exploring new copper assets in peru

24
e29copper.com Element 29 Resources Inc. ADVANCING new copper assets in Peru INVESTOR PRESENTATION JULY 2022 TSX-V: ECU OTCQB: EMTRF

Upload: others

Post on 12-Jul-2022

2 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: EXPLORING NEW COPPER ASSETS IN PERU

E L E M E N T 2 9

e29copper.com

Element 29 Resources Inc.

ADVANCING new copper assets in Peru

INVESTOR PRESENTATION

JULY 2022TSX-V: ECU

OTCQB: EMTRF

Page 2: EXPLORING NEW COPPER ASSETS IN PERU

E L E M E N T 2 9

www.sedar.com

Disclaimer

2

Page 3: EXPLORING NEW COPPER ASSETS IN PERU

E L E M E N T 2 9

Element 29

3

INTRODUCTION

Element 29 Resources Inc. (E29) is focused on growing resources at two high-quality porphyry copper projects in Peru - Flor de Cobre and Elida.

Two key copper projects in Peru• Both projects have well-mineralized intercepts

from recent drilling.

• Located at low elevations and near infrastructure.

Catalyst-driven 2022 work plan• Initial resource estimate and engineering studies at Elida.

• Historical resource validation drilling at Flor de Cobre.

Experienced leadership team• Highly experienced copper focused management

with experience operating in Peru.

Tight share structure• Supportive, strong and diverse shareholder base

(insiders, institutional, retail, and private equity).

Page 4: EXPLORING NEW COPPER ASSETS IN PERU

E L E M E N T 2 94

Growing COPPER dEMANDELEMENT 29

• Copper is the metal needed to bring energy to market.

• Copper demand by green energy is forecast to double in 10 years from 2.1 Mtpa to 4.2 Mtpa.

• EV copper consumption is 4 to 15 times more than regular combustion engines.

Source: BloombergNEF

Page 5: EXPLORING NEW COPPER ASSETS IN PERU

E L E M E N T 2 95

Copper SupplyELEMENT 29

• Copper inventories are at near recordlows.

• Resources are declining whiledemand is increasing due to a globalgreen energy focus.

• By 2023, primary copper demand isprojected to exceed expectedinventories.

Page 6: EXPLORING NEW COPPER ASSETS IN PERU

E L E M E N T 2 96

PERU IS copper-RichELEMENT 29

• Peru is the second largest copper producer globally (2.5 Mtpa).

• The total copper inventory of Peru is 234.7 Mt, as reported by SPGlobal1.

• Copper deposits are distributed throughout the Andean magmatic arcs of Peru. Porphyry copper systems are the largest deposits.

1 S&P Global Market Intelligence. Country/Region Ranking by Reserves &Resources, Aggregate Copper in Reserves and Resources.

Page 7: EXPLORING NEW COPPER ASSETS IN PERU

E L E M E N T 2 9

CRU Cash Costs before By-Product Credits by Cost Driver (US$/t) - 2018

7

Peru - A CompetITive Mining JurisdictionELEMENT 29

• Mining is 60% of exports and 10% of GDP.

• Second lowest cost copper producer globally.

• Exploration costs are one of the lowest in South America.

• Mines get permitted and built in Peru.

CRU International Limited, 2018

US$/

t

Page 8: EXPLORING NEW COPPER ASSETS IN PERU

E L E M E N T 2 9

ELEMENT 29

8

Experienced, Balanced LeadershipEXPERIENCE ACHIEVEMENTS ROLES

Richard Osmond P.GeoChairman

30+ years Exploration track record of success including discoveries at Voisey’s Bay and Raglan.

President, GlobeTrotters Resource Group.Former INCO (VBNC), Falconbridge, Anglo American.

Michael Doggett PhDDirector

35+ years Mineral economist, distinguished lecturer, published author.

Founder of El Olivar Imperial (Peruvian mineral processing company), Adjunct Professor at Queen’s, consultant, and director of several public companies.

Patrick Elliott MSc, MBADirector

10+ years Exploration teams working on Zafranal and Stibnite in South America & USA. President & CEO of Lexore Capital Corp., President & CEO of Forte Minerals.

Peter Espig MBADirector/Audit Committee Chair

15+ years International accounting and financial management experience.

CEO of Nicola Mining Inc.Founder of TriAsia Capital, former Goldman Sachs.

Steve StakiwPresident, CEO & Director

25+ years Geologist with extensive capital market experience Former Senior VP of New Pacific Metals and Whitehorse Gold and Vice President of Investor Relations of Trevali Mining.

Duane Lo CPA, CACFO

20+ years International accounting and financial management experience.

CFO and Director of various public companies.Former CFO of Mason Resources & Luna Gold and Comptroller for First Quantum.

Paul Johnston P.Geo, PhDVice President, Exploration

30+ years Exploration and development experience on porphyry copper deposits in South America.

Chief Geoscientist of GlobeTrotters.Former Regional Chief Geoscientist for South America at Teck Resources.

Ricardo Labó MSc, LLM, MBACountry Manager, Peru

20+ years Mineral economist with experience in the private sector and in the Peruvian government

Several senior roles in the Ministry of Energy and Mines, senior positions at Rio Tinto, Roche, Phelps Dodge and Grupo Apoyo.

Bruce Turner P.Eng 40+ years International mining experience and expert in open pit copper mining.

Advisor and former Executive Director of CMZ. President of Minera Escondida, President of AQM Copper.

Manuel Montoya 35+ yearsRegional to deposit scale exploration in South America.Discovery of Zafranal Cu-Ag porphyry.

VP Exploration of GlobeTrotters, former Chief Geologist of Cominco-Peru, Andean exploration leader for Teck Resources.

Dire

ctor

sM

anag

emen

tA

dvis

ors

Page 9: EXPLORING NEW COPPER ASSETS IN PERU

E L E M E N T 2 9

79.8M

3.8M

15.5M

99.1M

~$5.6M* Retail + Institutional Investors

Share Ownership

TSX-V: ECUOTCQB: EMTRF

FRA: 2 IK

Other*

5%

14%

8%

7%66% *

Resource Capital Funds

GlobeTrotters

Acasta Partners

Mgmt & Board

Supportive & diverse shareholders.

Management aligned with shareholders.

Share Structure

9

ELEMENT 29

Page 10: EXPLORING NEW COPPER ASSETS IN PERU

E L E M E N T 2 910

Positioned for GrowthELEMENT 29

Element 29 formed from the spinout of 2 key copper projects from GlobeTrotters Resource Group.

• Elida Project – grass roots discovery of a new porphyry copper system in central Peru.

• Flor de Cobre Project – acquisition of an historical secondary copper resource in the Southern Peru Copper Belt.

COMMERCIAL OBJECTIVES

• Develop low-cost, low-risk copper production opportunities in Peru.

• Continue to build a copper resource base to more than 4 million tonnes of contained copper.

Page 11: EXPLORING NEW COPPER ASSETS IN PERU

E L E M E N T 2 911

100% ownership of the 19,210 ha• Discovered by GlobeTrotters Resource Group in

2011.

• Optioned to Lundin Mining Peru S.A.C (Lundin) in 2013.

Promising results from latest drilling• Intercept of 908.75 m at 0.39% Cu including 339.55

m at 0.50% Cu in ELID025 (and remains open to depth).

• Intercept of 383.75 m at 0.54% Cu including 314.85 m at 0.60% Cu in ELID019.

Economically Beneficial Location• Proximal to transportation, energy, and workforce.

• Low elevation (~1,600 m)

Large 2.5 x 2.5 km alteration system• High priority hydrothermal alteration target from a

satellite-borne sensor.

• Large hydrothermal alteration system containing 5 porphyry centers outlined from geologic mapping.

ELIDASUMMARY

The exploration target at Zone 1 is 250 Mt to 500 Mt with grades of 0.30% - 0.45% Cu, 0.02% - 0.05% Mo, and 2.5 g/t - 4.5 g/t Ag*.

Page 12: EXPLORING NEW COPPER ASSETS IN PERU

E L E M E N T 2 912

LocationELIDA

• Located in central Peru, 85 km from the coast.

• Low elevation (~1,600 m).

Close to:Transportation routesElectrical gridHydroelectric station (45 MW)PortAntamina pipeline / portSkilled workforce

Hydroelectric Station45 MW

Elida

Page 13: EXPLORING NEW COPPER ASSETS IN PERU

E L E M E N T 2 913

Exploration TargetsELIDA

• Five porphyry centres outlined from surface andsubsurface data.

• Phase 1 drilling on Zone 1 was completed in Dec 2021.

• Planning underway for initial drill testing of Zone 2 & 3.

Phase 1 Objectives Achieved

Investigate the vertical continuity and zonation of Zone1 mineralization.

Improve the confidence in the interpreted mineralizationboundaries.

Achieve a drill hole spacing that is appropriate forestimating a potential mineral resource for a portion ofZone 1.

Page 14: EXPLORING NEW COPPER ASSETS IN PERU

E L E M E N T 2 9

908.75 m of 0.55% CuEq*

0.39% Cu, 0.035% Mo, 2.9 g/t Ag (42 ppm As)

Includes339.55 m of 0.67% CuEq*

0.50% Cu, 0.036% Mo, 4.3 g/t Ag, (36 ppm As)

ELID025:

* Copper equivalent grades (CuEq) are for comparative purposes only. Calculations are uncut and recovery is assumed to be 100% as metallurgical data isinsufficient to allow for estimation of metal recoveries. Copper equivalence (CuEq %) is calculated as: CuEq (%) = Cu (%) + [3.55 × Mo (%)] + [0.0095 × Ag (g/t)],utilizing metal prices of Cu - US$3.34/lb, Mo - US$11.86/lb and Ag - US$21.87/oz. Metal prices are based on a 2-year average of monthly LME metal prices.

2600

50E

14

AchievementsELIDA

7 drill holes (4481.4 m) completed on Zone 1 in 2021.

Multiple, long continuously mineralized intervals obtained.

Vertical and lateral continuity demonstrated.

Increased confidence in the position of interpreted mineralization boundaries.

More than doubled the depth of investigation of Zone 1 to 933 m below surface.

Page 15: EXPLORING NEW COPPER ASSETS IN PERU

E L E M E N T 2 9

ELID025 at 148.9 m from a sample interval reporting 3.77% Cu, 0.009% Mo, and 31.6 g/t Ag. Core is HQ diameter (63.5 mm).

ELID025

908.75 m of 0.55% CuEq*

0.39% Cu, 0.035% Mo, 2.9 g/t Ag (42 ppm As)

Includes339.55 m of 0.67% CuEq*

0.50% Cu, 0.036% Mo, 4.3 g/t Ag, (36 ppm As)

* Copper equivalent grades (CuEq) are for comparative purposes only.Calculations are uncut and recovery is assumed to be 100% as metallurgicaldata is insufficient to allow for estimation of metal recoveries. Copperequivalence (CuEq %) is calculated as: CuEq (%) = Cu (%) + [3.55 × Mo (%)] +[0.0095 × Ag (g/t)], utilizing metal prices of Cu - US$3.34/lb, Mo - US$11.86/lband Ag - US$21.87/oz. Metal prices are based on a 2-year average of monthlyLME metal prices.

Significance• Continuously mineralized from bedrock

surface to >900 m below surface.

• Open at depth.

• Coherent, higher Cu grades throughout the drill hole.

15

ELID025ELIDA

Section 260050 E

Page 16: EXPLORING NEW COPPER ASSETS IN PERU

E L E M E N T 2 916

Next StepsELIDA

• Undertake initial mineral resource estimate forZone 1.

• Plan and execute initial drilling of Zones 2 and 3.

• Complete preliminary metallurgical test work.

• Test unexplored segments of Zone 1.

Page 17: EXPLORING NEW COPPER ASSETS IN PERU

E L E M E N T 2 917

1,927 ha – 2 Porphyry Cu Targets• Candelaria - 127 ha under option to earn 100%.

• Atravesado - 1,800 ha 100% owned.

Historical Resource• Historical copper resource of 57.4 million tonnes of

0.67% Cu outlined by Rio Amarillo/Phelps Dodge in the 1990s.1

Promising Drill Results• Latest drill hole FDC001 intersected 349 m of 0.77%

Cu starting at 78 m.

• Includes 123 m of 1.42% Cu as secondary enrichment followed by an additional 226 m of 0.42% Cu as primary sulfides.

Excellent location with infrastructure• Located in the Southern Peru Copper Belt – one of

the top copper mining districts in the world with over 60 Mt of contained copper.

• Situated between the Cerro Verde and Chapi mines.

Flor De CobreSUMMARY

1 The source of the historical resource estimate is a Rio Amarillo Mining Ltd. report – Candelaria Porphyry Copper Deposit, Arequipa, Peru, Mineral Reserve Estimate, 1996. This historical resource is relevant to Flor de Cobre as it suggests supergene-enrichedmineralization of interest may be present at Candelaria. However, the Company cautions that the parameters, assumptions, and methods used to calculate the historical estimate are unknown. Additionally, the historical estimate does not use resourcecategories described in CIM Definition Standards for Mineral Resources and Mineral Reserves (2014). It is also unclear what portion of this historical resource estimate is within the current Flor de Cobre property configuration. A Qualified Person has not donesufficient work to classify the historical estimate as a current mineral resource and it is unclear if the current work plan will confirm the resource. For these reasons, the historical resource has not been verified by the Company and the Company is not treatingthe historical estimate as a current mineral resource.

Page 18: EXPLORING NEW COPPER ASSETS IN PERU

E L E M E N T 2 9

Cerro Verde Cu-Mo MineOperator: Freeport McMoRan

Chapi Copper MineOperator: Nexa Resources Peru S.A.

Flor De Cobre

FLOR DE COBRE

18

LocationFLOR DE COBRE

Page 19: EXPLORING NEW COPPER ASSETS IN PERU

E L E M E N T 2 9

Candelaria

57.4 Mt @ 0.67% Cu1

123 m of 1.42% Cu

226 m of 0.42% Cu

1,972 Ha

AtravesadoLarge 1.5 x 1.6 km

porphyry target

1 The source of the historical resource estimate is Rio Amarillo Mining Ltd. report – Candelaria Porphyry Copper Deposit, Arequipa, Peru,Mineral Reserve Estimate, 1996. This historical resource is relevant to Flor de Cobre as it suggests supergene-enriched mineralization ofinterest may be present at Candelaria. However, the Company cautions that the parameters, assumptions, and methods used to calculatethe historical estimate are unknown. Additionally, the historical estimate does not use resource categories described in CIM DefinitionStandards for Mineral Resources and Mineral Reserves (2014). It is also unclear what portion of this historical resource estimate is withinthe current Flor de Cobre property configuration. A Qualified Person has not done sufficient work to classify the historical estimate as acurrent mineral resource and it is unclear if the current work plan will confirm the resource. For these reasons, the historical resource hasnot been verified by the Company and the Company is not treating the historical estimate as a current mineral resource.

12-hole drill program at Candelaria completed in May 2022

Exploration TARGETS• Candelaria Porphyry• AtraveSado Porphyry

19

FLOR DE COBRE

Page 20: EXPLORING NEW COPPER ASSETS IN PERU

E L E M E N T 2 920

Section with FDC001FLOR DE COBRE

FDC001

349.0 m of 0.77% CuIncludes

123.0 m of 1.42% Cu (enriched)226.0 m of 0.42% Cu (primary)

Significance• Enrichment zone is dominated by

chalcocite.

• Excellent correlation with historical twin.

• Demonstrates primary sulfide potential beneath enrichment.

Page 21: EXPLORING NEW COPPER ASSETS IN PERU

E L E M E N T 2 921

CandelariaFLOR DE COBRE

• Sub-horizontal enrichment zonelocated 40 - 100 m below surfacereaching a thickness of 120 m.

• Primary sulfide mineralizationcontinues beneath theenrichment.

• Unexplored to the northwest ofcurrent drilling.

Page 22: EXPLORING NEW COPPER ASSETS IN PERU

E L E M E N T 2 9

Exploration drilling , deliver resource estimates & conduct engineering studies.

NEAR-TERM ACTIVITIES

22

CATALYST-DRIVEN 2022 WORK PLAN

2022Q1 Q2 Q3 Q4

Flor de CobrePermitting - Atravesado area

Resource drilling in historical mining area

Release drill results

Metallurgical studies

Mineral Resource estimate

PEA – Engineering studies

ElidaRelease Phase 1 drilling results

Mineral Resource estimate

Metallurgical studies

Preliminary engineering studies

Phase 2 drilling (Target 1, 2 & 3)

Completed Planned

Page 23: EXPLORING NEW COPPER ASSETS IN PERU

E L E M E N T 2 9

Projects

Targeting large copper resources with growth potential.

Location

Projects are in mining-friendly Peru near established mining operations and good infrastructure.

Leadership

A balanced leadership team with exploration, mine development and capital market experience.

Share Structure

Management is aligned with a strong and diverse shareholder base.

Work Plan

Drilling at both properties;plan to complete resource estimates and engineering studies reported in accordance with NI 43-101.

ELEMENT 29 RESOURCES INC.

23

Why Invest

Page 24: EXPLORING NEW COPPER ASSETS IN PERU

E L E M E N T 2 9

e29copper.com

Element 29 Resources Inc.

TSX-V: ECU

OTCQB: EMTRF

Steve StakiwPresident & [email protected]

Contact