Elida

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. (“Company” or “E29”), 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 copper-molybdenum 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. Early and late porphyry dikes carrying low Cu-Mo grades are volumetrically minor through the Elida target, so do not present significant dilution of the mineralized zone.

Lundin Mining Peru S.A.C. optioned the property 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 E29 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, E29 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, E29 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, E29 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.​

Initial Inferred Mineral Resource Estimate¹ Highlights

• Pit-constrained, Inferred Mineral Resource Estimate¹ of 321.7 million tonnes grading 0.32% Cu plus 0.029% Mo and 2.6 g/t Ag, using a 0.20% Cu 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 Estimate¹ consisting of 59.7 million inferred tonnes at 0.49% Cu, 0.036% Mo, and 3.99 g/t Ag (at a cut-off grade of 0.40% Cu) has potential to be mined with minimal stripping in the initial years of mining.
• Significant Mo and Ag grades have the potential to enhance the economics of the deposit, subject to metallurgical test work.

Table 1. Pit-constrained Inferred Mineral Resources1 for the Elida deposit as of September 20, 2022.

Notes:

1. Mineral Resource Estimate information is available in “NI 43-101 Technical Report, Mineral Resource Estimation of the Elida Porphyry Copper Project in Peru” dated September 20, 2022 and prepared in accordance with Form 43-101F1 by Marc Jutras, P.Eng., M.A.Sc., Ginto Consulting Inc., a Qualified Person as defined in National Instrument 43-101 Standards of Disclosure for Mineral Projects, who is independent of Element 29 Resources Inc. Mineral Resources, which are not Mineral Reserves, do not have demonstrated economic viability and may be materially affected by geology, environment, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues. 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 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: Cu 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% Cu recovery, and 45° pit slope.

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].

* 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 Porphyry Cu-Mo-Ag Deposit (Sep 2024)

Elida – News

On September 24, 2024, the Company Commences Resource Expansion Drill Program at its Elida Porphyry Cu-Mo-Ag Deposit in Central Perú.

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.