Ascendant Resources Inc. (TSX: ASND) (OTCQX: ASDRF; FRA: 2D9)
("Ascendant" or the "Company”) is pleased to announce an updated
Mineral Resource Estimate prepared in accordance with Canadian
National Instrument 43-101 (“NI 43-101”) significantly upgrading
the resources at the Lagoa Salgada Volcanogenic Massive Sulphide
(“VMS”) Project located on the Iberian Pyrite Belt (“IPB”) in
Portugal. This Mineral Resource Estimate will be used as a basis
for the Preliminary Economic Assessment (“PEA”) to be completed by
year end.
The 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 of those holes
allocated to testing 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% ZnEq1.
- North Zone: Measured & Indicated Mineral Resources increase
71% to 10.3 Mt at 9.1% ZnEq:
- 170% increase in the precious metal rich gossan zone to 1.7 Mt
at 4.6g/t AuEq2.
- 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.
1 ZnEq% = ((Zn Grade*25.35)+(Pb Grade*23.15)+(Cu Grade *
67.24)+(Au Grade*40.19)+(Ag Grade*191.75))/25.35
2 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
A summary of the Mineral Resource Estimate is
set out in Table 1 below:
Table 1: 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 |
|
|
Zones |
ZnEq% |
(kt) |
(%) |
(%) |
(%) |
(%) |
(g/t) |
(g/t) |
(%) |
(g/t) |
(kt) |
(kt) |
(kt) |
(kt) |
(kt Oz) |
(kt 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 |
North |
M &
I |
All 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 |
North |
Inferred |
All 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 |
|
|
Zones |
CuEq% |
(kt) |
(%) |
(%) |
(%) |
(%) |
(g/t) |
(g/t) |
(%) |
|
(kt) |
(kt) |
(kt) |
(kt) |
(kt Oz) |
(kt 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
Chris Buncic, President & CEO of Ascendant,
stated, “We are exceptionally pleased with the updated Mineral
Resource Estimate as it demonstrates a substantial milestone
towards the goal of developing Lagoa Salgada. We 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, while it appears to be at
the higher range on the grade scale, and we continue to be
encouraged for the mineable potential of the project. This is an
excellent starting point for a PEA, and we are focused on
completing a study before the end of the year.”
He continued, “Our 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.”
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.
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 1.7km to just south of the South Zone (see
Figure 3). The IP work supports the further growth potential in the
area.
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.
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 Mineral Resource Estimate contents of this
press release have been reviewed and approved by Charley Murahwi,
M.Sc., P.Geo., Pr. Sci. Nat., FAusIMM, Senior
Geologist, Micon International Limited.
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.
About Ascendant Resources
Inc.
Ascendant is a Toronto-based mining company
focused on its 100%-owned producing El Mochito zinc, lead and
silver mine in west-central Honduras and its high-grade
polymetallic Lagoa Salgada VMS Project located in the prolific
Iberian Pyrite Belt in Portugal.
After acquiring the El Mochito mine in December
2016, Ascendant spent 2017 and 2018 implementing a rigorous and
successful optimization program restoring the historic potential of
El Mochito, a mine in production since 1948, to deliver record
levels of production with profitability restored. The Company now
remains focused on cost reduction and further operational
improvements to drive profitability in 2019 and beyond. With a
significant land package of approximately 11,000 hectares in
Honduras and an abundance of historical data, there are several
near-mine and regional targets providing longer term exploration
upside which could lead to further Mineral Resource growth.
Ascendant 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 the
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 its 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: 888-723-7413info@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
exploration activities and the results of such activities at the
Lagoa Salgada Project, the potential to expand mineralization and
increase mineral resources and the potential to complete a
preliminary economic assessment before year end. 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 success of the exploration activities at Lagoa Salgada Project,
the ability of the exploration results to expand mineralization and
increase mineral resources, the ability to complete a preliminary
economic assessment before year end 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,
uncertainty related to the results of the Company’s exploration
activities at the Lagoa Salgada Project, 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.
Photos accompanying this announcement are available at:
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