This is really something: Copper explorer Element 29 Resources (TSXV ECU / WKN A2QKKG) presents the first resource estimate for its Elida porphyry project in Peru. And this relates to only a small portion of the known mineralization of the first of five (!) copper prophyry targets on the project - and yet already comes to more than 2 billion pounds of the red metal!

To be precise, Element 29 with this maiden Resource demonstrates inferred resources of 321.7 million tonnes averaging 0.32% copper, which equates to 2.24 billion pounds of contained copper. In addition, there is 0.029% molybdenum and 2.6 g/t silver per tonne at a low expected strip ratio (ratio of waste to ore) of 0.74:1. The latter is very important, being a significant factor in potentially low-cost production.

It is also promising that a higher-grade portion of the estimated resource - 34.1 million inferred tonnes at an average of 0.55% copper, 0.037% molybdenum and 4.4 g/t silver - is located near surface and could potentially be mined in the early years of a mine operation without the need for large waste removal operations. And as Element 29 also explained, the reported significant molybdenum and silver grades, assuming positive metallurgical tests, could further improve the economics of the deposit.

Huge Exploration Potential

For the initial mineral resource estimate, Element 29 used widely spaced drill holes that tested only a portion of the interpreted Zone 1 mineralization surrounding a low-grade porphyry core. Further drilling will be required in the southwest and northwest sectors to fully delineate the resource potential of Zone 1. The Company has nevertheless decided to have a resource estimate prepared at this stage to show the size of the drilled portion of Zone 1.

In addition, the three-dimensional mineralization model obtained in the process is to be used for planning future drilling. This would then involve both potentially expanding the size of Zone 1 and upgrading resources from the Inferred category to the Indicated category. Element 29 sees potential to expand Zone 1 mineralization particularly at the resource area boundaries to the northwest and southwest and at depth. In addition, further drilling is already planned to test additional porphyry targets from the cluster identified at the Elida Project to prove additional copper resources.

Conclusion: Element 29 Resources (TSXV ECU / WKN A2QKKG) has proven what we believe is a significant maiden copper resource at the Elida project. This is an impressive achievement, especially since it only took about 18 months to achieve. Elida has been shown to be a large system of copper mineralization with significant molybdenum and silver grades. And the latter could further enhance the economics of the deposits. The data now available on the Zone 1 deposit already lowers the project risk quite a bit and already hints at the potential of the property. Considering that the 2.24 billion pounds of copper in the resource is based on only a portion of the known Zone 1 mineralization and that Zones 2 through 5 have yet to be drilled, there are indications that Element 29 could identify potential deposits here on a scale that should be of interest to the copper industry majors. Not to mention that the company has a second hot iron in the fire in the Flor de Cobre project, for which a resource estimate is also due later this year. In view of all this, we believe that the market - of course, we are currently in a very difficult environment - has very unjustly punished Element 29 Resources with disregard, recently.

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