en.Wedoany.com Reported - Eloro Resources Ltd. (TSX: ELO; OTCQX: ELRRF; Frankfurt: P2QM) has initiated a major expansion drilling program at the Iska Iska project in southern Bolivia, planning approximately 75 diamond drill holes totaling 40,000 meters to further explore and expand the high-grade silver-tin polymetallic mineralization zone.
The company announced on May 7 that it has contracted Major Drilling Group International Inc., deploying two diamond drill rigs on site, with plans to introduce a third rig within the next three months. The program builds on previous delineation drilling that identified a mineralization zone extending 1.4 kilometers along strike. CEO Tom Larsen noted that following the successful release of an updated Mineral Resource Estimate (MRE) at the end of April, the drilling aims to increase indicated resources to support the planned Preliminary Economic Assessment (PEA).
The latest MRE reports indicated mineral resources of 85.17 million tonnes at a silver grade of 40 g/t, totaling 109.53 million ounces of silver; 1.03 million tonnes of zinc (grade 1.21%), and 600,000 tonnes of lead (grade 0.71%). Inferred mineral resources stand at 945.43 million tonnes at a silver grade of 8.5 g/t, containing 248.6 million ounces of silver, 4.72 million tonnes of zinc (grade 0.47%), 1.5 million tonnes of lead (grade 0.16%), 290,000 tonnes of tin (grade 0.03%), and 1.21 million ounces of gold (grade 0.04 g/t). Total resources exceed 1 billion tonnes. The company stated that inferred tonnes are adjacent to existing indicated resource blocks, share the same structural controls within an optimized pit shell, and have significant potential for conversion to the indicated category through directional drilling. The 2026 expansion drilling program aims to reduce drill spacing to reclassify these tonnes, potentially enhancing total indicated resources and improving PEA economics.
According to Street Smart, which aggregates ratings from multiple analysts, the average rating is Buy/Speculative Buy, with an average target price of $7.40 USD / C$10.43.
Sphene Capital analyst Peter Thilo Hasler stated on April 24 that the MRE update marks a significant turning point in the Iska Iska project's lifecycle, shifting its narrative from pure exploration to a credible development-stage polymetallic system. The introduction of the indicated category and tonnage growth are positive developments, but deeper geological confidence, grade continuity, and metallurgical process improvements collectively enhance the project's economic outlook. Hasler slightly lowered the target price from C$21.80 to C$20.80, with this valuation based solely on an in-situ assessment of the high-grade portion of the Santa Barbara breccia pipe. Sphene maintains a Buy recommendation.
Red Cloud analyst Ron Stewart noted in an April 23 report that the updated MRE introduces for the first time indicated resources of 85 million tonnes at a grade of 75.2 g/t silver equivalent (AgEq), totaling approximately 206 million ounces AgEq; inferred resources expanded to 945 million tonnes at 22.3 g/t AgEq and 0.03% tin, containing 678.2 million ounces AgEq and 290,000 tonnes of tin. Total mineralized tonnage increased by 54% compared to the 2023 MRE, with indicated resource grades 65% higher. Stewart said: "ELO currently trades at an enterprise value per silver equivalent ounce of $0.18, compared to an average of over $1.93 for 10 peers. The low enterprise value was driven by the lower average grade of the previous MRE. The updated MRE, by showcasing a smaller, higher-grade core zone, has positioned ELO for a re-rating." Stewart maintains a Buy rating and a target price of C$5.50 per share. He cited future catalysts including the first PEA in Q2 2026, further metallurgical testing, drilling to expand high-grade mineralization, and a bulk sample program.
Cantor Fitzgerald analyst Matthew O'Keefe stated in an April 22 report that the updated MRE expands the total mineralized footprint from 670 million tonnes to over 1 billion tonnes and upgrades a significant portion from inferred to indicated. The ongoing 40,000-meter drilling program aims to further expand high-grade zones, supporting a larger resource update and a PEA by the end of 2026. Key update details: Total indicated resources of 85.17 million tonnes at 40 g/t silver, 1.21% zinc, and 0.71% lead, containing 109.53 million ounces of silver, 1.03 million tonnes of zinc, and 600,000 tonnes of lead; on a silver equivalent basis, this is 220 million ounces at a grade of 78.38 g/t AgEq. Total inferred resources of 945.43 million tonnes at 8.5 g/t silver, 0.47% zinc, 0.16% lead, 0.03% tin, and 0.04 g/t gold, containing 248.6 million ounces of silver, 4.72 million tonnes of zinc, 1.5 million tonnes of lead, 290,000 tonnes of tin, and 1.21 million ounces of gold. O'Keefe noted that Eloro is funded to proceed, and the valuation strategy has shifted to emphasize silver, allocating $1.50/oz AgEq for indicated resources and $1.00/oz AgEq for silver-dominant domains within inferred resources. The target price was raised from $4.50 to $5.00, maintaining a Speculative Buy rating.
Regarding share structure, approximately 17% of Eloro Resources Ltd. is held by insiders, about 32% by institutions, approximately 2% by strategic investor Cartier Silver, with the remainder held by retail investors. Major shareholders include Crescat Capital LLC (14.23%) and CEO Larsen (6.2%). The company has a market capitalization of C$231.16 million, with 118.54 million shares issued and outstanding, and a 52-week trading range of C$1.01 to C$3.42.
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