Original-Research: Eloro Resources Ltd. - von Sphene Capital GmbH

Einstufung von Sphene Capital GmbH zu Eloro Resources Ltd.

Unternehmen: Eloro Resources Ltd.
ISIN: CA2899003008

Anlass der Studie: Update Report
Empfehlung: Buy
seit: 02.03.2022
Kursziel: CAD 15,30 (vorher CAD 15,80)
Kursziel auf Sicht von: 24 Monate
Letzte Ratingänderung: -
Analyst: Peter Thilo Hasler

Highest-grade intersection obtained so far

Eloro Resources released highly encouraging results from several additional diamond drill holes at its flagship Iska Iska silver-tin polymetallic complex in the Bolivian Potosi Department, where drilling has identified a large mineralized caldera system. In our view, Eloro Resources made good progress with defining the mineralization at Iska Iska, which appears to be on the verge of outlining a significant NI 43-101 compliant mineral resource. We believe continued positive exploration results from the company's drill programs at its Iska Iska target should help lift the stock again and are reiterating our Buy rating for Eloro Resources and our fully diluted price target of CAD 15.30 per share, derived from an in-situ valuation of Iska Iska's Santa Barbara Breccia Pipe adjusted by the increase in the number of shares outstanding.

The recent drill program tested targets from the Santa Barbara adit and the NW extension in the Santa Barbara Mineral Resource Target Area. Highlights from the batch of assays include higher-grade sections of (1) 507.64g Ag eq/t (119.36g Ag/t, 0.14g Au/t, 0.57% Pb and 0.52% Sn) over 49.55m and (2) 401.81g Ag eq/t (31.46 g Ag/t, 0.19 % Pb and 0.61 % Sn) over 28.58m. We note that the reported metal factors are the highest reported to date from the diamond drill program at Iska Iska. With a potential strike length of 4km and a thickness of 2km, expanding to a depth 1km (see also exhibit 2), Iska Iska could be one of the largest silver-tin discoveries in Bolivia in recent history, according to our view.

With more than 4,600m completed since the restart last month, for an overall total of 45,779m in 81 drill holes, drilling productivity continues to be high. Eloro resources furthermore announced that underground drilling will be completed soon and exchanged for a high capacity surface rig which will further increase production. Given that approximately 1,500 samples await drill core analysis at laboratories in Lima and Galway, we expect more regular news flow going forward, since both Covid impacted laboratories seem to return to normal productivity.

We expect continued positive news flow from Eloro Resources mainly from (1) an additional 11 holes totalling 7,859m that have been completed where assay results are still pending, (2) additional underground drilling at the Santa Barbara deposit to test the major magnetic anomaly to the southwest, (3) a series of surface holes testing the southern Santa Barbara target area by using a third surface diamond drill, and (4) the testing of a major magnetic anomaly in the Porco area.

Die vollständige Analyse können Sie hier downloaden: http://www.more-ir.de/d/23493.pdf

Kontakt für Rückfragen
Peter Thilo Hasler, CEFA
+49 (89) 74443558/ +49 (152) 31764553
peter-thilo.hasler@sphene-capital.de

-------------------übermittelt durch die EQS Group AG.-------------------

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