Ascendant Resources Inc. (TSX:ASND) (OTCQX:ASDRF)
(FRA:2D9) ("Ascendant" or the "Company”) is pleased to report
its fifth consecutive month of positive adjusted EBITDA1 of $1.6
million at the El Mochito mine for the month of November. With
strong operational and financial momentum, management remains
confident that the El Mochito mine is on a solid path to sustained
profitability and expects to exit 2017 with positive free cash
flow.
Hoisted ore for the month of November was 67,690
tonnes, 8% above the 62,595 tonnes hoisted in October. Milled
production for November was 64,327 tonnes of ore (2,144 tonnes per
operating day), consistent with October’s production level of
64,449 tonnes of ore (or an average of 2,184 tonnes per operating
day), representing a 67% increase in monthly tonnes milled since
January 2017. On a calendar day basis, milled tonnes per day
increased by 72% since January 2017, only eleven months after the
Company assumed ownership of the mine.
The upward trend in production continues into
December with increasing contributions from the new higher-grade
conventional underground sections and the introduction of new long
hole stopes into the existing mine plan. Management remains
confident in achieving a strong month of milled production in
December, exceeding the 2017 annual production target of 66MM lbs
of zinc equivalent. The Company expects further strong operational
and financial growth in 2018.
President and CEO Chris Buncic stated: “This has
been an incredible turnaround year for the Company as we have
successfully delivered consistent operational and financial
improvements through our rehabilitation and optimization efforts at
the El Mochito mine. With production now reaching targeted levels,
the mine has demonstrated its ability to manage sustained higher
production rates and provide a solid path for future growth that
will continue to drive improved profitability.” He continued,
“Throughout the remainder of the year and into 2018 we will
continue to focus on further optimizing operations, increasing the
head grade to the mill and introducing additional new mining
equipment; all of which will serve to improve the cost profile at
El Mochito, supporting an expected increased value per tonne milled
which will generate strong free cash flow in 2018 and in the years
to come.”
1 Adjusted EBITDA is a Non-IFRS measure and
is calculated by considering the Company's earnings before interest
payments, tax, depreciation and amortization, adjusted for net
foreign exchange expenses.
About Ascendant Resources
Ascendant Resources Inc. 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. Since acquiring the mine in December 2016,
Ascendant has been focused on a continuous optimization program
aimed at restoring the historic potential of the El Mochito mine.
To date, the Company has been successful at increasing production
and reducing costs with the expectation of free cash flow in the
near-term. 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 advanced 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.
Neither the Toronto Stock Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX) 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
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
continuous ramp up in ore production, production targets, further
growth, improvement of the mine performance and improvement of
profitability. 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
ability of the Company to continue the ramp up in ore production,
its ability to achieve production targets, future growth,
improvements in performance and profitability 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 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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