Ascendant Resources Inc. (TSX: ASND) (OTCQX:
ASDRF; FRA: 2D9) ("Ascendant" or the "Company”) is very pleased to
announce exceptional results of its maiden Preliminary Economic
Assessment (“PEA”) for the Lagoa Salgada VMS project located on the
Iberian Pyrite Belt (“IPB”) in Portugal.
The PEA is based upon the Company’s current
Mineral Resource Estimate for the North Zone reported in the
recently released National Instrument 43-101 Technical Report with
an effective date of September 5, 2019, and demonstrates the
potential viability of mining the Measured, Indicated and Inferred
Mineral Resources of the North Zone only. It outlines a robust and
compelling economic assessment for Lagoa Salgada as it assumes a
two-stage underground mining development scenario, with single
trackless ramp access, transverse sub-level open stoping method
with pastefill. Ventilation and secondary escape ways are planned
through raise-bored holes to surface. Milling rates of 2,700 tonnes
per day in a standard process circuit is anticipated, with primary
crushing, grinding, flotation and leaching of tailings to produce
concentrates including lead, zinc, copper and tin, as well as gold
and silver doré. There is ample opportunity for extensive expansion
from future exploration work to define additional resources to
extend the mine life or increase the scale of the outlined
operation.
Chris Buncic, President & CEO of Ascendant
commented, "We are very pleased that our confidence and investment
in the Lagoa Salgada project has been more than justified by the
results of this maiden PEA. Over the short period that Ascendant
has advanced the Lagoa Salgada project, we have demonstrated a
long-life mine with a modest initial capital expenditure and low
operating costs while also having a rapid timeline to production.
This study outlines a low cost, high-margin operation which the
Company intends to improve through continued growth in the size of
the Resource and improvement in quality of the mineralization
through further exploration work. This study highlights the
tremendous intrinsic value created for our shareholders, and our
expectation is that there are many further opportunities here to
continue building value. We expect this project to increasingly
become a major focus and priority for the Company over the coming
years.
He continued, “The remaining Mineral Resources
in the South and Central Zones, which were out of scope for this
PEA, offer near-term growth potential with additional exploration
work which we view as lower risk. We have also identified
additional targets on the property using geophysical tools that are
extremely encouraging and remain untested. We expect the strong
correlation between geophysical testing and the subsequent
high-grade drilling results experienced in the North Zone to
continue into these zones. Follow up drilling is intended to
support our objective of identifying additional resources to
support future economic studies.”
This maiden PEA provides an initial economic
assessment for the Lagoa Salgada project in the North Zone only.
The Company intends to expand the current PEA with additional
exploration work in the North Zone in 2020. While the North Zone
currently demonstrates a robust standalone mining scenario, there
remains much room for additional resource growth and a potential
operational scale increase, as the deposit remains open along
strike and at depth. The Central and South Zones, excluded from the
PEA, remain a highly prospective source for future resource growth,
as very limited drilling has been performed to date, yet these
zones have already achieved a significant resource-to-drilling
ratio with the identification of high-grade copper-rich massive
sulphide mineralization, warranting further follow-up drilling.
Results from the PEA supports the Company’s
investment thesis for acquiring the Lagoa Salgada project as it
demonstrates a long-term, economically viable project with the
potential to generate significant increased value and is
demonstrating the characteristics of a high-quality flagship asset.
With historic exploration work indicating low-risk, near-term
growth potential, the Company is confident in the ability to
improve the economics of this initial PEA through resource growth,
optimization and improved recoveries with additional metallurgical
work. The Company will perform additional metallurgical testing in
parallel with its future exploration and development programs.
PEA Overview
Highlights of the key project metrics are
provided in the following table on a 100% basis:
PEA Key Highlights |
|
Project IRR pre-tax |
37% |
NPV8% pre-tax |
$137 million |
Project IRR after-tax |
31% |
NPV8% after-tax |
$106 million |
Life of mine pre-tax cash flow |
$ 250 million |
Life of mine after-tax cash flow |
$ 202 million |
Construction period |
2 years |
Payback period |
4 years |
Life of mine |
9 years |
Average Annual Production |
1.0 million tonnes |
Initial Capital Expenditure |
$ 162.7 million |
LOM Sustaining Capital Expenditure & Closure |
$ 20.2 million |
Average annual operating costs |
$ 49.43 /t milled |
Average Annual operating costs (C1) |
$0.44 /lb ZnEq |
Average annual All-In Sustaining Costs (AISC) |
$0.66 /lb ZnEq |
Metal Price Assumptions1 |
|
Zinc |
$1.20/lb |
Lead |
$1.05/lb |
Copper |
$2.70/lb |
Silver |
$18/oz |
Gold |
$1,400/oz |
Tin |
$7.50/lb |
Recovery Assumptions |
Massive Sulphide |
Zn |
80% |
Pb |
65% |
Cu |
25% |
Ag |
75% |
Au |
75% |
Sn |
30% |
Recovery Assumptions |
Gossan |
Pb |
65% |
Sn |
40% |
Ag |
86% |
Au |
66% |
Average Annual Metal Production |
|
Zn |
12.5kt |
Pb |
13.7kt |
Cu |
0.2kt |
Ag |
1.1Moz |
Au |
13koz |
Sn |
0.3kt |
Notes to Table:1 The project economics have been
calculated using consensus prices at the time of the Resource
Estimate report in September 2019.
The PEA was prepared by AMC Mining Consultants
(Canada) Ltd (AMC) with contributions from Resource Development Inc
(RDI) for Mineral Processing and Micon International Limited
(Micon), who estimated the Mineral Resources.
The PEA is preliminary in nature, as it includes
Inferred Mineral Resources that are considered too speculative
geologically to have the economic considerations applied to them
that would enable them to be categorized as Mineral Reserves, and
there is no certainty that the preliminary economic assessment will
be realized.
Mining
The mine design is based on a single decline
access from surface at a 12.6% gradient. Decline access is via a
30-meter deep boxcut. Stopes are accessed from level access drives
in the north and the south of the deposit. Interlevel spacing
varies between 24 meters and 35 meters. All mineralized material
and waste development is mined with a 4.5 meter by 4.5 meter end
profile. Ore and waste will be hauled to surface using 30 tonne
trucks.
The deposit is planned to be mined using
transverse sub-level open stoping with pastefill at a production
rate of approximately 1 Mtpa. Crosscuts will access the deposit
with drives developed laterally across the mineralization. Drives
in mineralization will be placed 12.5 meters apart along strike,
with stopes approximately 25 meters to 35 meters high, 12.5 meters
wide and 25 meters in length. Stope heights in the Gossan tend to
be generally less, approximately 20 meters high. A slot will be cut
at the end of the mineralization and consecutive rings blasted in a
retreating fashion over the full stope length back to the crosscut.
Uphole drill rings from the existing drives in the Massive Sulphide
will be drilled to extract the mineralization from the overlying
Gossan deposit. Ventilation and escape raises will be raise-bored
from surface.
The mine life of 9 years is based on a 2,700
tonne per day mining rate. Mine life is based on average head
grades of 2.44% Zn, 2.85% Pb, 0.34% Cu, 0.16% Sn, 0.75 g/t Au, 69.8
g/t Ag. Unplanned dilution due to the extraction of the stope was
assumed to be 8% for the Gossan zone and 5% for the Massive
Sulphide zone. Mining recovery of 90% was assumed for the Gossan
and 93% for the Massive Sulphide.
Approximately 55% of tailings (up to 540,000 tpa
at a dry bulk density of 1.4) will be placed underground as paste
fill to meet an annual demand of 400,000 m3 of void and the
remaining tailings placed in the dry stack TSF. The paste plant
will have an annual utilisation of just below 50% for the mine the
balance being taken up in producing paste for the dry stacked
tailings. Paste fill will be transported underground using a
combination of pumping and gravity via boreholes and high-pressure
pipelines to the stopes.
Metallurgy and Processing
The company has completed initial scoping level
metallurgical study with Empresa de Perfuração e Desenvolvimento
Mineiro, S.A. (EPDM), Portugal, Grinding Solutions Ltd (GSL), UK,
and Wardell Armstrong (WAI), UK in 2019. These non-optimized
results indicated that conventional polymetallic process flowsheet
is capable of recovering copper, lead, zinc, gold and silver. The
flotation tailings will be leached for additional gold and silver
values. The oxide ore can be leached to recover precious metals.
The leach residue can be sulphidized to recover oxide lead. The
final tailing has sufficient tin values and can be recovered by
flotation.
The projected recoveries and concentrate grades
in the table below are estimated for the project based on extensive
experience working with polymetallic ores. Additional testing is
planned to confirm the concentrate recoveries and grades.
Massive Sulphide |
Flotation |
Leached tailings |
Zn |
Pb |
Sn |
Cu in Pb conc. |
Ag in Pb conc. |
Au in Pb conc. |
Ag in Zn conc. |
Ag |
Au |
Processing recovery |
80% |
65% |
30% |
25% |
35% |
10% |
20% |
20% |
65% |
Concentrate grade |
48% |
45% |
10% |
2.5% |
|
Gossan |
Flotation |
Leaching |
|
Pb |
Sn |
Ag |
Au |
|
Processing recovery |
65% |
40% |
66% |
86% |
|
|
|
|
|
|
|
Concentrate grade |
60% |
10% |
|
Off-site charges include transport of
concentrates either to a European smelter or to the port of Lisbon.
Additional charges have been considered for lead and tin overseas.
Life-of-mine concentrate treatment (including penalties) and
transport charges were assumed to be $240/dmt for lead, $270/dmt
for zinc and $530/dmt for tin, with standard offtake and refining
terms for all metals.
Infrastructure
Lagoa Salgada is situated in southern Portugal
about 100km south west of Lisbon, in close proximity to the town of
Grândola, and is currently accessed via paved roads to Cilha do
Pascoal, followed by 4 km of gravel roads to the mine site. Some
improvement to the gravel road to the mine site may be required to
accommodate heavy construction traffic.
The site will require an office, changeroom,
shop and warehouse as well as storage for fuel, laydown areas, site
fencing, and security building. An allowance for a total of 2,600
m2 of building space has been included in the PEA.
Total power requirement for the mine and mill is
estimated to be 15 MW. There is ample opportunity to connect to the
national grid with both 400 kV and 30 kV transmission lines
operating within 7 km of the project site. However, for this study,
a conservative allowance has been made to run a 30 kV, 20 MVA
transmission line from the existing sub-station at Grândola.
Tailings and waste rock will be disposed of
through the use of a dry-stack facility. Total tailings for life of
mine are estimated at 7.5 Mt with a further 0.7 Mt of waste rock.
Approximately 55% of tailings will be disposed of in the mined-out
stopes via the pastefill system. The remaining 4.1 Mt of tailings
and waste must be accommodated in the dry stack facility. The base
of the facility will be lined, and a low perimeter berm and ditch
will capture any precipitation run off during the life of mine. Run
off will be collected in a settling pond for use by the mine as
service water.
Regional precipitation averages 700 mm per year,
and it is anticipated that the site will have a net neutral water
balance once the initial dewatering of the mine is complete. All
water from the mill will be reused. Total annual water gain
through precipitation and mine dewatering is estimated to be
approximately 325,000 m3. Loss to the tailings is estimated at
250,000 m3 per year with evaporation accounting for the remaining
loss. A complete climate and water balance study is required.
It is anticipated that any make-up water that
may be required will be obtained via local wells on site. Should
this not be adequate, water can be obtained from the Sado River
approximately 5 km from the project site.
A settling pond with capacity of 100,000 m3 will
be established to hold precipitation run-off during the rainy
season as well as mine and mill water discharge.
AMC has assumed ground water inflow of 5 L/s.
Water will be discharged via a staged pump system with pumps
located on 3 levels staging to surface.
Operating Costs
The LOM unit operating costs are estimated to be
$49.43/t milled. Costs are based on benchmark data from other local
operations and local labour costs. Mining is estimated to be
$16.84/t milled, Processing $29.17/t milled and General and
Administration $3.42/t milled.
Average LOM Unit Costs |
Cost Description |
Operating
Costs$/tonne milled |
|
Operating
Costs$/lb ZnEq Payable |
Mining |
$16.84 |
|
$0.15 |
|
Processing |
$29.17 |
|
$0.26 |
|
Admin (G&A) |
$3.42 |
|
$0.03 |
|
Total Unit Costs |
$49.43/tonne |
|
$0.44/lb ZnEq |
|
Capital Costs
The total capital cost estimate is $183 million,
or $25.23/t milled. Initial Capex of $162.7 million with a
four-year payback period and $20.2 million ($3.03/t milled) in
sustaining capital.
Capital Cost Item |
Initial |
Sustaining |
Closure |
Total |
Mining Fleet |
14.20 |
|
|
14.20 |
Ramp Box Cut |
1.00 |
|
|
1.00 |
Waste Development |
9.85 |
11.61 |
|
21.46 |
Maintenance |
5.50 |
1.25 |
|
6.75 |
Backfill Plant |
12.00 |
|
|
12.00 |
Process Plant |
60.00 |
0.60 |
|
60.60 |
Tailings Storage Facility |
12.00 |
0.30 |
|
12.30 |
Infrastructure & Services |
10.62 |
1.46 |
|
12.08 |
Contingency |
37.55 |
|
|
37.55 |
Closure |
|
|
5.00 |
5.00 |
TOTAL
CAPEX |
|
|
|
182.94 |
Project Economics
The project shows robust economic results with a
pre-tax NPV at 8% of $137 million and an IRR of 37%, and an after
tax NPV at 8% of $106 million and IRR of 31%.
Project economics are based on a 9-year mine
life with a 4-year payback period, with positive after-tax cash
flow commencing in Year 3.
Sensitivities
Project economics are most leveraged to the zinc
price yet also highly leveraged to the lead price. A 15% increase
to the zinc price results in a post-tax NPV8% increase of 23% to
$130 million. Similarly, a 15% increase to the lead price results
in a post-tax NPV8% increase of 20% to $127.7 million.
The project economics have been calculated using
consensus prices at the time of the Resource Estimate report in
September 2019. Based on current spot prices of $1.08/lb Zn,
$0.86/lb Pb, $2.78/lb Cu, $18/oz Ag, $1,560/oz Au and $7.68/ln Sn,
the project economics remain robust with an After-tax IRR of 24%
and NPV8% of $73M (C$96M @$1.31CAD/USD).
Environmental &
Permitting
In terms of Environmental Licensing, an
Environmental Scoping Proposal (PDA) has already been prepared and
submitted to the Environmental authorities for the start of the
Environmental Impact Assessment (EIA), in accordance with
Portuguese regulations, which has already been approved by the
Environmental Impact Assessment Authority (APA).
Mineral Resource Estimate
A summary of the Mineral Resource Estimate is
set out in Table 1 below. The PEA was based only upon the Mineral
Resource Estimate for the North Zone.
Table 1: Lagoa Salgada Updated Mineral
Resource Estimate
North Zone Mineral Resource Estimate - Effective
September 5, 2019
|
|
|
|
Average Grade |
|
Contained Metal |
Deposit |
Category |
Min |
Tonnes |
Cu |
Zn |
Pb |
Sn |
Ag |
Au |
ZnEq |
AuEq |
Cut-off |
Cu |
Zn |
Pb |
Sn |
Ag |
Au |
|
|
Zones |
(kt) |
(%) |
(%) |
(%) |
(%) |
(g/t) |
(g/t) |
(%) |
(g/t) |
ZnEq% |
(kt) |
(kt) |
(kt) |
(kt) |
(koz) |
(koz) |
North |
Measured(M) |
GO |
234 |
0.13 |
0.70 |
4.32 |
0.36 |
51 |
1.50 |
11.38 |
7.18 |
2.5 |
0.3 |
1.6 |
10.1 |
0.9 |
385.2 |
11.3 |
|
Indicated(I) |
GO |
1,462 |
0.08 |
0.43 |
2.55 |
0.26 |
37 |
0.51 |
6.63 |
4.18 |
2.5 |
1.2 |
6.2 |
37.3 |
3.8 |
1,742.1 |
23.8 |
|
M &
I |
GO |
1,696 |
0.09 |
0.47 |
2.79 |
0.27 |
39 |
0.64 |
7.28 |
4.60 |
2.5 |
1.5 |
7.9 |
47.4 |
4.6 |
2,127.2 |
35.1 |
|
Inferred |
GO |
831 |
0.08 |
0.48 |
2.62 |
0.17 |
27 |
0.37 |
5.66 |
3.57 |
2.5 |
0.7 |
4.0 |
21.8 |
1.4 |
727.6 |
9.9 |
|
Measured(M) |
MS |
2,444 |
0.40 |
3.12 |
2.97 |
0.15 |
72 |
0.74 |
10.95 |
6.91 |
3.0 |
9.7 |
76.3 |
72.5 |
3.7 |
5,623.9 |
58.4 |
|
Indicated(I) |
MS |
5,457 |
0.45 |
2.35 |
2.30 |
0.13 |
75 |
0.67 |
9.55 |
6.03 |
3.0 |
24.5 |
128.1 |
125.6 |
7.3 |
13,221.5 |
116.9 |
|
M &
I |
MS |
7,902 |
0.43 |
2.59 |
2.51 |
0.14 |
74 |
0.69 |
9.98 |
6.30 |
3.0 |
34.2 |
204.4 |
198.1 |
10.9 |
18,845.5 |
175.2 |
|
Inferred |
MS |
1,529 |
0.23 |
1.96 |
1.32 |
0.09 |
45 |
0.49 |
6.36 |
4.01 |
3.0 |
3.6 |
30.0 |
20.2 |
1.4 |
2,219.7 |
24.0 |
|
Measured(M) |
Str |
94 |
0.37 |
0.88 |
0.28 |
0.05 |
17 |
0.12 |
3.08 |
1.94 |
2.5 |
0.3 |
0.8 |
0.3 |
0.0 |
51.0 |
0.4 |
|
Indicated(I) |
Str |
643 |
0.34 |
0.90 |
0.23 |
0.09 |
17 |
0.06 |
3.23 |
2.04 |
2.5 |
2.2 |
5.8 |
1.5 |
0.6 |
354.0 |
1.3 |
|
M & I |
Str |
737 |
0.34 |
0.90 |
0.24 |
0.09 |
17 |
0.07 |
3.21 |
2.03 |
2.5 |
2.5 |
6.6 |
1.7 |
0.6 |
405.0 |
1.7 |
|
Inferred |
Str |
142 |
0.24 |
1.12 |
0.39 |
0.04 |
17 |
0.09 |
2.95 |
1.86 |
2.5 |
0.3 |
1.6 |
0.6 |
0.1 |
75.6 |
0.4 |
North |
M &
I |
All
zones |
10,334 |
0.37 |
2.12 |
2.39 |
0.16 |
64 |
0.64 |
9.06 |
5.72 |
2.9 |
38.2 |
219.0 |
247.2 |
16.2 |
21,377.7 |
212.0 |
North |
Inferred |
All
zones |
2,502 |
0.18 |
1.42 |
1.70 |
0.12 |
38 |
0.43 |
5.93 |
3.74 |
2.8 |
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 |
Tonnes |
Cu |
Zn |
Pb |
Sn |
Ag |
Au |
CuEq |
|
Cut-off |
|
Cu |
Zn |
Pb |
Sn |
Ag |
Au |
|
|
Zones |
(kt) |
(%) |
(%) |
(%) |
(%) |
(g/t) |
(g/t) |
(%) |
|
CuEq% |
|
(kt) |
(kt) |
(kt) |
(kt) |
(koz) |
(koz) |
Central |
Inferred |
Str |
1,707 |
0.15 |
0.16 |
0.06 |
0 |
12 |
2.22 |
1.66 |
|
0.9 |
|
2.5 |
2.7 |
1.0 |
- |
635.2 |
121.9 |
South |
Measured(M) |
Str/Fr |
0 |
— |
— |
— |
— |
— |
— |
— |
|
0.9 |
|
|
|
|
|
|
|
|
Indicated(I) |
Str/Fr |
2,473 |
0.47 |
1.53 |
0.83 |
0.00 |
19 |
0.06 |
1.54 |
|
0.9 |
|
11.5 |
37.9 |
20.6 |
0.0 |
1,484.7 |
4.7 |
South |
M &
I |
Str/Fr |
2,473 |
0.47 |
1.53 |
0.83 |
0.00 |
19 |
0.06 |
1.54 |
|
0.9 |
|
11.5 |
37.9 |
20.6 |
0.0 |
1,484.7 |
4.7 |
South |
Inferred |
Str/Fr |
6,085 |
0.40 |
1.34 |
0.80 |
0.00 |
17 |
0.05 |
1.37 |
|
0.9 |
|
24.6 |
81.6 |
48.7 |
0.0 |
3,285.2 |
10.0 |
Notes to tables:(1) Mineralized 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*0.62)+(Sn 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
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 4.5.2 software was used to construct
three dimensional (“3D”) solid models of massive sulphide, gossan,
stringer and stockwork mineralization reflecting a minimum grade of
3% ZnEq, 2.5% ZnEq, 2.5% ZnEq and 0.9% CuEq, 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. Two
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 Technical Report to disclose the Mineral
Resource Estimate was prepared in accordance with National
Instrument 43-101 (“NI 43-101”) and the CIM Standards for mineral
disclosure by Micon. The Technical Report is available on the
Company’s website and SEDAR.
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.
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.
Qualified Persons
This PEA was prepared for Ascendant Resources
Ltd by AMC 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 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.
- The Mining Engineering content of this press release has been
reviewed and approved by Gary Methven P.Eng. of AMC Mining
Consultants (Canada) Ltd. who is an “Independent Qualified Person”
as defined by National Instrument 43-101.
- The Infrastructure content of this press release has been
reviewed and approved by George Zazzi P.Eng. of AMC Mining
Consultants (Canada) Ltd. 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 Deepak Malhotra of
as President of Pro Solv Consulting who is an “Independent
Qualified Person” as defined by National Instrument 43-101.
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 (21.25%) in the
high-grade Lagoa Salgada VMS Project and has an earn in opportunity
to increase that position to 80%, it is located in the prolific
Iberian Pyrite Belt in Portugal. Mineral & Financial
Investments Limited, (Redcorp) and Empresa de Desenvolvimento
Mineiro, S.A. (EDM) which is a Portuguese Government owned company
for the mining sector own the asset. Redcorp holds an 85% interest
and EDM holds a 15% interest. Redcorp is a 75% held subsidiary of
TH Crestgate, a Swiss investment company and a 25% held subsidiary
of Ascendant Resources Inc.
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 continue advancing
and building value at the Lagoa Salgada Project. 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 continue advancing and
building value at the Lagoa Salgada Project 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
https://www.globenewswire.com/NewsRoom/AttachmentNg/735ffee5-f591-4355-ac98-5029e9bfa73a
https://www.globenewswire.com/NewsRoom/AttachmentNg/11378141-1b5f-45b7-8978-7caae768da28
https://www.globenewswire.com/NewsRoom/AttachmentNg/8c75392e-ccae-4655-bd15-5068bd42f689
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