Element 29 Resources Inc. (TSX-V: ECU; FRA: 2IK) reports long, well-mineralized intercepts with attractive copper grades from surface bedrock from the first two drill holes at its Elida copper project in Peru. Hole ELID019 intersected 383.75 meters ("m") of 0.54% copper ("Cu"), 0.035% molybdenum ("Mo") and 4.2 g/t silver ("Ag") for 0.71% copper equivalent1 ("CuEq"). (see Figures 1 and 2). Hole ELID020 intersected 308 m at 0.43% Cu, 0.028% Mo, 3.9 g/t Ag (0.56% CuEq1). (See Figure 3). In total, this year's program includes six holes with a planned total length of 4,000-meters. The final two holes are currently in progress.
Richard Osmond, Chairman and Interim CEO, commented: “The higher grade portion of the mineralized zone remains open at depth and requires further drilling to determine its vertical and lateral extent. The copper grades are complemented by molybdenum grades that are significantly higher than many known porphyry copper deposits. We are also fortunate that our copper mineralization has low arsenic concentrations, which is critical to producing a saleable copper concentrate. The attractive drill results to date reinforce our belief that Elida can be a large-scale copper project that benefits from low elevation and proximity to key power and transportation infrastructure.”
Figure 1: Plan view of Target 1 of the Elida porphyry Cu-Mo project. Holes ELID001 - ELID018 were completed by Lundin Mining in 2014/15. Drilling has commenced on holes ELID023 and ELID024, the final two holes in the planned Phase 1 program. The location of the intercepts in Figures 2 and 3 is indicated by white dashed lines.
Figure 2. cross section at 260050 E showing the location of ELID019. The hole encountered strong mineralization immediately below 43.15 m of unconsolidated gravel (colluvium). Continuous Cu-Mo-Ag mineralization was intersected to 426.6 m where the contact occurs with weakly mineralized QMP. Further drilling is required to follow up the zone of strong mineralization to greater depths.
Figure 3. cross section 259900 E showing drill hole ELID020. The hole entered the mineralized zone below approximately 90 m of unconsolidated colluvial gravel.
The ongoing 4,000 m diamond drilling program is targeting a drill hole spacing that should allow estimation of a potential mineral resource for a portion of Target 1. Both drill holes indicate that the mineralized zone remains open at depth. The 400 m vertical interval from bedrock surface to assay depth from ELID019 and ELID020 shows no discernible vertical zonation of alteration or mineralization, supporting the exploration hypothesis of an expanded mineralized zone in the vertical dimension. Subsequent drill programs in the Target 1 area will investigate the vertical extent of mineralization and the lateral and vertical distribution of copper grades.
Based on the drilling completed to date, the Company expects to meet its target of completing the program by the middle of the fourth quarter of 2021. The two drill rigs have commenced the final two holes of the planned six-hole program. ELID023 is designed to test the southern arm of the Target 1 mineralized zone surrounding the weakly mineralized quartz monzonite porphyry ("QMP") rock by drilling outward from the QMP towards the southern boundary of the mineralization. This drill hole is important for understanding the extent and character of the mineralization on the southern side of the QMP deposit. ELID024 is being drilled on the west side of the QMP and is inclined to the east from the interpreted outer boundary of the Target 1 mineralized zone. This hole is positioned to test the outer limits of the mineralized zone and the volume of mineralization on the northwest side of Target 1. Sampling and analysis of the completed drilling is progressing well and results will be released as they become available.
The Company plans to discuss the results released today during a webcast. Management will host a webcast on October 19, 2021 at 2:00 p.m. ET (8 p.m. German time) to discuss the drilling program at Elida.
Summary: Drilling at Element 29 to date is delivering the results expected from historical drilling. This puts a Maiden resource estimate within reach. At this point at the latest, but perhaps shortly before, Element 29 should be re-evaluated. At a current share price of CAD 0.60, the company is valued at just under CAD 40 million.
Click below to listen to Richard Osmond discuss the highlights of today’s press release.
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