Luminex Provides Tarqui Update and Drill Results

Rhea-AI Summary

Luminex Resources Corp. (LUMIF) announced updates on its Tarqui project following BHP's Phase 2 drilling program, revealing assays from seven out of ten holes. Key results include 0.32% copper equivalent over 218 meters from hole TARQ4D and 0.18% from TARQ10D. BHP, however, has opted not to continue its earn-in agreement and will transition operatorship back to Luminex by Q4 2022. The total drilling to date reaches 6,862 meters across thirteen holes, focusing on significant copper-molybdenum anomalies.

Positive

• Drilling results include 0.32% copper equivalent over 218 meters from TARQ4D.
• Total drilling of 6,862 meters across the Tarqui project indicates substantial exploration activity.

Negative

• BHP has decided to discontinue its earn-in agreement, affecting potential funding and partnership benefits.
• Transitioning operatorship back to Luminex may lead to operational delays or uncertainty in project continuity.

Drilling Highlights:

• TARQ4D – 0.32% copper equivalent over 218 metres from surface
• TARQ10D – 0.18% copper equivalent over 72 metres from 72 metres down hole

VANCOUVER, BC, July 11, 2022 /PRNewswire/ - Luminex Resources Corp. (TSXV: LR) (OTCQX: LUMIF) (the "Company" or "Luminex") would like to provide an update on its Tarqui project, where BHP Group Limited ("BHP") has completed its Phase 2 drill program that commenced in late 2021, pursuant to a July 2019 earn-in and joint venture agreement. BHP completed the current drill program in June 2022 and has received assays from seven of ten holes. Drilling at the project has now totaled 6,862 metres, over thirteen drill holes between the Phase 1 and Phase 2 programs.

BHP has formally notified Luminex that it will not be continuing with the earn-in at Tarqui and will begin the process of transitioning the operatorship back to Luminex, with expected completion in Q4 2022. Luminex will review all of the project data and work completed to date and evaluate next steps for the Tarqui project.

Prior to drilling, BHP conducted surface geological mapping and rock chip and soil sampling comprised of 1,015 samples and 2,815 samples respectively. Additionally, the company contracted Geotech to conduct a helicopter borne survey with a VTEM (Versatile Time Domain Electromagnetic) system comprising 349 line kilometres over the property.

Drilling targeted two large (>2 square kilometre) copper-molybdenum anomalies (illustrated in Figure 1) with coincident conductive and magnetic response. At these two target areas, mineralization is related to diorite and granodiorite porphyry stocks hosted within the Jurassic Zamora batholith, which in turn intrudes Cretaceous Sedimentary rocks. At both, mineralization is associated with potassic alteration and outboard propylitic alteration that is overprinted by intermediate sulphidation zinc-lead-silver veins. Drilling within the two copper soil anomalies consistently intersected reportable copper-molybdenum intervals, that are provided in Table 1, with drill hole locations illustrated in Figure 1.

Table 1. Drill results from Tarqui Hole TARQ4D to TARQ10D.

Hole	Depth / Azimuth / Inclination	From (m)	To (m)	Length (m)	Cu (%)	Au (g/t)	Ag (g/t)	Mo (ppm)	Cu Eq. (%)
TARQ4D	634m / 225 °/ - 70 °	4	222	218	0.29	0.03	0.7	5.97	0.32
Incl.		16	130	114	0.32	0.04	0.82	7.2	0.36
Incl.		16	24	8	0.46	0.04	1.8	14.7	0.51
Incl.		32	50	18	0.43	0.05	0.74	2.6	0.48
Incl.		122	130	8	0.47	0.05	0.89	1.4	0.52
TARQ5D	514m / 255 °/ - 60 °	74	90	16	0.11	0.17	0.71	3.91	0.25
TARQ6D	500m / 000 °/ - 60 °	74	82	8	0.22	0.014	0.71	5.58	0.24
TARQ7D – Hole lost	70m / 075 °/ -60 °	62	70.4	8.4	0.18	0.54	8.8	0.02	0.20
TARQ8D	504m / 000 °/ -90 °	No significant intercepts
TARQ9D	511m / 250 °/ -60 °	No significant intercepts
TARQ10D	500m / 075 °/ -60 °	72	144	72	0.14	0.57	10.35	0.04	0.18
		182	200	18	0.11	0.37	11.6	0.02	0.13

Note: Intervals in the reported holes are calculated using a cut-off of 0.10% Cu with maximum internal dilution of eight continuous metres. Sampling is done in consistent, continuous 2-metre intervals. Equivalent values were calculated using copper equivalent values were calculated using the following prices: a gold price of US$1,600 per ounce, a copper price of US$3.00 per pound, a molybdenum price of US$8.00 per pound and a silver price of US$20.00 per ounce. No allowances have been made for recovery losses that may occur should mining eventually result.

Qualified Persons

Leo Hathaway, P. Geo, Senior Vice President Exploration of Luminex and the Qualified Person as defined by National Instrument 43-101 Standards of Disclosure for Mineral Projects, has reviewed, verified and approved the scientific and technical information concerning the Tarqui Project in this news release and has verified the data underlying that scientific and technical information.

About Luminex Resources

Luminex Resources Corp. (TSXV:LR, OTCQX:LUMIF) is a Vancouver, Canada based precious and base metals exploration and development company focused on gold and copper projects in Ecuador. Luminex's inferred and indicated mineral resources are located at the Condor Gold-Copper project in Zamora-Chinchipe Province, southeast Ecuador. Luminex also holds a large and highly prospective land package in Ecuador, including the Pegasus and Orquideas projects, which are being co-developed with Anglo American and JOGMEC respectively.

Further details are available on the Company's website at https://luminexresources.com/.

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LUMINEX RESOURCES CORP.

Signed: "Marshall Koval"
Marshall Koval, CEO and Director

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 news release

Cautionary Note Regarding Forward-Looking Information

Certain statements and information herein, including all statements that are not historical facts, contain forward-looking statements and forward-looking information within the meaning of applicable securities laws. Such forward-looking statements or information include but are not limited to statements or information with respect to timing for BHP transitioning operatorship back to Luminex and determining future Tarqui work programs. Often, but not always, forward-looking statements or information can be identified by the use of words such as "will" or variations of that word and phrases or statements that certain actions, events or results "will", "could" or are "intended to" be taken, occur or be achieved.

With respect to forward-looking statements and information contained herein, the Company has made numerous assumptions including among other things, assumptions about general business and economic conditions, the prices of gold and copper, and anticipated costs and expenditures. The foregoing list of assumptions is not exhaustive.

Although management of the Company believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that a forward-looking statement or information herein will prove to be accurate.  Forward-looking statements and information by their nature are based on assumptions and involve known and unknown risks, uncertainties and other factors which may cause the Company's actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information. These factors include, but are not limited to: risks associated with the business of the Company; business and economic conditions in the mining industry generally; the supply and demand for labour and other project inputs; changes in commodity prices; changes in interest and currency exchange rates; risks relating to inaccurate geological and engineering assumptions (including with respect to the tonnage, grade and recoverability of reserves and resources); risks relating to unanticipated operational difficulties (including failure of equipment or processes to operate in accordance with specifications or expectations, cost escalation, unavailability of materials and equipment, government action or delays in the receipt of government approvals, industrial disturbances or other job action, and unanticipated events related to health, safety and environmental matters); risks relating to adverse weather conditions; political risk and social unrest; changes in general economic conditions or conditions in the financial markets; and other risk factors as detailed from time to time in the Company's continuous disclosure documents filed with Canadian securities administrators. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

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SOURCE Luminex Resources Corp.

FAQ

What were the key drilling results announced by Luminex Resources Corp. (LUMIF) on July 11, 2022?

Luminex reported 0.32% copper equivalent over 218 meters from hole TARQ4D and 0.18% from TARQ10D.

Why is BHP no longer continuing with the Tarqui project?

BHP has decided to discontinue its earn-in agreement with Luminex, transitioning operatorship back to Luminex.

How much total drilling has been completed at the Tarqui project?

A total of 6,862 meters of drilling has been completed at the Tarqui project.

What does the transition of operatorship from BHP to Luminex imply?

The transition may lead to operational uncertainties and potential delays in future project developments.