{kanada_flagge}Element 29 Resources Inc. (TSX-V: ECU; FRA: 2IK) is in the midst of a drilling campaign at its Elida copper porphyry target. The 4,000-m drill program is designed to add historical data from 18 drill holes to establish an official 43-101 standard resource. The Company reports that the first two drill holes, totaling 980 meters, have been successfully completed. All drill holes are targeting what is known as Target 1 and assay results from these drill holes are pending. In the meantime, Elida has two drill rigs in operation (see Figure 1). The second drill rig was mobilized on site and began drilling on September 8, 2021. This is to ensure the company can complete the drill program on time by the middle of the fourth quarter of 2021 (see Figure 1).
Figure 1: Elida copper porphyry in Peru: highlighted in red are the two completed drill holes. Highlighted in light green are the two drill holes currently in progress. Also shown are the 18 historical drill holes.
The objective of the current drilling program is to provide results with sufficient drill hole spacing to estimate a potential mineral resource for a portion of Target 1. It also aims to investigate the vertical continuity and zonation of mineralization in Target 1. In addition, to better understand the limits of mineralization on Target 1.
Appointment of Richard Osmond as Interim CEO
At the Annual General Meetings, Richard Osmond, Peter Espig, Patrick Elliott and Michael Doggett were elected to the Company’s Board of Directors Following Brian Booth’s retirement on September 25, 2021, the Company’s Chairman, Richard Osmond, has assumed the role of Interim CEO. The search for a new CEO is underway and progressing well, according to the company’s press release.
Richard Osmond, chairman and interim CEO, stated, “We continue to work hard to create value for our shareholders from our work programs. We are pleased to report that the drilling program at Elida remains on budget and on schedule with assay results expected in the fourth quarter of 2021. Drill permitting for Flor de Cobre, our other promising copper project in Perú, is also progressing very well, with drilling expected to commence soon after completion of the drill program at Elida.”
Elida is a porphyry copper-molybdenum exploration project within a property consisting of 28 mining concessions totaling 19,210 hectares, wholly owned by Elida Resources S.A.C., a Peruvian subsidiary of Element 29. The property contains a large 2 kilometer by 2 kilometer alteration system that includes a group of porphyry centers representing 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 major targets remain untested. Under the current drill permit, the Company may elect to test all of the identified targets.
The Elida project is located in central Perú, approximately 85 km inland from the Pacific coast at moderate elevations between 1,500 and 2,000 m and close to transportation and energy infrastructure, including a 45-megawatt hydroelectric plant located 15 km from the project.
CONCLUSION: Element 29 is well on its way to becoming a copper explorer with a recognized 43-101 standard resource in the coming months. At Elida, the company is relying on historical preliminary work, so 4,000 meters of drilling should be enough to determine the resource. So the actual discovery has already been done, it is now “only” a matter of preparing the results in a form that is acceptable to the market. This will then make Element 29 comparable to other copper explorers and should open the doors with institutional investors, for whom formally recognized resources are a necessary prerequisite. Element 29 is currently trading just above the price of the past placement at CAD 0.50. That certainly wouldn’t stop at the successful submission of a resource.
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