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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: 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
target.
 
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:
http://www.more-ir.de/d/22403.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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