Element 29 Reports Final Three Holes from the Elida Phase 1 Drilling and Reports 908.75 Metres of 0.55 % CuEq
Element 29 Reports Final Three Holes from the
Elida Phase 1 Drilling and Reports 908.75
Metres of 0.55 % CuEq
Vancouver, British Columbia--(Newsfile Corp. - January 19, 2022) - Element 29 Resources Inc. (
TSXV:
ECU
)
(
OTCQB: EMTRF
) ("
Element 29
" or the "
Company
") is pleased to announce results from the
last three drill holes of the seven-hole, 4,500 metre ("
m
") drilling program completed in December 2021
at its 100% owned Elida Copper Project ("
Elida
" or "
the Project
") located in central Perú (
Figure 1
).
Richard Osmond, Chairman and Interim CEO, comments, "The Phase 1 drill program at Elida was a
complete success and exceeded expectations with several long intercepts of strong copper
mineralization starting at the bedrock surface and, in the case of drill hole ELID025, mineralization
extended to depths greater than 900 m. The program was successful in defining the limits of copper
mineralization at Target 1 with the appropriate drill spacing needed to complete an initial resource
estimate, which we expect to publish later this year. We are excited about our plans to move forward with
a Phase 2 program intended to expand on potential resources at Target 1 and drill test Targets 2 and 3."
Click
HERE
to listen to Richard Osmond discuss the highlights of today's press release.
Elida Drilling Highlights
Drill hole ELID025 intersected 908.75 m of 0.39% copper ("
Cu
"), 0.035% molybdenum ("
Mo
"),
and 2.9 g/t silver ("
Ag
") for 0.55% copper equivalent
1
("
CuEq
",
see footnote 1 in
Table 1
),
including 339.6 m of 0.50% Cu, 0.036% Mo and 4.3 g/t Ag for 0.67% CuEq
1
starting from the
bedrock surface at 38.45 m depth (
Figure 2
). The hole confirmed the vertical extent of
mineralization to 933 m below surface and remains open at depth.
Drill hole ELID024 intersected 451.75 m of 0.38% Cu, 0.034% Mo, and 3.1 g/t Ag for 0.53%
CuEq
1
(
Figure 3
). The hole confirmed an apparent western limit of Target 1 mineralization and
demonstrated good continuity of mineralization between holes ELID019, ELID020, and ELID025.
Drill hole ELID023 encountered a much wider than anticipated zone of mineralization on the south
side of the low-grade central quartz monzonite porphyry stock and confirmed the westward
continuity of mineralization south of the stock. The strongest of two mineralized intervals was 91.1
m of 0.41% Cu, 0.032% Mo, 4.1 g/t Ag (0.56% CuEq
1
) (
Figure 4
). The hole was stopped before
reaching the southern limit of the Target 1 mineralized zone.
Table 1
: Length-weighted assay intervals for holes ELID023, ELID024, and ELID022 with results from
ELID019, ELID020, ELID021, and ELID022 released previously.
Hole
From
(m)
To
(m)
Length
2
(m)
Cu
(%)
Mo
(%)
Ag
(ppm)
As (ppm)
CuEq
1
(%)
ELID025
38.45
947.2
908.75
0.39
0.035
2.9
42
0.55
includes
38.45
378.0
339.55
0.50
0.036
4.3
36
0.67
includes
442.0
821.2
379.2
0.30
0.033
1.9
47
0.43
includes
821.2
861.0
39.8
0.58
0.027
3.6
50
0.71
includes
861.0
947.2
86.2
0.35
0.040
2.0
67
0.51
ELID024
198.45
650.2
451.75
0.38
0.034
3.1
19
0.53
includes
198.45
467.5
269.05
0.31
0.026
2.8
9
0.43
includes
467.5
650.2
182.7
0.47
0.047
3.9
34
0.67
and includes
467.5
540.0
72.5
0.59
0.048
4.5
9
0.81
ELID023
87.0
610.5
523.5
0.24
0.024
2.9
39
0.35
includes
87.0
178.1
91.1
0.41
0.032
4.1
91
0.56
includes
425.0
610.5
185.5
0.30
0.017
4.6
19
0.41
ELID022
145.0
533.0
388.0
0.34
0.026
2.4
80
0.45
includes
201.0
405.0
204.0
0.38
0.026
2.7
70
0.50
and includes
201.0
229.0
28.0
0.62
0.022
4.2
66
0.74
and includes
283.0
405.0
122.0
0.39
0.032
2.8
79
0.52
includes
425.0
451.0
26
0.43
0.024
3.2
79
0.55
ELID021
207.9
764.0
556.1
0.36
0.024
2.4
101
0.47
includes
244.0
662.0
418.0
0.40
0.025
2.6
91
0.51
ELID020
143.00
451.00
308.00
0.43
0.028
3.9
15
0.56
includes
249.00
353.00
104.00
0.54
0.031
4.6
12
0.69
includes
384.20
451.00
66.80
0.62
0.041
5.2
17
0.81
ELID019
43.15
426.9
383.75
0.54
0.035
4.2
47
0.71
includes
43.15
358.0
314.85
0.60
0.033
4.7
32
0.76
1
Copper equivalent grades (CuEq) are for comparative purposes only. Calculations are uncut and recovery is assumed to be 100% as
metallurgical data is insufficient to allow for estimation of metal recoveries. Copper equivalence (CuEq %) is calculated as: CuEq (%) = Cu (%) +
[3.55 × Mo (%)] + [0.0095 × Ag (g/t)], utilizing metal prices of Cu - US$3.34/lb, Mo - US$11.86/lb and Ag - US$21.87/oz. Metal prices are based on
a 2-year average of monthly LME metal prices.
2
Intervals are downhole drilled core lengths. Drilling data to date is insufficient to determine true width of mineralization. Assay values are uncut.
Phase 1 drilling at Elida successfully achieved the program objectives of: (1) investigating the vertical
continuity and zonation of Target 1 mineralization, (2) improving the confidence in the interpreted
mineralization boundaries, and (3) attaining a drill hole spacing that is appropriate for estimating a
potential mineral resource for a portion of Target 1. Information returned from the Phase 1 program was
used to revise the interpretation of mineralization boundaries shown in
Figure 1.
Drilling tested the
mineral system to a depth of 933 m below surface and indicated mineralization is open at depth. The
existence of coherent, higher grade internal zones that extend up to the bedrock surface is an important
outcome of the recently completed program.
ELID025 intersected a continuous interval of mineralization from the bedrock surface to the final hole
depth of 947.2 m and returned 908.75 m at 0.39% Cu, 0.035% Mo, and 2.9 g/t Ag for 0.55% CuEq
1
(
Figure 2
).
The hole was designed to test the vertical continuity of mineralization to depths of greater
than 500 m while trying to avoid intersecting the low-grade central quartz monzonite porphyry ("
QMP
")
intrusion.
The hole ended in mineralization and was discontinued for operational reasons. Chalcopyrite
remained the copper-bearing sulfide mineral for the entire length of the drill hole and indicates a vertically
protracted mineral system. Notably, arsenic ("
As
") was low at 42 ppm and did not correlate with Cu
grade.
ELID024 was collared a short distance west and outside of the mineralization limit inferred from earlier
drilling (
Figure 3
). Continuous mineralization was intersected from where the hole entered potassic-
altered bedrock beneath 120 m of unconsolidated gravel. Starting at a depth of 198.45 m, the hole
intersected a 451.75 m interval of 0.38% Cu, 0.034% Mo, 3.1 g/t Ag (0.53% CuEq
1
) associated with
quartz veining and potassic-altered sedimentary rocks. Intensity of mineralization increased steadily
downhole where a 182.7 m interval of 0.47% Cu, 0.047% Mo, and 4.5 g/t Ag (0.67% CuEq
1
) is reported
between sections containing ELID020 and ELID025. Included within the interval is a 72.5 m subinterval
of 0.59% Cu, 0.048% Mo, and 4.5 g/t Ag (0.81% CuEq
1
), which indicates coherent, higher grade zones
are an important component of the broader Target 1 mineralized zone.
The hole was drilled orthogonal to
other Phase 1 holes to test the east-west continuity of mineralization and constrain its western limit. The
results support a vertically oriented mineralized zone with a geometry concentric to the QMP inferred
from available drill holes.
ELID023 was designed to test mineralization wrapping around the south side of the QMP (
Figure 1
).
The hole intersected a well mineralized interval of 0.41%Cu, 0.024% Mo, and 4.1 g/t Ag (0.56% CuEq
1
)
over 91.1 m adjacent to the QMP followed by a longer interval of mineralization disrupted and diluted by
numerous weakly mineralized QMP dikes (
Figure 4
). Mineralization improved south of the zone of dikes
and returned 185.5 m of 0.30% Cu, 0.017% Mo, 4.6 g/t Ag (0.41% CuEq
1
). The hole ended in low grade
Cu mineralization associated with quartz vein stockworks and potassic-altered sedimentary rocks. More
drilling is required to confirm the southern limit of mineralization.
Drill results for drill holes ELID019 and ELID020 were released on
October 18, 2021
, which highlighted
a
383.75 m interval of 0.54% Cu, 0.035% Mo, and 4.2 g/t Ag (0.71% CuEq
1
) in ELID019 and a 308 m
interval of 0.43% Cu, 0.028% Mo, 3.9g/t Ag (0.56% CuEq
1
) in ELID020. Drill results for drill holes
ELID021 and ELID022 were released on
November 15, 2021
, which highlighted a 556.1 m interval of
0.36% Cu, 0.024% Mo, and 2.4 g/t Ag (0.47% CuEq
1
) in ELID021 and a 388.0 m interval of 0.34% Cu,
0.026% Mo, 2.4 g/t Ag (0.45% CuEq
1
) in ELID022.
Results from the Phase 1 drilling program increased confidence in the position of mineralization contacts
interpreted from previous sparse drilling and demonstrated continuity of mineralization within the
interpreted mineralized zone. Drilling also more than doubled the depth of investigation from 400 m to
933 m below surface and confirmed that the mineral system begins at the bedrock surface beneath 30 m
to 120 m of unconsolidated gravel cover. A portion of Target 1 now has drill holes nominally spaced at
100 metres, which are considered appropriate for potential resource estimation.
Future Work
The Company plans to use drilling results from the Phase 1 program to prepare a potential initial
resource estimate. In parallel, preliminary metallurgical studies have been initiated to examine recovery
and comminution characteristics of mineralization for use in preliminary economic studies.
Exploration planned for later in 2022 will be designed to test the unexplored segments of the Target 1
mineralized zone and further constrain limits of mineralization where drill holes are lacking. Initial drill
testing of Targets 2 and 3 will also be planned (see
Figure 5
).
Analytical Quality Control & Quality Assurance
Elida Resources S.A.C., a wholly owned subsidiary of Element 29 Resources Inc., supervises drilling
and carries out sampling of HQ core. Logging and sampling are completed at a secured Company
facility situated near the Elida project site. Sample intervals are nominally 2 m long. Drill core is cut in half
using a rotary diamond blade saw and samples are sealed on site before transportation to the ALS Peru
S.A.C. independent laboratory in Lima by Company vehicles and staff. Samples are analyzed for 35
elements using an Aqua Regia digestion and ICP-AES analysis (ME-ICP41). Samples reporting over
limits are analyzed by Aqua Regia digestion with ICP-AES finish (ME-OG46). ALS meets all
requirements of International Standards ISO/IEC 17025:2005 and ISO 9001:2015 for analytical
procedures.
Element 29 employs an independent, internal quality assurance/quality control program that includes
insertion of duplicate, blank, and certified reference samples at the field site. The Company is not aware
of any drilling, sampling, recovery, or other factors that could materially affect the accuracy or reliability of
the data reported.
Qualified Person
The scientific and technical content of this press release has been reviewed and approved by Paul J.
Johnston (PhD, PGeo), who is Vice President of Exploration for Element 29 and is a "Qualified Person"
as defined in National Instrument 43-101 Standards of Disclosure for Mineral Projects.
About Elida
Elida is a porphyry copper-molybdenum exploration project within a property composed of 28 mining
concessions totaling 19,210 hectares that are 100% owned by Elida Resources S.A.C., a Peruvian
subsidiary of Element 29. The property contains a large, 2 x 2 kilometre ("
km
") alteration system
enclosing a cluster of porphyry centres that represent five distinct exploration targets. In 2021, Element
29 completed seven drill holes totalling 4,481 m that intersected multiple, long intervals of Cu-Mo-Ag
mineralization and traced mineralization to a depth greater than 900 m. 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.
The Project is located in central Perú, approximately 85 km inland from the Pacific coast at moderate
elevations between 1,500 m and 2,000 m and close to transportation and power infrastructure, including
a 45 mega-watt hydroelectric generation facility situated 15 km from the project.
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined
in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or
accuracy of this press release.
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 lowest-risk 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 significant value to shareholders.
The Company's principal objective is to explore and develop its flagship Flor de Cobre porphyry Cu-Mo
project located in southern Perú, 26 km southeast from Freeport-McMoRan's Cerro Verde Cu-Mo mine.
At the same time, the Company intends to build on its potential copper inventory with continued
exploration of its Flor de Cobre project as well as its remaining 22,000 ha of mining concessions in
Perú, including the recently discovered Elida porphyry Cu-Mo-Ag system located in central Perú and 85
km from the coast. Both projects are well located for future 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 more information:
David Jan
Investor Relations
1-888-246-7881
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 statements related the Company's resource properties, and the Company's plans, focus and
objectives.
Forward-looking Statements involve various risks and uncertainties and are based on certain factors
and assumptions. There can be no assurance that such statements will prove to be accurate, and actual
results and future events could differ materially from those anticipated in such statements. Important
factors that could cause actual results to differ materially from the Company's expectations include
uncertainties related to fluctuations in copper and other commodity prices, uncertainties inherent in the
exploration of mineral properties, the impact and progression of the COVID-19 pandemic and other risk
factors set forth in the Company's prospectus under the heading "Risk Factors". 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.
Figure 1
. Plan view of
Target 1
at the Elida Porphyry Cu-Mo project. The Phase 1 drilling program
consisting of seven holes was completed in December 2021. The last three holes from this program are
reported in this press release. Section locations for Figures 2, 3 and 4 are indicated with white dashed
lines. Holes ELID001 - ELID018 were completed by Lundin Mining in 2014/15 and ELID019 - ELID025
were completed by Element 29 in 2021.
To view an enhanced version of Figure 1, please visit:
https://orders.newsfilecorp.com/files/7414/110728_523f868d040eebfa_001full.jpg
Figure 2
. Cross section 260050 E showing hole
ELID025
. The hole entered well-mineralized, potassic-
altered sedimentary rocks immediately beneath 35 m of gravel cover. Continuous mineralization was
encountered to the bottom of the hole at 947.2 m. This hole demonstrated the vertical continuity of
mineralization to a depth of 933 m below surface. Apart from the zone of strong mineralization present
near the top of the hole, other well mineralized intervals are distributed throughout the hole. The hole
ended in mineralization and the mineralized zone remains open at depth.
To view an enhanced version of Figure 2, please visit:
https://orders.newsfilecorp.com/files/7414/110728_523f868d040eebfa_002full.jpg
Figure 3
. Cross section at 8835200 N showing the position of
ELID024
. This hole was designed to
constrain the western limit of Target 1 mineralized zone and test for continuity of mineralization in a
direction orthogonal to the other Phase 1 drill holes, specifically ELID020, ELID019, and ELID025. More
drilling is required to determine the orientation of the western limit of mineralization, which is interpreted
to be vertical.
To view an enhanced version of Figure 3, please visit:
https://orders.newsfilecorp.com/files/7414/110728_523f868d040eebfa_003full.jpg