Ascendant Resources Inc. (TSX: ASND) (FRA: 2D9) ("Ascendant" or the
"Company”) is pleased to release fourth quarter and full year 2019
production results highlighted by record head grade and contained
metal production in the fourth quarter and the full year since
assuming ownership of the El Mochito mine in Honduras in December
2016.
Contained metal production for the full year
2019 was 106.2 million pounds of zinc equivalent (“ZnEq”) metal,
in-line with the Company’s production guidance. This was comprised
of 64.4 million pounds of zinc, 27.1 million pounds of lead and 1.4
million ounces of silver. Overall production represents a 16%
increase over 2018 contained metal production of 91.4 million
pounds of ZnEq.
Contained metal production for Q4 2019 was 29.4
million pounds of ZnEq metal, comprised of 16.5 million pounds of
zinc, 7.7 million pounds of lead and 394 thousand ounces of silver.
Total contained metal production of 29.4 million pounds ZnEq
increased by 27% over Q4 2018 (23.2 Mlbs ZnEq) and 2% over Q3 2019
(28.8 Mlbs ZnEq), due to higher zinc (6%) and substantially
increased lead (11%) and silver grades (17%).
Milled production of 187 kt demonstrated a
marginal improvement over Q4 2018 (185 kt) and 7% lower than in Q3
2019 (200 kt), predominantly a result of seasonal holidays.
The average head grade of 8.5% ZnEq for the
quarter represents an increase of 22% over Q4 2018 and a 9%
increase over Q3 2019. Milled zinc grades for the quarter were
4.6%, up 10% as compared to Q4 2018 and up 6% as compared to Q3
2019. Lead head grades of 2.3% demonstrated an increase of 23% over
Q4 2018 and 11% over the previous quarter. Silver feed grades
increased by 17% to 81g/t from the 69g/t achieved in previous
quarter and was up 5% from 77g/t in Q4 2018. The increase in silver
and lead grades are a direct result of the Company focussing on
dilution and improved production from various, small high-grade
pillars in the upper old part of the mine.
Zinc processing recoveries of 86% in Q4 2019
were 2% higher than both the Q3 2019 and Q4 2018 results. Lead
recoveries of 80% were marginally down 1% from Q3 2019 and up 3%
against Q4 2018. Overall silver recoveries were 81%, a decrease of
2% from Q3 2019 but up 6% from Q4 2018. The improvement of lead and
consequently silver recoveries year on year was the result of the
higher head grade achieved and the introduction of a new
silver-specific collector to the processing circuit in early 2019.
The reduced performance in lead and silver recovery against Q3 2019
was a result of reduced capacity in the float cells due to the
higher lead head grade in the plant. The Company is making plans to
improve this during 2020.
President and CEO Chris Buncic stated: “El
Mochito performed exceptionally well in the fourth quarter, setting
yet another record quarter for metal production and grade since our
acquisition of the mine. We are very pleased to have driven such a
substantial growth in metal production in 2019, delivering on our
annual production guidance, achieving the higher end of zinc
equivalent metal guidance, and exceeding expectations for both lead
and silver production in light of metallurgical challenges
throughout the year.”
He continued, “In 2020, the Company remains
focused on continued operational improvements at El Mochito, with
opportunities to finance the expansion project advancing. Also,
with the recent Preliminary Economic Assessment demonstrating
robust results at our Lagoa Salgada project, we are very excited
for what’s to come as we head into our third drill program and look
to advance the project towards Feasibility Study stage.”
Operational performance for the fourth quarter
and full year 2019 is provided in the table below (numbers may not
match due to rounding):
|
|
|
|
|
|
|
|
|
|
|
Units |
2019 |
2018 |
2019 |
2018 |
|
|
Q4 |
Q3 |
Q2 |
Q1 |
Q4 |
Full Year |
Full Year |
Ore Milled |
tonnes |
186,987 |
|
199,944 |
|
195,706 |
|
192,922 |
|
184,913 |
|
775,559 |
|
756,034 |
|
AverageHead Grade |
Zinc |
% |
4.6% |
|
4.4% |
|
4.4% |
|
4.2% |
|
4.2% |
|
4.4% |
|
4.3% |
|
Lead |
% |
2.3% |
|
2.1% |
|
1.7% |
|
1.8% |
|
1.9% |
|
2.0% |
|
1.7% |
|
Silver |
g/t |
81 |
|
69 |
|
67 |
|
62 |
|
77 |
|
70 |
|
54 |
|
ZnEq* |
% |
8.5% |
|
7.8% |
|
6.7% |
|
6.7% |
|
7.0% |
|
7.4% |
|
6.5% |
|
AverageRecoveries |
Zinc |
% |
86.0 |
|
84.3 |
|
86.4 |
|
84.2 |
|
84.1 |
|
85.2 |
|
88.0 |
|
Lead |
% |
79.9 |
|
80.6 |
|
81.5 |
|
79.5 |
|
77.6 |
|
80.4 |
|
77.8 |
|
Silver |
% |
81.1 |
|
82.7 |
|
81.9 |
|
79.0 |
|
76.6 |
|
81.2 |
|
77.9 |
|
ContainedMetalProduction |
Zinc |
000's lbs |
16,450 |
|
16,369 |
|
16,444 |
|
15,162 |
|
14,435 |
|
64,426 |
|
62,658 |
|
Lead |
000's lbs |
7,730 |
|
7,533 |
|
5,916 |
|
5,955 |
|
6,023 |
|
27,134 |
|
21,810 |
|
Silver |
ozs |
393,902 |
|
366,168 |
|
347,784 |
|
293,287 |
|
347,251 |
|
1,401,141 |
|
1,001,514 |
|
ZnEq* |
000's lbs |
29,360 |
|
28,834 |
|
24,638 |
|
23,370 |
|
23,173 |
|
106,202 |
|
91,429 |
|
*ZnEq grades calculated in Q4 and FY 2019 used
average spot metal prices of US$1.08/lb for zinc, US$0.93 for lead,
and US$17.30 Ag for silver
The Company is finalizing its 2020 operating
strategy at El Mochito and will provide an update in the near
term.
Fourth Quarter and Full Year 2019
Conference Call
Ascendant plans to release fourth quarter and
full year 2019 financial results after market close on March 25th,
2020. A conference call will be held on March 26th, 2020, at
10:00am EDT to discuss fourth quarter and full year 2019
operational and financial results.
Conference Call Details:Date of
Call: Thursday, March 26th, 2020Time of Call: 10:00am EDTConference
ID: 3529486Dial-In Numbers:North American Toll-Free:
1-833-696-8362International: 1-612-979-9908
Technical Disclosure/Qualified Person
All technical information contained herein has
been reviewed and approved by Robert A. Campbell, M.Sc, P.Geo, Vice
President, Exploration and a Director of Ascendant Resources Ltd.
Mr. Campbell is a "Qualified Person" as defined by 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
Forward Looking InformationThis
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
achievement of the 2019 production, the exploration plans at the
Lagoa Salgada Project and the possibility of advancing the Lagoa
Salgada Project into a Feasibility Study stage. 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
applied 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 drive further operational
improvements in 2020 , the ability to continue with the exploration
plans at Lagoa Salgada and/or the ability to advance the latter
into a Feasibility Study Stage, 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.
_________________________________
1 ZnEq lbs and grades in ZnEq % represent zinc metal considered
together with the lead and silver expressed in zinc equivalent
terms of zinc using average spot metal prices and monthly
production ratios.
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