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: 27.05.2021
Kursziel: CAD 15,80 (unverändert)
Kursziel auf Sicht von: 24 Monate
Letzte Ratingänderung: -
Analyst: Peter Thilo Hasler

More encouraging drilling results

The recent drilling results published are encouraging and demonstrate the diversified metal value and size potential of the Iska Iska silver-tin polymetallic system, in our view. We are therefore 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 calculate a NAV estimate of CAD 1,476.5 million. We apply 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.

Yesterday, Eloro Resources provided an update on drilling in Iska Iska's Santa Barbara Breccia Pipe (SBBP). Drill-hole DSB-07 (see exhibit 1) intersected significant mineralization over substantive widths from both the SBBP and the underlying granodioritic intrusion breccia, including 122.66 grams silver eq/t over 123.61m (35.05 g Ag/t, 0.72% Zn, 0.61% Pb, 0.11% Sn and 0.06 g Au/t) including 205.74 g Ag eq/t (92.30 g Ag/t, 0.57% Zn, 0.85% Pb, 0.18% Sn and 0.07 g Au/t) over 32.32m. In aggregate, 64% of this 683.4m long hole returned reportable mineralized intervals, according to the company.

Eloro Resources has approximately 1,500 samples awaiting analysis at a laboratory in Lima which could not have been analysed due to COVID-19 protocols restricting critical supplies to the laboratory, particularly oxygen. With increasing vaccination rates, however, we expect the backlog to be resolved over the comping weeks.

We expect continued positive news flow from Eloro Resources. (1) A drill bay is under construction at the west end of the Santa Barbara adit to provide a base for underground drill testing of the central part of the caldera which will commence following the completion of underground drilling at the Huayra Kasa Breccia Pipe. (2) The detailed ground magnetic survey, which consisted of 181.5 line km at 50m line spacing, has been completed and the data will be processed by geophysicists. (3) Down-hole Induced Polarization surveys are expected to commence in the latter part of June. (4) A drill bay is under construction at the west end of the Santa Barbara adit to provide a base for underground drill testing of the central part of the caldera which will commence following the completion of underground drilling at Huayra Kasa. (5) A drill will be moved to the Porco (South) target to carry out radial drilling at that location.

Die vollständige Analyse können Sie hier downloaden: http://www.more-ir.de/d/22514.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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