Metals Update 04/05/2021

Roscan drills three m of 17.66 g/t Au at Kabaya

Roscan Gold Corp. has released positive DD/RC/AC (diamond drill/reverse circulation/air core) drill results from an additional 42 holes (29 DD and RC for 5,799 metres) totalling 6,500 metres at its Kabaya target, with all holes hitting gold mineralization.

At the time of acquisition on July 3, 2020, Kabaya’s National Instrument 43-101 resource was pit constrained to a depth of 58 metres. Since the acquisition, all 52 holes DD/RC drilled by Roscan have intersected gold mineralization showing the remarkable continuity and consistency of the deposit. The company’s January, 2021, drilling update (see news release dated Jan. 19, 2021) reported an increase of the depth potential of Kabaya (KB1) to 196 metres.

Subsequent drilling outlined in this release has now confirmed the continuity of the mineralization to a depth of 232 metres (KB1) over a strike length of 600 metres (KB1 and KB2), and it remains open. The recent drilling outlined below has dramatically increased the volume of the prospective deposit and has major positive implications for future resource growth. In addition, at the East Limb (KB2), the mineralization has now been extended down to 150 m in fresh rock from prior depth of 65 m and remains open at depth.

There were multiple holes intersecting high gold grades, such as drill hole RCDBS21-016, which intersected 17.66 grams per tonne gold over 3.0 m. While several holes showcased the broad consistency of the mineralization with intercepts such as 2.49 g/t gold over 19.0 m from drill hole RCDBS21-022, 2.29 g/t gold over 19.0 m from drill hole RCDBS21-016, 1.31 g/t gold over 21.0 m from drill hole RCDBS21-024 and 1.21 g/t gold over 30.0 m from drill hole RCDBS21-012, grade continuity and mineralization consistency reinforce the company’s expectation for a robust new resource estimate at Kabaya by year-end.

In addition, shallow, regional stepout drilling has also revealed two newly discovered areas of high prospectivity, KB3 with 3.65 g/t Au over 4.0 m and KB4 with three g/t Au over 16.0 m, located, respectively, 1.0 kilometre north and 1.5 km south from the current resource footprint. It should be noted that KB4 lies on the magnetic trend that extends from Mankouke West into Kabaya over a 15 km strike, which has already yielded multiple high-grade intersections from earlier-stage regional drilling such as the company’s KN2 and MS2 discoveries announced over the past few months.

Kabaya — DD plus RC drilling highlights (KB1 and KB2):

  • 17.66 g/t gold over 3.0 m from drill hole RCDBS21-016 from 16.0 m:
    • Including 26.00 g/t gold over 2.0 m from 16.0 m;
    • And 14.33 g/t gold over 2.0 m from drill hole RCDBS21-016 from 74.0 m;
    • Including 28.00 g/t gold over 1.0 m from 74.0 m;
    • And 2.29 g/t gold over 19.0 m from drill hole RCDBS21-016 from 23.0 m;
    • Including 10.47 g/t gold over 2.0 m from 39.0 m;
  • 3.21 g/t gold over 8.0 m from drill hole DDDBS21-22 from 46.6 m:
    • Including 16.10 g/t gold over 1.0 m from 47.6 m;
  • 3.09 g/t gold over 9.3 m from drill hole DDDBS20-15 from 0.0 m:
    • Including 8.73 g/t gold over 2.0 m from 4.3 m;
  • 2.49 g/t gold over 19.0 m from drill hole RCDBS21-022 from 26.0 m:
    • Including 5.20 g/t gold over 6.0 m from 35.0 m;
  • 1.72 g/t gold over 12.0 m from drill hole RCDBS21-021 from 2.0 m:
    • Including 4.68 g/t gold over 3.0 m from 9.0 m;
  • 1.31 g/t gold over 21.0 m from drill hole RCDBS21-024 from 35.0 m:
    • Including 4.40 g/t gold over 1.0 m from 37.0 m;
  • 1.23 g/t gold over 17.0 m from drill hole RCDBS21-018 from 65.0 m:
    • Including 7.40 g/t gold over 1.0 m from 75.0 m;
  • 1.21 g/t gold over 30.0 m from drill hole RCDBS21-012 from 27.0 m:
    • Including 3.38 g/t gold over 3.0 m from 39.0 m.

Kabaya — AC drilling (KB3 and KB4):

  • 3.06 g/t gold over 16.0 m from drill hole ACDBS21-1514 from 30 m:
    • Including 6.53 g/t gold over six m from 34 m;
  • 1.38 g/t gold over 12.0 m from drill hole ACDBS21-1515 from surface:
    • Including 3.25 g/t gold over four m from eight m.

Notes

(1) True width is yet to be determined.

(2) See the associated table for assay highlights.

(3) A grade of 0.5 g/t was used as cut-off with two m internal dilution for drill holes.

(4) There was no top cut.

Nana Sangmuah, president and chief executive officer, stated: “Since the acquisition in July, 2020, drilling at Kabaya has proven quite valuable as we have dramatically increased the continuity of the mineralization at depth over a strike length of 600 m and have identified the potential to tap into a deeper feeder system with both KB1 and KB2 open at depth.

“Kabaya has the potential to be a major contributor to our expected maiden resource update by the end of year. We have been very encouraged by our ability to more than triple the vertical extent of the deposit and show its robust continuity along strike. Newly discovered KB3 and KB4 zones could further expand the resource growth potential of Kabaya, and we will follow up with additional drilling in the weeks ahead.”

The Kayaba deposit has a pit-constrained mineral resource to a depth of 58 m, which contains 105,000 ounces of indicated resource and 35,000 ounces of inferred resource. The company has now established mineralization to a depth of 232 m at KB1, which remains open.

The mineral resource is based on optimized pit shells using a gold price of $1,350 (U.S.) and a presumed heap leach gold recovery of saprolite material.

Classification             Tonnage                 Au             Ounces
                              (Mt)              (g/t)              (koz)

Indicated                     3.17               1.03                105
Inferred                      0.96               1.14                 35

Pit-constrained mineral resource:

  1. The effective date for resources is Jan. 7, 2019.
  2. The independent qualified person for this resources estimate is Yann Camus, Eng, SGS Canada Inc.
  3. The mineral resources are presented at a 0.4 g/t Au cut-off grade in pits.
  4. The resources are presented without dilution.
  5. Whittle pits have been utilized based on a gold value of $1,350 (U.S.) per ounce.
  6. Mineral resources that are not mineral reserves do not have demonstrated economic viability.
  7. No economic evaluation of the resources has been produced.
  8. This resource estimate has been prepared in accordance with CIM (Canadian Institute of Mining, Metallurgy and Petroleum) definition (2014).
  9. Density used is 1.7, based on measurements and similar projects.
  10. Capping grade is of 30 g/t Au on original assays.

Based on the disclosure of National Instrument 43-101, Section 2.4:

  1. The source is Komet’s NI 43-101 that is effective Jan. 7, 2019.
  2. The company considers the reliably and relevance to be reasonable.
  3. The key assumptions are listed above.
  4. The categories are similar.
  5. There are no recent estimates.

The gold mineralization at Kabaya is associated with albite-dolomite-pyrite alteration in greywackes and diamictites of the Kofi formation. The alteration observed in the core indicates a strong hydrothermal system commonly associated with gold deposits in West Africa.

Roscan believes that the Kabaya deposit is part of a significant structural corridor, which spans from Oklo Resources’ discoveries of Seko and Disse to the northeast of the company’s land package and then extends southerly for 15 km on the company’s property from Kabaya to the company’s recent Kandiole North (KN2) and MS2 discoveries and continues onto the recently acquired Mankouke West land package, which shows a strong magnetic signature similar to the other discoveries on this corridor. Much of this corridor has yet to be tested, and, thus, Roscan feels that the potential for new discoveries in this corridor is excellent and connecting these multiple targets with drilling will be a key priority in 2021.

Drilling and analytical protocol

Roscan uses air core, reverse circulation and diamond types of drilling in the Kandiole project. The air core drilling is mainly focused on drilling exploration targets.

The samples are sent for preparation to Bureau Veritas Mineral Laboratories in Bamako, Mali, and assayed at its analytical facilities in Bamako for fire assay with atomic absorption finish and by gravimetric finish for grades above 10 g/t Au.

Roscan applied industry-standard quality assurance/quality control procedures to the program using reference materials, blanks, standards and duplicates.

        DRILL HOLE HIGHLIGHTS AT KABAYA TARGET (MAY 4, 2021)

Hole ID                From            To      Interval            Au
                        (m)           (m)           (m)         (g/t)

DDDBS20-15              0.0           9.3           9.3          3.09
including               4.3           6.3           2.0          8.73
                       38.3          44.3           6.0          0.80
including              42.3          43.3           1.0          1.93
DDDBS21-16             34.0          35.0           1.0          0.66
                       53.0          57.0           4.0          0.67
                       71.0          78.0           7.0          0.66
                       86.0          87.0           1.0          3.01
                       95.0          96.0           1.0          0.88
                      113.0         114.0           1.0          0.52
                      118.0         119.0           1.0          0.61
                      122.0         123.0           1.0          8.13
DDDBS21-17            136.1         148.1          12.0          0.78
                      152.1         154.1           2.0          1.88
                      169.2         174.2           5.0          0.62
                      189.2         190.2           1.0          0.65
DDDBS21-18              0.0           1.0           1.0          3.20
                      129.8         131.8           2.0          1.45
                      152.8         158.8           6.0          1.45
                      198.8         199.8           1.0          0.63
DDDBS21-19            174.6         175.6           1.0          0.77
                      177.6         178.6           1.0          0.69
                      195.6         197.6           2.0          1.84
                      210.6         211.6           1.0          0.82
                      256.6         258.6           2.0          6.46
including             257.6         258.6           1.0         11.90
DDDBS21-20            101.8         104.8           3.0          0.57
                      107.8         108.8           1.0          0.93
                      122.8         124.8           2.0          1.15
                      127.8         128.8           1.0          0.53
                      129.8         130.8           1.0          0.89
                      137.8         138.8           1.0          0.65
                      152.8         169.8          17.0          1.03
including             152.8         153.8           1.0          3.38
including             161.8         162.8           1.0          3.08
DDDBS21-21            274.6         275.6           1.0          0.55
                      278.6         281.6           3.0          0.75
DDDBS21-22              3.6          11.6           8.0          0.44
                       17.6          18.6           1.0          0.60
                       46.6          54.6           8.0          3.21
including              47.6          48.6           1.0         16.10
                       62.6          63.6           1.0          0.84
DDDBS21-23             73.6          74.6           1.0          1.74
                      113.6         115.6           2.0          0.82
                      141.6         142.6           1.0          1.94
                      145.6         152.6           7.0          1.80
including             147.6         148.6           1.0          5.60
                      160.6         170.6          10.0          0.74
                      173.6         176.6           3.0          1.11
                      180.6         198.6          18.0          1.04
including             195.6         196.6           1.0          3.02
                      204.6         212.6           8.0          2.24
including             210.6         211.6           1.0          5.26
                      216.6         226.6          10.0          1.00
including             217.6         218.6           1.0          3.32
DDDBS21-24            122.6         125.6           3.0          1.04
                      132.6         133.6           1.0          0.75
                      151.6         152.6           1.0          0.64
                      175.6         177.6           2.0          0.96
                      180.6         181.6           1.0          0.97
                      189.6         191.6           2.0          0.92
                      203.6         204.6           1.0          0.51
                      211.6         214.6           3.0          0.54
DDDBS21-25            114.6         119.6           5.0          0.92
                      123.6         127.6           4.0          0.91
                      133.6         139.6           6.0          0.60
                      147.6         151.6           4.0          1.09
                      154.6         155.6           1.0          2.04
                      173.6         174.6           1.0          0.53
DDDBS21-26            145.6         146.6           1.0          1.05
                      149.6         150.6           1.0          1.81
                      165.6         166.6           1.0          1.17
                      176.6         177.6           1.0          1.97
                      180.6         193.6          13.0          1.25
including             183.6         185.6           2.0          3.28
                      198.6         203.6           5.0          0.75
including             198.6         199.6           1.0          1.73
                      212.6         213.6           1.0          1.00
                      218.6         221.6           3.0          2.26
                      224.6         226.6           2.0          0.94
                      241.6         246.6           5.0          1.39
                      250.6         257.6           7.0          0.93
RCDBS21-009            73.0          74.0           1.0          0.84
                       78.0          82.0           4.0          0.69
RCDBS21-010            73.0          74.0           1.0          0.65
RCDBS21-011           102.0         106.0           4.0          1.00
                      111.0         115.0           4.0          0.61
                      118.0         119.0           1.0          1.45
                      148.0         149.0           1.0          0.68
                      152.0         153.0           1.0          1.15
                      159.0         161.0           2.0          0.52
                      164.0         168.0           4.0          2.22
including             165.0         166.0           1.0          5.27
RCDBS21-012             8.0          22.0          14.0          1.05
including               9.0          10.0           1.0          3.33
including              14.0          15.0           1.0          3.00
                       27.0          57.0          30.0          1.21
including              39.0          42.0           3.0          3.38
                       63.0          70.0           7.0          1.56
including              63.0          64.0           1.0          5.82
                       73.0          80.0           7.0          0.53
                       83.0          87.0           4.0          2.78
including              83.0          84.0           1.0          7.88
                      100.0         103.0           3.0          0.90
                      106.0         108.0           2.0          1.01
                      111.0         115.0           4.0          1.65
                      118.0         130.0          12.0          0.79
                      133.0         134.0           1.0          0.80
                      155.0         158.0           3.0          3.20
RCDBS21-013            32.0          36.0           4.0          1.25
                       39.0          43.0           4.0          1.02
                       54.0          58.0           4.0          0.86
including              54.0          55.0           1.0          2.26
                       65.0          66.0           1.0          0.58
                       90.0         109.0          19.0          1.02
including              92.0          93.0           1.0          2.81
including             105.0         107.0           2.0          3.94
                      113.0         117.0           4.0          2.32
including             114.0         115.0           1.0          5.75
                      120.0         126.0           6.0          1.82
                      141.0         142.0           1.0          0.57
RCDBS21-014            51.0          52.0           1.0          0.77
RCDBS21-015            86.0          88.0           2.0          6.23
including              86.0          87.0           1.0         11.90
                       91.0         100.0           9.0          1.15
including              91.0          92.0           1.0          3.34
                      105.0         107.0           2.0          1.05
                      114.0         124.0          10.0          0.90
                      137.0         138.0           1.0          0.56
                      139.0         140.0           1.0          0.59
RCDBS21-016            16.0          19.0           3.0         17.66
including              16.0          18.0           2.0         26.00
                       23.0          44.0          19.0          2.29
including              39.0          41.0           2.0         10.47
                       48.0          59.0          11.0          1.67
including              55.0          56.0           1.0          4.81
                       74.0          76.0           2.0         14.33
including              74.0          75.0           1.0         28.00
RCDBS21-017             1.0          10.0           9.0          1.62
                       12.0          13.0           1.0          0.50
                       16.0          17.0           1.0          0.64
                       20.0          21.0           1.0          0.88
                       26.0          38.0          12.0          1.22
including              34.0          35.0           1.0          4.05
                       43.0          44.0           1.0          0.50
                       48.0          49.0           1.0          1.39
                       55.0          65.0          10.0          1.97
                       92.0          93.0           1.0          0.59
                      122.0         127.0           5.0          0.62
RCDBS21-018             0.0           6.0           6.0          1.07
                       38.0          41.0           3.0          0.65
                       61.0          62.0           1.0          3.24
                       65.0          82.0          17.0          1.23
including              75.0          76.0           1.0          7.40
RCDBS21-019            22.0          24.0           2.0          0.79
                       30.0          31.0           1.0          0.57
                       37.0          38.0           1.0          0.74
                       41.0          42.0           1.0          0.53
                       50.0          71.0          21.0          0.91
including              70.0          71.0           1.0          2.23
                       75.0          76.0           1.0          0.60
                       80.0          85.0           5.0          2.09
including              81.0          82.0           1.0          5.72
                       94.0         110.0          16.0          1.06
including              95.0          96.0           1.0          4.62
                      114.0         115.0           1.0          1.97
                      126.0         138.0          12.0          0.95
                      178.0         179.0           1.0          1.71
RCDBS21-020            11.0          12.0           1.0          1.02
                       17.0          22.0           5.0          1.64
                       31.0          32.0           1.0          2.54
                       47.0          48.0           1.0          0.83
                       52.0          62.0          10.0          0.69
                       69.0          70.0           1.0          0.99
                       98.0          99.0           1.0          0.60
                      136.0         139.0           3.0          1.40
RCDBS21-021             2.0          14.0          12.0          1.72
including               9.0          12.0           3.0          4.68
                       27.0          28.0           1.0          0.54
                       30.0          31.0           1.0          1.30
                       35.0          36.0           1.0          0.53
                       47.0          48.0           1.0          0.62
                       59.0          60.0           1.0          1.13
                       73.0          75.0           2.0          2.72
RCDBS21-022             6.0          22.0          16.0          1.07
including              20.0          21.0           1.0          2.71
                       26.0          45.0          19.0          2.49
including              35.0          41.0           6.0          5.20
                       92.0          95.0           3.0          1.97
                      107.0         109.0           2.0          0.67
RCDBS21-023            95.0         102.0           7.0          0.69
                      153.0         154.0           1.0          0.57
                      165.0         166.0           1.0          0.69
                      177.0         178.0           1.0          0.55
RCDBS21-024             9.0          11.0           2.0          1.03
                       16.0          18.0           2.0          1.68
                       28.0          29.0           1.0          0.66
                       31.0          32.0           1.0          0.76
                       35.0          56.0          21.0          1.31
including              37.0          38.0           1.0          4.40
                       65.0          81.0          16.0          0.79
including              80.0          81.0           1.0          3.14
                       93.0          94.0           1.0          0.51
                      104.0         105.0           1.0          0.53
                      108.0         109.0           1.0          0.59
                      114.0         119.0           5.0          1.53
including             117.0         119.0           2.0          2.94
                      125.0         126.0           1.0          2.10
                      135.0         140.0           5.0          0.97
                      159.0         160.0           1.0          1.94
RCDBS21-025            26.0          27.0           1.0          0.75
                       30.0          31.0           1.0          2.25
                       36.0          37.0           1.0          0.62
                       41.0          42.0           1.0          0.72
                       65.0          66.0           1.0          1.44
                       73.0          74.0           1.0          0.51
                       81.0          82.0           1.0          0.52
                       84.0          85.0           1.0          0.81
                       92.0          93.0           1.0          0.87
                      101.0         102.0           1.0          0.51
                      106.0         109.0           3.0          0.83
                      112.0         113.0           1.0          0.55
                      121.0         122.0           1.0          0.69
                      128.0         129.0           1.0          0.66
                      147.0         149.0           2.0          0.98
                      159.0         160.0           1.0          0.85
                      163.0         169.0           6.0          1.48
including             165.0         166.0           1.0          3.31
ACDBS20-1075             10            12             2          0.88
                         22            28             6          0.49
ACDBS20-1094             30            34             2          3.65
ACDBS20-1095             14            18             4          1.55
ACDBS21-1105             36            42             6          1.96
including              40.0          42.0             2          5.30
ACDBS21-1109             14            26            12          0.99
                         38            40             2          1.07
ACDBS21-1110             26            36            10          0.59
                         46            48             2          0.65
ACDBS21-1111              0            12             2          0.66
                         26            28             2          1.27
                         42            48             8          0.64
ACDBS21-1461             38            52            14          0.59
ACDBS21-1463             14            18             4          0.79
ACDBS21-1465             14            38            24          1.09
including                34            36             2          4.89
ACDBS21-1513             62            66             4          0.56
ACDBS21-1514             30            46            16          3.06
including                34            40             6          6.53
ACDBS21-1515              0            12            12          1.38
including               8.0          12.0             4          3.25
          

Eloro drills 56.2 m of 196 g/t AgEq at Iska Iska

Eloro Resources Ltd. has provided an update on its Iska Iska silver-tin polymetallic project in Potosi department, southern Bolivia. To date, the Company has completed 29 diamond drill holes totalling 11,696 metres to test the Huayra Kasa Mine area, Santa Barbara Breccia Pipe (“SBBP”) and Central Breccia Pipe (“CBP”) targets. This press release reports further drilling results from the first drill hole (CDN-01) to test the CBP from the northern radial platform. Figure 1 is a geological plan map showing locations of the drill holes and updated geological interpretation. Figure 2 is a NE-SW geological cross section through the eastern side of the SBBP and the northwest part of the CBP showing location of the main mineralized zone. Table 1 gives significant drilling results and Table 2 lists holes completed with assays pending. Highlights are as follows:

Highlights

  • Hole DCN-01 intersected multiple mineralized intercepts including 196.09 g Ag eq/t (150.25 g Ag/t, 0.10% Sn and 0.05 g Au/t) over 56.2m and containing 342.98 g Ag eq/t (274.0 g Ag/t, 0.16% Sn and 0.16 g Au/t) over 27.53m, from 252.84m to 309.04m in Hole DCN-01.
  • Recently completed hole DSB-10, drilled from a platform at the SBBP, encountered over 500 m of continuous sulphide mineralization in a position several hundred meters below mineralization encountered in hole DCN-01. Assays are pending.

Major Mineralized Zone Being Outlined in Central Breccia Pipe

Drill Hole DCN-01, drilled from the northern radial setup on the CBP, intersected a broad 483.3m wide mineralized zone, from 107.2m to the end of the hole at 590.5m. Within this mineralized zone there are 19 intersections greater than 31 g Ag eq/t, representing 61% of the overall mineralized interval, including eight (8) intersections greater than 60 g Ag eq/t (Table 1). The highest-grade interval returned 196.09 g Ag eq/t (150.25 g Ag/t, 0.10% Sn and 0.05 g Au/t) over 56.2m, including 342.98 g Ag eq/t (274.0 g Ag/t, 0.16% Sn and 0.16 g Au/t) over 27.53m from 252.84m to 309.04m. As shown in Figure 2 and discussed below, this intersection appears to be the top of a very extensive mineralized zone in the CBP that may be as much as 500m thick.

Drill Hole DSB-10, drilled on an azimuth of 225 degrees at a dip of -60 degrees, initially intersected 380m of oxidized and leached breccia of the SBBP before intersecting a 500m long section of mineralized intrusion breccia in the northwestern part of the CBP, as shown in Figures 1 and 2. Within this broad zone, moderate to strong sulphide mineralization extends for a total of 293m from 522m to 586 (64m) and from 650m to 879m (229m). This hole is the longest drilled at Iska Iska thus far, with a final length of 1,019.4m, reflecting the remarkable size of the mineralized system in the CBP. Drill Hole DCN-02 drilled on section with DCN-01 to the southwest at -60 degrees intersected several zones of mineralized intrusion breccia approximately 50m thick before intersecting dacite at the western margin of the breccia pipe. DCN-03 was drilled from the same setup at -60 degrees to the southeast for a length of 464.5m but was stopped in favour of doing a more efficient hole from the southern radial setup (Figure 1). This hole at an azimuth of 90 degrees and a dip of -60 degrees, is currently at 780m and is ongoing. Assay results from all these holes are pending. Further drilling is planned to better define the overall mineralized zone which is very extensive.

Third and Fourth Diamond Drill Being Mobilized to Iska Iska Site

Eloro contractor Leduc Drilling has mobilized a high-capacity underground drill to Iska Iska, which is capable of drilling up to 600m long underground drill holes. This drill is currently being setup in Drill Bay #3 at the west end of the Huayra Kasa underground workings to complete a fan of holes to evaluate the area beneath the Santa Barbara adit eastwards to the centre of the caldera complex. The first hole DHK-18, to be drilled at an azimuth of 180 degrees and dip of -10 degrees, will be collared shortly. This hole is designed to test underneath the Santa Barbara adit where a recent continuous channel sample returned 442 g Ag eq/t (165 g Ag/t, 3.46% Pb and 0.46% Sn) over 166m including 1,092 g Ag eq/t (including 446 g Ag/t, 9.03% Pb and 1.16% Sn) over 56.19m (see press release April 13, 2021). An underground drill bay will also be excavated at the west end of the Santa Barbara Adit to allow underground drilling from there. Underground drilling is also possible from the Porco adit.

As previously announced (see press release March 29, 2021), an additional surface drill will be mobilized in early May to test the Porco target, located in the southern part of the Iska Iska Caldera Complex. This will be the fourth drill on site.

Geophysical, Metallurgical, Synchrotron and Mineralogical Studies

The magnetic survey is progressing well with approximately 43% of the planned 185-line kilometre survey now complete. Continuous readings are being taken on north-south lines spaced at 50m intervals to provide detailed magnetic coverage of the entire property. Down-hole Induced Polarization (“IP”) surveys and a surface gradient IP survey are also planned.

Preliminary metallurgical tests are in progress at the University laboratory in Oruro. Results from the synchrotron study by Western University are currently being analyzed. Mineralogical studies are in progress at the Colorado School of Mines.

Micon International Retained to Complete Updated NI 43-101 Technical Report

Mr. Charley Murahwi, P.Geo., Senior Economic Geologist for Micon International Limited and an independent technical consultant for Eloro, previously completed an independent National Instrument 43-101 technical report on Iska Iska, dated April 27, 2020, which included a site visit in January 2020. Mr. Murahwi is currently updating this report to reflect drill hole results reported up to and including this news release. While COVID-19 related travel restrictions have prevented a return site visit, Mr. Murahwi has been kept up-to-date on the program’s progress and has had the opportunity to view a number of representative drill hole samples as well as review all drill hole data.

Tom Larsen, Chairman and CEO of Eloro said: “As the technical team receive more geological information and assay results from the accelerated drilling program, it is becoming readily apparent that Iska Iska is proving to be in a massive mineralized system generating elevated metal values from every host rock and structure encountered, especially as one goes deeper. Results from our discovery hole DHK-15, the recent channel sampling of the Santa Barbara adit and current results from Hole DCN-01 show the significant potential for outlining major areas of high-grade mineralization within this extensive mineralized system.”

Dr. Bill Pearson, P.Geo., Eloro’s Executive Vice President Exploration, stated: “We are continuing to aggressively explore the very extensive mineralized system at Iska Iska. The target area for mineralization in 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 intersected mineralization. The recognition of the importance of the third stage of major remobilization by Dr. Arce, as outlined in our April 13, 2021 release, has opened up large areas for further testing outside of the immediate breccia pipes, which themselves are major targets. The addition of our third and fourth drills will allow us to continue to aggressively test these targets. We also very much hope that the COVID-19 situation in Lima, Peru will improve so that the ALS Global Laboratory can return to more normal production rates for assaying.”

Dr. Quinton Hennigh, P.Geo. commented: “Every single drill hole completed at Iska Iska to date has encountered mineralization, a very positive sign that we are dealing with a very large system. While it is remarkable to see the first hole at CBP return multiple intervals of mineralization, some high grade, it is also intriguing that hole DSB-10 has encountered over 500 m of continuous sulphide mineralization several hundred meters below. What was encountered in hole DCN-01 may simply be smoke above something even larger. We are quite anxious to see the return of results from this hole.”

Dr. Osvaldo Arce, P.Geo., General Manager of Eloro’s Bolivian subsidiary, Minera Tupiza SRL, and an expert on Bolivian geology, stated: “The style, metal types and distribution of mineralization at Iska Iska are very typical of the Bolivian polymetallic type of deposit. What is remarkable at Iska Iska, however, is that the entire system is so well preserved. In recent drill holes such as DSB-10, we are intersecting extensive thicknesses of sulphide mineralization that are comparable in scale to other well-known world class Bolivian polymetallic deposits. Multi-episodic activities of magmatic-hydrothermal systems within different host lithologies and structures lead to multistage polymetallic mineralization. Sn and Ag typically characterize the first-stage inner high-temperature part of a km-sized mineralizing system with sulphide- breccias, veins, stockworks and disseminations centred in both an intrusion breccia cupola and the overlying subvolcanic granodiorite intrusion at the CBP.

Subsequent second-stage mineralization sequentially expanded outwards from the intrusion breccia and granodioritic intrusion forming a broader halo with vein-breccia or replacement-style Pb-Zn plus or minus Sn plus or minus Au plus or minus Bi plus or minus Cu polymetallic stage mineralization hosted in breccia pipes and dacitic domes of a lower temperature shallower epithermal system at the SBBP. This produced different types of enriched mineralized shoots within the breccia and the dacitic envelope. The remarkable tin and/or silver-polymetallic enriched zones such as in Hole DCN-01, DSB-10 and the Santa Barbara adit likely formed in the third phase due to faulting and fracturing during major Andean deformation, which led to development of favourable sites for redeposition and remobilization/upgrading of the pre-existing tin and silver-polymetallic mineralization. This last stage was likely a prolonged multi-stage event with considerable telescoping of mineralization.”

Note: True width of the mineralization is not known at the present time, but based on the current understanding of the relationship between drill orientation/inclination and the mineralization within the breccia pipes and the host rocks such as sandstones and dacites, is estimated that true width ranges between 70% and 90% of the down hole interval length but this will be confirmed by further drilling. Percentage metal contents are shown for each element.

Metal prices and conversion factors used for calculation of g Ag eq/t (grams Ag per grams x metal) are as follows:

 ElementPrice (per kg)Ratio to Ag
Ag     $875.00       1.00000    
Sn     $28.00        0.03200    
Zn     $2.80         0.00320    
Pb     $2.10         0.00240    
Au     $57,400.00    65.60000   
Cu     $8.80         0.01006    
Bi     $12.76        0.01458    
In     $305.00       0.34857    
Cd     $5.50         0.00629    

In calculating the intersections reported in this press release a sample cutoff of 30 gAgeq/t was used with generally a maximum dilution of 3 continuous samples below cutoff included within a mineralized section unless more dilution is justified geologically.

Total drilling completed since the start of the program on September 13, 2020 is 11,696.4m m in 12 underground holes and 17 surface holes with one underground and two surface holes in progress.

Cantex drills 6.09 m of 0.22 g/t Au at Bruner

Cantex Mine Development Corp. has released results from the first five of fourteen reverse circulation drill holes on its 100-per-cent-owned Bruner property in Nevada.

Bruner Property

The Bruner property is located in Nye County, Nevada, which hosts numerous gold mines. Cantex completed 14 reverse circulation (“RC”) holes on the project and has received results from five holes.

Table 1 presents the most significant intercepts from the first five holes.

                 SIGNIFICANT BRUNER DRILL RESULTS
             Intersection
             From      To  Length  Gold  Arsenic  Antimony  Mercury                         
Hole          (m)     (m)     (m)  (g/t)   (ppm)     (ppm)    (ppm)  
733DH21010  19.81   24.38    4.57  0.060    2.90      0.96     0.50   
733DH21011  59.44   64.01    4.57  0.054    5.13      2.54     0.64   
733DH21012  16.76   19.81    3.05  0.118    4.05      2.75     0.51   
733DH21013      0   39.62   39.62  0.348   11.17     10.59     0.87   
733DH21014      0    7.62    7.62  0.084   25.78      1.63     2.94   
            36.58   42.67    6.09  0.229   27.73      1.84     1.95   
            54.86   65.53   10.67  0.083    5.41      1.32     0.99   
            79.25  118.87   39.62  0.144    9.62      0.83     1.39   

Sample Preparation and Analysis

The drill holes reported in this press release were drilled using reverse circulation drilling with hole diameters between 140 and 146mm. A representative split of the sample was collected off the drill and sent for geochemical analysis. Another split of the sample has been stored on site. Samples were securely transported to the ALS Chemex Laboratory in Reno, Nevada. Here the samples were dried and crushed to 70% passing 2 mm before a 250 gram split was pulverized to 85% passing 75 micrometres. The samples were then analyzed using the AuME-TL43 technique which involves the Aqua Regia digestion of a 25 gram charge and analysis by ICP-MS and ICP-AES. Quality control included the insertion of blanks, standards and field duplicates

Weepah South Property

Drill testing at the Weepah South property determined that the source of the conductive geophysical anomaly was graphite interbedded in Paleozoic carbonate rocks rather than the hoped for conductive gold mineralized target. Analytical results confirmed that gold mineralization was not present and no additional work is planned for these claims.

Baxter Springs Property

Five drill holes were completed on the 100% owned Baxter Springs property and analytical results are pending.

Carico Lake Property

Roads and three drill pads have been constructed at the Carico Lake property. Three holes totalling 1,100 metres are to be drilled as soon as a suitable drill is available.

Conclusion

The Cantex directors are most encouraged by the Bruner property results; the five holes completed to date indicate a Nevada-style gold-arsenic-antimony system has been intersected.

Structural geological mapping will be undertaken after the remaining drill results are received. The focus of the mapping will be to assist in determining where the centre of the mineralized system is. In addition, work will include rock chip sampling of the road cuts created by the access roads leading to the 14 drill sites. It is hoped that these results as well as the forthcoming analytical results from the nine remaining holes will further define gold mineralization on the Bruner property.

The technical information and results reported here have been reviewed by Mr. Chad Ulansky P.Geol., a Qualified Person under National Instrument 43-101, who is responsible for the technical content of this release.