Eloro Delivers Maiden Resource Estimate – Interview With CEO Tom Larsen
This morning, Eloro Resources (TSX: ELO, OTC: ELRRF) published its long awaited Maiden Resource Estimate (MRE) for the Iska Iska Deposit in the Potosi Department of Bolivia. The news release headline reads “670 million tonnes containing 1.15 Billion In-situ Ounces Silver Equivalent”, a very large deposit. However, due to the multi-metal nature of the Iska Iska deposit, the resources are reported using Net Smelter Return (NSR) cut-off values instead of the silver-equivalent grades that Eloro has been using to report drill intercepts. To properly interpret the numbers contained in this detailed MRE one must understand that the NSR values represent the net revenue that the owner of a mining property receives from the sale of the mine’s metal/non metal products less transportation and refining costs.
The firm that prepared the MRE, Micon International, decided that at Iska Iska the various metals (zinc, lead, silver, tin, etc.) are considered largely as co-products with no obvious dominant commodity that makes up the bulk of the resource. Thus, it was more appropriate to employ a NSR value in applying a cut-off grade.
It is notable that there is a higher grade near surface inferred mineral resource totaling 132 million tonnes at 1.11% zinc, 0.50% lead and 24.3 g/t silver for an NSR value of US$34.50 at an NSR cutoff of US$25/tonne. This portion of the potentially open pittable resource provides potential for early payback for the Iska Iska project.
I had the opportunity to speak with Eloro Resources CEO Tom Larsen about today’s Maiden Resource announcement and what’s next for the company…
This is a sponsored post on behalf of Eloro Resources Ltd.
Goldfinger:
Tom, great to speak with you today. This MRE is the culmination of an enormous amount of work by the Eloro team over the last three years, and obviously you thought you would have it ready earlier in the year. Why did this MRE take so many months to put together?
LINK to full article.
What a sham
This stock knows no bottom. 52 week low after 52 week low…..how does this CEO still have a job?
If you have not noticed Eloro has still outperformed say >90% of juniors over the last 3 years despite the SP going down now. Most are down >80%
All I’m trying to understand is, if this latest news dissemination is so good, why are we seeing an obliteration of the SP?
https://stockcharts.com/c-sc/sc?s=ELRRF&p=D&b=5&g=0&i=0&r=1693493939607
Is this normal? As I have commented before, so many of these juniors have high cash burn rates, and so many times, they have to go back to the well and raise more cash through additional stock offerings. In the meantime, the time frame between drilling, and transitioning from an explorer to a producer takes a tremendous amount of time and money. And if the investing public doesn’t see “flash” and actual profits, they’re shunned and get bled dry.
I personally was expecting a better MRE (Grade). The tonnage was larger than I expected, but a big portion of the tonnage looks marginal. I would want to see more higher grade tonnes. That is just my view.
Like most juniors they will need to raise cash continuously yes. I dont think you should expect Eloro to become a producer. Cost of building a mine would be >$1 B. I think Eloro will either get sold one day or not. If they continue drilling, make it better or have more discovery, I think it will get sold and we win. Otherwise we lose.