Ascendant Resources Inc. (TSX:ASND) (OTCQX:ASDRF)
(FRA:2D9) ("Ascendant" or the "Company”) is pleased to announce the
Company has filed a Technical Report for its El Mochito mine in
Honduras entitled, “ASC 2018 Technical Report on the Mineral
Resources and Mineral Reserves of Ascendant Resources Inc.
Producing El Mochito Mine in Honduras”, (the “Technical Report”),
supporting the updated Mineral Reserve and Resource Estimate
announced on April 10, 2018. The Technical Report was prepared in
accordance with National Instrument 43-101 - Standards for
Disclosure for Mineral Projects (“NI 43-101”) and CIM Standards and
is dated May 25, 2018 with an effective date of January 1, 2018.
The Technical Report was prepared by Mercator
Geological Services Limited with P&E Mining Consultants Inc.
contributing to the Mineral Reserve Estimate, mining and
metallurgical engineering sections.
Highlights from the Technical Report
include:
- Proven & Probable Mineral Reserves increase life of mine
beyond seven years (at a rate of 820kt/yr):
- Contained zinc increased 193% from 204Mlbs to 597Mlbs
- Contained lead increased 109% from 100Mlbs to 209Mlbs
- Contained silver increased 106% from 3.5Moz to 7.2Moz
- Measured & Indicated Mineral Resources increase
- 50% to 869Mlbs contained zinc from 578Mlbs, and
- 28% to 1,216Mlbs contained zinc equivalent metal, up from
953Mlbs
- Inferred Mineral Resources also increase by 14% to 739Mlbs
contained zinc equivalent metal, up from 648Mlbs.
The new Estimate illustrates a significant
increase in both Mineral Resources and Reserves against the
previous Mineral Resource and Reserve Estimates dated December 31,
2015 and highlights the mine’s long history of expanding and
upgrading Mineral Resources.
Chris Buncic, President and CEO of Ascendant
commented: “The updated Mineral Reserve and Resource Technical
Report for the El Mochito mine represents a major milestone for the
Company. The significant increase in both Mineral Reserve and
Mineral Resource tonnage and high conversion rates into Mineral
Reserves are a direct reflection of our concerted exploration and
development efforts carried out over the course of our first year
as operators of El Mochito. The Report affirms the asset’s quality
and potential for additional long-term upside.”
He continued, “The Company remains
committed to further Mineral Reserve and Mineral Resource growth.
With the success achieved to date and the ramp up in exploration
work planned for 2018, management is confident in the ability of El
Mochito to continue to grow, positioning it well for the
future.”
A summary of the Mineral Reserve Estimate and
the Mineral Resource Estimate are set out below in Table 1 and
Table 2 respectively:
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Table 1: El Mochito Mineral Reserve Statement
- Effective 01 January 2018 |
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Category |
Tonnes |
Grade |
Contained Metal |
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Zn |
Pb |
Ag |
ZnEq. |
Zn |
Pb |
Ag |
ZnEq. |
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(kt) |
(%) |
(%) |
(g/t) |
(%) |
Mlbs |
Mlbs |
Moz |
Mlbs |
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Proven Reserves |
785 |
4.7 |
2.1 |
54 |
7.2 |
81 |
35 |
1.4 |
124 |
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Probable Reserves |
4,946 |
4.7 |
1.6 |
36 |
6.6 |
516 |
174 |
5.8 |
717 |
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Proven & Probable Reserves |
5,731 |
4.7 |
1.7 |
39 |
6.7 |
597 |
209 |
7.2 |
841 |
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Notes: |
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(1) Metal price assumptions used were US$1.21/lb Zn,
US$1.06/lb Pb and US$18/oz Ag (2) Zinc equivalent metal grade (ZnEq
%) was calculated as follows Zn% +(Pb % x 0.8175) +(Ag g/t x
0.0149) = ZnEq% and is based on 88.9% Zn, 74.3% Pb and 77.7% Ag
metallurgical recoveries. (3) A cut-off value of 4.76% ZnEq was
used to estimate the Mineral Reserve which considered metal price
assumptions, metal recoveries, refining charges, concentrate mass
pulls, operating costs, royalties, concentrate treatment charges,
payables, penalties and transportation/selling costs. (4) Mineral
Resources are stated inclusive of Mineral Reserves, tonnages,
grades and contained metal values have been rounded, totals may
vary due to rounding. |
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Table 2: El Mochito Mineral Resource Statement
- Effective 01 January 2018 |
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Category |
Tonnes |
Grade |
Contained Metal |
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Zn |
Pb |
Ag |
ZnEq. |
Zn |
Pb |
Ag |
ZnEq. |
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(kt) |
(%) |
(%) |
(g/t) |
(%) |
Mlbs |
Mlbs |
Moz |
Mlbs |
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Measured Resources |
1,100 |
5.5 |
2.0 |
65 |
8.2 |
134 |
48 |
2.3 |
198 |
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Indicated Resources |
6,452 |
5.2 |
1.7 |
41 |
7.2 |
735 |
241 |
8.4 |
1,019 |
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Measured & Indicated
Resources |
7,553 |
5.2 |
1.7 |
44 |
7.3 |
869 |
289 |
10.7 |
1,216 |
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Inferred Resources |
4,972 |
5.1 |
1.4 |
33 |
6.7 |
556 |
156 |
5.4 |
739 |
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Notes: |
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(1) Mineral Resources are stated inclusive of Mineral
Reserves, Tonnage, grade and contained metal values have been
rounded, totals may vary due to rounding. (2) Price assumptions
used were US$1.21/lb Zn, US$1.06/lb Pb and US$18/troy oz Ag. Zinc
equivalent metal grade (ZnEq. %) was calculated as follows:
Zn% +(Pb % x 0.82) +(Ag g/t x 0.0149) = ZnEq% and is based on
88.9% Zn recovery, 74.3% Pb recovery and 77.7% Ag recovery. (3) A
cut-off of 3.1% ZnEq. was used to estimate Mineral Resources and is
based on fourth quarter 2017 marginal direct operating costs. (4)
Results of an interpolated bulk density deposit model have been
applied, and contributing 5ft downhole assay composites were capped
at 38% Zn, 36% Pb and 2000g/t Ag. (5) Mineral Resources that are
not Mineral Reserves do not have demonstrated economic viability.
(6) The Inferred Mineral Resource in this estimate has a lower
level of confidence than that applied to an Indicated Mineral
Resource and must not be converted to a Mineral Reserve. It is
reasonably expected that the majority of the Inferred Mineral
Resource could be upgraded to an Indicated Mineral Resource with
continued exploration. |
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This Mineral Reserve and Resource Estimate marks
the first compiled since Ascendant acquired the El Mochito mine in
December 2016 and replaces the previous estimates with the
effective date of December 31, 2015.
The Mineral Reserve Estimate reported in the
Technical Report and set out in the table above reflect a
non-material change from what the Company previously reported on
April 10, 2018 as a result in a change to the dilution calculation.
The Mineral Reserve Estimate reported in the Technical Report and
in the table above supersedes that of the one reported in the
Company’s press release dated April 10, 2018.
This Technical Report can be accessed under the
Company’s profile on SEDAR at www.sedar.com and on the Company’s
website at www.ascendantresources.com.
Qualified Persons
The Mineral Reserve and Metallurgical technical
contents of this press release have been reviewed and approved by
Eugene Puritch, P.Eng. FEC, CET, James Pearson, P.Eng. and D. Grant
Feasby, P.Eng. of P&E Mining Consultants Inc., all “Independent
Qualified Persons” as defined by NI 43-101.
The Mineral Resource content of this press
release has been reviewed and approved by Michael Cullen, P.Geo. of
Mercator Geological Services Limited, Mr. Cullen supervised and is
responsible for the Mineral Resource Estimate and is an
“Independent Qualified Person” as defined by NI 43-101.
Review of Technical
Information
The scientific and technical information in this
press release has been reviewed and approved by Patrick E. Toth,
P.Geo., Director of Exploration for Ascendant, Eugene Puritch,
P.Eng., FEC, CET of P&E Mining Consultants Inc. and Michael
Cullen, P.Geo. of Mercator Geological Services Limited., all
Qualified Persons as defined by National Instrument 43-101.
About Ascendant Resources
Inc.
Ascendant is a Toronto-based mining company
focused on its 100%-owned El Mochito zinc-lead-silver mine in
north-western 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 with sustained production
reaching record levels and profitability restored. The Company
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 Mineral
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 Mineral
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.
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
Cautionary Notes 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.
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
improvements of grades in 2018, the potential to expand Mineral
Resources and grades, the increase of life of mine, the expectation
to produce from areas with the bulk of Mineral Reserves, the
enhancement of the overall Mineral Resource base, the expectation
that the Mineral Resources will continue to grow. 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 size of the mineralized bodies, the ability
to increase the feed and the ability to expand Mineral Resources
and grades at the mine, the ability to increase the life of
mine, the ability to carry out additional drilling programs and
exploration, 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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