Eloro Resources (NR) – “What is the market thinking?”
Firstly, we got the beyond insane channel sample that graded 442 gpt AgEQ over 166, including a bunch of long >1,000 gpt AgEQ intervals.
… With bonanza grades like that you don’t need a lot of tonnage to have a full blown deposit already.
Then we learned that it appears the mineralization at SBBP might be getting better to the east towards the center of the caldera (where the bonanza sample was taken):
“Recent drilling has doubled the extent of the breccia pipe from 400m to at least 800m in a northwest direction. The grade and intensity of mineralization appears to be increasing to the east, with the Santa Barbara adit returning the highest grades yet discovered at Iska Iska”
We also got snippets such as:
“We continue to encounter mineralization in every drill hole to date, showing potential for a world-class bulk mineable deposit, blending higher grade metal values within the lower grade wide-spread mineralization at Iska Iska. We are well financed to continue pursuing an aggressive exploration program.”
And:
““We continue to intersect widespread silver-tin polymetallic mineralization in all our holes and have now doubled the extent of the SBBP. Our understanding of this remarkable mineralizing system continues to advance; however, we are still at a very early stage in the exploration. Following completion of our first pass drilling on SBBP, we will move the drill to test below the Santa Barbara adit and complete a section of holes to test east of the breccia pipe into the centre of the caldera complex. We will be working with Micon International to design further follow-up drilling on SBBP in order to define a National Instrument 43-101 mineral resource. Drilling will continue to test the CBP from both the north and south setups. As previously announced, we will be bringing in a third drill in early May to begin testing the very prospective Porco (South) target “
I could have called today’s reaction “Missing The Forest For The Trees version 2.0″…
Compare this older slide:
(note the RED, dashed lines)
With today’s slide based on the new information:
(Again, note the RED, dashed line)
… You see where the dashed line is gone and there are multiple mentions of “open”? Yeah, I would say the potential is growing size wise. Oh and notice where the Adit is. There is just ONE hole that even came close to where the 166m of bonanza grade interval was sampled. If the mineralization gets a) better towards the east (center of the caldera) and b) SBBP is now wide open in that very direction then I would think this is pretty friggin good news.
The large, inferred Porco pipe is also left to be tested. All in all my amateur view is that the blue sky potential might not only be intact but it probably increased with the insane channel sample and realization that SBBP seems to be getting better and is open in the direction where the samples with the highest grades are located.
There is LOTS more to come from a fully cashed up Eloro I think:
Anyway, I added today. I might be wrong and it’s crazy but my gut feeling is that Eloro is going to get a lot bigger. With a resource coming up it should mean that a) There is already enough data that management believes a resource can be done, and b) A resource would mean that Eloro would be getting a “floor” to some degree by having confirmed ounces in black and white. This is very favorable from a risk/reward perspective (all else equal). I also doubt that the bonanza grade mineralization is only limited to the adit. And if that is true the endowment can build very quickly since the company will be drilling this area shortly. Based on my own crude calculations I think that the inferred mineralization could already be backing a big portion of the Enterprise Value. As such I think that almost all of the blue sky potential shown in the picture above comes for free. Note that I might be wrong but this is my personal belief and I have acted accordingly.
Lastly, the chart looks pretty good as well if you ask me. Reverse Head-And-Shoulded, trendline bounce and a saucer bottom… You name it:
