ELMGF - Element79 Gold Corp Provides 2023 Summary and Corporate Update with Focus on Bringing Lucero Towards Production in 2024
(TheNewswire)
VANCOUVER, BC - TheNewswire - November 2, 2023 – Element 79 Gold Corp.(CSE:ELEM) (OTC:ELMGF) (FSE:7YS) (" Element79 Gold ", the" Company ") is pleased to share the followingsummary of activities and accomplishments in 2023 as well as providean update on the Company’s focus through 2024.
Since its IPO, Element79 Gold Corp has been on an aggressiveM&A path, acquiring key assets, including the Nevada Portfolio andthe Lucero Gold-Silver project, which is now our primary focus. Ourbusiness model going forward aims for a quick, clear path towards beginningproduction of gold and silver in the near term.
2023 Year-in-Review
This year, we transitioned from aproject incubator to a production focus on our high-grade LuceroProject. As we pivoted business models, the M&A newsreel wasconstant as we completed multiple value-driving divestitures:
-
Lucero: We expanded the property in June2023 receivedExploration Permits in September 2023 , and continued to focus our efforts on our high-grade flagshipproject.
-
Machacala Transaction Cancellation: In March 2023 , wehalted the Machala deal to refocus better and conserve funds. Returnof shares involved with the deal anticipated before end of 2023.
-
Centra Sale: We sold two projects to Centra for CAD $1,000,000 in stock in May2023 . Centra iscompleting its 43-101 on the Long Peak property and commencing finalfilings for its own IPO. Once Element79 receives these shares and arefreely trading, they’ll be strategically managed for corporategrowth and investment into operational budgets.
-
Valdo Sale: We’re also selling three projects to Valdo Minerals for CAD$1,250,000 in stock, through a deal announced in November 2022 and extended in May2023 . Valdo has asimilar business trajectory as Centra, with the timeline staggered byapproximately 9 months, and the Company will strategically managethese shares in a similar fashion as those from Centra.
-
Dale Spinout: In July2023 , wetransferred the Dale Property to Synergy Metals Corp. SpecialShareholder Meeting set for December 11, 2023; Record Date for Noticeof Meeting, Record Date for Voting and Beneficial OwnershipDetermination Date of November 6, 2023. Further progress updates and timingestimates for completion on the Plan of Arrangement Spin Out will beannounced following the meeting.
-
Snowbird Project : Currently under negotiations with Plutus for future projectadvancements.
-
Maverick Springs: Sale Option was initially contracted August 31 ,extension announced on October 23 -Counterparty continues to complete steps required relative to theirown listing process.
-
Battle Mountain Properties : Lower-potential and earlier-stageproperties were dropped in September 2023 to further focus the company’s investments and workefforts.
Element79’s Core Focus: Lucero Gold-SilverProject
Element79 Gold Corp acquired Lucero, f ormerly known as the Shila mine, on June 28, 2022.This is a major development for us, because Shila was last operational in 2005, producing over 40,000oz of goldequivalent (“AuEq”) every year at an impressive grade of 19.0g/t AuEq .
The current permitting secured allows the Company toextract up to 350 tons of ore per day. We’vealso fostered good relations with the local community, signing asocial contract in September,2023 . Historical data outlines 74 high-grade veins at surface, 19of which have been historically explored and all past production hascome out of just 7 veins. In addition to the active production andpotential for production increases, there also exists a potential for bulk tonnage high-sulphidation gold, as well as deepercopper- gold porphyrystyle mineralization..
Figure 1: Identification of aprospective high-sulphidation target at the Andrea area of Lucero,Arequipa, Peru. Source: Condor Resources
What makes Lucero such an attractivetarget?
There’s a common saying in the mining world:“ The best place to find amine is where there used to be one ”. Thismine was owned and operated by Minas Buenaventura S.A. (NYSE:BVN) from1989 to 2005 and historical data indicates the mine had impressivemetrics with recoveries of 94.5 % and 85.5 % for gold and silver, respectively. During the last 5-6 years before the mine was closed (due toeconomic concerns, which we have gathered through research andconversation that the market price of gold dipped below the cost ofproduction), Lucero’s average annual production stood at an impressive 150 tons perday with a 19g/t AuEq grade,yielding 40-50,000oz AuEq per year. This is avery attractive prospect to put back into production today, where$1800+ gold (and having broken past $2000 recently) drives our visionof bringing production back online in the near term.
Lucero: Current Status
The Community of Chachas, Castilla Province, Arequipa Region, has approved the issuance of apermit to Minas Lucero del Sur S.A.C., our wholly-owned subsidiary, to conduct super?cial mining exploration activities, including geological mapping and selective sampling, for a duration of four months, commencing from September 1, 2023, through December 31, 2023. Monthly work plans are underway and we are re-creating the“lost” historical data sets of both above-ground and undergroundmapping, sampling and trenching. This activity will create the datarequired to generate drill targets and provide much of the informationtowards PEA/PFS studies in 2024.
Figure 2: Geological Mapping atLucero project, completed October 2023 for Element79 Gold Corp by OreDiscovery LLC team
Community Involvement
The Company’s management team and contractors werepresent in the Community of Chachas, Peru from October 6-8 for meetings and a formal donation ceremony of 3,000 metres of 8-inch piping was delivered to the community. This initiative underscores thecompany's commitment to nurturing positive relationships with localcommunities while upholding the highest standards of environmental and ethical responsibility in itsexploration endeavors.
Picture 1: Element79 Gold Corp team,Ore Discovery LLC team and Chachas community leaders at communitymeeting, corporate donation ceremony. Chachas, Arequipa, October 7,2023
A second similar donation, a delivery of piping, isbeing planned for the end of the year, with delivery to occur inDecember 2023. Further updates on this activity will be provided indue course.
Picture 2: A shipment of 8” PVCpiping donated to the Chachas Community, Peru, October 7, 2023.
Ore Discovery LLC , with a local branch of their operations in Lima, has beenengaged as the Company’s core geologicalservice contractor to carry out the geological mapping and sampling works onsite.
Pictures 3 & 4: Lucero Site Visit– Ore Discovery LLC team revisiting extension of Apacheta vein,
where samples have yieldedmulti-ounce results asreported in March 2023. October 7, 2023
Optimism Through Current ArtisanalMining Behaviour
There has been a burgeoning growth in production fromthe local artisanal miners at Lucero: Only a year ago, reports told usthat local artisanal miners were producing at a rate of 9-10 tons perweek. Fast forward to today, based on our recent observations from ourOctober 2023 trip, that number has soared to an estimated 90-100 tonsper week. Our work program inMarch 2023 yielded significant high-gradesamples , which reinforces whythey’re actively working here, at growing rates. We believe thisreinforces the viability of bringing larger-scale production online. Element79’s management team has created plans for a bulk samplingprogram to further prove the economic viability of mining the existingveins in 2024 and is in discussions with several regional mills forthe potential of process this bulk sample with the additional goal offostering future toll milling partnerships to bring these high-gradeore to market.
Picture 5: Lucero site visit -Apacheta vein – with trucks hauling the week’s worth of extractedore for the local artisanal mining groups. October 7, 2023
Future Plans at Lucero
The Element79 Gold Corp team has a clear vision for thefuture. Our short-term goal starting in 2024 involves bulk sampling and sales to local mills to gain additional knowledge of the depositas well as generate revenue. We’re also discussing a Letter ofIntent for tolling ores at a local full-circuitmill, which currently has additional capacity on top of its day-to-dayinflows from other sources.
Further, we acquired Lucero delSur 28 in June 2023 , enhancing ourportfolio in Peru. The acquisition boosted our position by 1,200hectares at Lucero del Sur 28, which is located strategically justeast of the high-grade Lucero gold-silver project. Today, additionalupcoming strategic asset acquisitions are being actively negotiated.
Picture 6 – (from L to R)J ose Santosof Ore Discovery LLC, James Tworek, Kim Kirkland and George Tumur ofElement79 Gold Corp at the entrance to the Apacheta vein’s mineaddit, where artisanal miners are actively extracting ore on a weeklybasis. October 7, 2023
Looking Ahead
We’re thrilled to share that our strategic roadmapfor the coming year is robust and filled with promising opportunities.First on the agenda is an advanced drilling program at Lucero based onthe data gathered in the 2023 program. Drilling will be set tocommence after the rainy season, around March-April 2024.
Our intent to drill out the existing veins goes beyondmerely verifying a Resource: given that Lucero is a past-producingmine and the local artisanal miners are working there today, we areconfident that economic resources can be outlined there are Resourcespresent and available for extraction. As designed by VP ExplorationKim Kirkland, it is our intention that this drill program will alsosupport a Preliminary Economic Assessment (PEA) enabling us toeventually move into Pre-Feasibility Studies (PFS). These areimportant, confidence-building steps in the trajectory towardssustainable production.
This focused approach enables us to leverage our teamstrengths, cultivate lasting community relationships, and mostcrucially, amplify mutual benefits and profitability for allstakeholders involved.
We are also reviewing multiple ways to bring productionand cash flow generation in the near term, through working with thelocal community and the local artisanal miners; designing ourbulk-sampling program and sourcing offtake agreements with local andnational-level mills; through developing our own plans for eventuallybuilding a mill on site. We are excited to provide updates on this asdevelopments unfold.
As we look toward the future, our confidence inElement79 Gold Corp’s growth prospects and operational excellencehas never been stronger. We’re committed to executing our strategywith precision, all while upholding the highest standards ofenvironmental and ethical responsibility.
Thank you for your continued support and stay tuned forwhat promises to be an exciting and transformative journeyahead!
James C. Tworek
CEO, Director
Element79 Gold Corp
Picture 7 – Lucero Site Visit –Element79 Gold Corp hat beside an Apacheta (waymarker, or milestone simliar to Inukshuk in Canada) built by CEO &Director James Tworek, on a peak at the Lucero mine complexoverlooking the Apacheta vein, simbolizing “we’ll be back”.
+++
Qualified Person
The technical information in this release has beenreviewed and verified by Neil Pettigrew, M.Sc., P. Geo., Director ofElement79 Gold and a "qualified person" as defined byNational Instrument 43-101.
About Element79 Gold Corp.
Element79 Gold is a mining company focused on gold andsilver committed to maximizing shareholder value through responsiblemining practices and sustainable development of its projects. Element79 Gold's focus is on developing its past-producing,high-grade gold and silver mine, the Lucero project located inArequipa, Peru, with the intent to restart production in the nearterm.
The Company also holds a portfolio of 5 propertiesalong the Battle Mountain trend in Nevada, with the Clover and WestWhistler projects believed to have significant potential for near-termresource development. Three properties in the Battle MountainPortfolio are under contract for sale to Valdo Minerals Ltd., with ananticipated closing date around the end of 2023. The Company hasalso signed an Option Agreement to sell the Maverick Springs project,an advanced-stage exploratory property with an Inferred Resource of3.71MMoz AuEq (1.37MMoz Au and 175MMoz Ag) and anticipates completingthis sale on or before March 28, 2024.
In British Columbia, Element79 Gold has executed aLetter of Intent and funded a drilling program to acquire a privatecompany that holds the option to 100% interest of the SnowbirdHigh-Grade Gold Project, which consists of 10 mineral claims locatedin Central British Columbia, approximately 20km west of Fort St.James.
The Company has an option to acquire a 100% interest inthe Dale Property, 90 unpatented mining claims located approximately100 km southwest of Timmins, Ontario, and has recently announced thatit has transferred this project to its wholly-owned subsidiary,Synergy Metals Corp, and is advancing through the Plan of Arrangementspin-out process through the rest of 2023.
For more information about the Company, please visit www.element79.gold
Contact Information
For corporate matters, please contact:
James C. Tworek, Chief Executive Officer E-mail: jt@element79gold.com
For investor relations inquiries, pleasecontact:
Investor Relations Department
Phone: +1.613.879.9387
E-mail: investors@element79.gold
Cautionary Note Regarding ForwardLooking Statements
This press release contains "forward?lookinginformation" and "forward-looking statements" underapplicable securities laws (collectively, "forward?lookingstatements"). These statements relate to future events or theCompany's future performance, business prospects or opportunities thatare based on forecasts of future results, estimates of amounts not yetdeterminable and assumptions of management made in light ofmanagement's experience and perception of historical trends, currentconditions and expected future developments. Forward-lookingstatements include, but are not limited to, statements with respectto: the Company's business strategy; future planning processes;exploration activities; the timing and result of explorationactivities; capital projects and exploration activities and thepossible results thereof; acquisition opportunities; and the impact ofacquisitions, if any, on the Company. Assumptions may prove to beincorrect and actual results may differ materially from thoseanticipated. Consequently, forward-looking statements cannot beguaranteed. As such, investors are cautioned not to place unduereliance upon forward-looking statements as there can be no assurancethat the plans, assumptions or expectations upon which they are placedwill occur. All statements other than statements of historical factmay be forward?looking statements. Any statements that express orinvolve discussions with respect to predictions, expectations,beliefs, plans, projections, objectives or future events orperformance (often, but not always, using words or phrases such as"seek", "anticipate", "plan","continue", "estimate", "expect","may", "will", "project","predict", "forecast", "potential","target", "intend", "could","might", "should", "believe" and similarexpressions) are not statements of historical fact and may be"forward?looking statements".
Actual results may vary from forward-lookingstatements. Forward-looking statements are subject to known andunknown risks, uncertainties and other factors that may cause actualresults to materially differ from those expressed or implied by suchforward-looking statements, including but not limited to: risksrelated to the integration of acquisitions; actual results ofexploration activities; conclusions of economic evaluations; changesin project parameters as plans continue to be refined; commodityprices; variations in ore reserves, grade or recovery rates; actualperformance of plant, equipment or processes relative tospecifications and expectations; accidents; labour relations;relations with local communities; changes in national or localgovernments; changes in applicable legislation or application thereof;delays in obtaining approvals or financing or in the completion ofdevelopment or construction activities; exchange rate fluctuations;requirements for additional capital; government regulation;environmental risks; reclamation expenses; outcomes of pendinglitigation; limitations on insurance coverage as well as those factorsdiscussed in the Company's other public disclosure documents,available on www.sedarplus.com . Although theCompany has attempted to identify important factors that could causeactual results to differ materially from those contained inforward-looking statements, there may be other factors that causeresults not to be as anticipated, estimated or intended. The Companybelieves that the expectations reflected in these forward?lookingstatements are reasonable, but no assurance can be given that theseexpectations will prove to be correct and such forward?lookingstatements included herein should not be unduly relied upon. Thesestatements speak only as of the date hereof. The Company does notintend, and does not assume any obligation, to update theseforward-looking statements, except as required by applicablelaws.
Neither the Canadian SecuritiesExchange nor the Market Regulator (as that term is defined in thepolicies of the Canadian Securities Exchange) accepts responsibilityfor the adequacy or accuracy of this release.
Copyright (c) 2023 TheNewswire - All rights reserved.