{kanada_flagge}Copper explorer Element 29 Resources (WKN A2QKKG / TSXV ECU) is taking another step towards its goal of proving up a substantial resource at the Flor de Cobre project in Peru. The Company has just announced that recent drilling has again encountered wide intersections of copper mineralization consistent with historically known occurrences!
Element 29 presented the results of three more drill holes of the 2022 drill program. These included 295.65 meters of 0.38% copper, including 46.95 meters of 0.69% copper and 67.30 meters of 0.46% copper in an enriched sulphide zone. This was followed by another 145.50 metres at 0.30% copper in the deeper, primary sulphide zone. In addition, Element 29 drilled 164.4 metres at 0.43% copper, of which 37.45 metres at 0.75% copper in an enriched sulphide zone followed by 127.15 metres at 0.33% copper in the deeper, primary sulphide zone. And finally, 143.00 meters of 0.34% copper including 57.40 meters of 0.46% copper in an enriched sulphide zone, followed by 85.60 meters of 0.26% copper in the deeper primary sulphide zone!
Element 29 had, with the first drill holes of the 2022 drill program at Flor de Cobre, already intersected 349 meters of 0.77% copper, including 123 meters of 1.42% copper, previously!
Thus, Element 29 has met two objectives with the latest drill holes: Firstly, once again progressing with the confirmation of the historical resource of 57.4 million tonnes at 0.67% copper, which is believed to be related to a supergene enrichment horizon on the Candelaria porphyry, and secondly, exploring for primary copper sulphide mineralization below this enrichment zone, to depths in excess of 500 metres. The latter is particularly exciting as it could potentially extend the resource to depths considerably beyond historical estimates!
However, it must be pointed out that the historical estimate cannot be regarded as an actual resource, yet, since some data is missing – which, for example, made the drilling of Element 29 necessary in the first place – or the standards and procedures customary today were not followed. However, if Element 29 is successful with the drilling that is still outstanding, too, it will then be possible to present a new resource estimate comparatively quickly, in line with today’s standards. We believe that this should make the market sit up and take notice…
Three more drill holes remain, with which Element 29 is specifically testing the potential of primary copper sulfide mineralization below the supergene enrichment blanket at a depth of more than 500 meters. These results, should soon allow further conclusions to be drawn about the depth potential of Candelabria.
New target Atravesado
In addition to Candelaria, however, the company is keen to investigate a second exciting copper porphyry target called Atravesado and is therefore pushing ahead with the permitting process with all its might. Specifically, Element 29 Resources is targeting a promising porphyry target supported by coincident geological outcrop, surface geochemistry and geophysical responses.
Located approximately 2 kilometers northwest of Candelaria, Atravesado is a 1.5 km x 1.6 km circular zone characterized by prominent copper oxide mineralization associated with quartz vein stockworks and potassium alteration. Late mineralized porphyry dykes are also mapped within the target area.
Conclusion: The latest drill results from Flor de Cobre again show strong consistency with historical drilling, increasing confidence that Element 29 will be able to deliver a significant maiden resource estimate for the project. And this new resource is expected to be produced immediately following receipt of the outstanding drill data. At the same time, Element 29 continues to encounter copper mineralization that is significantly below the mineralization of historical drilling. Which in turn reinforces the potential for primary copper sulfide resources at depth!
Element 29 Resources’ share price, like that of a very large portion of commodity juniors, has taken a beating of late. In the case of Element 29, however, we believe that this had relatively little to do with the company itself, as the situation at Element 29 has, if anything, taken a turn for the better (including positive drill results). Investors who believe, as do many analysts for that matter, that copper will play an important role in the megatrends of electrification and decarbonization of global mobility and the economy should, at current levels, take a very close look at Element 29 Resources, in our view. In addition, the company is in good financial shape, with about $5.6 million in cash at the end of March. We, in any case, are staying on the story.
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