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: 05.05.2021

Kursziel: CAD 15,80 (unverändert)

Kursziel auf Sicht von: 24 Monate

Letzte Ratingänderung: -

Analyst: Peter Thilo Hasler

Major Mineralized Zone Outlined in the Central Breccia Pipe

After publication of the first drill results from the Central Breccia Pipe

of Eloro Resources' silver-tin polymetallic Iska Iska project, we are

reiterating our Buy rating for Eloro Resources and our fully diluted price

target of CAD 15.80 per share. Our price target is derived from an in-situ

valuation of Iska Iska's Santa Barbara Breccia Pipe, for which significant

drill results have already been disclosed and for which we calculated a NAV

estimate of CAD 1,476.5 million. We applied a 0.8x multiple to our net

asset value per share estimate to arrive at our target price of CAD 15.80

per share. Other assets (among them the Central Breccia Pipe) were not

included in our valuation, for we prefer to await further testing of the

target. Therefore, we like to highlight again that the recent pullback in

the company's stock price could be an excellent entry point for investors,

as Eloro Resources is now ideally positioned, in our view, to aggressively

advance its current portfolio of development projects. Should the company

be able to make a discovery and eventually delineate a mineral resource at

its flagship project Iska Iska in the prolific Southern Mineral Belt of

Bolivia, we believe the share price could quickly re-rate towards our price


Eloro Resources began drilling in the Central Breccia Pipe (CBP) and

intersected a broad 483m wide mineralized zone. The highest-grade interval

returned 196 g Ag eq/t over 27.5m. 19 intersections were greater than 31 g

Ag eq/t, representing 61% of the overall mineralized interval. According to

the geologists, the intersection appears to be the top of a very extensive

mineralized zone in the Central Breccia Pipe that may be as thick as 500m.

With a final length of 1,019m, one of the holes is the longest drilled at

Iska Iska so far, reflecting the remarkable size of the mineralized system

in the CBP. The target area for mineralization in the Santa Barbara Breccia

Pipe (SBBP) and CBP is now more than 1km long and at least 800m wide with

mineralization open in all directions. All of the holes drilled to date

have encountered mineralization.

Leduc Drilling, Eloro's contractor responsible for drilling, has mobilized

a high-capacity underground drill to Iska Iska, which is capable of

drilling up to 600m long underground drill holes. The drill is currently

being setup at the west end of the Huayra Kasa underground workings to test

underneath the Santa Barbara adit where a recent continuous channel sample

returned 442 g Ag eq/t. An additional surface drill will be mobilized to

test the Porco target, located in the southern part of the Iska Iska

Caldera Complex.

Die vollständige Analyse können Sie hier downloaden:


Kontakt für Rückfragen

Peter Thilo Hasler, CEFA

+49 (89) 74443558/ +49 (152) 31764553


-übermittelt durch die EQS Group AG.-

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