Elida Property, Peru NI 43-101 Technical Report Element 29 Resources Inc
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Elida Property, Peru NI 43-101 Technical Report Element 29 Resources Inc Elida Property, Peru NI 43-101 Technical Report Element 29 Resources Inc. Table of Contents 1 SUMMARY ...................................................................................................................... 4 2 INTRODUCTION ............................................................................................................. 6 2.1 UNITS AND MEASUREMENTS ........................................................................... 7 3 RELIANCE ON OTHER EXPERTS ................................................................................. 7 4 PROPERTY DESCRIPTION AND LOCATION ................................................................ 8 4.1 MINERAL RIGHTS PERU .................................................................................. 12 4.3.1 Overview of Peruvian Mining Law .................................................................. 13 5 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY .......................................................................................................... 17 6 HISTORY ...................................................................................................................... 18 6.1 Globetrotters Resources Peru SAC (2011-2013) ............................................... 18 6.2 Lundin Mining Peru SAC (2013-2016) ................................................................ 18 6.3 Work done by Globetrotters Resources Peru SAC, (2017-2018) ........................ 24 7 GEOLOGICAL SETTING AND MINERALIZATION........................................................ 25 7.1 REGIONAL GEOLOGY...................................................................................... 25 7.2 Property Geology ............................................................................................... 28 7.3 Elida Porphyry Geology ..................................................................................... 30 7.3.1 Porphyry Phases................................................................................................ 30 7.3.2 Hydrothermal Alteration and Veining .................................................................. 32 7.3.3 Early Halo Type (“EHT”) ..................................................................................... 33 7.3.4 The Copper Zone ............................................................................................... 33 7.3.5 Other Targets ..................................................................................................... 33 7.3.6 Hypogene .......................................................................................................... 34 7.3.7 Supergene ......................................................................................................... 35 7.3.8 Exploration Potential .......................................................................................... 35 8 DEPOSIT TYPES .......................................................................................................... 36 9 EXPLORATION ............................................................................................................. 40 10 DRILLING ...................................................................................................................... 40 11 SAMPLING PREPARATION, ANALYSES, AND SECURITY ......................................... 40 12 DATA VERIFICATION ................................................................................................... 41 13 MINERAL PROCESSING AND METALLURGICAL TESTING ....................................... 41 14 MINERAL RESOURCE ESTIMATE ............................................................................... 41 15 THROUGH 22 ARE NOT APPLICABLE TO THIS REPORT ......................................... 41 23 ADJACENT PROPERTIES ............................................................................................ 42 24 OTHER RELEVANT DATA AND INFORMATION.......................................................... 42 25 CONCLUSION .............................................................................................................. 43 26 RECOMMENDATIONS ................................................................................................. 45 27 REFERENCES .............................................................................................................. 46 28 CERTIFICATE OF AUTHOR ......................................................................................... 50 29 SIGNATURE PAGE ....................................................................................................... 51 2 Elida Property, Peru NI 43-101 Technical Report Element 29 Resources Inc. List of Figures FIGURE 1: REGIONAL LOCATION MAP ............................................................................................................. 10 FIGURE 2: CONCESSION MAP ......................................................................................................................... 11 FIGURE 3: ALTERATION LOCATION MAP ......................................................................................................... 18 FIGURE 4: DRILLING AND ALTERATION MAPPING ............................................................................................. 22 FIGURE 5: DRILLING AND IP CHARGEABILITY MAP ........................................................................................... 23 FIGURE 6: ANDES REGIONAL GEOLOGY .......................................................................................................... 26 FIGURE 7: LITHOLOGIC UNITS USED DURING THE EXPLORATION CAMPAIGNS OPERATED BY LUNDIN. ................... 27 FIGURE 8: REGIONAL GEOLOGY MAP ............................................................................................................. 29 FIGURE 9: UNIT EPOR1 ................................................................................................................................ 30 FIGURE 10: UNIT EPOR2. ............................................................................................................................. 31 FIGURE 11: UNIT EPOR3 . ............................................................................................................................ 31 FIGURE 12: UNIT EPOR4. ............................................................................................................................. 32 FIGURE 13: UNIT EPOR5. ............................................................................................................................. 32 FIGURE 14: DEPOSIT ALTERATION ZONING ..................................................................................................... 37 FIGURE 15: DEPOSIT MODEL ......................................................................................................................... 38 FIGURE 16: LEACHED CAPPING (OXIDE ZONE) ................................................................................................ 39 FIGURE 17: STOCK WORK VEINING ................................................................................................................ 39 FIGURE 18: QUARTZ-TOURMALINE BRECCIA .................................................................................................... 39 FIGURE 19: PORPHYRY CENTER .................................................................................................................... 39 FIGURE 20: ELIDA INNER PORPHYRY AND CONCENTRIC COPPER ZONES .......................................................... 39 List of Tables TABLE 1: DEFINITIONS, ABBREVIATIONS, AND CONVERSIONS ............................................................................. 7 TABLE 2: CONCESSIONS .................................................................................................................................. 9 TABLE 3: 2014-2015 DRILL HOLE COLLARS .................................................................................................... 20 TABLE 4: 2014-2015 DRILLING SUMMARY ASSAYS ......................................................................................... 21 TABLE 5: AUTHOR SAMPLES .......................................................................................................................... 42 TABLE 6: PROPOSED BUDGET PHASE ONE ..................................................................................................... 45 TABLE 7: PROPOSED BUDGET PHASE TWO ..................................................................................................... 45 3 Elida Property, Peru NI 43-101 Technical Report Element 29 Resources Inc. 1 SUMMARY This report was commissioned by Element 29 Resources Inc. (the “Company”) with offices at 1650-1055 Oceanic Plaza Vancouver, BC and prepared by Derrick Strickland, P. Geo. As an independent professional geologist, the author was asked to undertake a review of the available data, and recommend, if warranted, specific areas for further work on the Elida Property (or the “Property”). This technical report was prepared to support an Initial Public Offering on the TSX Venture Exchange. The Elida property is located at an elevation of 1,600-2,000m in the province of Ocros, in the district of Carhuapampa, Department of Ancash which is 170 km northwest of Lima and roughly 80 km from the coast. The property is accessible along a series of dirt roads from the city of Barranca. The property can be accessed from Lima by a network