Vancouver, British Columbia--(Newsfile Corp. - August 4, 2021) - Element 29 Resources Inc. (TSXV: ECU) (OTCQB: EMTRF) ("Element 29" or the "Company") announces today that it has commenced a 4,000 metre ("m") drill program to further explore the known copper mineralization at its Elida Copper Project ("Elida") located in central Perú (see Figure 1). The Company also announces the retirement of Brian Booth, President and CEO.
Drill Program
- Initiation of a 4,000 m drill program at Elida Target 1 to supplement data from 18 historical drill holes (see Figure 2).
- Six holes are planned to depths from 450 to 1,000 m with the following program objectives:
1) Achieve a drill hole spacing that is appropriate for estimating a mineral resource in a portion of Target 1;
2) Investigate the vertical continuity and zonation of mineralization in Target 1, and;
3) Improve the confidence of mineralization boundaries interpreted from previous drilling and outcrops.
Paul Johnston, Element 29's Vice President of Exploration comments, "This drill program is an important milestone for the Company as it will give us information critical for understanding the mineral system at Target 1 and allow us to potentially complete an initial mineral resource estimate for a portion of the target. Drilling results will inform decisions on the continued exploration of Target 1. I am extremely proud of our newly assembled Peruvian exploration team, who have done an exemplary job ensuring everyone remains healthy and safe while preparing for this drill program during challenging pandemic conditions."
The first hole of the current drill program will be drilled vertically up to a depth of 1,000 m to evaluate the depth extent of mineralization beneath one of the stronger copper-mineralized intercepts in ELID012 (393 m of 0.455% Cu, 0.048% Mo, 3.58 g/t Ag, for 0.623% CuEq1 within 503 m of 0.42% Cu, 0.046% Mo, 3.23 g/t Ag, for 0.579% CuEq1, see press release dated January 5, 2021). Copper-molybdenum mineralization has been intercepted by previous drilling to a maximum depth of 400 m and remains open at depth. The remainder of the drill holes are designed to intersect mineralization at a spacing appropriate for potentially estimating an Inferred Mineral Resource and constrain the position and geometry of mineralization boundaries (see Figure 3). The Company will be adding an additional drilling unit in subsequent days (see Figure 4). The drill program is expected to be completed in the latter half of 2021 with assays to be announced in Q4 of 2021.
Members of the local community are employed to assist with our site preparations and on-going drilling operations. In order to protect against community spread of COVID-19, the Company has assisted community members with COVID-19 testing and transportation to vaccination centres. It is mandatory that all people entering the project receive a negative PCR COVID-19 test within 72 hours of arrival and regular antigen testing is being done on site by the Company's medical personnel. All people on site are required to wear a mask at all times and maintain a physical distance of two metres while working. Work plans involve minimizing contact between local community members and project staff. Standard hygiene practices (frequent hand washing and disinfecting surfaces) are rigorously enforced.
CEO Retirement
Brian Booth, President and CEO, has decided to retire from the Company. A search for a new CEO has commenced, with Brian continuing in his role until a successor is found.
Mr. Richard Osmond, Chairman, comments, "On behalf of the Board of Directors, I would like to thank Brian for his service in launching the Company through its listing on the various stock exchanges and initiating the 2021 drilling campaign."
Brian Booth commented, "It is with mixed emotions that I announce my retirement to spend more time with my family as Element 29 starts to flourish. We've built up a diverse and strong leadership team that I know will continue to push the Company forward with continued success."
Pursuant to Section 5.1(a)(iii) of TSXV Policy 4.4 Incentive Stock Options, Mr. Booth's 925,000 unexercised stock options will be cancelled on the date of his retirement.
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. A first-pass drill program consisting of 18 diamond drill holes totaling 9,880 m completed in 2014/15 identified significant copper, molybdenum, and silver mineralization associated with a quartz monzonite porphyry stock at Target 1. 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 in central Perú, approximately 85 km inland from the Pacific coast at moderate elevation between 1,500 and 2,000 m and close to transportation and power infrastructure, including a 45 mega-watt hydroelectric generation facility situated about 15 km from the project.
Technical information contained in this news release has been reviewed and approved by Dr. Paul Johnston (P.Geo.), the Company's Vice President of Exploration, who is Element 29's qualified person under National Instrument 43-101 and responsible for technical matters of this press release.
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 lowest-risk mining jurisdictions in the world. 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 our shareholders.
The Company's principal objective is to explore and develop its flagship Flor de Cobre porphyry Cu-Mo project located in southern Perú, just 26 km southeast from Freeport-McMoRan's Cerro Verde Cu-Mo mine. At the same time, the Company intends to build on its copper inventory with continued exploration on 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.
Contact
Brian Booth - President, Chief Executive Officer and Director
Phone: +1-888-246-7881
E-mail: info@e29copper.com
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.
(1) The calculated Copper Equivalent (CuEq %) grade is used by Element 29 for reporting purposes only. Copper equivalence is calculated as:
CuEq (%) = Cu (%) + (2.667 x Mo (%)) + (0.0097 * Ag (g/t)), using Cu price = US$3.00/lb, Mo price = US$8.00/lb, and Ag price = US$20.00/lb. No metallurgical recovery was applied in the copper equivalent formula as no metallurgical data is available.
Figure 1. Map of the Elida porphyry cluster showing the location of five exploration targets, including Target 1 that is the focus of the current drill program.
To view an enhanced version of Figure 1, please visit:
https://orders.newsfilecorp.com/files/7414/92019_6d5dbd89b468a82f_001full.jpg
Figure 2. Target 1 showing existing and planned drill holes. The horizontal projection of mineralized intervals is shown as grey bands on the existing drill holes.
To view an enhanced version of Figure 2, please visit:
https://orders.newsfilecorp.com/files/7414/92019_6d5dbd89b468a82f_002full.jpg
Figure 3. An oblique view of Target 1 with red shading showing the interpreted position of copper-molybdenum mineralization projected to surface in relation to drill hole ELID019, which is currently in progress. The centre of the ring of mineralization is occupied by an early-stage mineral porphyry intrusion. The interpretation is based on alteration and mineralization exposed by drainage incisions and drill holes.
To view an enhanced version of Figure 3, please visit:
https://orders.newsfilecorp.com/files/7414/92019_element29_figure3_550.jpg
Figure 4. Initiation of drilling on the Phase 1 program began with ELID019, a vertical hole designed to test the vertical extent of mineralization beneath one of the better mineralized intervals returned from ELID012, which was drilled in 2015.
To view an enhanced version of Figure 4, please visit:
https://orders.newsfilecorp.com/files/7414/92019_6d5dbd89b468a82f_004full.jpg
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/92019
