ELEM's crown jewel in Peru
The past-producing Lucero Mine ("Lucero"), one of the highest-grade underground mines in Peru's history at grades averaging 19.0g/t Au Equivalent ("Au Eq") (14.0 g/t gold and 373 g/t silver). In its past 5 years of production ending in 2005, it produced on average 40,000oz+/yr.
Assays from March 2023 assays yielded from underground workings 21-ore-grade and high-yield up to 11.7 ounces per ton gold and 247 ounces per ton silver, further validating the potential for a significant high-grade future operation.
Consolidating its focus in this region and its impressive geology, ELEM acquired the Roxana Vein and surrounding 1200ha property, Lucero del Sur 28 via auction held on May 17, 2023, located strategically just east of the high-grade Lucero gold-silver project.
Permitted, Clear Runway to Cashflow Generation
The first-phase strategy to get Lucero to cash flow in two steps:
Carry out an efficient exploration program to review previous workings and explore identified surface and underground veins; bring previous work on site to PEA and construction decision standards, providing confidence in being able to develop a defined resource from the property and extract ore for sale within 12-18 months from today.
Leverage regional infrastructure for commercial offtake, providing non- dilutive cash flow to fund corporate operations and exploration initiatives across the company's portfolio of projects.
Lucero Technical Information
Lucero: Bring into production previously-producing, high-grade gold and silver poised to be brought back into production;
Historical information obtained from Buenaventura indicates the Roxana vein outcrops over a strike length of approximately 100m, with varying widths between 0.20 and 0.50 meters. The vein is dominated by white to hyaline quartz) and altered rock clasts, with lesser amounts limonite patinas, hematite, pyrite, and jarosite. Certain sections feature lenses with argentiferous galena, chalcopyrite, malachite, and azurite. Informal workers have worked this area in the past at strike lengths of approximately 50m and depth of 5m, extracting over 12,000 tonnes of ore yielding grades of 12.5 g/t Au and 1.2 oz/t Ag.