Elida is a newly discovered porphyry copper-molybdenum exploration project within a property composed of 28 mining concessions totaling 19,210 hectares that are 100% owned by Element 29 Resources. The property contains a large, 2 x 2 kilometre alteration system enclosing a cluster of porphyry centres that represent five distinct exploration targets. The Project is located in central Perú, approximately 85 kilometres inland from the Pacific coast at moderate elevations between 1,500 metres and 2,000 metres and close to transportation and power infrastructure, including a 45 mega-watt hydroelectric generation facility situated 15 kilometres from the project.
In 2021, Element 29 completed seven drill holes in Target 1 totalling 4,481 metres that intersected multiple, long intervals of Cu-Mo-Ag mineralization and traced mineralization to a depth greater than 900 metres. Mineralization remains open at depth. The remaining four large targets are untested. Under the current drill permit, the Company can elect to drill-test all identified targets.
E29 recently published results from Phase 2 drill program on the Zone 1 copper deposit with hole ELID032 intersecting 404.5 metres (“m”) of 0.45% copper (“Cu”), 0.032% molybdenum (“Mo”), and 3.6 g/t silver (“Ag”), for a 0.55% copper equivalent (“CuEq”) grade, including 123.0 m of 0.52% Cu, 0.036% Mo and 4.0 g/t Ag (for 0.63% CuEq) starting from the bedrock surface at 45.5 m depth. The hole ended in strong copper mineralization grading 0.75% Cu, 0.032% Mo, 7.2 g/t Ag (0.87% CuEq) over 13.40m showcasing the robust mineralized system. The Phase II program should allow us to grow our significant initial mineral resource estimate at Elida of 322 million inferred tonnes grading 0.32% copper (“Cu”) (for a total of 2.24 billion pounds of contained copper) plus 0.029% molybdenum and 2.6 g/t silver, using a 0.20% Cu cut-off grade and low modeled strip ratio of 0.74:1. We are currently planning our next phase of drilling to further build on our recent success. 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$3.75/lb, Mo = US$13.51/lb and Ag = US$21.63/oz. Metal prices are institutional consensus prices compiled in 2023-03-01. Recoveries used for the CuEq equation are Cu = 85.5%, Mo = 55%, and Ag = 65%, which are based on benchmarking from similar deposits. The equation used to calculate equivalent values is CuEq% = Cu% + [Mo% x 2.3175] + [Ag g/t x 0.0064].
Elida Mineral Resource* Highlights
- Pit-constrained, Inferred Mineral Resource Estimate of 321.7 million tonnes grading 0.32% copper (for a total of 2.24 billion pounds of contained copper) plus 0.029% molybdenum and 2.6 g/t silver, using a 0.20% copper cut-off grade and low modeled strip ratio of 0.74:1 (waste: mineralized material).
- A near surface, higher-grade subset of the Mineral Resource consisting of 34.1 million inferred tonnes at 0.55% copper, 0.037% molybdenum, and 4.4 g/t silver (at a cut-off grade of 0.45% copper) has potential to be mined with minimal stripping in the initial years of mining.
- Significant molybdenum and silver grades have the potential to enhance the economics of the deposit, subject to metallurgical test work.
Table 1. Pit-constrained Inferred Mineral Resources for the Elida deposit as at September 20, 2022.
| Cu Cut-Off (%) |
Tonnes (millions) |
Cu (%) |
Contained Cu (M lb) |
Contained Cu (tonnes) |
Mo (%) |
Contained Mo (M lb) |
Contained Mo (tonnes) |
Ag (g/t) |
Contained Ag (M oz) |
| 0.10 | 520.8 | 0.255 | 2,927.9 | 1,328,057 | 0.026 | 298.5 | 135,410 | 2.15 | 36.0 |
| 0.15 | 439.4 | 0.278 | 2,692.9 | 1,221,456 | 0.028 | 271.2 | 123,024 | 2.31 | 32.7 |
| 0.20 | 321.7 | 0.316 | 2,241.2 | 1,016,568 | 0.029 | 205.7 | 93,293 | 2.61 | 27.0 |
| 0.25 | 214.9 | 0.363 | 1,719.4 | 779,926 | 0.031 | 146.8 | 66,605 | 2.97 | 20.5 |
| 0.30 | 143.0 | 0.407 | 1,283.4 | 582,150 | 0.033 | 104.1 | 47,201 | 3.31 | 15.2 |
| 0.35 | 94.7 | 0.449 | 937.9 | 425,415 | 0.034 | 71.0 | 32,214 | 3.65 | 11.1 |
| 0.40 | 59.7 | 0.493 | 649.1 | 294,423 | 0.036 | 47.4 | 21,499 | 3.99 | 7.7 |
| 0.45 | 34.1 | 0.547 | 411.7 | 186,736 | 0.037 | 27.8 | 12,631 | 4.40 | 4.8 |
| 0.50 | 20.1 | 0.599 | 265.4 | 120,396 | 0.038 | 16.8 | 7,638 | 4.76 | 3.1 |
Notes:
- The effective date for the Mineral Resource is September 20, 2022.
- Mineral Resources, which are not Mineral Reserves, do not have demonstrated economic viability.
- The CIM definitions were followed for the classification of Inferred Mineral Resources. The quantity and grade of reported Inferred Mineral Resources in this estimation are uncertain in nature and there has been insufficient exploration to define these Inferred Mineral Resources as an indicated Mineral Resource and it is uncertain if further exploration will result in upgrading them to an Indicated or Measured Mineral Resource category.
- Mineral Resources are reported at a cut-off grade of 0.2 g/t Cu, using a US$/CAN$ exchange rate of 0.75 and constrained within an open pit shell optimized with the Lerchs-Grossman algorithm to constrain the Mineral Resources with the following estimated parameters: copper price of US$3.46/lb, US$2.00/t mining cost, US$5.00/t processing cost, US$1.40/t G+A, 87% copper recovery, and 45° pit slope.
- The estimate of Mineral Resources may be materially affected by geology, environment, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues.
* 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.
Elida – News
On March 6, 2023, the Company Announces Results from Elida Phase 2 Drill Program.
On November 14, 2022, the Company files the Elida Porphyry Copper Deposit technical report.
On October 13, 2022, the Company commences Phase II drill program at the Elida copper deposit in Peru.
On September 27, 2022, the Company announced the initial mineral resource estimate for the Elida porphyry copper deposit in Peru.
On January 19, 2022, the Company published drill results from the final three holes of the Phase I drill program.
On November 15, 2021, the Company published results from holes 21 and 22 at Elida.
On November 15, 2021, the Company published results from holes 21 and 22 at Elida.
On October 18, 2021, the Company published results from the first two drill holes at Elida.
On August 4, 2021, Element 29 commenced a 4,000 meter, six-hole drill program at Elida.
Project - Elida
