 per tonne.
The potential underground inferred zinc resource is 19 million tonnes at 1.88% zinc, 0.36% lead, and 18.8 grams silver with an NSR value of $42.23 at a cut-off grade of $34.40.
The total inferred mineral resource is 670 million tonnes at an NSR of $19.62, with 97% being potentially open pittable. The potential open pit is 1.4 km in diameter and extends to a maximum depth of 750 metres below the Santa Barbara hill with a stripping ratio of 1:1.
Mining analysts quickly offered their perspectives on the disclosure. Matt O’Keefe of Cantor Fitzgerald shared his mixed impressions: “The resource tonnage surpassed our base case range of 200-400 million tonnes but fell short of our grade estimate of 60-100 grams silver equivalent per tonne,” he said in a note.
He added that “Iska Iska primarily represents a base metal deposit, but it boasts a significant silver component, comprising about 30% by value.”
Meanwhile, Pierre Vaillancourt from Haywood Capital Markets highlighted the Mina Casiterita deposit’s potential. “Mina Casiterita won’t factor into the upcoming resource, but it introduces a significant long-term tin potential,” he emphasized. “The initial drilling results from Mina Casiterita have encouraged us. We believe the forthcoming resource will spotlight the opportunity at Iska Iska,” he said.
The resource estimate is based on 139 diamond drill holes totalling 96,386 metres, with all holes intersecting significant reportable mineralization and the deposit being open in all directions.
