Original-Research: Eloro Resources Ltd.

Original-Research: Eloro Resources Ltd. - from Sphene Capital GmbH

27.01.2025 / 16:30 CET/CEST
Dissemination of a Research, transmitted by EQS News - a service of EQS
Group.
The issuer is solely responsible for the content of this research. The
result of this research does not constitute investment advice or an
invitation to conclude certain stock exchange transactions.

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Classification of Sphene Capital GmbH to Eloro Resources Ltd.

     Company Name:                Eloro Resources Ltd.
     ISIN:                        CA2899003008

     Reason for the research:     Update Report
     Recommendation:              Buy
     from:                        27.01.2025
     Target price:                CAD 12.40 (previously CAD 12.70)
     Target price on sight of:    24 months
     Last rating change:          -
     Analyst:                     Peter Thilo Hasler

Are there two world class deposits at Iska Iska?

Further exploration drilling focusing on tin is planned to confirm recent
findings of significant tin intersections at Eloro's Iska Iska project.
Should the discovery of a tin porphyry be confirmed, Eloro Resources would
not only have one but two genetically related deposit types on the same
property: a silver-zinc-lead dominant system and a high-grade tin system.
Notwithstanding this potential, our valuation continues to be based solely
on the shallow, higher-grade resource in the polymetallic domain, totalling
132 million tonnes at 1.11% Zn, 0.50% Pb, and 24.3 g Ag/t, as outlined in
the NI 43-101 MRE published in October 2023. Applying current market prices
and a P/NAV discount of 70%, which we consider reasonable, we calculate a
net asset value-driven price target of CAD 12.40 per Eloro share. We
therefore reiterate our Buy rating for the shares of Eloro Resources. We
consider the current pullback in the company's share price an interesting
entry point for long-term investors, as it was caused, among other factors,
by erratic analyst downgrades and misconceptions about the intrinsic value
of the Iska Iska project. We highlight that our price target could increase
further once the recently reported higher tin and silver grades have been
included in a planned PEA.

Eloro Resources has discovered a high-grade tin intercept in its definition
diamond drilling programme in the potential Santa Barbara starter pit area
at the Iska Iska silver-tin polymetallic project in Bolivia. Tin
mineralisation with a grade of 1.39% Sn over 33 m (from 339.80 m to 372.80
m) was discovered already in the first drill hole ("DSB-72") completed in
the domain. In the higher-grade zone featuring cassiterite veins within a
well-mineralised breccia, individual 1.5m samples encompassing the veins
returned tin values of 6.65%, 4.97%, 3.50% and 2.75%, respectively. It is
remarkable, in our view, that in addition to these tin discoveries,
high-grade silver mineralisation of 24.48 g Ag/t over 45.0 m (from 117.80 m
to 162.80 m) was also intersected in the upper part of this hole.

Tin mineralisation is contained within a large intrusive breccia unit (TIB),
measuring approximately 750 meters in length, 450 meters in width, and
extending to a depth of at least 700 meters. Previous exploration drilling
has identified several notable tin intercepts within this relatively
underexplored breccia unit. The recently discovered high-grade tin
mineralisation is described as visible coarse-grained, high-temperature
cassiterite, potentially representing either an outcrop or an apophysis of a
larger tin porphyry system at depth.



You can download the research here: http://www.more-ir.de/d/31673.pdf

Contact for questions:
Peter Thilo Hasler, CEFA
+49 (89) 74443558/ +49 (152) 31764553
peter-thilo.hasler@sphene-capital.de

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2075501 27.01.2025 CET/CEST