Figure 1: Marked in green are the drill results that have now been published. Marked in red are the three drill holes still outstanding.
Richard Osmond, Chairman and Interim CEO, stated, "Following the results from the first two holes at Elida, we are very pleased with the results from holes ELID021 and ELID022. These holes have long, continuous mineralized intercepts with attractive copper and molybdenum grades. ELID021 traced mineralization to a depth of over 700 m below surface and the drill holes tested lateral continuity over a strike length of 300 m on the east side of Target 1. It is very encouraging to see that the drilling confirms the geometry of the mineralized zone previously inferred from sparse historical drilling. The mineralized zone remains open at depth below this recent drill hole and supports our belief that Elida has the potential for a large copper project."
The ongoing 4,500m diamond drilling program at the project has a number of objectives: First, to test the vertical continuity and zonation of mineralization; second, to identify interpreted mineralization boundaries; and third, to reduce drill hole spacing to allow estimation of a potential mineral resource.
Two drill rigs remain on the project to complete the final two drill holes of the 2021 drilling campaign (Figure 1). Given the encouraging results from ELID019 and ELID020 (see press release dated October 18, 2021), the Company has decided to add drill hole ELID025 to the program to test the deeper extent of mineralization. Using the geological information from ELID019, hole ELID025 was steeply inclined to the north to avoid intersecting the QMP intrusion at depth as was the case in ELID019. The additional hole will extend the completion of the program to mid-December 2021.
In summary, with each additional drill hole at Elida, Element 29 is systematically working towards an initial resource estimate that meets the stringent requirements of National Instrument 43-101. The release of this resource should fundamentally change the status of the company, especially in the eyes of institutional investors. They need a reliable resource because, first, this reduces uncertainty, second, it provides comparability, and third, it is the basic prerequisite for further economic development. Investors are usually willing to pay a premium for this certainty. Element 29 will therefore very likely be more valuable with a 43-101 resource than without one. The company, with just CAD 43 million in market value today, could be revalued. In all of this, it is important to remember that there are four other prospective porphyry targets on Elida. The potential for future resource growth could be significant.
Figure 2: Four more prospective targets on the Elida project still waiting to be tested.
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