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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: 20.10.2022

Kursziel: CAD 16,20 (adjusted by new number of shares)

Kursziel auf Sicht von: 24 Monate

Letzte Ratingänderung: -

Analyst: Peter Thilo Hasler

Multiple intersections with high-grade sections discovered

 

This week, Eloro Resources announced assay results from two more diamond

drill holes from its ongoing drilling programme at the Iska Iska silver-tin

polymetallic project in the Potosi Department, South Bolivia. One hole

tested the extension of the core of the high-grade feeder zone at Santa

Barbara, a second tested the potential south-western limits of the

high-grade feeder zone. Once again, several significant intercepts were

discovered, including intervals of up to 211.34 g Ag eq/t (over 6.02 m),

according to the company. With an immaculate 100% track record of holes

drilled that intersected reportable mineralization, we reiterate our Buy

rating for Eloro Resources and calculate a fully diluted share price target

of CAD 16.20 (previously CAD 16.90, adjusted by the new number of shares),

derived from an in-situ valuation of Iska Iska's Santa Barbara Breccia

Pipe. We consider the recent pullback in the company's stock price (during

a general weak environment for explorer stocks), as an attractive entry

point for investors, as Eloro Resources is now ideally positioned and fully

financed, in our view, to aggressively advance its current portfolio of

development projects. Should the company be able to finally make a

discovery and eventually delineate a mineral resource at Iska Iska, we

believe the share price could quickly re-rate towards our price target.

Eloro Resources has released assay results from two more diamond drill

holes from the Iska Iska silver-tin polymetallic project. Hole DSB-36,

drilled 400 m southeast of the Santa Barbara adit, again returned

significant results. Mineralisation ranged from 211.34 g Ag eq/t over 6.02

m to 180.29 g Ag eq/t over 24.13 m. According to the company, 52% of the

hole contained reportable intercepts, which together averaged 112.48 g Ag

eq/t.

To date, the company has completed 79,258 m in 118 drill holes at Iska

Iska. The latest assay results confirm our assessment that the high-grade

feeder zone extends further across the valley of the Iska Iska caldera than

previous geophysical surveys have indicated (see exhibit 1). For example,

drill hole DSB-36 has extended the strike length by a further 400 m to the

south-southeast, with no apparent end to the strike. Currently, two

laboratories are analysing drill cores with a length of approximately

14,213 m. Since the turnaround times of the mandated laboratories have

shortened considerably after the Corona pandemic subsided, we expect that

most of the backlog will be processed by the end of November. With that, we

expect the newsflow to remain steady.

Die vollständige Analyse können Sie hier downloaden:

http://www.more-ir.de/d/25639.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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