Mining Company Uncovers Excellent 330Moz Silver Potential at Bolivia Project

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1. 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.

Eloro Resources Ltd. (ELO:TSX; ELRRF:OTCQX; P2QM:FSE) announced that it has fulfilled all option payments to Empresa Minera Villegas SRL (Minera Villegas) to finalize the option held by its Bolivian subsidiary, Minera Tupiza SRL (Minera Tupiza), to acquire a 99% joint venture interest in the Iska Iska silver-tin polymetallic project in Potosí, Bolivia, according to a January 29 release.

Eloro said it made the final payment of US$1,150,000 the same day and, as per an addendum to the option agreement, transferred US$1,800,000 into a trust account for payment to Minera Villegas within 12 months after Minera Villegas secures the mining rights over the Mina Casiterita and Mina Hoyada mining areas.

"Completion of the option payments represents a major corporate and strategic milestone for Eloro," said Chief Executive Officer Tom Larsen. "The streamlined ownership and control structure aligns regulatory compliance with operational efficiency, eliminates economic uncertainty, and positions the Company to advance Iska Iska with maximum flexibility and clarity as development activities continue."

Through a series of strategic regulatory and commercial agreements, Minera Tupiza SRL now holds a 99% joint venture interest and has 100% economic participation and full operational control of the Iska Iska project, the release noted.

The addendum will be submitted to the relevant Bolivian mining authorities for approval in accordance with applicable regulations, Eloro said.

Firm Raises Target Price

This month, Eloro's target price was increased by Cantor Fitzgerald after the financial services firm raised its gold and silver price forecasts, according to a macro note by Matthew O'Keefe and other metals and mining analysts on January 12.

"The benefit of higher gold and silver prices should begin translating to material improvement to margins, earnings, and cash flow with the Q4/25 results (reporting begins late February) and then continue to accelerate with the Q1/26 results," Cantor analysts wrote.

Cantor's new target price for Eloro is CA$4.50 per share, up 25% from CA$3.60/share. This new target reflects a 43% upside, O'Keefe noted. The company remains a Speculative Buy.

It has already outlined a 670,000,000 ton (670 Mt) Inferred resource comprising 300,000,000 ounces (330 Moz) of silver, 4 Mt of zinc, 1.7 Mt of lead, and 132,000 tons of tin, O'Keefe said.

"In 2026, Eloro is expected to release an updated mineral resource estimate highlighting the high-grade starter pit area and a preliminary economic assessment demonstrating positive economics," the analyst added.

Technical Analyst John Newell on January 8 noted that Eloro is advancing one of the most significant undeveloped silver systems discovered in the past decade.

The company also has garnered the attention of Red Cloud Securities, with Ron Stewart, managing director and mining analyst, initiating coverage with a Buy rating and a target price of CA$5.50 per share, as noted in a research note dated January 19. With the junior miner trading at approximately CA$3.07 per share at that time, the potential return was 79%.

"Iska Iska has the potential to evolve into a global leading primary silver and tin mining operation," Stewart wrote. "While the derisking journey to unlock this potential will likely take some years, we believe the runway for equity gains over this period is exceptional."

Stewart noted that Eloro's share price has been affected by concerns over the low average grades at Iska Iska, despite its significant size. However, Red Cloud believes these concerns are unfounded. Their analysis of the 40 holes over 20,000 meters drilled since the mineral resource estimate indicated that reducing the spacing to about 50 meters suggests a much higher-grade resource in the deposit's core. Additionally, Red Cloud's analysis of the meter-weighted average grades of the silver, lead, and tin intercepts from recent infill drilling shows potential increases of 138%, 47%, and 24%, respectively, over their averages in the current resource. No change to zinc grades was observed.

Furthermore, Eloro could utilize proven ore sorting technologies to enhance the mill feed grades, the analyst pointed out. For example, using a combination of dense media separation and x-ray transmission demonstrated that more than half (53.4%) of the tonnage could be eliminated while recovering 91.9% of the silver and lead and 76% of the zinc in the process feed.

Analyst: 'Economic Prospects' for Project Have Improved

According to a research note by Haywood Securities Analyst Pierre Vaillancourt dated January 19, the company plans to update the mineral resource estimate for the Iska Iska project in Bolivia this quarter, focusing on improved grades.

Haywood increased its target price for Eloro by 67% to reflect the anticipated enhanced resource. "Following the drilling success in 2025, the improving economic climate in Bolivia, as well as record silver prices, we believe the economic prospects for Iska Iska have improved materially," Vaillancourt wrote.

Haywood's new target price for the Toronto-based mineral explorer is CA$5 per share, up from the previous CA$3 per share. At the time of the analyst's report, Eloro was trading at about CA$3.07 per share, reflecting a discount of 0.47x net asset value compared to peers at 0.67x. The gap between the target and current prices suggests a potential return for investors of 63%. Eloro remains a Buy. The company has 104 million basic shares outstanding, with a market cap of CA$320 million. Its 52-week range is CA$0.77–3.22 per share.

Haywood's investment thesis for Eloro comprises three important components, the report noted. One is Iska Iska's large, Bolivia-style polymetallic porphyry-epithermal deposit. The project is one of the major discoveries in the history of the prolific Bolivian Tin Belt, alongside the massive, 500 Mt-plus Cerro Rico de Potosi silver-tin project and the Llallagua tin project. Also, Iska Iska is surrounded by infrastructure, near several mines, and 48 kilometers north of Tupiza, a city in the Department of Potosi's Sud Chichas province.

Lastly, Eloro has an experienced geological team. At the helm is Dr. Bill Pearson, vice president of exploration, who has more than 40 years of global field experience in exploring for and producing minerals. In Bolivia, Dr. Osvaldo Arce heads the exploration team, the analyst noted. He is a seasoned expert on exploring and developing the type of deposits for which the country is known.

Technical Analyst John Newell on January 8 noted that Eloro is advancing one of the most significant undeveloped silver systems discovered in the past decade.

Initially a grassroots exploration venture, it has evolved into a caldera-scale, multi-metal system with a silver-equivalent resource exceeding 1 billion ounces, with further potential still being explored, Newell noted.

"The project is notable not just for its size, but for its improving quality," Newell wrote. "Recent drilling has continued to enhance grade continuity in the near-surface silver-zinc-lead mineralization while expanding the deeper, higher-temperature tin domain, which adds an important strategic metal component to the story."

Infrastructure is another key advantage, Newell said. Iska Iska benefits from road access, power, water, and proximity to rail and ports, significantly reducing development risk compared to more remote discoveries.

The Catalyst: Silver's Dramatic Surge

In his update, Newell mused that silver for many years was dismissed as the "forgotten metal." But in an earlier piece titled "Silver Tarnished No More," he said the argument was simple: silver didn't need excitement; it needed time. A prolonged base, tightening supply, and a gradual yet powerful shift in demand were setting the stage for a move that would seem obvious only in hindsight. That move is now well underway.

The dramatic surge in silver prices has been a major market story this year, with prices climbing more than 30% over the past two weeks, according to a report by Senad Karaahmetovic for Investing.com on January 27. This ongoing upward momentum has led to prices surpassing Citi’s previous short-term bullish forecast much faster than anticipated.

Maximilian Layton, Global Head of Commodities Research at Citi, noted that silver has already exceeded the bank’s earlier 0–3 month target of US$100 an ounce, which had been set at US$85 just two weeks ago. Citi has since revised its near-term outlook, predicting further significant gains ahead.

"We have been bullish on silver both outright and relative to gold for many months, and remain so over the coming weeks," Layton stated, according to the article, highlighting that silver is being driven primarily by capital flows rather than traditional fundamentals. He described the movement as silver acting like "gold squared" or "gold on steroids."

Citi now anticipates another 30% to 40% increase in the coming weeks, raising its 0–3 month price target to US$150 an ounce, Karaahmetovic wrote. Layton mentioned that the rally is likely to continue until silver appears expensive by historical standards relative to gold.

The precious metal has surged an impressive 249% over the past year, with a 47% increase year-to-date, Todd Campbell wrote for The Street in a piece published by Yahoo! Finance on January 27.

"The numbers are truly massive. Silver's move has lifted the market's size above US$6 trillion," Campbell wrote. "Putting that figure into perspective, Nvidia, Apple, and Alphabet boast market caps of US$4.5 trillion, US$3.75 trillion, and US$4 trillion, respectively."

Ownership and Share Structure¹

About 17% of the company is owned by insiders, about 28% by institutions, and about 2% by strategic investor Cartier Silver. The rest is retail.

Top shareholders include Crescat Capital LLC with 15.78% and the CEO Larsen with 6.89%. 

Its market cap is CA$331.28 million with 106.86 million shares issued and outstanding. It trades in a 52-week range of CA$0.77 and CA$3.42.