Element 29 Resources, Inc. · TSXV:ECU
Element 29 Resources — Investor Presentation (January 2022)
30 slides from Element 29 Resources's investor presentation, January 2022
Slide 1: Exploring new copper assets in Peru
Exploring new copper assets in Peru Element 29 Resources Inc. INVESTOR PRESENTATION January 2022 e29copper.com TSX-V: ECU E L E M E N T 2 9 OTCQB: EMTRF
Slide 2: Disclaimer
Disclaimer www.sedar.com 2 E L E M E N T 2 9
Slide 3: Copper Demand
ELEMENT 29 Copper Demand • Copper is the metal needed to bring energy to market. • Copper is the most conductive non-ferrous metals and is 30% more conductive than gold. • Copper demand for green energy will double in 10 years from 2.1 Mtpa to 4.2 Mtpa. • EV copper consumption is 4 to 15 times more
Slide 4: Copper Supply
ELEMENT 29 Copper Supply 2023 • Copper inventories are at near record lows. • Resources are declining while demand is increasing due to a global green energy focus. • By 2023, primary copper demand is projected to exceed expected inventories. Source: Wood Mackenzie - Global Copper Long Term Outlook
Slide 5: Peru Copper Endowment
ELEMENT 29 PERU Copper Endowment • Second largest copper producer globally (2.5 Mtpa). • Peru has a total copper inventory of 170.4 Mt as reported by INGEMMET1. • Deposits are well distributed throughout the Andean magmatic arcs of Peru. 5 E L E M E N T 2 9 1 Acosta Ale, J., Huanacuni, D., Manrique,
Slide 6: Peru - Focus
ELEMENT 29 CRU Cash Costs before By-Product Credits by Cost Driver (US$/t) - 2018 Peru - Focus • Mining is 60% of exports and 13% of GDP. • Second lowest cost copper producer globally. • Exploration costs are one of the lowest in South America. US$/t • Mines get permitted in Peru. CRU International
Slide 7: Element 29 Introduction
INTRODUCTION Two key copper projects in Peru • Both projects have well-mineralized intercepts from Element 29 previous drilling. • Located at low elevations and near infrastructure. Experienced leadership team • Highly experienced copper focused management with Element 29 Resources Inc. (E29) is foc
Slide 8: Management
ELEMENT 29 Experienced, Balanced Leadership EXPERIENCE ACHIEVEMENTS ROLES Richard Osmond P.Geo 30+ years Exploration track record of success including President, GlobeTrotters Resource Group. Chairman & Interim CEO discoveries at Voisey’s Bay and Raglan. Former INCO (VBNC), Falconbridge, Anglo Ameri
Slide 9: Share Structure
Share Ownership ELEMENT 29 79.8M Resource Share Structure Capital Funds 5% 3.8M 14% GlobeTrotters ✓ Supportive & diverse shareholders. ✓ Management aligned with shareholders. 15.5M 8% Polygon 66% * Other* TSX-V: ECU 7% Mgmt & 99.1M Board OTCQB: EMTRF FRA: 2IK ~$8.0M * Retail + Institutional Investor
Slide 10: Strategic focus
ELEMENT 29 Strategic focus Element 29 formed from the spinout of 2 key copper projects from GlobeTrotters Resource Group. • Elida Project – grass roots discovery of a new porphyry copper system in central Peru. • Flor de Cobre Project – acquisition of an historical secondary copper resource in the S
Slide 11: Elida Summary
Summary Elida The exploration potential at Target 1 is 250 Mt to 500 Mt with grades of 0.35% - 0.45% Cu, 0.03% - 0.05% Mo, and 3.5 g/t - 4.5 g/t Ag*. 100% ownership of the 19,210 ha Promising exploration results • Discovered by GlobeTrotters Resource Group in 2011. • Intercept of 503.0 m at 0.42% Cu
Slide 12: Strategic Location
ELIDA Strategic Location • Located in central Peru, 85 km from the coast. • Low elevation (~1,600 m). Close to: ✓ Transportation routes Elida ✓ Electrical grid ✓ Hydroelectric station (45 MW) Hydroelectric ✓ Port Station 45 MW ✓ Antamina pipeline / port ✓ Skilled workforce 12 E L E M E N T 2 9
Slide 13: Exploration Targets
ELIDA Exploration Targets • Five porphyry centres outlined from surface and subsurface data. • Phase 1 drilling on Target 1 was completed in Dec 2021. • Planning is underway for initial drill testing of Targets 2 & 3. Phase 1 Objectives Achieved ✓ Investigate the vertical continuity and zonation of
Slide 14: Achievements
ELIDA Achievements ✓ 7 drill holes (4481.4 m) completed on Target 1 in 2021. ✓ Multiple, long mineralized intervals obtained. ✓ Vertical and lateral continuity demonstrated. ✓ Increased confidence in the position of interpreted mineralization boundaries. ✓ More than doubled the depth of investigatio
Slide 15: ELID025
Section 260050 E ELIDA ELID025 Significance • Continuously mineralized from bedrock surface to >900 m below surface. ELID025 at 148.9 m from a sample interval reporting 3.77% Cu, 0.009% Mo, and 31.6 g/t Ag. • Open at depth. Core is HQ diameter (63.5 mm). • Coherent, higher Cu grades throughout the d
Slide 16: ELID024
Section 8835200 N ELIDA ELID024 Significance • Western boundary of Target 1 constrained. • Continuity between orthogonal sections confirmed. • Demonstrates existence of sizeable higher grade internal zones. ELID024 451.75 m of 0.53% CuEq* 0.38% Cu, 0.034% Mo, 31 g/t Ag (19 ppm As) Includes 72.5 m of
Slide 17: Next Steps
ELIDA Next Steps • Prepare a potential initial Mineral Resource Estimate for Target 1. • Plan and execute initial drilling of Target 2 and 3. • Complete preliminary metallurgical test work that is currently underway. • Test unexplored segments of the Target 1 mineralized zone. 17 E L E M E N T 2 9
Slide 18: Flor de Cobre Summary
SUMMARY Flor de Cobre 1,927 ha – 2 Porphyry Cu Targets Historical Resource • Candelaria - 127 ha under option to earn 100%. • Historical copper resource of 57.4 million tonnes of 0.67% Cu outlined by Rio Amarillo/Phelps Dodge in the 1990s.1 • Atravezado - 1,800 ha 100% owned. Excellent location with
Slide 19: Flor de Cobre Location
Flor de Cobre Location Cerro Verde Cu-Mo Mine Operator: Freeport McMoRan Flor De Cobre Chapi Copper Mine Operator: Nexa Resources Peru S.A. FLOR DE COBRE 19 E L E M E N T 2 9
Slide 20: Targets
1,972 Ha Flor de Cobre Atravezado Large 1.5 x 1.6 km porphyry target identified TARGETS • Candelaria • Atravezado Resource drilling at Candelaria Candelaria Drilling expected to start Q1-2022 57.4 Mt @ 0.67% Cu1 1 The source of the historical resource estimate is a press release issued by Rio Amaril
Slide 21: Candelaria
Flor de Cobre Candelaria • Sub-horizontal enrichment zone located 40 - 100 m below surface. • Primary sulfide mineralization is open at depth. 21 E L E M E N T 2 9
Slide 22: Catalyst-Driven 2022 Work Plan
NEAR-TERM ACTIVITIES Catalyst-Driven 2022 Work Plan Exploration drilling , deliver resource estimates & conduct engineering studies. 2022 Q1 Q2 Q3 Q4 Flor de Cobre Permitting - Atravezado Area Resource drilling in historical mining area Release drill results Metallurgical studies PEA – Estimate of p
Slide 23: Why Invest
ELEMENT 29 RESOURCES INC. Why Invest Projects Location Leadership Share Structure Work Plan Targeting large copper Projects are in mining- A balanced leadership Management is aligned Drilling at both properties; resources with growth friendly Peru near team with exploration, with a strong and plan t
Slide 24: Contact
Contact Richard Osmond Interim CEO & Chairman 1-888-246-7881 info@e29copper.com Element 29 Resources Inc. e29copper.com TSX-V: ECU 24 E L E M E NT 2 9 OTCQB: EMTRF
Slide 25: Appendix Elida Phase 1 drill holes
Appendix Elida Phase 1 drill hole ▪ ELIDO19 ▪ ELIDO20 ▪ ELIDO21 ▪ ELIDO22 ▪ ELIDO23 25 E L E M E N T 2 9
Slide 26: ELID019
Section 260050 E ELIDA ELID019 Significance ELID019, 246.2 m from a sample interval reporting • Strong Cu mineralization begins at the bedrock 2.62% Cu, 0.031% Mo, 21.8 g/t Ag surface. • Mo grades are consistently high (+0.03% Mo). ELID019 383.8 m of 0.71% CuEq* 0.54% Cu, 0.035% Mo, 4.2 g/t Ag (47 p
Slide 27: ELID020
Section 259900 E ELIDA ELID020 Significance • Higher grade zone correlates with similar mineralization intersected 150 metres to the east. • Minimal dilution by low grade porphyry dikes. • Earliest porphyry phase intrudes well-mineralized host rock. ELID020 308.0 m of 0.56% CuEq* 0.43% Cu, 0.028% Mo
Slide 28: ELID021
Section 260150 E ELIDA ELID021 Significance • Northern mineralized boundary constrained and consistent with previous interpretation. • Long, continuous mineralized interva.. • Open at depth. ELID021 556.1 m of 0.47% CuEq* 0.36% Cu, 0.024% Mo, 2.4 g/t Ag (47 ppm As) Includes 418.0 m of 0.51% CuEq* 0.
Slide 29: ELID022
Section 260250 E ELIDA ELID022 Significance • Strong mineralized intervals are located towards the northern mineralization boundary. • Mineralization begins at the bedrock surface beneath 30 m of gravel. ELID022 388.0 m of 0.45% CuEq* 0.34% Cu, 0.026% Mo, 2.4 g/t Ag (80 ppm As) Includes 204.0 m of 0
Slide 30: ELID023
Section 260000 E ELIDA ELID023 Significance • Wider than anticipated mineralized zone south of the quartz monzonite porphyry stock. • Open to the south and at depth. ELID023 523.5 m of 0.35% CuEq* ELID023, 397.5 m from a sample interval 0.24% Cu, 0.024% Mo, 2.9 g/t Ag (39 ppm As) reporting 1.07% Cu,
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