Ascendant Resources Inc. (TSX:ASND) (OTCQX:ASDRF)
(FRA:2D9) ("Ascendant" or the "Company”) announces milled
production at the El Mochito mine increased to 176,067 tonnes (or
1,934 tpd) during the third quarter (“Q3 2017”) representing a 17%
improvement over the second quarter (“Q2 2017”). With
additional new equipment arriving during Q4 2017, management is
confident in achieving its targeted Q4 2017 average throughput rate
of 2,200 tpd leading to further increased production in 2018.
With the continuous operational improvements
implemented since the acquisition of the mine just nine months ago,
the Company now believes El Mochito is well positioned to generate
robust operating results and free cash flow in Q4 2017 and
for the foreseeable future.
During Q3 2017, contained zinc equivalent metal
production was 7,936 tonnes, up 14% from Q2 2017.
Milled production for the month of September was
59,601 tonnes, or an average of 2,055 tpd, representing an 8%
increase from August and a 65% increase year to date. The third
quarter milling production rate increased 17% versus Q2 2017, and
34% versus Q1 2017. Throughput rates have been impacted
during the quarter by the delayed arrival of a third underground
mining truck which has now arrived at site and is being mobilized
underground. A new truck and scoop are expected in November and
December 2017.
Lead and silver recoveries were stronger than
expected, while head grades remained flat compared to Q2
2017. Ore grades in Q4 2017 and into 2018 are expected to
improve from the ongoing exploitation of smaller but higher-grade
ore zones using conventional mining techniques and as new
higher-grade zones are accessed as underground development work is
completed.
Overall mine operations during the quarter and
year to date continue to demonstrate the benefits from both an
improved operating environment and the arrival and deployment of
new underground mining equipment supporting higher production
rates. Production in September and for Q3 2017 continued to be
mildly impacted by reduced availability of the older underground
mining equipment, once again underscoring the expected benefits
from the Company’s program to completely replace the aging mining
fleet of ten trucks and six loaders by mid-2018.
As previously disclosed (See Press Releases
March 23rd and September 20th, 2017), Ascendant has placed orders
for a total of eight new underground mining trucks, five scoops,
two jumbo drills and two bolters. To date, the El Mochito mine has
received and commissioned two new trucks and two loaders with an
additional truck having arrived in mid-October. An additional
truck and scoop are anticipated for delivery in both November and
December which are expected to support increased operating rates
during Q4 2017 and into 2018. The addition of the new
equipment, with higher availability, and continued progress in
various other productivity improvement initiatives already
underway, are expected to support higher sustained production rates
for the foreseeable future.
Operational performance over the past three
months and Q3 2017 is displayed in the table below:
|
|
July |
August |
September |
|
Q1/17 |
Q2/17 |
Q3/17 |
Q3 Guidance |
|
|
|
|
|
|
|
|
|
|
Ore Milled |
tonnes |
57,458 |
|
58,978 |
|
59,601 |
|
|
131,115 |
|
150,785 |
|
176,037 |
|
182,000 |
|
Ore Milled |
tpd |
1,853 |
|
1,903 |
|
2,055 |
|
|
1,619 |
|
1,733 |
|
1,934 |
|
2,000 |
|
Working Days |
|
31 |
|
31 |
|
29 |
|
|
81 |
|
87 |
|
91 |
|
91 |
|
|
|
|
|
|
|
|
|
|
|
Mill Head
Grade |
|
|
|
|
|
|
|
|
|
Average Zn grade |
% |
3.60 |
% |
3.43 |
% |
3.50 |
% |
|
3.43 |
% |
3.36 |
% |
3.51 |
% |
3.70 |
% |
Average Pb grade |
% |
1.25 |
% |
1.68 |
% |
1.45 |
% |
|
1.33 |
% |
1.34 |
% |
1.46 |
% |
1.50 |
% |
Average Silver
Grade |
g/t |
36.2 |
|
43.0 |
|
35.7 |
|
|
52.1 |
|
48.9 |
|
38.3 |
|
49.0 |
|
ZnEq Head Grade |
% |
5.29 |
% |
5.54 |
% |
5.25 |
% |
|
5.56 |
% |
5.50 |
% |
5.36 |
% |
5.90 |
% |
|
|
|
|
|
|
|
|
|
|
Average
recoveries |
|
|
|
|
|
|
|
|
|
Zinc |
% |
90.9 |
% |
85.6 |
% |
89.8 |
% |
|
89.8 |
% |
88.9 |
% |
88.8 |
% |
82.8 |
% |
Lead |
% |
72.4 |
% |
74.8 |
% |
73.4 |
% |
|
76.9 |
% |
72.3 |
% |
73.7 |
% |
65.1 |
% |
Silver |
% |
73.9 |
% |
80.7 |
% |
77.4 |
% |
|
78.8 |
% |
79.4 |
% |
77.5 |
% |
66.5 |
% |
|
|
|
|
|
|
|
|
|
|
Contained Metal Production |
|
|
|
|
|
|
|
|
Zinc - tonnes |
tonnes |
1,880 |
|
1,732 |
|
1,876 |
|
|
4,032 |
|
4,505 |
|
5,488 |
|
5,536 |
|
Lead - tonnes |
tonnes |
519 |
|
742 |
|
634 |
|
|
1,341 |
|
1,459 |
|
1,894 |
|
1,746 |
|
Silver - 000 ozs |
ozs |
49,351 |
|
65,845 |
|
52,984 |
|
|
173,041 |
|
184,496 |
|
168,181 |
|
189,130 |
|
ZnEq - tonnes |
tonnes |
2,589 |
|
2,690 |
|
2,656 |
|
|
6,201 |
|
6,975 |
|
7,936 |
|
8,204 |
|
ZnEq lbs |
lbs |
5,707,523 |
|
5,930,641 |
|
5,854,368 |
|
|
13,671,410 |
|
15,376,986 |
|
17,495,427 |
|
18,087,024 |
|
|
|
|
*Calculated by monthly realized metal prices; weighted average
during Q3 was US$2,962/t zinc, US$2,333/t lead, and
US$16.83/oz. |
President and CEO Chris Buncic commented: “We are very pleased
with the comprehensive improvements that we have achieved in our
operational performance over the last nine months. The turnaround
at El Mochito is nearly complete and we look forward to stable
production growth and free cash flows starting imminently.” He
continued, “I would like to especially commend our operations team
for the successful introduction of measures at El Mochito that have
reinvigorated the community and stakeholders with a new sense of
optimism, while dramatically improving safety standards and better
working conditions. This will have a strong benefit to all our
shareholders.”
About Ascendant Resources
Ascendant Resources Inc. is a mining company
focused on its producing El Mochito zinc, silver and lead mine in
west-central Honduras in which the Company has a 100% interest. El
Mochito has been in production since 1948. The Company evaluates
producing and advanced development stage mineral resource
acquisition opportunities in North, South and Central America, on
an ongoing basis. The Company's common shares are principally
listed on the TSX Exchange under the symbol "ASND". For more
information on Ascendant Resources, please visit our website at
www.ascendantresources.com.
Neither the TSX Exchange nor its Regulation
Services Provider (as that term is defined in the policies of the
TSX Exchange) accepts responsibility for the adequacy or
accuracy of this release. For further information please
contact:
Katherine PrydeDirector, Communications &
Investor RelationsTel: 888-723-7413info@ascendantresources.com
Cautionary Note to US
Investors
The information concerning the Company’s mineral
properties has been prepared in accordance with National Instrument
43-101 (“NI-43-101”) adopted by the Canadian Securities
Administrators. In accordance with NI-43-101, the terms
“mineral reserves”, “proven mineral reserve”, “probable mineral
reserve”, “mineral resource”, “measured mineral resource”,
“indicated mineral resource” and “inferred mineral resource” are
defined in the Canadian Institute of Mining, Metallurgy and
Petroleum (the “CIM”) Definition Standards for Mineral Resources
and Mineral Reserves adopted by the CIM Council on May 10,
2014. While the terms “mineral resource”, “measured mineral
resource”, “indicated mineral resource” and “inferred mineral
resource” are recognized and required by NI 43-101, the U.S.
Securities Exchange Commission (“SEC”) does not recognize
them. The reader is cautioned that, except for that portion
of mineral resources classified as mineral reserves, mineral
resources do not have demonstrated economic value. Inferred
mineral resources have a high degree of uncertainty as to their
existence and as to whether they can be economically or legally
mined. It cannot be assumed that all or any part of any
inferred mineral resource will ever be upgraded to a higher
category. Therefore, the reader is cautioned not to assume
that all or any part of an inferred mineral resource exists, that
it can be economically or legally mined, or that it will ever be
upgraded to a higher category. Likewise, you are cautioned
not to assume that all or any part of a measured or indicated
mineral resource will ever be upgraded into mineral reserves.
Readers should be aware that the Company’s
financial statements (and information derived therefrom) have been
prepared in accordance with International Financial Reporting
Standards (“IFRS”) as issued by the International Accounting
Standards Board and are subject to Canadian auditing and auditor
independence standards. IFRS differs in some respects from United
States generally accepted accounting principles and thus the
Company’s financial statements (and information derived therefrom)
may not be comparable to those of United States companies.
Cautionary Note Regarding
Forward-Looking Information This news release
contains "forward-looking statements" and "forward-looking
information" (collectively, "forward-looking information") within
the meaning of applicable Canadian securities legislation. All
information contained in this news release, other than statements
of current and historical fact, is forward-looking information.
Often, but not always, forward-looking information can be
identified by the use of words such as "plans", "expects",
"budget", "guidance", "scheduled", "estimates", "forecasts",
"strategy", "target", "intends", "objective", "goal",
"understands", "anticipates" and "believes" (and variations of
these or similar words) and statements that certain actions, events
or results "may", "could", "would", "should", "might" "occur" or
"be achieved" or "will be taken" (and variations of these or
similar expressions). Forward-looking information is also
identifiable in statements of currently occurring matters which may
continue in the future, such as "providing the Company with", "is
currently", "allows/allowing for", "will advance" or "continues to"
or other statements that may be stated in the present tense with
future implications. All of the forward-looking information
in this news release is qualified by this cautionary note.
Forward-looking information in this news release
includes, but is not limited to, statements regarding the Company’s
confidence on achieving guidance, the arrival of new equipment,
improvements in operational performance and the expectation that
production improvements and initiatives could support higher
sustained production rates. Forward-looking information is not, and
cannot be, a guarantee of future results or events. Forward-looking
information is based on, among other things, opinions, assumptions,
estimates and analyses that, while considered reasonable by
Ascendant at the date the forward-looking information is provided,
inherently are subject to significant risks, uncertainties,
contingencies and other factors that may cause actual results and
events to be materially different from those expressed or implied
by the forward-looking information. The material factors or
assumptions that Ascendant identified and were applied by Ascendant
in drawing conclusions or making forecasts or projections set out
in the forward-looking information include, but are not limited to,
the Company’s ability to achieve guidance, its ability to add new
equipment, the ability to support higher sustained production
rates, the ability to improve operational performance and other
events that may affect Ascendant's ability to develop its project;
and no significant and continuing adverse changes in general
economic conditions or conditions in the financial markets.
The risks, uncertainties, contingencies and other factors that may
cause actual results to differ materially from those expressed or
implied by the forward-looking information may include, but are not
limited to, risks generally associated with the mining industry,
such as economic factors (including future commodity prices,
currency fluctuations, energy prices and general cost escalation),
uncertainties related to the development and operation of
Ascendant's projects, dependence on key personnel and employee and
union relations, risks related to political or social unrest or
change, rights and title claims, operational risks and hazards,
including unanticipated environmental, industrial and geological
events and developments and the inability to insure against all
risks, failure of plant, equipment, processes, transportation and
other infrastructure to operate as anticipated, compliance with
government and environmental regulations, including permitting
requirements and anti-bribery legislation, volatile financial
markets that may affect Ascendant's ability to obtain additional
financing on acceptable terms, the failure of the Company in
achieving guidance, the failure of incorporating new equipment to
the existing fleet, the failure to support higher sustained
production rates, the Company’s inability to improve operational
performance, the failure to obtain required approvals or
clearances from government authorities on a timely basis,
uncertainties related to the geology, continuity, grade and
estimates of mineral reserves and resources, and the potential for
variations in grade and recovery rates, uncertain costs of
reclamation activities, tax refunds, hedging transactions, as well
as the risks discussed in Ascendant's most recent Annual
Information Form on file with the Canadian provincial securities
regulatory authorities and available at www.sedar.com.
Should one or more risk, uncertainty,
contingency or other factor materialize or should any factor or
assumption prove incorrect, actual results could vary materially
from those expressed or implied in the forward-looking information.
Accordingly, the reader should not place undue reliance on
forward-looking information. Ascendant does not assume any
obligation to update or revise any forward-looking information
after the date of this news release or to explain any material
difference between subsequent actual events and any forward-looking
information, except as required by applicable law.
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