Under the agreement, Eloro will conduct an exploration and development over four-years after signing a definitive agreement. Payment includes 500,000 in Eloro stock payable in two tranches and a scaled final payment based on the mineralisation tonnage based on the indicated and inferred resources of a mineral resource estimate. The payment will be from US$1 million to $10 million based on a resource figure ranging from less than 20 million tonnes to more than 300Mt. A definitive agreement is due to be signed before year end.
"The results of our initial due diligence … are very positive and suggest the potential for a large polymetallic mineralised system in a similar geological setting to other major deposits in the belt," said CEO Tom Larsen.
The 900-hectare Iska Iska property is 48km north of Tupiza in Sud Chichas province in the eastern cordillera and is classified as a polymetallic epithermal-porphyry complex, which overprints an early higher temperature xenothermal phase.
Geological mapping during due diligence revealed the spatial and temporal zonation of alteration and vein minerals in an area of about 5sq.km. The polymetallic mineralisation occurs mainly as veins, subsidiary vein swarms, veinlets, stockworks and disseminated, forming a subvertical vein system in both the stock, the volcanic and sedimentary rocks. The identified metallic minerals are pyrite, galena, sphalerite, complex silver-rich phases, argentite electrum, native gold, chalcopyrite and cassiterite.
Channel sampling undertaken by Eloro returned anomalous silver values ranging between 35.5-694 grams per tonne, gold values ranging between 0.31-28.6g/t, zinc values ranging between 1.05-16.95%, lead values ranging between 0.41- 16.95%, copper values ranging between 0.1->1% and bismuth and indium.
Canadian-listed exploration are gradually returning to Bolivia with Eloro joining New Pacific Metals which is exploring the Silver Sand project and Prophecy Development which has the Pulacayo-Paca project.
Shares in Eloro Resources are trading at C21c, valuing the company at $8 million.