DLP Resources Announces Exploration Update & Closing of Oversubscribed Private Placement of Flow-Through Shares
DLP Resources Announces Exploration Update & Closing of Oversubscribed Private
Placement of Flow-Through Shares
Cranbrook, British Columbia, (Newsfile Corp. – September 19, 2022) DLP Resources Inc. (“DLP” or
the “Company”) (TSXV:DLP) (OTCQB:DLPRF) is pleased to announce that drilling of the first hole ,
A22-001, at the Aurora copper-molybdenum project in Peru is at a depth of 188m with good visual
copper mineralization throughout. Drilling of five holes at the Hungry Creek project and one hole at
the Copper Creek project in SE BC has been completed with copper results awaited from the sampling
of copper mineralization observed in the holes.
Private Placement
In addition to the summer drilling of copper projects in BC and Peru, DLP has closed its previously
announced non-brokered private placement (the “ Private Placement”), whereby the Company has
completed the issuance of 2,120,000 flow through shares (each, a “FT Share”) at a price of $0.25 per
FT Share for gross proceeds of $530,000.
In connection with the Private Placement, the Company issued 40,600 finder’s warrants (the
“Finder’s Warrants”) and paid commissions of $10,150. Each Finder’s Warrant will entitle the holder,
on exercise thereof, to acquire one additional common share in the capital of the Company at a price
of $0.25 per share for a period of 18 months from the date of issuance.
The Private Placement remains subject to final acceptance of the TSX Venture Exchange. The
securities offered in the Private Placement are subject to a four month and a day transfer restriction
from the date of issuance expiring on January 17, 2023, in addition to such other restrictions as may
apply under applicable securities laws of jurisdictions outside Canada.
The Company intends to use the proceeds of the Private Placement for drilling on its Hungry Creek
and Copper Creek Projects.
Certain insiders of the Company purchased an aggregate of 240,000 FT Shares in the Private
Placement and such participation is considered to be a "related party t ransaction" as defined under
Multilateral Instrument 61-101 (“MI 61-101”). The Company has relied on the exemptions from the
valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(a)
and 5.7(1)(a) of MI 61-101 in respect of such insider participation. The Company did not file a material
change report more than 21 days before the expected closing of First Tranche, as the details and
amounts of the insider participation were not finalized until closer to the closing an d the Company
wished to close the transaction as soon as practicable for sound business reasons.
Expenses incurred by the Company on Hungry Creek and Copper Creek, copper-cobalt projects, may
qualify for the 30% Critical Mineral Exploration Tax Credit (“CMETC”), as provided for in the Canadian
federal budget of April 7, 2022. For more information on the CMETC, see the annex on tax measures
proposed in the budget available at https://budget.gc.ca/2022/report-rapport/tm-mf-en.html
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Exploration Update
An exploration update for the Aurora porphyry copper-molybdenum project in Peru and the Copper-
Silver-Cobalt Projects of Hungry Creek and Copper Creek in BC, Canada is provided below (Figs 1 & 2).
Aurora Project (Porphyry Cu-Mo Target)
Aurora is a porphyry copper -molybdenum project in Southern Peru with the potential to host a
significant copper-molybdenum mineralized system. (Figures 1 and 3). Drilling of the first diamond
drill hole A22 -001 commenced on August 24 on an azimuth of 170 degrees and an angle of -70
degrees. The depth at the end of August was 188m. Planned depth for A22-001 is 600m.
Very encouraging visual copper mineralization was observed from 3 to 188m with zones of both
copper-oxides and secondary copper enrichment observed in core (Figure s 4 and 5). The first 185m
has been sampled and sent to ALS Laboratory in Arequipa. Results are expected at the end of
September.
Hungry C reek and Copper Creek Projects (Sediment Hosted – Stratiform Copper -Silver-Cobalt
Targets)
Drilling of five drill holes (1442m) on Hungry Creek and one drill hole on Copper Creek (386.16m) was
completed at the end of August (Figures 6 and 7). Samples from drilling at Hungry Creek and Copper
Creek have been sent to MSALabs in Langley, BC for analyses.
Both Hungry Creek and Copper Creek drilling target ed sediment hosted – stratiform copper-silver-
cobalt mineralization within the middle to Upper Creston Formation. Target 711 was the focus at
Hungry Creek where very encouraging copper mineralization was reported from seven grab and two
float samples (see DLP press release dated November 30, 2021). Copper up to 1.15% and anomalous
silver of up to 3.51ppm together with anomalous cobalt (up to 117.6ppm) and barium (up to 4,274
ppm) were also reported.
Visual copper mineralization in the form of chalcopyrite was observed in the 711 drill core with
intense sericite alteration in the upper Creston Formation quartzites together with carbonate
alteration in the form of ankerite . Results from the core sampling and channel sampling on surface
are expected by mid-October.
Ian Gendall, CEO & President of DLP commented: “We are very excited with the visual observations
of copper mineralization in the first 188m of the Aurora drillhole. Both copper oxides and secondary
chalcocite mineralization have been observed and we await results for the first 185m. In addition to
the Peru drilling, we have encountered copper mineralized quartzites – Revett-type copper
mineralization at the Hungry Creek project in southeastern BC. Drilling of 5 drill holes and additional
prospecting has identified multiple copper targets extending over 12 to 20 km which requires further
evaluation and drilling in 2023. Drilling of 386m on one anomalous copper target at Copper Creek
was encouraging and we will now extend drilling to the core zone in 2023”.
FOR FURTHER INFORMATION, click link:
https://dlpresourcesinc.com/wp-content/uploads/2022/09/DLP-Resources_Sept_22_Final.pdf
TO ACCESS THE UPDATED “COMPANY PRESENTATION”
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Figure 1: DLP Project areas with the Aurora and Esperanza properties shown.
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Figure 2: DLP Project areas with Hungry Creek and Copper Creek properties shown with 2022 Drilling.
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Figure 3. Historic Drill Holes and Simplified Geology with AC22-001 on the Aurora Project.
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Figure 4. Schematic plan of historic drill holes, proposed DLP program and 2022 holes on the Aurora
Project.
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Figure 5. Aurora Copper-Molybdenum Project – Summary of Drilling A22-001.
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Figure 6. Hungry Creek Project – Summary of copper showings discovered along strike of ~20km.
2022 Drill area on the 711 Target shown.