London Symposium JV Video: Element 29 targets higher resources in Peru

Element 29 Resources: Elita Project & Peruvian Portfolio – International Metal Symposium Interview

Key Concepts:

• Elita Project (Peru): Element 29’s flagship copper-molybdenum-silver project, currently undergoing expansion drilling.
• Resource Estimate: A calculation of the quantity and grade of mineral deposits within a defined area.
• Cut-off Grade: The minimum grade of ore required to make mining economically viable (0.2% Cu mentioned).
• Drill Permitting: The process of obtaining authorization to conduct exploration drilling.
• Derisking: Reducing the uncertainties and risks associated with a mining project.
• PA Level: Likely refers to a Preliminary Assessment (PA) level study, an early-stage economic evaluation of a mining project.
• Mineralogy: The study of the composition and properties of minerals.
• Laterites: A type of soil rich in iron and aluminum, often containing nickel.

1. Elita Project – Resource Expansion & Drilling Program

The core of the discussion revolves around Element 29’s Elita project in Peru. As of 2022, the project boasts a mineral resource estimate of 321.7 million tons with a grade of 0.32% copper (Cu), 0.03% molybdenum (Mo), and 2.61 grams per ton (g/t) silver (Ag). The company recently raised approximately $10 million in Q3 to fund an aggressive 7,000-meter drill program aimed at expanding this resource. Richard Osman, President and CEO, expresses confidence that the resource estimate can be significantly increased, particularly exceeding current levels at a 0.2% copper cut-off grade. They are also focused on increasing the grade of a separate resource containing approximately 60 million tons at 0.5% copper, which would positively impact the overall project grade.

2. Additional Peruvian Properties & Permitting Progress

Beyond Elita, Element 29 holds interests in three other properties in Peru: Florida Cobra, Paka, and (unspecified – referred to as “P”). The company is actively pursuing drill permitting for these projects to integrate them into their development pipeline. Specifically, the Florida Cobra project has an environmental drill permit valid for another four years, with drilling potentially commencing within the next year, contingent on funding and logistical considerations. The Paka project is currently navigating the drill permitting process, with baseline studies already completed. A key driver for expediting permitting is the anticipated election cycle in Peru, expected to begin in mid-2026.

3. Leveraging Experience – Nickel to Copper Transition

Richard Osman brings over 25 years of experience in the mining industry, having been involved in the development of significant nickel deposits at Voisey’s Bay and Raglan. He highlights how this experience informs their strategy in Peru. He observed that while nickel laterite projects become economically viable with price fluctuations, copper supply is less responsive. This led to a strategic shift towards copper, recognizing a potential “copper crunch” and the need to establish a pipeline of projects in a politically stable, world-class mining jurisdiction like Peru. He emphasizes the value of seeing projects through from early-stage exploration to feasibility studies and mine development.

4. Company Strategy & Investment Proposition

Element 29’s overarching strategy centers on actively building and derisking resources. Osman emphasizes several key advantages of their portfolio: proximity to the coast, low elevation (reducing infrastructure costs), and notably, very low arsenic content in the mineralogy – a significant environmental and processing benefit. The company aims to advance projects to a Preliminary Assessment (PA) level and then potentially sell them as “low-hanging fruit,” capitalizing on their de-risked status. He positions the company as focused on resource creation and value enhancement.

5. Notable Quotes

• Richard Osman: “We just felt there was a copper crunch coming and we wanted to get into a world-class mining jurisdiction to, you know, build a pipeline of projects.” – This highlights the company’s strategic rationale for focusing on copper in Peru.
• Richard Osman: “We’re actively building resources. We’re derisking the projects…and we’re building tons and adding uh de-risking the project and hopefully getting it to a point where we can get to a level where we can put together a pretty pretty pretty um pretty well um you know essentially a resource model and uh PA at a PA level and then hopefully look to sell it as a lowhanging fruit.” – This summarizes the company’s business model.

6. Technical Vocabulary

• Mineral Resource Estimate: An assessment of the quantity and quality of minerals in a deposit, categorized by confidence levels (Measured, Indicated, Inferred).
• Cut-off Grade: The minimum concentration of a valuable mineral required for economic extraction.
• Molybdenum (Mo): A metallic element often found with copper, used in steel alloys.
• Grams per Ton (g/t): A unit of concentration used to express the amount of a valuable metal in a ton of ore.
• Baseline Study: An environmental assessment conducted before exploration activities to establish pre-existing conditions.

7. Logical Connections

The interview follows a logical progression. It begins with a focus on the flagship Elita project and its expansion plans, then broadens to encompass the entire Peruvian portfolio and permitting strategies. Osman’s personal experience is presented as a key asset driving the company’s strategic direction, and finally, the discussion culminates in a concise articulation of the company’s investment proposition.

8. Data & Statistics

• $10 million: Capital raised in Q3 for Elita drilling.
• 7,000 meters: Planned length of the Elita drill program.
• 321.7 million tons: Current Elita resource estimate.
• 0.32% Cu, 0.03% Mo, 2.61 g/t Ag: Elita resource grades.
• 60 million tons at 0.5% Cu: Separate Elita resource with potential for grade improvement.
• 4 years: Remaining validity of the Florida Cobra drill permit.
• Mid-2026: Anticipated start of the Peruvian election cycle.
• 25+ years: Richard Osman’s experience in the mining industry.

9. Conclusion

Element 29 Resources is actively focused on expanding its copper resources in Peru, with the Elita project as its primary driver. The company’s strategy emphasizes derisking projects through strategic permitting, favorable geological characteristics (low arsenic), and leveraging the experience of its leadership team. Their goal is to build a pipeline of attractive copper assets and capitalize on the anticipated future demand for copper by selling them at a PA level, offering a potentially lucrative investment opportunity.