Drill program to follow in Q1/Q2

Just recently, Canadian precious metals explorer Element79 Gold (CSE ELEM / FSE 7YS0) reported some extremely high-grade results from the historic Lucero gold and silver mine in Peru, which it intends to bring back into production as soon as possible. A recently announced potential offtake deal could provide cash flow from Lucero as early as 2024. And additional high-grade samples taken underground at Lucero and announced, today, further increase the likelihood of this happening, in our view.

Specifically, Element79 is presenting the final results of the sampling carried out by the experts of SLM Resource Group at Lucero in 2023, which took place at historical, commercial production areas. The last 27 of the 72 pick samples whose analytical results are now reported come from the Pillune and Sando Alcalde zones

Among other things, the company was able to announce 2.6 ounces (!) of gold and 3 ounces of silver per ton in the Pillune zone or 1.68 ounces of gold and 189.4 ounces of silver per ton in the Sando Alcalde zone! But this only represents the “tip of the iceberg”:

Table of analytical results of rock samples, including gold (Au), silver (Ag), arsenic (As), copper (Cu), lead (Pb), zinc (Zn), vein width and area.
Underground chip sample assay results for the Pillune Area and Sando Alcalde Area of the Lucero Project; Source: Element79 Gold

These grades also underline that the extremely high-grade mineralization at the Lucero mine is widespread. Which, according to Element79, once again confirms the significant potential to restart the mine in the near future. The company expects additional laboratory results from tests carried out later in 2023 to be available shortly. And it is naturally hoped that these will paint a similarly positive picture.

Element79 Gold CEO James Tworek commented: “We are grateful for SLM’s work and are pleased with the results as they have helped to shed light on the current condition of the veins in the historic workings and the viability of the project. As expected, this latest batch of 27 samples from SLM’s 2023 underground sampling program revealed impressive high-grade gold and silver mineralization of up to 2.6 ounces of gold per tonne and 189 ounces per silver tonne, in addition to some great base metal results. Combined with the chip sample results SLM has received from its work in the Apacheta and Pillune regions (see press releases dated April 27, 2023 and February 6, 2023) of the Lucero Mine, it paints an exciting picture of what we believe will be a significant, high-grade mining operation.”

High-grade samples come from numerous ore veins

The high-grade results stem from samples taken as chip samples in several different veins in the Pillune and Sando Alcalde zones. Artisanal gold prospectors have been sporadically active there since the Lucero mine (then known as the Shila mine) ceased production in 2005.

The work carried out by SLM last year focused on three different underground workings and, as can be seen above, revealed high-grade gold and silver mineralization. The ore veins examined were between 0.1 and 03 meters thick.

Tworek added that these consistently positive results, combined with historical data, will be used to develop drill targets – underground and at surface – to be tested in a drilling program planned for the first and second quarters. Further information on plans for the 2024 exploration season will be provided once the data modeling is complete.


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