Element 29 Receives Environmental Permit for Flor de Cobre Copper Project and Announces Partnership with GlobeTrotters on Exploration Activities
Element 29 Receives Environmental Permit for
Flor de Cobre Copper Project and Announces
Partnership with GlobeTrotters on Exploration
Activities
Vancouver, British Columbia--(Newsfile Corp. - March 1, 2024) - Element 29 Resources Inc.
(TSXV:
ECU) (OTCQB: EMTRF) (BVL: ECU)
("
Element 29
" or the "
Company
") is pleased to announce that
it has received environmental permit approval for exploration drilling at its wholly-owned Atravesado
porphyry target on the Flor de Cobre copper project, located in southern Peru.
The permit, known as a Declaración de Impacto Ambiental ("
DIA
"), allows the Company to drill from a
maximum of 40 drilling platforms. Following approval of the environmental permit, Element 29 requested
approval from the Peruvian General Mining Bureau ("
DGM"
) for the Authorization to Initiate Exploration
Activities ("
AIEA
"), which is a normal course step that triggers Peruvian authorities to evaluate the effect
of exploration activities on the local community. The outcome of this evaluation will establish whether
there is a need for a prior consultation process ("
Consulta Previa
"). In parallel, the Company is
negotiating a surface rights agreement with the local community. After completing these steps, the
Company expects that Peruvian authorities will be able to issue approval of the AIEA.
Partnering with GlobeTrotters on Exploration
The Company plans to partner with GlobeTrotters Resource Group ("
GlobeTrotters
"), a private
exploraton company focused on project generation in South America. GlobeTrotters has been actively
exploring in Peru for more than 10 years and responsible for the initial discovery of the Company's
flagship Elida porphyry Cu-Mo-Ag deposit and the Atravesado porphry Cu target at Flor de Cobre. The
plans are to utilize GlobeTrotters' technical expertise in Peru to advance the Company's portfolio of
highly prospective porphyry Cu projects and share operational resources to potentially significantly cut
costs. The plans to partner with GlobeTrotters, the largest shareholder of the Company, complements the
appointment of Manuel Montoya as Chief Technical Officer (see February 29, 2024 press release).
Richard Osmond, Chairman and CEO, commented,
"The receipt of the Atravesado target DIA on our
Flor de Cobre project is an important step towards drilling this highly prospective target. Our Peruvian
team has worked diligently on both permitting and on gaining a better understanding of the
Atravesado target. We anticipate receipt of the drill permit by Q3 2024."
Mr. Osmond continues, "The planned partnership with GlobeTrotters fits perfectly with our strategic
plans to reduce corporate costs and focus our efforts as much as possible on advancing our portfolio
of highly prospective Peruvian porphyry copper projects in one of the top mining jurisdictions
globally."
Atravesado is a large porphyry Cu target on the 1,800 hectare ("ha") Flor de Cobre property (Figure 1)
in the Southern Peru Copper Belt (Figure 2) that hosts some of the world's largest Cu mines and
deposits. Outcrop samples anomalous in Cu and molybdenum ("Mo"), resistivity and chargeability
anomalies, and corresponding geological indicators define the target with an area of approximately 1.5
km x 2.0 km. Mapping completed by the Element 29 geological team suggests Atravesado is part of a
larger porphyry complex that extends to the Candelaria zone to the southeast. The core of the
Atravesado target has not been tested by drilling (Figure 1 and Figure 3).
Candelaria Concessions
As part of the Company's option agreement renegotiation discussions with the underlying property
vendor of the Candelaria concessions comprising a total of 127.12 ha, the Company's wholly-owned
subsidiary Candelaria Resources S.A.C. has signed a non-binding letter of intent following the expiry of
the previous 5-year option agreement entered in 2019. The Company will provide status updates on the
new negotiations with the property vendor.
Figure 1:
Map of the Flor de Cobre property, located in southern Peru. Atravesado is a large porphyry
Cu-Mo exploration target associated with an increased density of quartz veinlets and late mineral
porphyry dikes associated with a cluster of outcrop samples with anomalous Cu geochemistry. The
target is also coincident with a high resistivity and moderate chargeability geophysical anomaly at a
depth of 250 m thought to represent a leached potassic altered porphyry complex at depth. The location
of two historical drill holes outside of the porphyry target area were completed by Anglo American in
2007. The blue dashed line is the location of the section shown in Figure 3 below. Concessions outlined
in red are wholly owned by Element 29.
To view an enhanced version of Figure 1, please visit:
https://images.newsfilecorp.com/files/7414/200154_af030d60943ba9fe_001full.jpg
Figure 2:
Regional setting of the Flor de Cobre Project in the Southern Peru Copper Belt, between
Freeport McMoRan's Cerro Verde mining complex and Nexa Resources' Chapi mine. The project is at a
moderate elevation of less than 2,700 m, is road accessible, and is close to excellent infrastructure for
mine development and operation.
To view an enhanced version of Figure 2, please visit:
https://images.newsfilecorp.com/files/7414/200154_figure2.jpg
Figure 3:
Cross section through geophysical line L3600N shows the results of the IP-Resistivity 2D
inversion. The high resistivity anomaly in the center of the section is interpreted to represent the buried
Atravesado porphyry complex. The high chargeability anomalies that straddle the high resistivity anomaly
in the center of the section are interpreted to represent a pyritic halo associated with a flanking phyllic
alteration zone. The low chargeability anomaly coincident with a moderately to low resistivity anomaly in
the upper-central part of the section is interpreted to represent leached capping suggesting potential for
enrichment at dept.
To view an enhanced version of Figure 3, please visit:
https://images.newsfilecorp.com/files/7414/200154_af030d60943ba9fe_003full.jpg
Qualified Person
The scientific and technical content of this news release has been reviewed and approved by Richard
Osmond (P.Geo.), Element 29's Chairman and CEO, who is the "Qualified Person" as defined by
National Instrument 43-101 Standards for Disclosure for Mineral Projects.
About Flor de Cobre
Flor de Cobre is a porphyry Cu exploration project that contains the recently outlined Atravesado
porphyry Cu target 2.5 km northwest of the historical Candelaria mine. The property is in the Southern
Peru Copper Belt and is 5 km northwest of Nexa Resources' Chapi mine and 26 km southeast of the
Cerro Verde mine owned by Freeport-McMoRan, Sumitomo Metal Mining, and Compañía de Minas
Buenaventura. Flor de Cobre hosts a classic Andean porphyry system with primary Cu sulphide
mineralization associated with a multi-phase quartz monzonite porphyry complex. Weathering
redistributed primary mineralization into a sub-horizontal enrichment blanket containing secondary Cu
oxide and sulphide minerals at the base of a hematitic leached cap. Remnants of the upper jarositic
component of the leached cap overlying the hematitic cap are preserved on the higher hill tops around
the Candelaria prospect. An IP/Resistivity geophysical survey completed in 2019 outlined a core of
moderate resistivity that coincides with widespread Cu oxide mineralization, strong Cu geochemistry,
and late-stage quartz monzodiorite porphyry dikes. The resistive core is surrounded by a high-
chargeability halo corresponding with weathered quartz-sericite-pyrite alteration.
About Element 29 Resources Inc.
Element 29 Resources Inc. is an emerging copper exploration and development company focused on
advancing its portfolio of Peruvian projects towards development in one of the world's more established
mining jurisdictions. Element 29's growth strategy is led by our strong board and management, who have
a proven track record of discovery and delivering value to our shareholders.
The Company's principal objective is to explore and develop its Flor de Cobre Porphyry Cu Project
located in the Southern Peru Copper Belt, 26 km southeast from Freeport-McMoRan's Cerro Verde
copper mine, and its Elida Porphyry Cu Deposit in west-central Peru. Both projects are well located for
potential mine development and will benefit from nearby infrastructure including roads, powerlines, ports,
water, and a skilled workforce.
More information is available at
www.e29copper.com
.
For additional information:
Richard Osmond, Chairman & CEO
1-888-246-7881
The TSX Venture Exchange (the "TSX-V") has neither approved or disapproved the contents
of this press release. Neither the TSX-V nor its Regulation Service Provider (as that term is
defined in the policies of the TSX-V) accepts responsibility for the adequacy or accuracy of
this press release.
Cautionary Note Regarding Forward-Looking Statements
This press release contains certain forward-looking information and forward-looking statements within
the meaning of applicable Canadian securities legislation (collectively, "Forward-looking Statements").
All statements, other than statements of historical fact, constitute Forward-looking Statements. Words
such as "will", "intends", "proposed" and "expects" or similar expressions are intended to identify
Forward-looking Statements. Forward-looking Statements in this press release include, but are not
limited to, statements with respect to the Company's future plans, goals, expectations or strategies
regarding the exploration and development of its resource properties, including advancing its portfolio of
Peruvian copper projects; the Company's planned exploration of drilling targets and expected discovery
of highly prospective porphyry Cu; approval of the AIEA from Peruvian authorities; the planned
partnership with GlobeTrotters and the expected benefits thereof; and the Company's wholly-owned
subsidiary entering into a binding option agreement with respect to the Candelaria concessions, if at all.
Forward-looking Statements necessarily involve known and unknown risks, and important factors,
among others, that could cause actual results to differ materially from the Company's expectations
including uncertainties related to the Company's ability to raise sufficient capital for its operations on
acceptable terms or at all, fluctuations in copper and other commodity prices, uncertainties inherent in
the exploration of mineral properties, legislative, political or economic developments, including changes
in Peruvian federal and/or provincial laws that may significantly affect the mining industry, the Company's
wholly-owned subsidiary's ability to enter into a binding option agreement with respect to the Candelaria
concessions on acceptable terms or at all, and other risk factors set forth in the Company's prospectus
under the heading "Risk Factors".
Readers are further cautioned not to place undue reliance on Forward-looking Statements as there can
be no assurances that the plans, intentions or expectations upon which they are placed will occur. The
Company undertakes no obligation to update or revise any Forward-looking Statements, whether as a
result of new information, future events or otherwise, except as may be required by law. New factors
emerge from time to time, and it is not possible for Element 29 to predict all of them or assess the
impact of each such factor or the extent to which any factor, or combination of factors, may cause results
to differ materially from those contained in any Forward-looking Statement. Any Forward-looking
Statements contained in this press release are expressly qualified in their entirety by this cautionary
statement.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/200154