Elida

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Elida: Strategic Advantages

• Low elevation at 1,500 metres.
• Accessible by road just 75 kilometres from the coast.
• Access to clean energy from hydroelectric powerplant 15 kilometres away.
• Access to the Antamina and Chancay ports roughly 150 kilometres away.
• High grade Cu-Mo-Ag mineralization outcropping at bedrock surface.
• Low arsenic and other deleterious metals in ore mineralization.
• Skilled work force for mine development and operation.

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Elida is Perfectly Situated in Perú

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Elida: Summary

The Elida porphyry copper (“Cu”) - molybdenum (“Mo”) - silver (“Ag”) deposit (“Elida” or “Project”) occurs along the east side of a large block of 29 contiguous concessions totaling 19,749 hectares that are 100% owned by Element 29 Resources Inc. ("Element 29"), subject to a 2% net smelter return royalty. The project is located in west-central Perú and is road accessible from the capital city, Lima, along the Pan American Highway, 170 kilometres northwest to the coastal city of Barranca, then inland 75 kilometers along a secondary road with paved and unpaved surfaces.

Elida is well located for future mine development and will benefit from nearby infrastructure and a skilled workforce. The project is situated at a moderate elevation between 1,500 metres and 2,000 metres with access to transportation routes to coastal shipping ports and power infrastructure, including a 45 mega-watt hydroelectric generation facility situated just 15 kilometres from the Project.

Elida was staked by GlobeTrotters Resource Group Inc. over a large, remote-sensing anomaly situated in an emerging porphyry belt in central Perú. Ground follow-up of this anomaly by GlobeTrotters led to the discovery of a large untested porphyry Cu-Mo centre that is part of a porphyry cluster enclosed by a 2.5 x 2.5 kilometre hydrothermal alteration footprint. The porphyry system is a multiphase complex of porphyry stocks and dikes ranging in age from Eocene to Miocene and composed of quartz monzonite and quartz monzodiorite intruded into Cretaceous Casma Group volcanic, volcaniclastic and sedimentary rocks along the eastern margin of the Peruvian Coastal Batholith.

The primary exploration target at Elida is a zone of Cu-Mo-Ag mineralization, characterized by intense multi-phase quartz veining containing chalcopyrite and molybdenite. High-grade mineralization (>0.5 % Cu) found in steeply dipping volcano-sedimentary rocks forms a halo around a lower-grade core consisting of quartz monzodiorite porphyry stocks hosting molybdenite-bearing quartz veins (A-type) with minor chalcopyrite. The majority of Cu is carried in A-type veins that were formed during the waning stages of potassic alteration, with a significant secondary amount of Cu carried in B-type veins (chlorite-epidote-pyrite-chalcopyrite). Chalcopyrite is the principal Cu sulfide mineral found in both sedimentary and intrusive host rocks. Molybdenite is the only Mo sulfide identified. 

Lundin Mining Perú S.A.C. optioned the Project from GlobeTrotters in 2013 and completed 18 diamond drill holes for a total of 9,888.9 metres. All holes intercepted Cu-Mo mineralization and six (6) of the holes intercepted significant Cu-Mo mineralization. Diamond drill hole ELID012 intersected an interval of 502.9 m of 0.42% Cu, 0.046% Mo, and 3.2 g/t Ag for a 0.59% CuEq² grade including 181.8 m of 0.55% Cu, 0.046% Mo, and 4.5 g/t Ag for a 0.71% CuEq² grade. Some mineralized intercepts begin immediately below colluvial cover, demonstrating the mineralized system begins at bedrock surface beneath the post-mineral unconsolidated cover sequence. Lundin dropped the option in 2016. The Project was acquired by Element 29 in February 2019 through a share purchase agreement with GlobeTrotters to acquire 100% of the shares in Peruvian subsidiary Elida Resources S.A.C.

In 2021, Element 29 completed seven (7) diamond drill holes totaling 4,612.7 metres that intersected multiple, long intervals of Cu-Mo-Ag mineralization and traced mineralization to a depth greater than 900 metres from surface. ELID025 intersected a continuous interval of Cu-Mo-Ag mineralization from bedrock surface at 38.4 metres to a depth of 947.2 metres and returned 908.75 metres of 0.39% Cu, 0.035% Mo, and 2.9 g/t Ag for a 0.51% CuEq² grade. This hole ended in mineralization and was discontinued for operational reasons.

Based on 14,361.4 metres of diamond drilling, Element 29 completed an independent initial Inferred Mineral Resource Estimate¹ on the Elida porphyry Cu-Mo-Ag deposit which outlined 321.7 million tonnes of 0.32% Cu, 0.029% Mo and 2.61 g/t Ag at a 0.2% Cu cut-off grade and a 0.74:1 strip ratio.

In 2022, Element 29 completed an additional seven (7) diamond drill holes totaling 2,043 metres with ELID032 intersecting 404.5 metres of 0.45% Cu, 0.032% Mo and 3.6 g/t Ag for a 0.55% CuEq² grade, including 123.0 metres of 0.52% Cu, 0.036% Mo and 4.0 g/t Ag for 0.65% CuEq² grades starting from bedrock surface at 45.5 metres depth. This hole ended in strong Cu-Mo-Ag mineralization with 13.4 metres of strong Cu-Mo-Ag mineralization grading 0.75% Cu, 0.032% Mo, and 7.2 g/t Ag for a 0.83% CuEq² grade. The hole was discontinued for operational reasons. The results from this program have not been updated in the current Mineral Resource Estimate.

Notes:

1. The Mineral Resource Estimate was prepared by Mr. Marc Jutras, P.Eng., M.A.Sc., Principal, Mineral Resources at Ginto Consulting Inc. Mr. Jutras is an Independent Qualified Person as defined by National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101) in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”) Standards on Mineral Resources and Mineral Reserves, as adopted and amended by the CIM Council. Refer to the September 27, 2022 news release for further details.
2. Copper equivalent grades (CuEq) are for comparative purposes only. Calculations are based on uncut grades for copper, molybdenum, and silver utilizing metal prices of Cu = US$3.95/lb, Mo = US$28.58/lb and Ag = US$24.52/oz. Metal prices are institutional consensus prices compiled in 2023-03-01. Recoveries used for the CuEq equation are Cu = 85%, Mo = 65%, and Ag = 65%, which are based on benchmarking from similar deposits. The equation used to calculate equivalent values is CuEq% = [Cu% x 0.85] + [Mo% x 4.7030] + [Ag g/t x 0.0059].

 

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The scientific and technical content has been reviewed and approved by Richard Osmond (P.Geo.), Element 29’s President and CEO, who is the “Qualified Person” as defined by National Instrument 43-101 Standards for Disclosure for Mineral Projects.