Element 29 Advances Elida Copper Project with $10M Funded Drilling and 500M+ Ton Resource Target

• Element 29 Resources is advancing its Elida porphyry copper-molybdenum-silver project in Peru with approximately 14,000 meters of drilling completed and a maiden resource estimate published in 2022, targeting expansion from an initial 300 million tons to over 500 million tons through ongoing exploration
• Recent magnetotelluric (MT) geophysical surveys have identified a hydrothermal alteration footprint exceeding six kilometers in strike length, with low resistivity anomalies at depth suggesting a high-grade copper core remains untested at approximately 1.5 kilometers below surface
• The company has secured approximately $10 million in treasury through a $6.1 million financing and $4 million in warrant exercises to fund a 7,000-meter drill program, with drilling costs averaging $450-500 USD per meter
• Element 29 benefits from a five-year community access agreement and is expanding drill permits from 20 to 40 platforms ahead of Peru's 2026 election cycle, while Peru's government has demonstrated increased support for mining development following the country's loss of second-place global copper producer status to the DRC
• The project exhibits favourable characteristics including a .74:1 strip ratio, no water table (reducing environmental liability), clean concentrate expectations with no arsenic, and potential for open pit to underground transition extending mine life beyond the initial 15-year production timeline at 100,000 tons per day

Element 29 Resources is methodically advancing its Elida porphyry copper project in Peru, positioning the asset as a potential tier-one discovery in a jurisdiction experiencing renewed government support for mining development. With approximately $10 million in treasury and a fully funded 7,000-meter drill program underway, the company is focused on expanding its maiden resource estimate from an initial 300 million tons toward a target of 500+ million tons that would support a 15-year mine life at 100,000 tons per day production. CEO Richard Osmond, a geoscientist with experience on world-class nickel deposits including Voisey's Bay and Raglan, transitioned to copper exploration in 2008 after recognizing fundamental supply constraints in the copper market.

The company listed on the TSX Venture Exchange in late 2020 after making the Elida discovery through its predecessor entity GlobeTrotters Resource Group, which spent eight years exploring for copper before consolidating assets under Element 29. The project has now reached a critical inflection point where systematic drilling and geophysical interpretation are defining the scale potential of a porphyry system that remains largely untested across a six-kilometer alteration corridor. Osmond emphasized the rarity of discovering open-pittable copper resources with underground expansion potential, stating that "all the low-hanging fruit in my opinion had been sort of taken" and describing projects like Elida as "very rare to find" in today's exploration environment.

Geological setting reveals expanding porphyry system

The Elida project is a porphyry copper-molybdenum-silver deposit characterized by multiple phases of mineralization hosted within a porphyry intrusive complex. The system exhibits classic porphyry zonation with early potassic alteration, EDM veining, and A-vein through C-vein stockwork mineralization associated with chalcopyrite and bornite. 

Significantly, the project also displays a late-stage intermediate sulfidation overprint featuring chlorite-epidote alteration with pyrite-chalcopyrite-bornite-magnetite assemblages that is actively upgrading copper grades throughout the system. Osmond noted that this retrograde overprint, sometimes classified as E-veining, extends "all the way down like a kilometer plus deep," which was unexpected given typical porphyry models.

The geological team has identified encouraging zonation patterns indicating the system strengthens at depth. In one particularly significant intercept of over 1,000 meters at 0.54% copper equivalent, the drill hole documented changing sulfidation states as depth increased. 

"What we're actually seeing in the hole was a zonation where you're seeing a lot more pyrite to chalcopyrite. So a ratio of about 4:1 pyrite to chalcopyrite. But as you get deeper in the hole that ratio starts to move into like a one-to-one." 

This transition suggests decreasing sulfur content and increasing copper tenor at depth, leading Osmond to conclude: "We haven't even gotten into the best part of the system yet".

Geophysical surveys identify deep high-grade copper core

Element 29 deployed magnetotelluric (MT) surveys across the Elida project area, a geophysical technique increasingly utilized in South American porphyry exploration for its ability to detect conductive zones to depths exceeding one kilometer. The results revealed a hydrothermal alteration footprint spanning more than six kilometers in strike length, dramatically expanding the target area beyond the current 300-million-ton resource shell. Osmond referenced successful MT applications at other projects, specifically noting how Aldebaran Resources doubled their resource by targeting MT anomalies that identified deeper, higher-grade mineralization.

The MT survey at Elida is primarily mapping the contact between the porphyry intrusive complex and host sediments, effectively delineating the alteration halo. More significantly, at approximately 1.5 kilometers depth, a strong low-resistivity anomaly correlates with the projected location of a high-grade copper core. 

"We're pretty excited about getting in and testing that and showing... if we can sort of prove that the system is actually getting stronger and better at depth, it certainly allows you to see the ability to put together a pretty sizable deposit just in the Zone 1 area alone." 

While drilling 1,500-meter holes is not economically efficient for all targets, proving the depth extensions would validate a significantly larger resource envelope and support future underground mining scenarios.

Drill program targets resource growth and depth testing

The current drilling strategy balances near-term resource expansion with higher-risk, higher-reward depth testing. Element 29 is prioritizing extensions outside the existing pit shell while maintaining reasonable step-out distances to manage exploration risk. 

"We want to basically show that the pit that's there is not constraining the entire resource. And we can certainly build that pit out quite a bit more." 

Noting the company's favourable .74:1 strip ratio provides flexibility for pit expansion. The target of 500 million tons within the pit envelope represents what Osmond described as "a bit of a magic number" that would deliver approximately 15 years of mine life at 100,000 tons per day throughput.

With 14,000 meters of drilling completed to date, Osmond acknowledged that"you need at least more than double that to really have a good understanding of what you have there". The company is drilling approximately 25 meters per day, a slower rate attributable to the absence of a water table, which paradoxically creates drilling challenges but eliminates significant environmental liabilities associated with acid mine drainage. 

Element 29 raised $6.1 million net proceeds in August 2025, supplemented by $4 million from warrant exercises at $0.25, providing approximately $10 million in working capital. With drilling costs of $450-500 USD per meter, the 7,000-meter program represents roughly $3.5 million USD, leaving sufficient capital to potentially bring in a third drill rig and extend operations into 2026.

Interview with Richard Osmond, CEO of Element 29 Resources

Favourable metallurgy and simplified processing expected

Element 29 has deferred comprehensive metallurgical testwork, viewing such programs as most appropriate when approaching operational stages. However, preliminary metallurgical assessment will be conducted to establish copper, molybdenum, and silver recovery parameters for resource modeling purposes. The geological characteristics observed suggest favourable metallurgy, with Osmond noting the system lacks arsenic-bearing minerals like enargite due to deep erosion that removed high-sulfidation zones.

The project is classified as a copper deposit with molybdenum and silver byproduct credits, with the majority of economic value derived from copper. Minor enrichment zones exist along localized structures but have been largely eroded, eliminating concerns about transitioning between ore types with significantly different metallurgical responses. 

Osmond indicated the mineralogy remains relatively consistent from surface to depth, without major transitions from chalcopyrite-rich zones to bornite-rich zones that would complicate processing. This consistency, combined with the absence of a water table, positions Elida as a relatively low-environmental-risk development opportunity with straightforward processing requirements.

Peru jurisdiction shows improving regulatory support

Peru's regulatory environment for mining has evolved significantly, with the country responding to its recent loss of second-place global copper producer ranking to the Democratic Republic of Congo. Osmond noted that this development has prompted the Peruvian government to recognize gaps in its project pipeline and take steps to expedite permitting processes. 

Element 29 has secured a five-year access agreement with the local community at Elida and is upgrading its drill permit from a FTA covering 20 platforms to 40 platforms, with completion expected before year-end 2025. The strategic timing aims to have all permitting completed ahead of Peru's 2026 election cycle, which typically generates political noise but does not materially impact operations for projects with community support. Osmond emphasized that 

"if you have the support from the community, you can operate and the government will give you license to operate."

Peru's institutional framework provides critical investment protections that distinguish it from other South American jurisdictions. Only Peru and Chile maintain bilateral investment treaties (BITs) and free trade agreements with Canada, the United States, and China that include provisions for international arbitration of expropriation disputes. 

“If the government decides to take your assets away, you can take them to an international arbitration court.”

These stability agreements enable the multi-billion-dollar capital investments required for large-scale porphyry copper development, making Peru "a better environment for developing these types of big scale systems".

Capital strategy funds ongoing exploration into 2026

Element 29's capital position provides a runway through the remainder of 2025 and into 2026 without immediate financing requirements. The company is focused on demonstrating resource growth through the current drill program, with Osmond indicating plans to drill "until Christmas" with potential to continue operations through 2026 as long as drilling continues to intersect mineralization. The goal is to complete sufficient drilling to support an updated resource estimate in 2026, which Osmond characterized as "a catalyst for us" that would demonstrate the company's ability to "significantly expand our resource base".

Beyond Elida, Element 29 maintains a portfolio of earlier-stage copper projects including Flor de Cobre, Elida, and Paka, with the company preparing permits across these properties in anticipation of what Osmond described as "a bit of a bull year for 2026". The strategy reflects a measured approach to portfolio management, concentrating capital on the most advanced asset while maintaining optionality for future exploration as market conditions and capital availability evolve. Osman emphasized the dual opportunity at Elida: "Very few projects in the world have that ability these days" to develop both open pit and underground resources, with the open pit generating cash flow to fund underground infrastructure development.

Market positioning focuses on tier-one discovery potential

Element 29 is positioning itself as an exploration-focused company seeking to deliver a de-risked asset to larger operators. 

"We don't have the expertise to be mining these types of deposits so we're trying to build Elida into low-hanging fruit in a world-class jurisdiction."

 The strategy targets demonstration of at least 500 million tons in pit-constrained resources with potential to expand the total resource to one billion tons or more when including underground extensions. This scale would align with typical requirements for major copper producers evaluating new projects, providing sufficient tonnage to justify the significant capital expenditures associated with high-altitude Andean mining operations.

The company's value proposition centers on discovering and defining a tier-one copper asset in a jurisdiction with improving regulatory support, favorable geology indicating expansion potential, and technical characteristics suggesting straightforward development. Osmond framed the opportunity within the broader copper supply challenge, noting his decision to exit nickel exploration in 2008 was driven by recognition that "there was a copper crunch coming" due to limited substitution potential and the depletion of easily discovered deposits. 

With copper prices exceeding $5 per pound and continued supply constraints, Element 29 is working to deliver what Osmond described as "very rare" in modern exploration: an open-pittable copper resource with underground expansion potential in a jurisdiction where projects can actually advance to production.

The Investment Thesis for Element 29

• Tier-One Discovery Potential: Elida exhibits characteristics of a tier-one porphyry copper system with a hydrothermal alteration footprint exceeding six kilometers in strike length, multiple mineralization phases, and geophysical data indicating significant high-grade copper core potential at depth to 1.5 kilometers
• Scalable Resource Base: Current 300-million-ton resource represents starting point from only 14,000 meters of drilling, with near-term target of 500+ million tons in pit-constrained resources and potential for one billion tons total including underground extensions
• Favorable Technical Characteristics: Project benefits from .74:1 strip ratio enabling flexible pit expansion, no water table reducing environmental liability, clean metallurgy without arsenic or deleterious metals, and consistent ore types from surface to depth simplifying processing
• Fully Funded Expansion Program: Company holds approximately $10 million treasury to fund 7,000-meter drill program at $450-500 USD per meter, with sufficient capital for multiple drill rigs operating through 2026 and potential resource update
• World-Class Jurisdiction with Improving Regulatory Environment: Peru provides bilateral investment treaty protections and free trade agreements unique among South American jurisdictions, while government recognition of declining project pipeline is accelerating permitting processes
• Community Support and Permitting Progress: Five-year community access agreement in place with expansion of drill permits from 20 to 40 platforms expected before year-end 2025, ahead of 2026 election cycle
• Open Pit to Underground Transition Potential: Rare combination of near-surface open pit resources generating early cash flow with underground expansion potential extending mine life and total resource base, with improving grades at depth supporting underground economics
• Experienced Management with Discovery Track Record: CEO Richard Osmond brings experience from world-class nickel discoveries and eight years developing GlobeTrotters Resource Group's copper exploration portfolio before Element 29 consolidation and Elida discovery
• Multiple Expansion Catalysts: Near-term catalysts include ongoing drill results demonstrating resource growth, 2026 resource estimate update, depth testing of high-grade copper core anomaly, and broader portfolio permitting across additional copper targets
• Supply-Constrained Commodity with Limited Substitution: Copper's fundamental supply constraints driven by depletion of easy discoveries, limited substitution potential, and increasing demand provide supportive macro backdrop for large-scale copper discoveries in proven jurisdictions

Macro Thematic Analysis:

The global copper market faces structural supply constraints as easily discovered, near-surface deposits have been largely depleted while demand continues growing driven by electrification, renewable energy infrastructure, and traditional industrial applications. Unlike nickel, where laterite deposits provide elastic supply responses to price increases, copper exhibits limited substitution potential and geological scarcity that cannot be quickly resolved through higher prices alone. Richard Osmond recognised this dynamic in 2008, stating: 

"I could see there was a copper crunch coming... Very little substitution and very hard to find. All the low-hanging fruit in my opinion had been sort of taken."

Major mining companies require tier-one discoveries—deposits exceeding 500 million tons with acceptable grades in jurisdictions supporting billion-dollar capital deployments. The challenge has intensified as exploration increasingly targets deeper, higher-risk settings requiring sophisticated geophysical techniques and patient capital. Peru's recent loss of second-place global copper producer status to the Democratic Republic of Congo has prompted government recognition of pipeline deficits, creating a more supportive regulatory environment precisely as projects like Elida demonstrate the scale characteristics that could restore Peru's production trajectory. The convergence of supply scarcity, improving jurisdictional support, and advancing exploration technology creates opportunity for well-funded explorers with quality assets in proven districts.

TL;DR: 

Element 29 Resources is advancing its Elida porphyry copper-molybdenum project in Peru from an initial 300-million-ton resource toward a 500+ million-ton target through a fully funded 7,000-meter drill program supported by approximately $10 million in treasury. Recent magnetotelluric surveys have identified a six-kilometer alteration corridor with high-grade copper core potential at 1.5-kilometer depth, while geological observations indicate improving grades with depth and favourable metallurgy with no arsenic content. The project benefits from a five-year community agreement, expanding drill permits, and Peru's renewed focus on mining development following loss of second-place global copper producer status, positioning Element 29 to deliver a rare open-pit-to-underground tier-one discovery in a world-class jurisdiction.

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