Element79 Gold Corp. Reports
Significant Progress in Community Relations and Development Efforts
in Chachas, Peru
October 9, 2024 - Vancouver, B.C.
-- InvestorsHub NewsWire -- Element79 Gold Corp. (CSE: ELEM) (FSE: 7YS0) (OTC: ELMGF) ("Element79" or the "Company")
is pleased to announce significant progress in its ongoing
community engagement efforts with the community of Chachas, Peru,
near the Company's Lucero Project. These efforts are part of the
Company's broader strategy to align mining operations with
sustainable community development and long-term value creation.
On
October 6, 2024, Element79 representatives, including Rolando
Hinostroza and Cesar Cuadros, addressed over 1,000 residents at a
semi-annual General Assembly held in the annex of Huarocopalca.
This
event was a key step in strengthening the relationship between the
Company and local stakeholders. The Element79 team was successful
in advancing dialogue, as part of the approval process of the
Company's surface rights access for restarting the Lucero Mine.
Included in this general dialogue is the prospect of building a
processing plant, subject to final terms being agreed to.
James
Tworek, Element79 Gold Corp CEO and Director stated: "We are
grateful to have reached this important milestone with the
community. It is a complex process building relationships,
trust and mutual understanding. This vote in our favour shows
that the majority of the greater Chachas community is pro-mining
and pro-Element79 in concept today. We will be proceeding
with final negotiations, with the end goal being our enhanced
investment in operations at Lucero, cognizant that past mining
operators in the region have left precedents leading to hard
feelings, and since that era, there is a contingent of local miners
who have been working independently of mineral right holders for
over a decade. We are comparatively new to the region, with
the intent to abide by the federal and state rules as we restart
operations at Lucero. Element79 Gold Corp is committed to
working with the local miners to help improve the conditions of the
mine operations, and the techniques used at Lucero to optimize
production while upholding the federal standards." Tworek
continued: "Building up to this General Assembly meeting, our
community team has been working earnestly for months, building and
sharing with many Residents of the greater Chachas community. It is
a testament to their experience and hard work to have reached this
formal point of community approval of the Company's rights,
presence and intentions, and we look forward to whittling down
terms to final contracts and timing to get back to work at Lucero
in the most efficient and effective way possible."
Advancing Community
Development
Over
the past several months, the Company has worked closely with the
community of Chachas and its annexes—Nahuira, Tolconi, Chua,
Checotaña, Huarocopalca, Layo, and Anaro—aligning both communal and
corporate initiatives, including discussing contractual terms from
both sides, to foster long-term development.
These
efforts, along with the community decision to approve Element79
Gold Corp's surface rights access in the General Assembly, subject
to final negotiations, have culminated in the establishment of a
"Dialogue and Negotiation Table" between the Company and the
Chachas community over the multiple facets of the Lucero Mine
restart project.
This
Dialogue and Negotiation Table will facilitate discussions on
critical issues such as co-operative use of the infrastructure, and
land-use agreements for surface mining activities. Participants
will include key local organizations such as the Local
Administration Boards (JAL), the Communal Board of Directors, and
the Lomas Doradas Association, alongside community leaders and
other advisors.
Sr.
Melitón Raymundo Carhua Condori, the Communal President of Chachas,
urged residents to support this opportunity for collaboration,
noting the importance of reaching a Formalization Agreement for the
use of surface lands and co-operation between its users. The
Company aims to secure Formalization between local miners who
currently operate under the REINFO program and the mineral right
holders such as Element79 Gold Corp, providing a pathway for legal
mining operations and mutual benefit into the future.
Next Steps for the Lucero
Project
The
Company is committed to finalizing the terms of surface land-use
agreements as soon as possible, anticipated to be around the end of
2024. These agreements, once approved by the Communal Assembly,
will ensure that the project aligns with the community's interests
and promotes sustainable, long-term growth.
In
support of this process, Element79 has already presented a
comprehensive territorial development plan to the communities
including mining existing workings, underground and surface
drilling, exploration, and building a regional plant for processing
ore from the mine and the tailings (tailings business outlined in the
Company's news release from September 26, 2024. This
proposal focuses on mutual benefit and value, recognizing the
unique needs of the region and the long-term benefits of
collaboration between the Company and local stakeholders.
Additionally, the Lomas Doradas Association, representing communal
miners working under the REINFO program, has been fully integrated
into the negotiation process. These miners are focused on obtaining
formal contracts to legitimize their operations, which will ensure
compliance with federal, state and local regulations and open
opportunities for future development.
The
Company is also working closely with the Peruvian Regional
Directorate of Energy and Mines (DREM) in Arequipa to expedite the
Formalization process for these mining operations.
Ongoing Engagement and Investor
Outlook
Element79 remains fully committed to maintaining strong
communication and engagement with the Chachas community throughout
the negotiation process. The Company has established a permanent
Sustainability Office in Chachas, staffed by a local teammate, who
will manage community relations while senior personnel are
off-site.
Investors should watch for upcoming developments as Element79 works
to finalize land-use agreements by year-end and advance
formalization efforts for local miners. The Company's successful
collaboration with the community is expected to enhance the value
of the Minas Lucero Project and contribute to long-term growth and
sustainability.
About Element79 Gold
Corp.
Element79 Gold is a mining company focused on exploring and
developing its past-producing, high-grade gold and silver mine, the
Lucero Project, located in Arequipa, Peru, with the intent to
restart production in the near term.
The
Company holds a portfolio of four properties along the Battle
Mountain trend in Nevada, which are believed to have significant
potential for near-term resource development. Element79 has
retained the Clover project for resource development purposes and
signed a binding agreement to sell three projects, with the closing
date expected on or before November 30, 2024.
The
Company also holds an option to acquire a 100% interest in the Dale
Property, which includes 90 unpatented mining claims located
approximately 100 km southwest of Timmins, Ontario. Recently,
Element79 announced the transfer of this project to its wholly
owned subsidiary, Synergy Metals Corp, as it advances through the
Plan of Arrangement spin-out process.
For
more information about the Company, please visit www.element79.gold
Contact Information
For corporate matters, please contact:
James C. Tworek, Chief Executive Officer and Director
E-mail: jt@element79.gold
For investor relations inquiries, please contact:
Investor Relations Department
Phone: +1.403.850.8050
E-mail: investors@element79.gold
Cautionary Note Regarding
Forward-Looking Statements
This
press release contains "forward-looking information" and
"forward-looking statements" under applicable securities laws
(collectively, "forward-looking statements"). These statements
relate to future events or the Company's future performance,
business prospects, or opportunities, which are based on
management's forecasts and assumptions made considering experience,
historical trends, current conditions, and expected future
developments. Forward-looking statements include, but are not
limited to, statements regarding the Company's business strategy,
future planning, exploration activities, capital projects,
acquisition opportunities, and their potential impact.
Assumptions may prove incorrect, and actual results may differ
materially. Investors should not place undue reliance on these
statements, as no guarantees can be made. Forward-looking
statements are subject to risks and uncertainties, such as the
effects of COVID-19, changes in project parameters, commodity price
fluctuations, local government relations, environmental risks, and
other factors discussed in the Company's public filings available
on www.sedarplus.ca
Although the Company believes its expectations are reasonable,
there can be no assurance that forward-looking statements will be
correct. These statements speak only as of the date hereof. The
Company assumes no obligation to update forward-looking statements,
except as required by law.
Neither
the Canadian Securities Exchange nor the Market Regulator (as
defined in the policies of the Canadian Securities Exchange)
accepts responsibility for the adequacy or accuracy of this
release.
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