Eloro Resources Ltd. (ELO:TSX; ELRRF:OTCQX; P2QM:FSE) announced the launch of its expansion drilling program at the Iska Iska Project in Southern Bolivia, where it aims to enhance and enlarge the high-grade Silver-Tin (Ag-Sn)-Polymetallic mineralization, a May 7 release noted.
The company has engaged Major Drilling Group International Inc. to mobilize two diamond drill rigs to the site, with plans to add a third within the next three months. This ambitious drilling campaign is set to include 40,000 meters of diamond drilling across approximately 75 holes, building on the success of a recent definition drilling program that revealed mineralization over a 1.4-kilometer strike length.
Initially, the program will consist of 40 holes totaling 18,250 meters, to be followed by approximately 45 holes totaling 21,750 meters, the company said.
“We are excited to be commencing our expansion drilling program, a major milestone in advancing the Iska Iska Project, after the release of the successful Updated MRE (mineral resource estimate) in late April,” Chief Executive Officer Tom Larsen said. “The next phase of drilling is an opportunity to add additional Indicated Resources to, and further support, our planned PEA (Preliminary Economic Assessment).”
Larsen also noted that this program continues the exploration efforts that have identified highly prospective target areas developed from work conducted between 2020-2025. The exploration team has also pinpointed promising targets in other areas such as Central, Porco, Huayra Kasa East, San Juan, and Mina 2.
Dr. Osvaldo Arce, P.Geo., Eloro’s Executive Vice President of Exploration and Latin America Operations, reflected on the project’s journey, saying, “It’s been nearly six years since we started exploring and drilling the Iska Iska mineralized system, which is a true grass-root discovery that has now developed into one of the largest silver-tin polymetallic deposits discovered in the prolific Bolivian Tin Belt. We are optimistic about the planned drilling program since we believe that we can continue to expand and upgrade this very large mineralized system which has become a significant discovery for Bolivia.”
Updated MRE Details
Last month, the MRE confirmed significant quantities of minerals, with an Indicated Mineral Resource of 85.17 million tonnes grading 40 g/t silver, containing 109.53 million ounces of silver, along with 1.03 million tonnes of zinc grading 1.21% and 0.60 million tonnes of lead grading 0.71%. The estimate also includes an Inferred mineral resource of 945.43 million tonnes grading 8.5 g/t silver, containing 248.60 million ounces of silver, 4.72 million tonnes of zinc grading 0.47%, 1.50 million tonnes of lead grading 0.16%, 290,000 tonnes of tin grading 0.03%, and 1.21 million ounces of gold grading 0.04 g/t.
The expansion drilling program is crucial for defining the full extent of the higher-grade Ag-Sn-Polymetallic Indicated Resource, which plays a significant role in the overall grade and resource calculations for the PEA, Thursday’s release noted. The program will involve detailed geological and engineering work to assess factors such as groundwater quality, geologic hazards, and mineral extraction costs, which are essential for the upcoming PEA.
The initial phase of the drilling program includes 40 planned drill holes totaling 18,250 meters, with a mix of step-out, infill, and exploratory holes, Eloro said. Of these, 22 holes totaling 10,500 meters are step-outs, primarily targeting silver-dominant mineralization to expand the Indicated Resource. Additionally, four exploratory drill holes totaling 2,250 meters are planned to test for extensions in underexplored areas surrounding the Santa Barbara mineralized zone.
A significant aspect of the Iska Iska Updated MRE is the distribution of resources relative to the optimized pit shell, the company said. The proximity of the Inferred tonnage to the existing Indicated Resource blocks, within the same optimized pit shell and sharing the same structural controls, suggests that it is uniquely amenable to conversion with targeted drilling. The 2026 expansion drilling program is designed to close the drill spacing required to reclassify these tonnes, potentially elevating the total Indicated Resource and materially transforming the project’s PEA economics.
Expert: Scale Is Central to Investment Thesis
1In a detailed technical commentary dated March 2, John Newell from John Newell & Associates highlighted the significant progress of Eloro Resources Ltd. at Iska Iska. He described the project as one of the largest undeveloped silver-tin polymetallic systems globally, which has transitioned from a high-grade discovery to a world-scale resource. This evolution is backed by robust metallurgical validation, strategic development planning, and several catalysts set for 2026.
Newell pointed out that Eloro Resources had successfully achieved and surpassed its first major price target of CA$2.50, with the stock price advancing towards the CA$3.30-CA$3.40 range before entering a phase of constructive consolidation. He noted that the stock’s chart is showing a pattern of higher lows, forming a rising trendline supported by increasing trading volume. A breakout above the CA$3.50 resistance level, according to Newell, would serve as a technical confirmation and potentially lead to a third price target near CA$5.60, aligning with previous structural resistance observed on the long-term chart.
Looking at the broader market movements, Newell suggested that the “same way down, same way up” fractal symmetry indicates potential for a larger cycle move, with a significant target near CA$8.25, contingent on the strength of silver prices and the unfolding of planned development catalysts. He rated the stock a Speculative Buy.
Delving into the specifics of the Iska Iska project, Newell emphasized that its scale is central to the investment thesis. Additionally, a distinct tin domain contributes further tonnage and metal content. Newell highlighted the strategic advantage of the substantial portion of this mineralization occurring near the surface, which offers various options for staged development strategies and potential early production pathways.
Analyst: Co. Significantly Undervalued
On April 23, 2026, Ron Stewart, an analyst at Red Cloud Securities, reaffirmed his Buy rating and price target of CA$5.50 for Eloro, suggesting a potential 175% return from the closing price of CA$2, following significant updates to the MRE at Iska Iska.
Stewart emphasized Eloro’s significant undervaluation compared to its peers, noting that ELO trades at an EV/oz AgEq of US$0.18, versus a peer group average of US$1.93/oz. This discount was previously attributed to the lower average grade of the deposit. However, with the updated MRE revealing a well-defined, higher-grade core zone, Stewart believes there is substantial potential for a re-rating of the company.
The CA$5.50 price target is based on a probability-weighted mineable resource, applying an in-situ value of US$1.08/oz AgEq, he said. Key catalysts on the horizon include the expected release of PEA, further mineralogical and metallurgical testing, ongoing drilling to expand and define high-grade mineralization, and the implementation of an underground bulk sample program.
Analyst Matthew O’Keefe of Cantor Fitzgerald raised his firm’s price target to CA$5 (from CA$4.50) in an April 22 note. O’Keefe also rated the stock a Speculative Buy.
“The updated MRE upgrades a material portion of the resource to the Indicated category from the Inferred category and grows the total mineralized envelope (M&I+Inferred) to over 1 Bt (billion tonnes) from 670 Mt (million tonnes) previously. The Indicated resource focuses on the higher-grade silver core area and the ongoing 40-kilometer drill program will look to increase this higher-grade area further to support a larger Indicated resource update and a preliminary economic assessment toward the end of 2026.”
Sector Prices Rising on Possible Peace News
Gold and silver prices are nearing their highest levels in several months, driven by a combination of declining oil prices, a weakening dollar, and the anticipation of a potential peace agreement between the United States and Iran, according to a May 7 report by Conor Murray on Forbes.
As of 9:15 a.m. ET, silver was trading at US$81.50, up nearly 6% but slightly below its intraday peak of US$82.24. Meanwhile, gold had increased by more than 1%, reaching US$4,741.70, though it had earlier touched a higher mark of US$4,763.60.
Silver was close to surpassing its highest level since April 17, when it reached just above US$83. If it exceeds this threshold, it would mark silver’s best performance since mid-March. Gold, on the other hand, is at its highest point since late April, although it remains significantly below the early March highs of over US$5,300.
Eloro Resources Ltd. (ELO:TSX; ELRRF:OTCQX; P2QM:FSE)
| Date | Old Symbol | Old Shares | New Symbol | New Shares |
|---|---|---|---|---|
| 10/01/14 | ELO | 10 | ELO | 1 |
| 08/15/11 | ELO | 4 | ELO | 1 |
| 10/05/05 | ELO.H | 1 | ELO | 1 |
| 08/18/03 | YEL.T | 1 | ELO.H | 1 |
| 12/10/02 | YEL | 1 | YEL.T | 1 |
| 10/10/00 | ELOR | 1 | YEL | 1 |
*Share Structure as of 5/7/2026
Analysts from TD Securities, in a note referenced by Bloomberg, attributed the rise in gold and silver prices to “headlines of a potential peace deal,” though they also warned that these price movements are “extremely fragile to reversal” given that the demands from the U.S. and Iran appear unchanged from previous proposals, Murray reported.
The first quarter of the year was marked by dramatic movements in the silver market, with prices initially soaring to unprecedented levels before experiencing a sharp downturn, wrote Giann Liguid for Investing News Network on May 7. Silver prices reached a historic peak early in the quarter, surpassing US$100 per ounce and achieving an all-time high of US$121.62 on January 29. This initial surge was driven by a combination of expanding industrial demand, safe-haven investment flows, and anticipations of rate cuts by the Federal Reserve.
However, the bullish trend experienced a dramatic reversal in February. The nomination of the hawkish Kevin Warsh by U.S. President Donald Trump to replace Jerome Powell as the Federal Reserve Chair led to a significant market reaction, resulting in a 35% drop in silver prices, which fell to US$71.
Despite these volatile market conditions, major silver producers managed to capitalize on the period of high average realized prices to significantly strengthen their balance sheets.
Ownership and Share Structure2
About 17% of Eloro Resources Ltd. is owned by insiders, approximately 32% by institutions, and around 2% by strategic investor Cartier Silver. The remainder is held by retail investors.
Top shareholders include Crescat Capital LLC with 14.23% and CEO Larsen with 6.21%.
Its market cap is CA$263.16 million with 118.54 million shares issued and outstanding. It trades in a 52-week range of CA$0.90 to CA$3.42.
| Want to be the first to know about interesting Base Metals, Critical Metals and Silver investment ideas? Sign up to receive the FREE Streetwise Reports’ newsletter. | Subscribe |
1. Disclosure for the quote from the John Newell article published on March 2, 2026
As always it is important to note that investing in precious metals like silver carries risks, and market conditions can change violently with shock and awe tactics, that we have seen over the past 20 years. Before making any investment decisions, it’s advisable consult with a financial advisor if needed. Also the practice of conducting thorough research and to consider your investment goals and risk tolerance.
2. Ownership and Share Structure Information
The information listed above was updated on the date this article was published and was compiled from information from the company and various other data providers.