Ascendant Resources Inc. (TSX: ASND) (OTCQX:
ASDRF; FRA: 2D9) ("Ascendant" or the "Company”) is very pleased to
announce the results of a Preliminary Economic Assessment (“PEA”)
for the expansion and optimization of operations at its El Mochito
mine in Honduras.
Highlights of the Preliminary Economic
Assessment for the Expansion Project include:
- 27% increase in processed tonnes to 2,800 per day
(approximately 1 million tonnes per annum)
- 26% increased average annual contained ZnEq1 production to 126
million lbs per year
- 22% reduction in average direct operating costs
- 18% reduction in average mine AISC2 to $0.96/lb payable ZnEq
produced
- $83M project NPV8% incrementally added to El Mochito cash
flow
- 57% project IRR after taxes & royalties
- $32.8 million project capex funded through non-dilutive
financing
- 2-year project construction & commissioning period
(All dollar amounts are in US Dollars unless
otherwise specified)
The PEA outlines a substantial Internal Rate of
Return (“IRR”) with a payback period of just under two years. The
PEA further presents a robust and compelling opportunity for the
Company to position El Mochito as a long-term profitable operation.
The PEA assumes a mine life of 10 years inclusive of Inferred
Mineral Resources excluding any additional Mineral Resources added
from the current 30,000 metre exploration program. The Expansion
Project mine plan is based upon the Company’s current Mineral
Resource Estimate recently released in a National Instrument 43-101
Technical Report in May 2018.
The Company is currently in advanced
negotiations with numerous local and multilateral financial
institutions to secure non-dilutive financing required for the
Expansion Project. The Company has received considerable interest
from potential financing partners to fund the capital program.
Management is confident it will be able to provide an update on the
status of the financing in the fourth quarter of this year and
anticipates project development will commence in Q1 2019.
"The strong results of this PEA represents a key
milestone and another positive step for the Company to continue to
unlock the full potential of El Mochito and position the mine to
deliver robust economics and free cash flow over the long-term in
any reasonable metals price environment.” Stated Chris Buncic,
President & CEO of Ascendant. He continued, “The Company has
received very strong support from potential funders as well as from
our labour force and all levels of the government in Honduras for
the expansion and optimization program which will create additional
jobs and benefits for the local community.”
Neil Ringdahl, COO of Ascendant remarked: “The
Company has made substantial progress over the last 18 months
reducing operating costs by over 30% and restoring operations and
achieving record production levels. El Mochito is in its 70th year
of operations and the mining infrastructure is expansive. We can
see that reducing haulage distance is among the most impactful way
to reduce costs. In November 2017, we began working on several
longer-term initiatives to reduce costs and improve productivity in
addition to immediate opportunities. This Expansion Project will
continue our optimization and growth strategy, with the potential
to increase metal production by 26% and at the same time reducing
both sustaining capital and operating costs by 29%. Direct
operating costs could be reduced to approximately 50% of the level
they were when Ascendant took control of the mine just twenty-two
months ago. In addition, with further Mineral Resource expansion
expected in the eastern part of the mine, this new investment opens
up significant new ground for economic extraction over the
longer-term as these Mineral Resources are defined.”
The PEA considers increasing mining and
processing capacity to approximately 2,800 tonnes per day (one
million tonnes per year) from 2,200 tpd (750,000 tonnes per year)
without significantly interfering with ongoing operations. In
addition to increased revenues, the major benefit of the program is
an expected reduction in operating costs of between $13/t processed
to $18/t processed in the future as the mine gets deeper. Contained
annual zinc equivalent (“ZnEq”) metal production would average 121
million lbs over the Life-of-Mine (“LOM”). Capital costs to
complete the development program have been estimated at $32.8
million with a construction period of approximately two years and
an expected payback of less than two years.
This project presents a significant opportunity
to bring the All-In Sustaining Costs (“AISC”) at El Mochito down to
less than $0.96 payable zinc equivalent per pound produced two
years after the commencement of construction. This cost level would
support the longevity of the operation and sustain robust positive
free cash flow even if a sustained depressed metals price
environment were to occur.
The three principal areas of development
considered by the PEA are:
- Installation of a new 442 metre subvertical rock-only hoisting
shaft shortening the average underground truck hauling distances by
26%, increasing hoisting capacity, ventilation and services access
and mining capacities. Shorter distances translate into additional
trucking capacity and underutilized drilling and blasting equipment
would be able to increase production by 26% without the need for
additional mining equipment.
- Upgrading the underground pumping and water management system,
reducing overhead costs by changing and reducing the number of
pumps, rationalizing pumping columns and installing an effective
water clarification system to pump clean water.
- Upgrading the crushing circuit, process plant, and tailings
handling capacity to meet the increased production from the
mine.
Key highlights3 of the PEA are summarized
below:
Table of
Key Project Highlights |
|
Project IRR after taxes & royalties |
57% |
Project NPV (8%) after taxes & royalties |
$82.7 million |
|
|
Project undiscounted after-tax cash flow |
$146.5 million |
|
|
Project construction period |
2 years |
Project Payback period |
2 years |
Life of mine (including current operations) |
10 years |
Metal Prices assumed |
|
Zinc |
$1.21/lb |
Lead |
$1.09/lb |
Silver |
$15/oz |
LOM Process recovery |
|
Zn |
90% |
Pb |
75% |
Ag |
75% |
Average Annual Metal production (rounded) |
|
Zn |
41,000t |
Pb |
11,000t |
Ag |
727,000 oz |
ZnEq |
121 million lbs |
Average Annual Payable ZnEq production (rounded) |
105 million lbs |
Project Development Capital Expenditures |
$32.8 million |
LOM Sustaining Capital Expenditure (excluding closure) |
$129.7 million |
Average annual operating costs after construction |
$61.90/t processed |
Average annual operating costs after construction |
$0.57/lb ZnEq payable |
Average annual AISC after construction |
$0.96/lb ZnEq payable |
The PEA was prepared by InnovExplo Inc. under
the supervision of Mr. Neil Ringdahl, Chief Operating Officer of
Ascendant along with the Ascendant Resources’ technical team and
included contributions from the engineering team at InnovExplo Inc,
P&E Mining Consultants Inc. and Mercator Geological Services
Limited.
Mineral Resource Estimate
The current Mineral Resource Estimate prepared
in accordance with NI 43-101 and the CIM Standards and used in the
PEA, has an effective date of January 1, 2018, and is set out in
the table below.
El Mochito Mineral
Resource Estimate - Effective 01 January 2018 |
|
Category |
Tonnes |
Grade |
Contained Metal |
|
|
|
Zn |
Pb |
Ag |
ZnEq. |
Zn |
Pb |
Ag |
ZnEq. |
|
|
(kt) |
(%) |
(%) |
(g/t) |
(%) |
Mlbs |
Mlbs |
Moz |
Mlbs |
|
Measured Resources |
1,100 |
5.5 |
2.0 |
65 |
8.2 |
134 |
48 |
2.3 |
198 |
|
Indicated Resources |
6,452 |
5.2 |
1.7 |
41 |
7.2 |
735 |
241 |
8.4 |
1,019 |
|
Measured & Indicated
Resources |
7,553 |
5.2 |
1.7 |
44 |
7.3 |
869 |
289 |
10.7 |
1,216 |
|
|
|
|
|
|
|
|
|
|
|
|
Inferred Resources |
4,972 |
5.1 |
1.4 |
33 |
6.7 |
556 |
156 |
5.4 |
739 |
|
Notes: |
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(1) 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. |
|
The Mineral Resource Estimate was prepared by
Mercator Geological Services Limited. The effective date of this
Mineral Resource Estimate is January 1, 2018, and it is based on 26
contiguous areas of “manto” and/or “chimney” style skarn
mineralization defined by 2,176 diamond drill holes up to December
31st, 2017. 3D solid models of skarn mineralization reflecting a
minimum grade of 3% ZnEq. were depleted for previously mined areas
to constrain Mineral Resource volumes. GEOVIA Surpac® 6.8.1
software was used to assign block grades for zinc (%), lead (%),
silver (g/t) and density (g/cm3) for Measured, Indicated and
Inferred Mineral Resources using inverse distance squared (ID2)
interpolation methodology and capped 5-foot down 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 10 feet (x) by 10 feet (y)
by 10 feet (z) with two levels of sub-blocking allowed to a minimum
block size of 2.5 feet (x) by 2.5 feet (y) by 2.5 feet (z). Mineral
Resource categorization was applied using discrete solid models
developed from contributing drill hole and assay composite
parameters.
Mining Operations Expansion
Figure 1: Current Mining Layout
- Long section of El Mochito Mine looking North
(horizontal and vertical haulage routes in red)
A photo accompanying this announcement is available at
http://www.globenewswire.com/NewsRoom/AttachmentNg/e3b9ae23-e33f-4039-8281-cf4f46172b61
The bulk of the current Mineral Resources are
located below the current shaft bottom, extending and remaining
open to the east. Mining this material requires a long ramp haulage
system to deliver mineralized material to the main underground
crusher and hoisting facilities, which will only extend even longer
over time as mining and exploration work for additional Mineral
Resource definition continues. The long hauling distances result in
higher operating costs in terms of diesel costs, ventilation needs,
fleet replacement requirements and the resulting higher maintenance
requirements.
The PEA has focused on how to shorten the future
haul distances and open the mine to monopolize on future
exploration success expected further east of the current
infrastructure. The PEA has determined that the construction of a
new, subvertical shaft and underground crushing station would
shorten average hauling distances from all areas by 26% over the
LOM, thus significantly contributing to lowering LOM operating
costs. The design of the new hoisting and crushing system was
undertaken in conjunction with WorleyParsons Limited, an
international engineering and construction company.
The PEA envisages a new subvertical shaft (No. 8
shaft) sited close to the current No 2 shaft, constructed as a
5-metre diameter raise-bored hole from the 2100 to 3250 level with
the final portion of the shaft either raise bored or drop raised to
the 3530 level for a total vertical extent of 1,430 feet (442
metres). This positioning would overlap vertically over two levels
and allow for transfer of mineralized material from the new No. 8
shaft to the current No. 2 shaft.
Figure 2: Impact of the Proposed
Subvertical Shaft - Long section of El Mochito Mine looking North
(revised horizontal and vertical haulage routes in red and
green).
A photo accompanying this announcement is available at
http://www.globenewswire.com/NewsRoom/AttachmentNg/33143247-f223-4ff4-8173-928098bd6354
A new grizzly and crushing circuit will be
located on the 3360 level with a nameplate capacity of 2,800 tpd.
The new subvertical shaft will reduce the average haulage distance
by well over 40% for the areas affected, and 26% over the life of
mine for all material, as the haulage arrangements in the western
side of the mine will remain largely unchanged, however, this area
is only around 15-20% of known Mineral Resources. Hoisting capacity
would be expected to increase to around 2,800 tpd and is easily
achieved with the No. 2 shaft regularly demonstrating its ability
to do so during 2018. The new subvertical shaft would not have men
and material transporting capability (the existing ramps will be
used for this purpose) but will be equipped with power cables,
compressed air, water, backfill lines and will also form part of a
significantly improved ventilation circuit for the mine going
forward.
With the reduced haulage distance, the truck
mining fleet capacity essentially increases by the same amount,
thereby doing away with the need to procure additional equipment
for the increased tonnage envisaged. Drilling, blasting and support
equipment is currently underutilized with trucking typically being
the historical bottleneck and thus the current fleet is well
positioned to support the 26% increase in production.
Processing Plant Upgrades
To allow for the grinding and concentrator plant
to treat the incremental increase in tonnage from the mine to 2,800
tpd from the current average of 2,200 tpd, various upgrades and
de-bottlenecking plans are outlined within the PEA. With respect to
the crushing and grinding circuit, the increased throughput can be
achieved by washing off the fines from the run of mine feed, which
is typically very wet, using a newly installed double-deck,
vibrating grizzly. The cleaner product delivered to the primary and
secondary crushers would significantly reduce downtime. The
collected fines would be pumped to a roto-spiral screen in the mill
circuit which would allow the very fine material to bypass the
primary mills and proceed directly to flotation without
milling.
As part of the increase in milling capacity, it
is proposed to reconfigure the grinding mills to two parallel
circuits consisting of a primary rod mill and a secondary ball mill
with the secondary ball mill in closed circuit with a classifier. A
roto-spiral screen is proposed for the classifier as this will
reduce the circulating load from 250%, which is typical when using
a hydrocylone, to an estimated 100% thus allowing for increased
tonnage throughput. To accommodate the higher processed capacity,
upgrades to the floatation circuits are required where replacement
of the old float cells are anticipated in addition to upgrades of
the concentrate filtering process to reduce moisture content of the
concentrates produced to be consistently between 8-9%.
To accommodate the increased production rates,
various updates to the tailings system would also be required. This
would include installing a new, larger tailings pipeline with
associated pumps while the old line would be used to recirculate
and reuse the decant water from the tailings facility as process
water for the plant, thus optimizing the mines water balance.
Improved Underground Water Management
System
In conjunction with the upgrades noted above,
the PEA also outlines upgrades to the underground water management
system to improve pumping capacity and thus decrease operating and
sustaining capital costs related to the current pumping
procedures.
The PEA outlines a proposal to install a new
pump station near the bottom of the new shaft and a second station
on the 2100 level. These new pumps would pump vertically to the
drainage tunnel on level 650, thus replacing a multitude of old and
inefficient pumps. In addition, a new water clarification system is
planned to reduce wear on all pumps as this would allow for the
pumping of clean water versus dirty water. The total installed
pumping capacity would be increased from 12,000 US gallons per
minute to over 18,000 US gallons per minute.
Capital Costs
The total capital cost of this proposed
Expansion Project is $32.8 million, including $4.3 million in
contingency. The capital cost breakdown is as follows:
|
|
$ million |
Subvertical Shaft &
Crusher |
Civil |
0.6 |
Mechanical |
0.7 |
Structural |
2.0 |
Electrical & Instrumentation |
0.8 |
Piping |
1.3 |
Hoisting System |
4.8 |
Raiseboring & development |
5.1 |
Mining Project Management |
0.4 |
|
Subtotal Subvertical Shaft &
Crusher |
15.7 |
UG Pumping & Water
Management |
EPCM |
0.2 |
Pumps, pipes & clarifiers |
4.7 |
Electrical Works |
1.5 |
Subtotal Pumping & Water
Management |
6.4 |
Process Plant |
EPCM |
0.5 |
Crushing |
2.1 |
Grinding |
0.4 |
Magnetite Recovery |
0.2 |
Flotation |
1.8 |
Concentrate Filtration |
0.4 |
Tailings line & Reclaim water |
0.9 |
Subtotal Process Plant |
6.3 |
|
Contingency |
4.3 |
|
TOTAL CAPEX |
32.8 |
Project Economics
The Expansion Project after-tax NPV assuming an
8% discount rate is $83 million, with an after-tax IRR of 57%. The
economics are based on consensus long term metal prices of $1.21/lb
for zinc, $1.09/lb for lead and $15/oz for silver. A sensitivity
analysis based on separately varying long-term prices, development
(project) capital expenditures, sustaining capital expenditures and
operational expenditures is summarized below:
Expansion Project Sensitivities to NPV 8% by
Factor ($million) |
|
|
|
|
|
|
|
|
|
|
|
Change |
-15% |
|
-5% |
|
0% |
|
5% |
|
15% |
|
Metal Price |
9.6 |
|
78.6 |
|
82.7 |
|
86.2 |
|
95.4 |
|
Development Capital |
87.1 |
|
84.2 |
|
82.7 |
|
81.3 |
|
78.3 |
|
Sustaining Capital |
92.2 |
|
85.8 |
|
82.7 |
|
79.7 |
|
71.7 |
|
Operating Expenses |
79.6 |
|
81.6 |
|
82.7 |
|
79.7 |
|
62.6 |
|
Technical Disclosure
The reader is advised that the PEA summarized in
this press release is intended to provide only an initial,
high-level review of the project potential and design options. The
PEA mine plan and economic model include numerous assumptions and
the use of Inferred Mineral Resources. Inferred Mineral Resources
are considered to be too speculative to be used in an economic
analysis except as allowed for by Canadian Securities
Administrators’ National Instrument 43-101 in PEA studies. There is
no guarantee that Inferred Mineral Resources can be converted to
Indicated or Measured Mineral Resources, and as such, there is no
guarantee the project economics described herein will be
achieved.
Ascendant will file with regulatory authorities
within 45 days a Technical Report prepared in accordance with NI
43-101 that documents the PEA study and supports the current
disclosure.
Note on Exclusion of Mineral
Reserves
Given that each year approximately 25% of the
depleted mined tonnage is derived from Inferred Mineral Resources,
existing Mineral Reserves are no longer current, and a new mining
approach is being applied. All Mineral Reserves have been
reclassified back to Measured, Indicated and Inferred Mineral
Resources for the purposes of this PEA. As such, previously
disclosed Mineral Reserves for El Mochito are no longer applicable.
Mineral Resources depleted in the LOM of the PEA plan have been
constrained by the mine design and the applicable modification
factors for mineral loss and mining dilution have also been
applied.
Qualified Persons
This PEA was prepared for Ascendant Resources
Ltd by InnovExplo Inc and other industry consultants, all Qualified
Persons (QP) under National Instrument 43-101. The scientific and
technical information in this press release has been reviewed by
the following QPs as described below:
- The Mining engineering content of this press release has been
reviewed and approved by Eric Vinet, P.Eng. of InnovExplo Inc. who
is an “Independent Qualified Person” as defined by National
Instrument 43-101.
- The Metallurgical and Process Plant technical contents of this
press release have been reviewed and approved by D. Grant Feasby
P.Eng. of P&E Mining Consultants Inc. who is an “Independent
Qualified Person” as defined by National Instrument 43-101.
- The Mineral Resource Estimate 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. He is an
“Independent Qualified Person” as defined by National Instrument
43-101.
About Ascendant Resources
Inc.
Ascendant is a Toronto-based mining company
focused on its flagship 100%-owned producing El Mochito zinc, lead
and silver mine in west-central Honduras, which has been in
production since 1948. After acquiring the mine in December 2016,
Ascendant spent 2017 implementing a rigorous and successful
optimization program restoring the historic potential of El Mochito
delivering record levels of production with profitability restored.
The Company now remains focused on cost reduction and further
operational improvements to drive robust profitability in 2018 and
beyond. Expanding and upgrading El Mochito’s significant current
Mineral Resource base through exploration work for near-mine growth
is an ongoing focus for the Company. With a significant land
package of 11,000 hectares in Honduras and an abundance of
historical data, there are several regional targets providing
longer term exploration upside which could lead to further Mineral
Resource growth.
Ascendant also holds an interest in the
high-grade polymetallic Lagoa Salgada VMS Project located in the
prolific Iberian Pyrite Belt in Portugal. The Company is engaged in
exploration of the Project with the goal of expanding already
substantial defined Mineral Resources and testing additional known
targets. The Company’s acquisition of its interest in the Lagoa
Salgada Project offers a low-cost entry point to a potentially
significant exploration and development opportunity. The Company
holds an additional option to increase their interest in the
Project upon completion of certain milestones.
Ascendant Resources is engaged in the ongoing
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: 888-723-7413 info@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 classification. 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 ability
to fully fund planned development, exploration expenditures and the
undertaking of various long-term optimization programs, the ability
to expand operations at el Mochito mine and commence development in
Q1 of 2019, the ability to continue to deliver free cash-flow; the
ability to provide non diluting means to fund the Expansion
Project; the ability to reduce sustaining capital and cost and
improve productivity and the ability to increase metal production.
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
fully fund planned development, exploration expenditures and the
undertaking of various long-term optimization programs, the ability
to expand operations at el Mochito mine and commence development in
Q1 of 2019, the ability to continue to deliver free cash-flow; the
ability to provide non diluting means to fund the Expansion
Project; the ability to reduce sustaining capital and cost and
improve productivity and the ability to increase metal production
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 provide
non diluting means to fund the Expansion Project, the failure to
carry out the Expansion Project as planned with the consequent
failure to reduce cost and sustaining capital; 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 Mineral
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.
______________________________
1 ZnEq calculated in the life of mine plan was
the sum of all metals produced and expressed in zinc equivalent
terms using processing recoveries of 90% for zinc, 75% for lead and
silver, payable factors of 85% for zinc, 95% for lead and 80% for
silver, long-term metal prices of $1.21/lb zinc, $1.09/lb lead and
$15.00/oz for silver.
2 All in Sustaining Cost is a non-GAAP measure
that includes mine direct operating production costs (mining,
processing, administration and other mine related costs incurred
such as variation in inventory) plus smelter treatment and refining
charges, freight costs, royalties, and sustaining capital costs.
The measure does not include depreciation, depletion, amortization
and reclamation expenses.
3 See note on Technical Disclosure
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