TIDMMAFL
RNS Number : 6720N
Mineral & Financial Invest. Limited
25 September 2019
MINERAL AND FINANCIAL INVESTMENTS LIMITED
Investment Update: Lagoa Salgada Measured & Indicated
Resources Increased By 71% in 2019 Exploration Program to date
HIGHLIGHTS:
-- Total Measured & Indicated Resources +71% to 10.3Mt in the North Zone
-- Grade is maintained at 9.1% Zn Equivalent
-- This follows 2018 success which more than doubled Measured,
Indicated & Inferred Resources to 20.7Mt from the 10.0Mt
reported in August 2018, with overall grades being maintained
-- The new resource assessment will be used as a basis for a
Preliminary Economic Assessment to be published before the year
end
GEORGE TOWN CAYMAN ISLANDS, 25 SEPTEMBER, 2019 - Mineral and
Financial Investments Limited (LSE-AIM: MAFL) ("M&FI" or the
"Company") is very pleased to announce an updated Mineral Resource
Estimate in accordance with National Instrument 43-101 at the Lagoa
Salgada polymetallic VMS Project located on the prolific Iberian
Pyrite Belt ("IPB") in Portugal. The work completed by Redcorp is
funded and guided by Ascendant Resources (Ascendant) as part of
Ascendant's previously announced earn-in agreement with TH
Crestgate, Mineral and Financial's wholly owned subsidiary. The new
Mineral Resource Estimate will be used as a basis for the
Preliminary Economic Assessment ("PEA") to be completed by the end
of 2019.
Redcorp Empreedimentos Mineiros Lda. (Redcorp) ran a relatively
modest 8,164-metre, 24-hole, drill program focused primarily on
infill drilling to increase the confidence in the grade and tonnage
of the North Zone, with four holes designed to test the strong
geophysical anomaly in the Central and South Zones. Results
demonstrate material growth in the North Zone (the main massive
sulphide) with the conversion of significant resources into the
Measured & Indicated ("M&I") category. To date the North
Zone has been delineated by less than a total of 76 holes.
The North Zone is characterized as a zinc-rich massive sulphide
deposit with a precious metal rich oxide gossan lying on top. The
four widely spaced holes in the Central and South Zones, have
identified a copper-rich sulphide zone that will be the focus of
the next phase of drilling to expand these zones. All zones sit on
a continuous coincidental Induced Polarization ("IP") chargeability
anomaly with an estimated geological strike length of 1.7km. The
most recent drill program corroborated a strong correlation between
the IP chargeability anomaly to the massive sulphide
mineralization, leaving significant encouragement in the
exploration upside to continue to expand the resource. All zones
remain open along strike and at depth.
Highlights are as follows:
-- North Zone: Measured Mineral Resources increase 57% to 2.8 Mt at 10.7% ZnEq[1]
o North Zone: Measured & Indicated Mineral Resources
increase 71% to 10.3 Mt at 9.1% ZnEq(1) :
-- 170% increase in the precious metal rich gossan zone to 1.7
Mt at 4.6g/t Gold Equivalent Ounces[2].
-- Global NI 43-101Measured and Indicated Resources of 12.8
million tonnes and Inferred Resources of 8.6 million tonnes
-- Drilling in the Central and South Zones identified Copper
rich sulphide mineralization. The new resources in these zones are
reported in Copper equivalents. Future drill programs will focus on
expanding and upgrading these zones.
-- Results from a PEA are expected in the fourth quarter and
will be based upon this new Mineral Resource Estimate
James Lesser, Chief Operating Officer of Mineral & Financial
Investments stated - "The Mineral Resource Estimate is a highly
satisfying result as it demonstrates a substantial milestone
towards the goal of developing Lagoa Salgada. Ascendant believe
there is ample opportunity to expand the resource substantially as
this resource follows a rather modest drill program targeted at
infill drilling the North Zone. Lagoa Salgada has many traits
common to other VMS deposits and mines in the IPB, and it appears
to be at the higher end of the grade scale, and we continue to be
encouraged by the mineable potential of the project. A PEA is
planned for completion before the end of the year."
Additionally he added- "Redcorp and Ascendant's exploration work
continues to better define and expand the known zones which still
remain open along strike and at depth, highlighting the significant
growth opportunity remaining in the North Zone and especially in
the Central and South Zones where the massive sulphides have yet to
be fully tested. The success of drilling achieved to date,
correlating drill results to anticipated mineralization with IP
tools in the LS West region, has led the Company to replicate this
strategy further down the 8km gravity anomaly in the LS North and
LS East regions and we remain optimistic of the long-term,
large-scale exploration and resource potential of the project as a
whole."
Lagoa Salgada Updated Mineral Resource Estimate
Effective September 5, 2019
(Table 1)
The new Technical Report to disclose the Mineral Resource
Estimate is being prepared in accordance with the CIM Standards for
mineral disclosure and the National Instrument 43-101 ("NI 43-101")
by Micon.
A summary of the Mineral Resource Estimate for LS North is set
out in Table 1 below:
(Using Cut-offs: Zn-Eq >= 2.90% (M&I), >= 2.80%
(Inferred)
http://www.rns-pdf.londonstockexchange.com/rns/6720N_1-2019-9-25.pdf
A summary of the Mineral Resource Estimate for the Central and
South Zones is set out in Table 2 below:
(Using a Cut-off: Cu-Eq >= 0.90%)
http://www.rns-pdf.londonstockexchange.com/rns/6720N_1-2019-9-25.pdf
Table 3: Lagoa Salgada Updated Mineral Resource Estimate
North Zone Mineral Resource Estimate - Effective September 5,
2019
Average Grade Contained Metal
Deposit Category Min Cut-off Tonnes Cu Zn Pb Sn Ag Au ZnEq AuEq Cu Zn Pb Sn Ag Au
(kt (kt
Zones ZnEq% (kt) (%) (%) (%) (%) (g/t) (g/t) (%) (g/t) (kt) (kt) (kt) (kt) Oz) Oz)
North Measured(M) GO 2.5 234 0.13 0.70 4.32 0.36 51.20 1.50 11.38 7.18 0.3 1.6 10.1 0.9 385.2 11.3
Indicated(I) GO 2.5 1,462 0.08 0.43 2.55 0.26 37.07 0.51 6.63 4.18 1.2 6.2 37.3 3.8 1,742.1 23.8
M & I GO 2.5 1,696 0.09 0.47 2.79 0.27 39.02 0.64 7.28 4.60 1.5 7.9 47.4 4.6 2,127.2 35.1
Inferred GO 2.5 831 0.08 0.48 2.62 0.17 27.22 0.37 5.66 3.57 0.7 4.0 21.8 1.4 727.6 9.9
Measured(M) MS 3.0 2,444 0.40 3.12 2.97 0.15 71.57 0.74 10.95 6.91 9.7 76.3 72.5 3.7 5,623.9 58.4
Indicated(I) MS 3.0 5,457 0.45 2.35 2.30 0.13 75.35 0.67 9.55 6.03 24.5 128.1 125.6 7.3 13,221.5 116.9
M & I MS 3.0 7,902 0.43 2.59 2.51 0.14 74.18 0.69 9.98 6.30 34.2 204.4 198.1 10.9 18,845.5 175.2
Inferred MS 3.0 1,529 0.23 1.96 1.32 0.09 45.15 0.49 6.36 4.01 3.6 30.0 20.2 1.4 2,219.7 24.0
Measured(M) Str 2.5 94 0.37 0.88 0.28 0.05 16.93 0.12 3.08 1.94 0.3 0.8 0.3 0.0 51.0 0.4
Indicated(I) Str 2.5 643 0.34 0.90 0.23 0.09 17.12 0.06 3.23 2.04 2.2 5.8 1.5 0.6 354.0 1.3
M & I Str 2.5 737 0.34 0.90 0.24 0.09 17.10 0.07 3.21 2.03 2.5 6.6 1.7 0.6 405.0 1.7
Inferred Str 2.5 142 0.24 1.12 0.39 0.04 16.57 0.09 2.95 1.86 0.3 1.6 0.6 0.1 75.6 0.4
All
North M & I zones 2.9 10,334 0.37 2.12 2.39 0.16 64.34 0.64 9.06 5.72 38.2 219.0 247.2 16.2 21,377.7 212.0
All
North Inferred zones 2.8 2,502 0.18 1.42 1.70 0.12 37.57 0.43 5.93 3.74 4.6 35.6 42.6 2.9 3,022.8 34.3
Central and South Zones Mineral Resource Estimate - Effective
September 5, 2019
Average Grade Contained Metal
Deposit Category Min Cut-off Tonnes Cu Zn Pb Sn Ag Au CuEq Cu Zn Pb Sn Ag Au
(kt (kt
Zones CuEq% (kt) (%) (%) (%) (%) (g/t) (g/t) (%) (kt) (kt) (kt) (kt) Oz) Oz)
Central Inferred Str 0.9 1,707 0.15 0.16 0.06 0 11.57 2.22 1.66 2.5 2.7 1.0 - 635.2 121.9
South Measured(M) Str/Fr 0.9 0 - - - - - - -
Indicated(I) Str/Fr 0.9 2,473 0.47 1.53 0.83 0.00 18.67 0.06 1.54 11.5 37.9 20.6 0.0 1,484.7 4.7
South M & I Str/Fr 0.9 2,473 0.47 1.53 0.83 0.00 18.67 0.06 1.54 11.5 37.9 20.6 0.0 1,484.7 4.7
South Inferred Str/Fr 0.9 6,085 0.40 1.34 0.80 0.00 16.79 0.05 1.37 24.6 81.6 48.7 0.0 3,285.2 10.0
-------- ------------- ------- ------- --------------- ---- ---- ---- ---- ----- ----- ---- ------------- ------------- ------------- ---- ------------------ -----------
Notes to tables:
(1) Min(eralized) Zones: GO=Gossan, MS=Massive Sulphide,
Str=Stringer, Str/Fr=Stockwork
(2) ZnEq% = ((Zn Grade*25.35)+(Pb Grade*23.15)+(Cu Grade *
67.24)+(Au Grade*40.19)+(Ag Grade*191.75))/25.35
(3) CuEq% = ((Zn Grade*25.35)+(Pb Grade*23.15)+(Cu Grade *
67.24)+(Au Grade*40.19)+(Ag Grade*0.62))/67.24
(4) AuEq(g/t) = ((Zn Grade*25.35)+(Pb Grade*23.15)+(Cu Grade *
67.24)+(Au Grade*40.19)+(Ag Grade*0.62) )+(Sn Grade *
191.75))/40.19
(5) Metal Prices: Cu $6,724/t, Zn $2,535/t, Pb $2,315/t, Au
$1,250/oz, Ag $19.40/oz, Sn $19,175/t
(6) Densities: GO=3.12, MS=4.76, Str=2.88, Str/Fr=2.88
The North Zone, which makes up the majority of the updated
Mineral Resource Estimate saw a substantial conversion of Inferred
Resources to M&I Resources, growing by 71%. This was the focus
of the 8,164-metre drill program in 2019 which saw 20 new holes
drilled in the North Zone. The Central and South Zones were tested
by only 4 holes primarily to test the continuation of the strong
geophysical anomaly. While drilling was limited, the results to
date are very encouraging to support the future expansion of the
total resource with indicated growth from all zones. Further
drilling will be required to expand and upgrade these resources in
the future.
Of particularly interesting importance is the gossan zone; a
precious metals-rich oxidized cap on top of the massive sulphide,
which is noted in the highlights and table above. Also of note is
the wide zone of copper-rich mineralization highlighted in hole
LS_ST_16 (see September 3, 2019 press release), which correlates to
the mineralization found in the Central and South Zones. Further
exploration of this zone will also be a focus in future drill
programs.
Plan View in the North Zone 2019 Drill Holes
(Fig.1)
http://www.rns-pdf.londonstockexchange.com/rns/6720N_1-2019-9-25.pdf
The Mineral Resource Estimate update incorporates all historic
drilling, the high-grade drill results from the 2018 and 2019
exploration programs and includes all the holes announced in the
Company's recent press releases. Metallurgical testing is underway,
and the Company expects to complete a PEA prior to the end of
2019.
Updated IP Chargeability Anomaly
There is a strong correlation between the strong continuous IP
Chargeability anomaly and coincidental gravity anomaly and the
massive sulphide mineralization drilled at Lagoa Salgada. That
anomaly extends from just north of the North Zone continuously for
over 1.7kms to just south of the South Zone (see Figure 3). The IP
work supports the further growth potential in the area.
Plan View of the 2019 Drill Holes for Lagoa Salgada
(Fig. 2)
http://www.rns-pdf.londonstockexchange.com/rns/6720N_1-2019-9-25.pdf
During the 2019 drilling program, Ascendant conducted ground IP
along the 8-kilometre-long gravity anomaly in the northern part of
the property in the LS North region, and Ascendant continues to see
a strong chargeability IP anomaly coincidental to the gravity
anomaly. Where the tertiary cover is not deep and/or there is not a
lot of sand, we are able to see strong chargeability IP anomalies
coincident with the gravity to both the east and west of the
current Resource area, making these good targets for future
drilling (see Figure 4). As has been demonstrated during the 2018
and 2019 drill programs, downhole techniques can successfully be
used to further delineate such prospective targets.
Induced Polarization ("IP") Anomaly Coincident with the Gravity
Anomaly at LS West region
(Fig. 3)
http://www.rns-pdf.londonstockexchange.com/rns/6720N_1-2019-9-25.pdf
Regional 3D Coloured Chargeability Model with Black Gravity
Contours
(Fig. 4)
http://www.rns-pdf.londonstockexchange.com/rns/6720N_1-2019-9-25.pdf
Mineral Resource Estimate
The Mineral Resource Estimate was prepared by MICON
INTERNATIONAL LIMITED ("Micon"). The effective date of this Mineral
Resource Estimate is September 5, 2019, and it is based on 3
contiguous areas (North, Central and South Zones within the LS West
region) of VMS style mineralization defined by 76 diamond drill
holes up to August 31, 2019. Leapfrog Geo 4.4.2 software was used
to construct three dimensional ("3D") solid models of massive
sulphide, gossan and stringer mineralization reflecting a minimum
grade of 3% ZnEq, 2.5% ZnEq, and 2.5% ZnEq respectively and to
assign block grades for copper (%), zinc (%), lead (%), tin (%),
silver (g/t), gold (g/t) and density (g/cm3) for Measured,
Indicated and Inferred Mineral Resources using ordinary kriging
interpolation methodology and capped 2-m hole assay composites. Up
to four interpolation passes were applied using progressively
increasing ellipsoid ranges to cover the range of 3D solid model
sizes present. Block size is 5 m across strike (x) by 10 m along
strike (y) by 5 m vertically (z). Mineral Resource categorization
was applied using geometric criteria, i.e. spacing between drill
holes/assay composites.
The new Technical Report to disclose the Mineral Resource
Estimate is being prepared in accordance with National Instrument
43-101 ("NI 43-101") and the CIM Standards for mineral disclosure
by Micon. This Technical Report will be filed on SEDAR
(www.sedar.com) within 45 days of this press release.
Quality Assurance and Quality Control
Analytical work was carried out by ALS Laboratories. Drill core
samples were prepared in the ALS Lab, in Seville, Spain. Pulp
samples were then sent to their analytical Laboratory in Ireland
for analysis. The core samples are analyzed for gold (ppm) by fire
assay (Au--AA25), and for the other elements by multi element
analysis of base metal ores and mill products by optical emission
spectrometry using the Varian Vista inductively coupled plasma
spectrometer (ME-ICPORE). Samples from the Main Resource, LS_MS_DH
ID, are also assayed for Tin (Sn) by ICP-AES after Sodium Peroxide
Fusion (Sn-ICP81x).
ALS Laboratories has routine quality control procedures which
ensure that every batch of samples includes three sample repeats,
two commercial standards and blanks. ALS Laboratories is
independent from Ascendant. Ascendant used standard QA/QC
procedures when inserting reference standards and blanks for the
drilling program.
Qualified Persons
The scientific and technical information in this press release
has been reviewed and approved by References in this announcement
to exploration results and resource updates have been approved for
release by Joao Barros, BSc (Engineering), MSc (Geology), who has
more than 15 years of relevant experience in the field of activity
concerned. Mr. Barros is a Member of the Portuguese Engineers
Association. Mr. Barros is employed by Redcorp Empreedimentos
Mineiros, Lda., a 75% owned subsidiary of M&FI, and has
consented to the inclusion of the material in the form and context
in which it appears.
Review of Technical Information
The scientific and technical information in this press release
has been reviewed and approved by Robert Campbell, P.Geo., Vice
President, Exploration and Director for Ascendant Resources Ltd,
who is a Qualified Persons as defined in National Instrument
43-101.
FOR MORE INFORMATION:
Katy Mitchell and Jessica Cave, WH Ireland Limited +44 161 832 2174
Jon Belliss, Novum Securities Limited +44 207 399 9400
Jacques Vaillancourt, Mineral & Financial Investments Ltd. +44 780 226 8247
TECHNICAL GLOSSARY
Abbreviations:
Mt: Million tonnes
ZnEq: Zinc Equivalent
Zn: Zinc
Cu: Copper
Pb: Lead
PPB: Parts per Billion
PPM: Parts per Million
Sn: Tin
Ag: Silver
Au: Gold
Anomaly: Any derivation from the norm. In mineral exploration,
one is mainly concerned with anomalies in the geophysical and
geochemical character of rocks, tills, soils, water or
unconsolidated sediment in streams or lakes sediments. Anomalies
are classed as positive or negative.
Cut Off grade: Cut-Off grade is the minimum grade required in
order for a mineral or metal to be economically mined.
Gossan: an iron-containing secondary deposit, largely consisting
of oxides and typically yellowish or reddish, occurring above a
deposit of a metallic ore.
Indicated Mineral Resource : The part of a mineral resource for
which quantity, grade, quality, etc., can be estimated with a level
of confidence sufficient to allow the appropriate application of
technical and economic parameters, to support mine planning and
evaluation of economic viability.
Inferred Mineral Resource: The part of a mineral resource for
which quantity and grade or quality can be estimated on the basis
of geological evidence and limited sampling and reasonably assumed,
but not verified, geological and grade continuity
Kriging: In statistics, originally in geostatistics, kriging or
Gaussian process regression is a method of interpolation for which
the interpolated values are modeled by a Gaussian process governed
by prior covariances.
Measured Mineral Resource: The part of a mineral resource for
which quantity, grade or quality, etc., are so well established
that they can be estimated with confidence sufficient to allow the
appropriate application of technical parameters to support
production planning and evaluation of economic viability.
Mineral Resources: Mineral Resources are sub-divided, in order
of increasing geological confidence, into Inferred, Indicated and
Measured categories. An Inferred Mineral Resource has a lower level
of confidence than that applied to an Indicated Mineral Resource.
An Indicated Mineral Resource has a higher level of confidence than
an Inferred Mineral Resource but has a lower level of confidence
than a Measured Mineral Resource.
NI 43-101 National Instrument: 43-101 Canadian Standard if
reporting incorporates Canadian Institute of Mining standards.
Stockwork: In geology, a stockwork is a complex system of
structurally controlled or randomly oriented veins. Stockworks are
common in many ore deposit types and in greisens. They are also
referred to as stringer zones.
Soil sampling: A rapid chemical analysis to access available
nutrient status of the soil and includes interpretation, evaluation
and fertilizer recommendation based on the result of chemical
analysis and other considerations.
QA/QC: Quality Control and Quality Assurance, a set of defined
procedures in all aspects of the mineral deposit evaluation to
ensure the best possible confidence in resultant mineral Resource
and Reserve estimates are achieved; the quality of an estimate is
dependent on the quality of the data used
VMS: Volcanognic Massive Sulphide. VMS type of metal sulfide ore
deposit, mainly copper-zinc which are associated with and created
by volcanic-associated hydrothermal events.
ZnEq: Zinc Equivalent metal content is a calculation that
converts metal content into a reference metal, in this case zinc.
The calculations are based on using the following metal prices:
US$1.15/lb Zn, US$1.05/lb Pb, $3.05/lb Cu, US$8.70/lb Sn,
US$19.40/oz Ag, and 1,250/oz Au. (No recoveries were applied). By
using the above cited prices the ZnEq % was calculated as follows:
[Zn%]+([Cu%]*2.652)+([Pb%]*0.913)+([Au g/t]*1.585)+([Ag g/t]*0.025)
+ ([Sn%]*7.565)
[1] Zinc Equivalent = ((Zn Grade x 25.35)+(Pb Grade x 23.15)+(Cu
Grade x 67.24)+(Au Grade x 40.19)+(Ag Grade x 191.75))/25.35
[2] Gold Equivalent = ((Zn Grade x 25.35)+(Pb Grade x 23.15)+(Cu
Grade x 67.24)+(Au Grade x 40.19)+(Ag Grade x 191.75)+(Sn Grade x
191.75))/40.19
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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