This morning, Eloro Resources (TSX: ELO, OTC: ELRRF) published its long awaited Maiden Resource Estimate (MRE) for the Iska Iska Deposit in the Potosi Department of Bolivia. The news release headline reads “670 million tonnes containing 1.15 Billion In-situ Ounces Silver Equivalent”, a very large deposit. However, due to the multi-metal nature of the Iska Iska deposit, the resources are reported using Net Smelter Return (NSR) cut-off values instead of the silver-equivalent grades that Eloro has been using to report drill intercepts. To properly interpret the numbers contained in this detailed MRE one must understand that the NSR values represent the net revenue that the owner of a mining property receives from the sale of the mine’s metal/non metal products less transportation and refining costs.
The firm that prepared the MRE, Micon International, decided that at Iska Iska the various metals (zinc, lead, silver, tin, etc.) are considered largely as co-products with no obvious dominant commodity that makes up the bulk of the resource. Thus, it was more appropriate to employ a NSR value in applying a cut-off grade.
It is notable that there is a higher grade near surface inferred mineral resource totaling 132 million tonnes at 1.11% zinc, 0.50% lead and 24.3 g/t silver for an NSR value of US$34.50 at an NSR cutoff of US$25/tonne. This portion of the potentially open pittable resource provides potential for early payback for the Iska Iska project.
I had the opportunity to speak with Eloro Resources CEO Tom Larsen about today’s Maiden Resource announcement and what’s next for the company…
This is a sponsored post on behalf of Eloro Resources Ltd.
Tom, great to speak with you today. This MRE is the culmination of an enormous amount of work by the Eloro team over the last three years, and obviously you thought you would have it ready earlier in the year. Why did this MRE take so many months to put together?
LINK to full article.