Lida Resources is restarting production at their Peruvian Mines

The business strategy of Lida Resources Inc. \[LIDA-CSE; FUGMF-OTC; BJ43-FSE\] consists of acquiring mineral plots and bringing them into production. The company targets South America, particularly Peru. Lida looks for projects with high profit margins that can achieve quick production starts from restarts, turnaround situations or late development phases. This strategy will generate early cash flow to fund exploration for growth and operational improvements. After completing the IPO last spring, Lida has now acquired three past-producing precious and base metal mines in Peru - San Vicente, Quiruvilca and Fruta del Sur (Pasto Bueno) - and will bring them back into production one after the other. Work is currently focused on the road-accessible, 100% company-owned flagship San Vicente mine, 120 km from the coastal city of Trujillo in the La Libertad department, where bulk samples are currently being taken and the ore is being sent to a toll station. In addition to mineral rights, Lida also has a permit with local communities for surface rights that are valid for 20 years. Based on the data known to date, the mean value of the mineralized silver-lead-zinc-gold rocks of San Vicente is approximately $ 737 / t. 825 meters of veins are visible on the surface. Further veins could be discovered and developed underground. The neighboring mine, which is on strike, has extracted 121 veins in 80 years. Lida plans to explore San Vicente at depth where there may be porphyry mineralization and possibly skarn and mantle-like deposits. Production in San Vicente is expected to begin sometime in November 2020. So far, mining has been carried out on three veins. No further drilling has to be carried out to continue mining on the three veins. The ore would be processed at a toll mill or the company could acquire a nearby facility that is under receivables. The mineral rights are wholly owned by the Quiruvilca underground polymetallic mine. Lida plans to drill infill to test the continuity of mineralization which would result in a resource calculation. The known zone of copper-gold-lead-silver-zinc mineralization is approximately 2.5 km long and 750 m wide where 120 veins were previously mined. The company's geologists believe more veins can be discovered. The Quiruvilca mine was in continuous production from around 1940 to 2018 and initially focused on the silver-bearing veins. The grades are around 150 g / t silver, 4% zinc, 1.5% lead and 0.5% copper. In the past, the Quiruvilca mine had a production rate of 1,000 tons per day and eventually went bankrupt. Lida management has determined that to be profitable, this type of underground operation requires a production rate of 20,000 to 30,000 tons per day using block caving mining. The Quiruvilca mine is accessible by road and a nearby private airfield. Production is planned for two and a half to three years in the future. In July, Lida acquired a land position between the San Vincente and Quiluvilca mines comprising 13 lots that are expected to provide additional prospective exploration areas where geological mapping, trenching and geophysical surveys are planned. Lida’s third acquisition is the formerly producing open pit mine of the Fruta del Sur gold mine, formerly known as the Pasto Bueno mine. The operation concerned the mining of epithermal mineralization with the possibility of a porphyry deposit at depth. Approximately $ 60 million of metal has been drilled and Lida plans to expand the resource. Production is planned for three and a half to five years in the future. Lida Resources is headquartered in Vancouver, BC and headquartered in Lima, Peru. The company is led by Len De Melt, President and CEO, who has 30 years of project management experience and was instrumental in the creation and construction of six mines.