Element 29 Resources (TSXV:ECU) - Developing the Next Major Copper Mine in Peru

Nov 25, 2024

Ask episode

Chapters

Transcript

Episode notes

Interview with Richard Osmond, President & CEO of Element 29 Resources Inc.

Recording date: 20th November 2024

Element 29 Resources (TSXV:ECU) is a copper exploration company that offers investors an attractive opportunity to gain exposure to a major new discovery in a top mining jurisdiction. The company's flagship Elida project in Central Peru has all the key ingredients for success: scale, grade, infrastructure, and exploration upside.

Elida is a significant grassroots copper discovery with a current inferred resource of 321.7 million tonnes grading 0.32% copper, 0.029% molybdenum and 2.6 g/t silver. Discovered by Lundin Mining, which completed nearly 10,000 meters of drilling, Elida was acquired by Element 29 in 2019. The company has since expanded the resource with an additional 5,000 meters of drilling and sees potential to grow it substantially larger.

The project benefits from excellent infrastructure, with power, water, and transport facilities nearby. Elida is located just 200 km from Lima at low elevation and is easily accessible by highway. It is close to the operating Antamina mine and it's concentrate pipeline and port facilities. This should enable the project to be developed at low capital and operating costs.

Importantly, Elida is expected to produce a very clean, high-quality copper concentrate with negligible arsenic levels. This is a key differentiating factor that could command a premium price from smelters. Metallurgical testing is underway and will provide greater insight into the process flowsheet and recoveries.

Peru is one of the world's top copper producers, with a mature mining industry and strong government support. Several major new copper mines have been successfully permitted and developed in the country in recent years. Element 29 has strong community relations and is actively engaging with local stakeholders to ensure the project provides sustainable economic benefits.

The Elida project is large enough to be developed as a standalone operation or could be an attractive acquisition target. CEO Richard Osmond sees potential for Elida to grow to over 500 million tonnes, noting that the current resource covers just a small portion of the 2.5 x 2.5 km alteration footprint. Element 29 is targeting a preliminary economic assessment on the project within the next 2-3 years to demonstrate its economic potential.

Despite its attractive fundamentals, Element 29 is currently trading at just C$0.45 per pound of copper-equivalent, well below the valuations of more advanced development projects. This reflects the earlier stage nature of the asset but provides considerable potential for re-rating as the company executes its business plan.

With a major copper discovery, strong management team, and strategic location in a mining-friendly jurisdiction, Element 29 Resources offers a compelling investment opportunity. As the world faces a looming shortage of copper supply, the company is well-positioned to create substantial shareholder value through exploration success and project advancement. The Elida project provides exposure to a potential Tier 1 copper asset at an attractive valuation with multiple near-term catalysts on the horizon.

View Element 29's company profile: https://www.cruxinvestor.com/companies/element-29-resources