Element 29 Resources Inc. announced the completion of an initial independent Inferred Mineral Resource estimate at its Elida porphyry copper-molybdenum deposit in west-central Peru. This Mineral Resource was completed on just one of five porphyry centres at Elida and provides a solid foundation for future engineering studies as well enhancement and expansion through ongoing exploration. Pit-constrained, Inferred Mineral Resource Estimate of 321.7 million tonnes grading 0.32% copper plus 0.029% molybdenum and 2.6 g/t silver, using a 0.20% copper cut-off grade and low modeled strip ratio of 0.74:1 A near surface, higher-grade subset of the Mineral Resource consisting of 34.1 million inferred tonnes at 0.55% copper, 0.037% molybdenum, and 4.4 g/t silver has potential to be mined with minimal stripping in the initial years of mining. Significant molybdenum and silver grades have the potential to enhance the economics of the deposit, subject to metallurgical test work. The initial mineral resource estimate utilized widely spaced drill holes that tested a portion of the interpreted Zone 1 mineralization surrounding a low-grade porphyry core. More drilling will be required in the southwest and northwest sectors to completely evaluate mineral resource potential of Zone 1. The Company elected to complete a mineral resource estimate at this stage to quantify the size of the drilled portion of Zone 1 and use the three-dimensional mineralization model for future drill hole planning to potentially expand the size of Zone 1 and upgrade Mineral Resources from Inferred to Indicated. Most of the higher-grade subset of the Mineral Resource noted in Table 1 with a 0.45% copper cut-off is centred on mineralization intersected in the upper parts of holes ELID012, ELID014, ELID019, and ELID025. These holes demonstrate that stronger copper mineralization occurs from the bedrock surface where this tonnage has potential to be mined with minimal stripping in the initial years of mining. The Mineral Resource Estimate was prepared by Mr. Marc Jutras, P.Eng., M.A.Sc., Principal, Mineral Resources at Ginto Consulting Inc. Mr. Jutras is an Independent Qualified Person as defined by National Instrument 43-101 Standards of Disclosure for Mineral Projects in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum Standards on Mineral Resources and Mineral Reserves, as adopted and amended by the CIM Council. Mineral Resources at Elida were estimated by: Developing a geologic interpretation of copper mineralization in collaboration with the Element 29 geology team based on geologic observations from surface exposure and drill core. Performing a statistical evaluation of the Elida drill hole database, which contained 25 diamond drill holes of HQ and NQ diameter.
Three-dimensional modeling two mineralized domains represented by a higher copper grade domain and a lower copper grade domain. Integration of an accurate digital terrain model into the mineralization model. Compositing original samples to 2 metre lengths. Exploratory data analysis to understand different geometric and statistical properties of copper, molybdenum, and silver grades. Applying capping of high-grade outliers based on the statistical properties of the grade populations. Variographic analysis to spatially establish the preferred directions of grade continuity. Grade estimation of copper, molybdenum, and silver with ordinary kriging using a strategy and parameters tailored to account for the various geometrical, geologic, and geostatistical characteristics identified in previous steps. Validation of grade estimates using a set of validation tests. Applying a pit constraint optimized using the Lerchs-Grossman algorithm.
The copper grade populations within the mineralized domains were found to be well-behaved with low coefficients of variation. The capping of the high-grade outliers has only had a
minor effect on the average grades and the metal content. For such, the usage of the ordinary kriging technique with capped composited grades is believed to be an adequate strategy for the grade interpolation process. The validation of the copper grade estimates has shown good results from the various tests carried out. It can be concluded that the copper grade estimates are not biased and have an adequate amount of smoothing/variability. Therefore, it is believed that the copper grade estimates are an adequate representation of the Mineral Resource at Elida, based on the current geologic understanding and available data. There is good potential for additional mineral resources on the property with other untested targets. The objectives of future drilling are to resolve internal, near-surface higher grade zones and expand the size of Zone 1, especially on the northwest and southwest edges and at depth. Initial drill testing of the other zones will also be planned with the objective of further expanding mineral resources within the Elida porphyry cluster.