Flor de Cobre is a copper porphyry located in the Southern Peru Copper Belt, 45 km south of Arequipa. Some of the world's largest copper-molybdenum porphyry deposits and mines including Cerro Verde (Freeport), Cuajone, Toquepala (Southern Copper), and Quellaveco (Anglo/Mitsubishi) reside in the Southern Peru Copper Belt.
Flor de Cobre is located ~30 km southeast of the large copper mine at Cerro Verde and ~7 km northwest of the Chapi copper mine.
The Flor de Cobre property includes Candelaria, a well-known copper prospect identified in the 1930’s and the site of a historical small-scale mining operation. Originally explored as a supergene deposit, the Candelaria Porphyry had little attention given to its hypogene deposit potential. Element 29’s exploration strategy is focused on drilling in the area of the historical resource of 57.4 Mt of 0.67% copper* and testing new targets generated by recent IP surveys on trend towards the Cerro Verde mine.
* The source of the historical resource estimate is a press release issued by Rio Amarillo Mining Ltd. dated November 15, 1996 (Rio Amarillo Mining Ltd., November 15th, 1996: Aija Property Drill Results). This historical resource is relevant to Flor de Cobre as it suggests supergene-enriched mineralization of interest may be present at Candelaria. The parameters, assumptions, and methods used to calculate the historical estimate are unknown. Additionally, the historical estimate does not use resource categories described in CIM Definition Standards for Mineral Resources and Mineral Reserves (2014). It is also unclear what portion of this historical resource estimate is within the current Flor de Cobre property configuration. A qualified person has not done sufficient work to classify the historical estimate as a current mineral resource, and it is unclear what work might be required to confirm the resource. For these reasons, the historical resource should not be relied upon. The Company is not treating the historical estimate as a current mineral resource.