Element 29 Resources (ECU.V) has released the assay results from hole ELID041, which continued to return long intervals of copper-molybdenum-silver mineralization. This was a deep hole, and it returned just under 904 meters of 0.31% copper, 0.02% molybdenum and 2.22 g/t silver, which works out to 0.38% copper-equivalent. This wider interval also includes some higher grade sections like 495 meters of 0.46% copper-equivalent within an interval of almost 708 meters at 0.41% copper-equivalent.
One of the key takeaways from this hole is the fact that it confirms the mineralization extends way beyond the current pit-constrained resource shell. Given the thick layer of mineralization encountered in hole ELID041, the mineralization has now been extended more than 400 meters beyond that resource (which used a 0.2% copper cutoff grade).
In his quote, CEO Richard Osmond confirmed this hole strengthens de interpretation of Elida as a well-mineralized porphyry system. The consistency of the mineralization and the continued success of step-out drilling confirms the potential to grow the current resource estimate on the project. The company is now continuing to work on its two rig drill program and this should result in an updated resource calculation that should be published by the end of this year.
Subsequent to releasing the assay results of hole ELID041, Element29 Resources announced a non-brokered private placement to raise up to C$35.5M at C$1.10 per share in a warrant-free financing. The proceeds from this financing will of course be used to continue to advance the Elida project.
Disclosure: The author has a long position in Element 29 Resources. Element 29 is a sponsor of the website. This post is for educational purposes only; be mindful investing in junior mining stocks is risky and you may lose your entire investment if things go wrong. Please read the disclaimer.
