Eloro Resources (TSX: ELO) | Next Steps in Development of Iska Iska

Summary

In this interview, Tom Ison, President and CEO of Alluro Resources, discusses the company's progress and future plans regarding its Isa Isa project in Bolivia. Alluro Resources, publicly traded on the TSX, is focused on developing a large silver-tin polymetallic deposit. Tom shares details on recent drilling efforts, the Mineral Resource Estimate (MRE), and upcoming milestones like the Preliminary Economic Assessment (PEA) and ramping initiatives. He emphasizes the project's vast potential, ongoing metallurgical testing, and its low-cost advantages in Bolivia, positioning the company for significant growth in the coming year.

Takeaways

• 📈 Alluro Resources is a publicly traded company on the TSX under the symbol ELO, focused on the Isa Isa silver-tin polymetallic project in Bolivia.
• 🪙 The Isa Isa project is located in Bolivia’s Potosi region, near the historic Cerro Rico silver mine, which has produced over 2.5 billion ounces of silver.
• 💰 Alluro Resources completed a Mineral Resource Estimate (MRE) last year, following 120,000 meters of drilling and $50-60 million CAD in expenditures.
• 🏗 The project contains over 1.15 billion ounces of silver equivalent, with significant amounts of silver, zinc, tin, and lead.
• 📊 Despite lower-than-expected silver grades, the company is focusing on infill drilling to increase the economic viability of the deposit.
• 🔍 The company is working on a Preliminary Economic Assessment (PEA) for an open-pit bulk tonnage model, targeting a 35,000-ton-per-day operation.
• 🧪 A 7-ton bulk sample returned higher grades than initial drill results, boosting confidence in the project's potential.
• 🚧 The company plans to begin construction of a ramp for underground exploration by December, using Bolivia's lower-cost environment to its advantage.
• 🤝 Alluro has an NDA with San Cristobal mine operators to gain insights into cost inputs and best practices for its operation.
• 🔨 Alluro plans to initiate a small-scale operation for early cash flow by stockpiling ore and potentially selling pre-concentrates to a nearby zinc-lead plant.

Q & A

What is the primary focus of Alluro Resources?

Alluro Resources primarily focuses on developing the Isa Isa silver-tin polymetallic project located in southern Bolivia, near the Potosí region.

What stock exchange is Alluro Resources listed on, and under what symbol?

Alluro Resources is listed on the TSX under the symbol ELO and on the OTCQX under the symbol ELRRF.

What was the result of Alluro's initial mineral resource estimate (MRE) for the Isa Isa project?

The initial MRE showed over 1.15 billion ounces of silver equivalent, including nearly 300 million ounces of silver along with significant amounts of zinc, tin, and lead.

What has been the main criticism of the initial mineral resource estimate (MRE)?

The primary criticism was that the silver grades were lower than expected, especially compared to previous drilling results, which included other metals such as tin.

What is Alluro Resources' short-term focus for the Isa Isa project?

The short-term focus is on infill drilling in higher-grade areas of the Isa Isa project, particularly targeting a starter pit area that shows potential for higher-grade silver and lead.

What is the significance of the 7-ton bulk sample Alluro Resources conducted?

The 7-ton bulk sample returned significantly higher silver grades (9 grams per ton) compared to the original drilling results, indicating potential for higher economic returns from the project.

What is the purpose of the planned ramp at the Isa Isa project?

The ramp will support further infill drilling and provide access to material for a small-scale pre-concentration operation, helping to demonstrate economic viability while preparing for larger-scale production.

What are the expected costs of the ramping initiative, and why is Bolivia a favorable location?

The ramping costs are estimated at $1,600 to $1,800 USD per meter, significantly lower than in North American locations like British Columbia or Quebec, where costs are much higher.

What is the long-term vision for the Isa Isa project according to Alluro Resources?

The long-term vision is to develop a 35,000-ton-per-day open-pit operation with a 12-year mine life, though the potential mine life could extend much longer.

How does Alluro Resources plan to validate the larger-scale operation?

Alluro plans to validate the larger-scale operation by starting with small-scale production using pre-concentrate material, potentially generating cash flow to fund the project's further development.