Element 29 Resources (ECU.V) has restarted drilling at its Elida copper-molybdenum-silver project in Peru. The current drill program will consist of up to 7,000 meters of diamond drilling and is designed to drill-test the zones with the low-hanging fruit to further increase the current resource estimate.
The program will consist of a mix of expansion drilling (testing the mineralization beyond the current pit shell to a depth of in excess of 1,000 meters) while the holes will also be useful for infill purposes, increasing the confidence level in the current resource.
The first rig is set up to go back into ELID033, which was shit down for operational reasons while it was still in the higher grade copper-moly-silver mineralization. The hole was previously stopped at a depth of just over 1,100 meters, and Element 29 now plans to go back in and drill to a total depth of 1,500 meters. Drilling this deep hole will test the potential for a high-grade copper core coincident with a large low-resistivity MagnetoTelluric anomaly which has not been tested yet.
A second rig is currently set up to drill ELID036, which was terminated at 662 meters in the previous drill program, without having exited the mineralization. Extending the mineralized area Element is planning to deepen this hole towards 850 meters) could hopefully increase the resource potential beyond the pit shell without having a profound impact on the low strip ratio of 0.74:1.
Meanwhile, the expiration of the C$0.25 warrants is behind us, and we are looking forward to seeing an update on how many warrants were exercised. But in any case, Element 29’s treasury currently likely contains C$10M (assuming all warrants were exercised).
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.
