TIDMMAFL
RNS Number : 6150A
Mineral & Financial Invest. Limited
13 September 2018
Mineral and Financial Investments Limited
Investment Update: Updated Mineral Resource and Grades Revised
Upward
At High-Grade Lagoa Salgada Polymetallic VMS Project In
Portugal
Highlights:
-- Benefits from Partnership with Ascendant already being seen
-- Initial mineral resource tonnage estimates re-evaluated and increased by 4.7%.
-- Zinc Equivalent Grade on the LS-1 Zone Deposit's indicated resource increased 8.88%
-- Zinc Equivalent grade on total LS-1 Deposit's 10.07 M/t resource increased to 7.77%
-- LS-1 Central resource Tonnage increased by 12% with no significant change in grades
-- Exploration Program for the remainder of 2018 to be announced very shortly
George Town, Cayman Island, September 13, 2018 - Mineral and
Financial Investments Ltd. ("The Company", "M&FI", or "MAFL")
today provides an update on the activities of TH Crestgate GmbH
("TH Crestgate" or "THC"), a company in which M&FI have a 49%
investment. THC and its 25% partner in Redcorp Empreedimentos
Mineiros Lda. ("Redcorp") which owns the Lagoa Salgada Project,
Ascendant Resources Inc. ("Ascendant") has started its exploration
program at the high-grade Lagoa Salgada polymetallic volcanic
massive sulphide Project ("Lagoa Salgada" or the "Project") located
on the Iberian Pyrite Belt ("IPB") in Portugal.
TH Crestgate has confirmed that the planned expenditure program
will be entirely financed and guided by Ascendant as part of
Ascendant's earn-in agreement. As previously announced, the earn-in
agreement requires Ascendant to spend US$9.0M and make certain cash
payments to TH Crestgate on the project, within 48 months of the
agreement's effective date, and if successfully completed would
increase their interest in Redcorp to 50%. Additionally, by
completing a Feasibility Study on the Lagoa Salgada Project along
with some cash payments to THC within 54 months would increase
their interest to 80% of Redcorp. M&FI has a 49% investment
interest in TH Crestgate.
Ascendant Resources has provided an update to the market,
setting out the following new information:
A January 2018 Technical Report on the Project, prepared in
accordance with National Instrument 43-101 - Standards for
Disclosure for Mineral Projects ("NI 43-101"), has been updated. It
now defines a preliminary Indicated Mineral Resource Estimate of
5.84 million tonnes grading 8.88% Zinc Equivalent (ZnEq and) an
Inferred Mineral Resources of 2.01 million tonnes grading 7.82%
ZnEq, at a 3.5% ZnEq cut-off grade, at the LS-1 deposit with an
additional Inferred Mineral Resource of 2.22 million tonnes grading
4.80% ZnEq, at a 3.5% ZnEq cut-off grade, outlined at the LS-1
Central deposit. Only 22 drill holes compose this Mineral Resource
Estimate and both deposits remain open in multiple directions
giving Ascendant confidence in the ability to rapidly expand the
resource with a modest drill program over the next 12-month period.
(Refer to Tables 1 and 2 below). In Ascendant's opinion, Lagoa
Salgada represents a potentially high-grade, polymetallic
zinc-lead-copper exploration opportunity in a low risk, established
and prolific jurisdiction. The Project covers 10,700 hectares with
17 gravimetric targets identified, with only the LS-1 and LS-1
Central zone having been significantly tested.
Jacques Vaillancourt, Chairman M&FI, states: "We are already
seeing the benefits of the THC partnership with Ascendant for our
investment. We understand Ascendant's technical team, working
closely with AGP Mining Consultants have re-evaluated the resource
estimate completed in late 2017 and announced in early 2018. There
was a 4.7% improvement in the total tonnage within LS-1 and LS-1
Central to 10.1M tonnes. Ascendant will be initiating an
exploration program, the details of which will be announced very
shortly. We understand that Ascendant are very cognizant of their
responsibility to continue the strong progress and operational
excellence that they have achieved at the El Mochito mine over the
last 18 months. Ascendant are extremely pleased to work with TH
Crestgate and Redcorp to develop a project that has the potential
of becoming a mine of consequence within the prolific Iberian
Pyrite Belt, a belt that has been transformative for Lundin Mining
and for Trafigura's mining operations."
In the announcement released by Ascendant, Chris Buncic,
President & CEO of Ascendant stated that "Lagoa Salgada already
has a good-sized resource which is very near the scale and grade
necessary to be an operating mine. Leading VMS experts and geo
statisticians engaged by Ascendant concur that a high impact,
low-cost drilling program can be completed by year-end that will
have the potential to substantially increase current resources. It
is our expectation that this program could have a material impact
on net asset value for Ascendant shareholders."
After an initial review of the Project for the Company, C.
Tucker Barrie states in the Ascendant announcement that, "Lagoa
Salgada has a relatively high-grade massive sulphide zone to the
north as well as significant bulk tonnage potential with an
extensive disseminated sulphide zone to the south that is open in
many directions. We are looking forward to the opportunity to
explore the Project further."
It is the opinion of Ascendant that Lagoa Salgada has strong
potential for discovery of further VMS deposits along the belt
given the abundance of targets and anomalies already identified.
The Iberian Pyrite Belt is host to some of the world's largest VMS
deposits and mines such as Neves-Corvo (Lundin Mining Corporation),
Aguas Tenidas (Trafigura Mining Group) and Aljustrel (private). It
represents the largest concentration of known massive sulphide
deposits in the world, forming an arch through Portugal and Spain
about 240 km long and 35 km wide. According to the Geological
Society of Spain, this region has produced more than 300 million
tonnes(1) of massive sulphide ore over the past hundred years.
Mineral Resources for the LS-1 & LS-1 Central Deposits at
Lagoa Salgada
@ a 3.5% ZnEq cut-off grade
(Original Effective date January 5, 2018)
Category Gross to Redcorp(*) Net Attributable to Operator
THCrestgate(**)
ZnEq Contained Contained
LS-1 Tonnes Grade Metal Tonnes Grade Metal Ascendant
(,000) (%/t) (Mln./lbs) (Millions) (g/t) (Mln./lbs) /Redcorp
--------- ------- --------------- ------------- -------- ------------- ------------
Indicated 5,840 8.88 1,108.5 4,380 8.88 831.4
--------- ------- --------------- ------------- -------- ------------- ------------
Inferred 2, 010 7.82 381.5 1,507 7.82 286.2
--------- ------- --------------- ------------- -------- ------------- ------------
Sub-total 7,850 8.61 1,490.1 3,847 8.61 1,117.6
--------- ------- --------------- ------------- -------- ------------- ------------
ZnEq Contained Contained
LS-1 Central Tonnes Grade Metal Tonnes Grade Metal Ascendant
(,000) (%/t) (Million/lbs) (Millions) (g/t) (Mln./lbs.) /Redcorp
--------- ------- --------------- ------------- -------- ------------- ------------
Inferred 2,220 4.80 234.9 1,665 4.80 176.2
--------- ------- --------------- ------------- -------- ------------- ------------
Sub-total 2,220 4.80 234.9 1,665 4.80 176.2
--------- ------- --------------- ------------- -------- ------------- ------------
(*) Subject to Final Approval by Portuguese Secretary of State
of EDM's sale of 15% of Lagoa Salgada to Redcorp;
(**) Current Redcorp Ownership: TH Crestgate 75%, Ascendant
25%
(1) Block Matrix is 10mx10mx10m
(2) Grades are estimated by ordinary kriging interpolation
(3) A cut-off grade of 3.5% ZnEq was used to report the Mineral Resource for the LS-1 Deposit
Zinc equivalent metal grade (ZnEq%) was calculated as follows:
ZnEq% = ((Zn Grade * 25.35) + (Pb Grade * 23.15) + (Cu Grade * 67.24) + (Au Grade * 40.19)
+ (Ag Grade * 0.62)) / 25.35
Metal prices used: US$1.15/lb Zn, US$1.05/lb Pb, $3.05/lb Cu, US$19.40/oz Ag, and 1,250/oz
Au
(4) No recoveries were applied
(5) Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability
Shown on a 100% basis. Ascendant holds a 25% interest in Redcorp, the operating subsidiary
(6) which holds an 85% interest in the Lagoa Salgada Project
Qualified Persons
The technical content of this press release, which is an extract
from the Ascendant press release, has been reviewed and approved by
Paul Daigle, P.Geo., Senior Associate of AGP Mining Consultants
Inc. Mr Daigle is responsible for the Technical Report and Mineral
Resource Estimate for the Lagoa Salgada Project, is independent of
Ascendant and is a "Qualified Person" as defined by NI 43-101.
Mr. João Barros, B.Sc. (Eng.) M.Sc. (Geo.) , Redcorp's acting
Country Manager, will lead the development of the Lagoa Salgada
project under the supervision of Ascendant's management team with
the assistance of C. Tucker Barrie, Ph.D., P.Geo., a geologist with
over twenty-five years of international experience in all aspects
of VMS deposit exploration, development and research, and Mr. Chris
Hale, Ph.D., P.Geo., an exploration geologist with over forty years
of international experience.
FOR MORE INFORMATION:
Katy Mitchell and Jessica Cave, WH Ireland Limited +44 161 832 2174
Jon Belliss, Novum Securities Limited +44 207 399 9400
James Lesser, Mineral & Financial Investments Ltd. +44 777 957 7216
About TH Crestgate
TH Crestgate GmbH, is a private Swiss investment company in
which M&FI hold a 49% stake. TH Crestgate owns and operates
Lagoa Salgada Zinc project 100km SE of Lisbon, through its
Portuguese subsidiary Redcorp Empreedimentos Mineiros Lda. The
deposit's resource tonnage was increased by 114% to 9.62Mt in
January 2018, on in-fill drilling at LS-1 and new resource at LS-1
Central Sectors. Lagoa Salgada is now the 3rd largest known
zinc-lead-copper deposit in Portugal, after the Neves Corvo and
Aljustrel mines. The location of the Lagoa Salgada project on the
Iberian Pyrite Belt (IPB), just north of the 250Mt Aljustrel mine
and to the east of the old Lousal mine, that operated from 1900 to
1988, shows that the ore bodies in the area have very large scale
and long life potential. The mineralogical study completed recently
highlighted the presence of significant tin in the gossan cap of
the LS-1 deposit. The Company is reviewing the resource potential
of the high-grade tin assays in the gossan cap which overlays the
LS-1 deposit.
About Ascendant Resources Inc.
Ascendant (ASND:TSX) is a Toronto-based mining company focused
on its 100%-owned producing El Mochito zinc, silver and lead mine
in west-central Honduras, which has been in production since 1948.
After acquiring the mine in December 2016, Ascendant implemented a
rigorous optimization program aimed at restoring the historic
potential of the El Mochito mine. In 2017, the Company successfully
completed the operational turnaround it set out to achieve with
sustained production at record levels and profitability restored.
The Company now remains focused on cost reduction and further
operational improvements to drive robust free cash flow in 2018 and
beyond. Ascendant is also focused on expanding and upgrading known
resources through extensive exploration work for near-term growth.
With a significant land package of 11,000 hectares and an abundance
of historical data there are several regional targets providing
longer term exploration upside which could lead to further resource
growth. The Company is also engaged in the evaluation of producing
and development stage mineral resource opportunities, on an ongoing
basis. The Company's common shares are principally listed on the
Toronto Stock Exchange under the symbol "ASND". For more
information on Ascendant Resources, please visit our website at
www.ascendantresources.com.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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