Element 29 Resources: Copper Exploration in Peru - Updated Mineral Resource in 2026

Key Concepts

Element 29 Resources: A company focused on copper exploration.
Alita Project: Element 29's primary copper project located in Peru.
Florida Cobra Project: Element 29's secondary, earlier-stage copper project in Peru.
Copper Equivalent Grade: A metric used to express the value of a mineral deposit considering copper along with byproducts like molybdenum and silver.
Resource Estimate: A calculation of the quantity and grade of mineralized material in a deposit.
Preliminary Economic Assessment (PEA): An early-stage study to assess the economic viability of a mining project.
Permitting Process: The regulatory steps required to obtain approval for exploration and mining activities.
Copper Belt: A geographical region known for significant copper deposits.
Byproducts: Valuable minerals found alongside the primary target mineral (e.g., molybdenum and silver in a copper deposit).

Alita Project: Achievements and Future Plans

Element 29 Resources has made significant progress at its Alita project in Peru. In January of the current year, the company drilled two deep holes, with Hole 33 being particularly noteworthy. This hole intersected mineralization for approximately 900 meters, with a highlight of 310.1 meters grading 0.71% copper equivalent at depth. Crucially, the hole remains open at depth, indicating potential for further expansion.

The mineralization at Alita includes copper as the primary metal, with molybdenum and silver as significant byproducts. Molybdenum at Alita is noted to be approximately twice the concentration typically found in porphyry systems, adding substantial value.

The initial resource estimate for Alita, released in 2022, reported 321.7 million tons at a 0.2% copper cutoff, with grades of 0.32% copper, 0.03% molybdenum, and 2.61 grams per ton of silver. This translates to an estimated contained copper of just over one million tons. The molybdenum is estimated to contribute 20-30% of the total value, with silver adding further upside.

Current and Next Steps for Alita:

Ongoing Drilling: Three drill rigs are currently active at the Alita project, with plans to continue drilling through the end of the year and into the next.
Funding: The company raised approximately $6.3 million net at $0.16 per share in August, and an additional $4 million from warrant exercises, resulting in about $10 million in cash by mid-September to fund the current drill program.
Updated Resource Estimate: The next major milestone is an updated mineral resource estimate, which the company aims to complete sometime in the latter half of next year.
Permitting: Element 29 is in the process of updating its environmental permit for Alita, transitioning from a 20-platform permit to a 40-platform permit. An agreement with the local community has been signed, extending the permit validity to April 30, 2030, allowing for drilling at up to 40 sites.

Florida Cobra Project: Early-Stage Development

The Florida Cobra project, located in the southern Peruvian copper belt, is Element 29's next most advanced project, though still at a very early stage. This region is known for hosting major copper mines, including Cerro Verde, the fourth largest copper mine globally, located approximately 26 kilometers away.

Progress at Florida Cobra:

Permitting: All necessary work has been completed to obtain permitting for drilling at Florida Cobra.
Community Agreement: The final step before drilling is to sign an agreement with the local community.
Strategic Focus: While the company acknowledges the importance of advancing Florida Cobra to a drill-ready stage with a five-year permit validity, the primary focus remains on the Alita project due to its current drilling success.

Permitting Environment in Peru

Historically, obtaining permits for mining projects in Peru has been challenging. For instance, the environmental permit for the Florida Cobra project took nearly three years to secure. However, a shift has occurred due to Peru's decline in global copper production ranking and the increasing attractiveness of other jurisdictions like Argentina.

Government Initiatives:

Recognizing the Need: The Peruvian government has recognized the need to revitalize its mining pipeline to regain its position as a top copper producer.
Streamlining Permitting: They are actively reaching out to companies like Element 29 to facilitate the permitting process. This includes streamlining procedures, potentially reducing the permitting timeline from over a year to around seven months.
Support for Projects: The government is showing a willingness to assist companies in obtaining the necessary permits to advance their projects.

Shareholder Structure and Management

Element 29 Resources has approximately 155.5 million shares issued. The shareholder base includes:

UK Partners: Holding roughly 7% of the shares.
RCF Resource Capital Funds Opportunity Fund: A significant investor.
Founding Company (Element 29): The private generative company, of which Richard Osman is also president, holds just under 10% (9.9%).
Management and Board: Own approximately 5%.
Retail Float: Constitutes 70-75% of the shares.
Key Supporters: David Elliot and Andrew Williams through Haywood Securities are noted as significant and loyal shareholders. David Elliot is recognized as a member of the Canadian Mining Hall of Fame and a founder of Haywood Securities.

Conclusion and Outlook

Element 29 Resources is actively drilling at its Alita project in Peru, supported by sufficient funding. The company is focused on advancing its resource estimates and is benefiting from a more supportive permitting environment in Peru. The Alita project shows strong potential with significant copper mineralization and valuable byproducts. The Florida Cobra project represents a secondary opportunity that is being advanced towards drill readiness. The company's progress and strategic focus position it to contribute to the future global copper supply, which is projected to face a deficit from next year onwards.