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Element 29 is a copper exploration company focused on advancing its projects in Peru. In 2024-2025, the company aims to expand the Elida resource through additional drilling, targeting a 500-million-ton open-pit deposit with long-term potential for a billion tons. Permitting is underway at Flor de Cobre, though no immediate drilling is planned. Financing will primarily come from market raises, with strategic investments considered but not prioritized. Marketing efforts include investor outreach through conferences and digital campaigns, with a $400,000 CAD budget allocated for the year.
TL;DR
- – Element 29’s primary focus is expanding the Elida copper-molybdenum resource, with a near-term goal of defining a 500-million-ton open-pit deposit and a longer-term target of 1 billion tons.
- – The company faces grade concerns at Elida, with an average of 0.32% copper, but believes its low elevation, proximity to infrastructure, and potential for favorable metallurgy offset this challenge.
- – Financing remains a key issue, with $2 million currently in the bank, and future funding expected to come from market raises rather than asset-level deals, though strategic investments are not entirely ruled out.
- – The Flor de Cobre project remains on hold due to permitting delays, with Element 29 focusing on securing approvals rather than immediate drilling.
- – A significant marketing push is planned for 2025, with a $400,000 CAD budget, targeting increased visibility through conferences, digital campaigns, and investor outreach in key mining markets.
Who is Richard Osmond?
Richard Osmond has built his career in the mining industry working with major mining companies, including Falconbridge (now Glencore), Inco (now Vale), and Anglo American. He was involved in the early exploration of Voisey’s Bay, a project that was later sold to Inco for over $4 billion. He also contributed to reserve expansion at the Raglan Mine and was part of Anglo American’s exploration team for North America and Europe.
Osmond later founded GlobeTrotters Resource Group, a prospect generator focused on South American copper projects, which spun out Element 29 Resources
He currently holds approximately 6% of Element 29’s shares, with a personal stake close to two million shares.
How Significant is Element 29 to the CEO?
Osmond states that Element 29 is one of his two most significant investments, the other being GlobeTrotters. He asserts that his financial commitment demonstrates his confidence in the company’s future.
How is Conflict of Interest Managed Between Element 29 and GlobeTrotters?
GlobeTrotters retains a royalty on Element 29’s projects, which Osmond claims was put in place to offset potential dilution when the spin-out occurred. According to him, no personal royalties exist in his name or those of other executives and directors. While Element 29 was initially intended to operate independently, Osmond re-assumed the CEO role following leadership changes and maintains that the companies are separate entities.
How Did Osmond Get Injured While Exploring in Peru?
Osmond revealed that he suffered a serious injury after an ambush while conducting exploration work in rural Peru. He noted that working in the Andes carries unique risks, including difficult terrain, transportation hazards, and interactions with local communities, some of which are supportive while others are not.
However, he did mention that Peru remains a safe jurisdiction to operate in, in his own opinion.
Who are the New Directors and What is Their Role?
Element 29 brought in three directors in 2023:
- Brad Mercer (Chair), former COO of Capstone Mining, with extensive experience growing mid-tier mining companies.
- Chet Idziszek, a geologist involved in multiple major discoveries, including Voisey’s Bay and Cobre Panama.
- Mary-Carmen Vera, a Peruvian-Canadian geological engineer with experience in community relations and ESG practices.
The stated goal of this restructuring was to bring in individuals with strong networks, technical expertise, and operational experience.
How Are Directors Compensated?
Directors are compensated through stock options and cash payments.
Due to budget constraints, Element 29 has attempted to reduce administrative costs by sharing resources between Element 29, GlobeTrotters, and Forte Minerals. The company reports having cut general and administrative (G&A) expenses from $200,000 to approximately $100,000 per month.
What is the History of the Elida Copper Project?
Elida was initially discovered by GlobeTrotters Resource Group, a private prospect generator specializing in identifying copper porphyry targets in South America. Recognizing its geological potential, GlobeTrotters optioned the project to the Lundin Group, a well-known mining company with a strong track record in copper exploration and development.
Under the agreement, Lundin conducted 9,800 meters of drilling, which confirmed a large porphyry system with significant copper and molybdenum mineralization. However, in 2016, Lundin relinquished the project, not due to technical shortcomings but largely because of a decline in copper prices (~$2.00/lb at the time) and a shift in the company’s strategic priorities toward its producing assets, such as the Candelaria mine in Chile and the Eagle nickel mine in Michigan.
In 2018, Element 29 regained full ownership of Elida and resumed exploration, including additional drilling. This work culminated in 2021 with the release of an initial resource estimate, outlining a significant copper-molybdenum deposit with potential for open-pit development. The resource remains open for expansion, with further drilling planned to define the full extent of mineralization.
Is the Grade at Elida Too Low?
Elida has an average grade of 0.32% copper, which is below the typical economic threshold for large porphyry copper mines. However, according to Osmond, the project has strategic advantages, including:
- Low elevation compared to many other Peruvian projects.
- Proximity to ports and infrastructure.
- Minimal deleterious elements, which could lead to straightforward metallurgy.
Osmond states that while the overall resource at Elida averages 0.32% copper, there are higher-grade zones within the deposit that could enhance project economics. One such zone contains 60 million tonnes grading above 0.5% copper, based on a 0.4% cut-off grade. This is significant because higher-grade material can improve early-stage project economics, potentially serving as a starter pit in a future mining operation.
Higher grades translate to lower unit costs per pound of copper produced, as less material needs to be processed to yield the same amount of metal. Additionally, these zones appear to be located near surface, which could reduce strip ratios and improve mineability in the early years of production.
However, the extent and continuity of these higher-grade zones will require further drilling to refine resource estimates and assess the feasibility of a selective mining approach. If Element 29 can demonstrate that these higher-grade pockets are laterally extensive and predictable, they could play a key role in making the project more attractive to potential strategic investors or major mining companies looking for scalable, near-surface copper deposits.
Are There Any Deleterious Elements That Could Affect Metallurgy?
According to Element 29, preliminary studies indicate that Elida does not contain significant arsenic or other elements that would impact concentrate quality. However, metallurgical testing has not yet been completed.
Does the Deposit Improve with Depth?
Recent drilling at Elida indicates that copper grades improve with depth, suggesting the presence of a more mineralized core at deeper levels of the porphyry system. Initial results show a transition from pyrite-rich zones near the surface to chalcopyrite-dominant mineralization at greater depths. This is significant because chalcopyrite is the primary copper-bearing mineral in most large-scale porphyry deposits and is associated with higher copper recoveries and improved metallurgy compared to pyrite-dominated zones.
According to CEO Richard Osmond, these deeper chalcopyrite-rich zones could indicate the presence of a well-preserved, high-grade core of the system, which is often a hallmark of large, economically viable porphyry copper deposits. This interpretation aligns with classical porphyry zonation models, where the highest copper grades tend to concentrate in the deeper potassic alteration zones, while near-surface mineralization is often overprinted by phyllic (pyrite-rich) alteration, which can dilute copper grades.
The company plans further deep drilling to test whether these trends continue at greater depths and to determine whether higher-grade copper mineralization extends beyond the current resource boundary. If confirmed, this could significantly enhance Elida’s overall economic potential, as deeper, higher-grade zones could support a bulk underground or expanded open-pit mining scenario, depending on the deposit’s overall geometry and continuity.
What Are the Next Steps for Elida?
The company is aiming for a resource expansion to 500 million tons of open-pit material, with a long-term goal of defining a 1-billion-ton resource. The current Phase 3 drill program consists of six holes (5,000 meters), two of which have been completed.
The company has approximately $2 million in the bank and plans to resume drilling in Q2 2024 after pausing for the rainy season.
How Will Element 29 Finance Future Work?
Osmond states that the company prefers to raise capital through market financing rather than selling interests in its projects. He acknowledges the trend of major miners making strategic investments in juniors but emphasizes that Element 29 is not currently seeking a partner at the project level.
What Mining Companies Would Be a Logical Fit for Elida?
Osmond suggests that Elida’s location in Peru makes it attractive to large mining companies with existing operations in the country. He highlights its potential as a low-elevation, coastal copper-molybdenum deposit with relatively simple metallurgy.
Will the 2026 Peruvian Elections Affect the Mining Sector?
Osmond downplays concerns about nationalization, emphasizing that Peru’s economy is heavily dependent on foreign investment in mining, which accounts for a significant portion of the country’s GDP and export revenues. He argues that any move toward nationalization would risk driving away major international mining companies, which provide capital, infrastructure, and employment, ultimately harming Peru’s economic stability.
He also highlights Peru’s existing trade agreements and bilateral investment treaties, particularly with Canada, the United States, and China, which provide legal protections for foreign investors. These agreements make it difficult for any government to unilaterally nationalize assets without facing severe economic and legal consequences, including arbitration cases and a loss of investor confidence.
While he acknowledges that policy shifts are always possible, particularly with elections approaching in 2026, he believes any changes would likely be incremental rather than extreme, such as adjustments to taxation or permitting regulations rather than outright expropriation. He notes that despite political fluctuations in the past, Peru has remained one of the world’s top copper-producing nations, with successive governments recognizing the strategic importance of maintaining a competitive mining sector.
What is the Relationship Between Element 29 and Local Communities?
Element 29 claims to have good relationships with local communities, hiring workers from nearby towns and supporting agricultural and social projects. The company pays access agreements but states that it does not make direct payments to individuals outside of employment contracts.
What is Happening with the Flor de Cobre Project?
Flor de Cobre, located in southern Peru, has faced delays due to permitting issues and community designation changes. The company let go of its option on the Candelaria project but still controls the nearby Atravesado target. According to Osmond, Element 29 is focusing on securing permits rather than immediate drilling.
How is Element 29 Planning to Market Itself in 2025?
The company is expanding its investor outreach through conferences and marketing campaigns. Planned events include PDAC, SMI, and Beaver Creek, alongside digital marketing efforts.
Osmond estimates a marketing budget of approximately $400,000 CAD for the year, with a focus on short-term contracts to gauge effectiveness.
Element 29 Resources CEO Interview With Richard Osmond
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