February 10, 2022
Luminex Resources Corp. (TSXV:LR, BUY, C$2.25 target, Timothy Lee) provided an update on recent, ongoing and potential future drilling activities at its 98.7%-owned, flagship Condor Au project in Ecuador. We note that the company has drilled multiple targets at Condor in recent months, with assays pending for multiple areas, and has previously released a positive PEA on Condor North (read more). In late 2021, the company drilled seven holes testing the Nayumbi target, an early-stage epithermal target located on the southern part of the project. Six of these seven holes were reported to contain trace elements indicative of a low-sulphidation epithermal system but did not contain Au or Ag of economic grades. Based on visual observation, the seventh hole, which appears to contain low levels of sulphide minerals, is also unlikely to contain significant Au or Ag. At the northwest extension of the Camp deposit area, the company completed a single diamond drill hole to a planned depth of ~300m to determine whether Camp extends to the northwest, and assays are pending. At the Los Cuyes West target area, Luminex drilled a low angle drill hole to target high-grade mineralization. After receipt of assays from these holes, the company will prioritize further exploration work on several targets on the Condor property. At the Camp deposit, Luminex is contemplating stepping out laterally and to depth in an effort to increase the Camp deposit mineral resource estimate. At the new porphyry Cu-Au-Mo discovery at Wantinza Alta and Prometedor targets, Luminex is conducting further field work to identify potential mineralization, potentially leading to drilling. Lastly, at Santa Barbara, work in 2018 targeted the eastern side of the anomaly, and Luminex may re-test this underexplored area. We are encouraged that the company’s Condor-based drill rig has now been mobilized to the Orquideas project, located 15km SW of Condor, to begin drilling under the earn-in-agreement with JOGMEC announced on December 30, 2021. This is expected to consist of a five hole, 2,500m program testing the porphyry Cu-Mo system. Overall, while the initial results from Nayumbi may be seen as somewhat disappointing, we continue to believe Condor has significant exploration potential, as the property hosts numerous other targets, including those located near the existing resources. Read more
