VANCOUVER, BC / ACCESSWIRE / January 17, 2020 / Lucky Minerals Inc. ("Lucky" or the "Company") is pleased to announce its plans to advance its properties. Lucky will be focusing its efforts on gold exploration in 2020 as it seeks a joint venture partner for the advancement of known copper opportunities on its 550 km2 Fortuna Project in Ecuador.
Lucky CEO, Adrian Rothwell, stated "Fortuna is a large project, with multiple known copper-moly-gold porphyry type exploration and high sulfidation epithermal gold targets located on the twelve concessions. We believe that a project of this size offers the potential for multiple partners. Our strategy to focus our capital on gold discovery and to use partnerships to explore for copper deposits should allow us to quickly showcase the potential of the Fortuna Project."
Lucky Appoints Exploration Manager
Lucky is pleased to welcome Mr. Victor A. Jaramillo, M.Sc.A, P.Geo. as Exploration Manager and Qualified Person. We thank Mr. Alain Moreau, formerly the Company's Vice President of Exploration, and member of the Technical Advisory Board for his services to the Company over the past three years. Mr. Moreau was part of the discovery team on the El Buitre Cu-Mo-Au porphyry target and was instrumental in the Company's acquisition of the Fortuna Project.
Mr. Jaramillo is an international geological consultant with over 30 years' experience in regional exploration, mineral property evaluation, resource estimation and mine operations and focused on precious metal deposits and porphyry systems. He was instrumental in the discovery of the La Langosta (Mexico) Cu-Au porphyry, Santa Rosa Au mine and Las Lomas Au porphyry (Peru) and has previously held positions in Canada, the United States, Mexico, and South America with major and junior mining companies as exploration manager, senior project geologist and chief mine geologist. Mr. Jaramillo is a Professional Geoscientist, registered with the Association of Professional Engineers and Geoscientists of British Columbia. He is a Fellow of the Geological Association of Canada and Fellow of the Society of Economic Geologists. Mr. Jaramillo holds an M.Sc.A. degree in Mineral Exploration from McGill University.
Lucky CEO, Adrian Rothwell, stated "It is a privilege to work with someone with such extensive experience in porphyry and epithermal systems in this region of the world. His experience in project review, and diligence in planning and execution will be a welcome addition to the team."
Capital Plan
Subsequent to the Company's news release dated December 5, 2019, the settlement of a total of $1,569,993 in debts through the issuance of 31,399,851 common shares of the Company has been completed.
The Company intends to close the balance of the debt settlement transaction to American CuMo and certain directors and officers of the Company of an aggregate of $114,057 of debt consisting of $4,584 as to technical committee fees, $53,113 as to directors fees, and $56,360 as to consulting fees, through the issuance of 2,281,144 common shares of the Company (the "Final Shares") at a deemed price of $0.05 per Final Share (the "Transaction") upon receipt of shareholder and final TSX Venture Exchange approval. All of the Final Shares of the Company issuable in connection with the Transaction will be subject to a four month hold period.
This settlement was necessary to make future capital available to execute the Company's operating plan, including exploration of Fortuna.
Illustration 1: Fortuna Concession Map
Illustration 2: Fortuna Regional Map
Fortuna
The Fortuna Project is comprised of twelve concessions and occupies 550 square kilometers within the central cordillera in the heart of a proven and highly mineralized Miocene age volcanic belt which extends from Chile and Peru into Ecuador where significant Porphyry copper deposits have been found. The recently discovered (2018) El Buitre Porphyry System, is a Tertiary (Mid-Miocene) intrusion, which is located along a major NNE regional fault which lies at the junction of a major EW fault. Terra-Spec and multi-elements assays have defined a significant alteration footprint, comprising a phyllic (quartz-sericite-pyrite) and potassic (secondary biotite and k-spar) altered envelope. This alteration coincides with Mo-Cu-Bi anomalous rock Geochem samples which cover an area of more than 2 square kilometers.
Mapping and surface sampling completed to date on the El Buitre Porphyry system, is contained within the Fortuna 3 concession. It lies approximately 60 km north-west of the Fruta del Norte mine. At the present stage, the El Buitre Porphyry is an almost ready Cu-Mo-Au drill target. Ground geophysics (IP/res) is planned to help locate the best drill locations.
The Company has signed Non-Disclosure Agreements with several major publicly traded and private mining groups to explore the possibility of entering into strategic partnerships, joint ventures or working alliances.
While Lucky's management team and board of directors continue discussions with these interested parties, a number of site visits are planned to observe and evaluate the potential scope of the porphyry targets.
Exploration Focus for 2020
Priority exploration targets include:
Epithermal Precious Metal Exploration: A total of 7 dome-like features within a NE trending altered volcanic belt (Fortuna 8, 9 and 10) have been outlined. Within this belt, are areas of quartz stockwork veinlets in kaolinite and alunite altered volcanic rocks. Some of the quartz veinlets show banded and vuggy textures. Also, coincidental anomalous Au, As and Sb rock chip geochemistry corroborates the location of these highly prospective areas. Initial work will include detailed geological mapping and rock chip and soil sampling.
El Buitre Porphyry Exploration: Satellite imagery has identified a caldera-like feature which overlaps the Fortuna 1 and 3 concessions. It contains an extensive phyllic altered area with quartz stockwork veinlets and breccia zones within an area of approximately 3 x 2km. This alteration zone is coincidental with rock chip Cu, Au, Mo and Bi Geochem anomalies.
The company and/or a partner, intend to complete an infill rock and soil sampling program followed by ground 3D IP / res geophysics. This work will assist in locating the best drill locations.
Emigrant Project Update
In November 2015 the Company submitted an application for an exploration license to the Montana Department of Environmental Quality ("DEQ"). Lucky sought and received an exploration license to conduct a modest, first pass, exploration effort on the St. Julian claim block, private property located in the Emigrant Mining District, near Emigrant, Montana. Despite the fact that Lucky only proposed very minor exploration and that the DEQ concluded the work proposed had no material impact on the environment, two local environmental activist groups, Park County Environmental Council and the Greater Yellowstone Coalition (the "Plaintiffs") sued in district court claiming violations of Montana's Environmental Policy Act (MEPA) including constitutional implications.
The lawsuit proceeded in Park County district court where the local judge found in favor of the Plaintiffs and ruled against Lucky Minerals, the DEQ, and Montana's Attorney General Tim Fox's request that the district court deny the Plaintiffs' complaint and Plaintiffs' motion for vacatur of Lucky's exploration license and thereby uphold Lucky Mineral's private property rights. The district court ruled that not only did DEQ err in granting Lucky's license, but also that the provision in MEPA that limited Plaintiffs' remedy to remand to the agency was unconstitutional. Based on Montana's law and constitution, Lucky and the State Defendants believe the district court was incorrect and have appealed the matter to the Montana Supreme Court.
Further to the announcement in the Company's news release on April 23, 2019, whereby the Company stated that it was considering its options regarding the court order for Vacatur of Exploration License, the parties are currently briefing the matter which is likely to be completed in February 2020, with a final decision expected sometime prior to the 2020 field season in Montana. Lucky is optimistic that a favorable ruling from the Supreme Court will allow it the right to continue exploration in due course.
Pending resolution of this matter in the Supreme Court, the Company has invoked Force Majeure provisions of the option agreement on the St Julien Claims. Accordingly, option payments falling due and payable prior to resolution of the lawsuit shall be given an extension equal in length to the period of the delay resulting from the lawsuit.
Certificate of Default Judgement
On January 9, 2020, the Company received a Certificate of Default Judgement for non-payment of a services agreement in the amount of $2,931.35, which was in dispute. The Company did not expend any time or resources on the legal matter as it was considered a minor matter that would be resolved. The Company has since paid the amount of the judgement in full.
About Lucky
An exploration and development company targeting large-scale mineral systems in proven districts with the potential to host world class deposits. Lucky Minerals owns a 100% interest in the Fortuna and Emigrant Projects.
The Company's Fortuna Project is a royalty-free 550km2 (55,000 Ha, or 136,000 Acres) exploration concession. Fortuna is located in a highly prospective, yet underexplored, gold belt in southern Ecuador.
The Emigrant Creek Project covers a 15 km2 area in an intensely altered and mineralized porphyry copper-gold-molybdenum system in southern Montana.
The Qualified Person as per NI 43-101 is Mr. Victor Jaramillo, P.Geo. who is responsible for the scientific and technical information contained in this news release.
ON BEHALF OF THE BOARD
"Adrian Rothwell"
Chief Executive Officer
Further information on Lucky can be found on the Company's website at www.luckyminerals.com and at www.sedar.com, or by contacting Adrian Rothwell, President and CEO, by email at info@luckyminerals.com or by telephone at (866) 924 6484.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Cautionary Statement Regarding Adjacent Properties and Forward-Looking Information
This news release contains forward-looking statements relating to the future operations of the Company and other statements that are not historical facts. Forward-looking statements are often identified by terms such as "will", "may", "should", "anticipate", "expects" and similar expressions. All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding the future plans and objectives of the Company are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Such factors include, but are not limited to: uncertainties related exploration and development; the ability to raise sufficient capital to fund exploration and development; changes in economic conditions or financial markets; increases in input costs; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; technological or operational difficulties or inability to obtain permits encountered in connection with exploration activities; and labor relations matters. This list is not exhaustive of the factors that may affect the Company's forward-looking information. Important factors that could cause actual results to differ materially from the Company's expectations also include risks detailed from time to time in the filings made by the Company with securities regulations.
The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company. The reader is cautioned not to place undue reliance on any forward-looking information. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The forward-looking statements contained in this news release are made as of the date of this news release and the Company will update or revise publicly any of the included forward-looking statements as expressly required by Canadian securities law.
SOURCE: Lucky Minerals Inc.
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