Ascendant Resources Inc. (TSX: ASND)
("Ascendant" or
the "Company”) announces
the filing of the Technical Report entitled, “Technical Report and
PEA for the Lagoa Salgada Property, Setúbal District, Portugal”,
supporting the robust results from the maiden Preliminary Economic
Assessment (“PEA”) for the North Zone at the Lagoa Salgada VMS
project located on the Iberian Pyrite Belt in Portugal. The
Technical Report has an effective date of December 19, 2019 and was
prepared in accordance with Canadian National Instrument 43-101
(“NI 43-101”) “Standards of Disclosure for Mineral Projects”.
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 |
66% |
Au |
86% |
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.
The Technical Report is available for review
under the Company’s profile on SEDAR and on the Company’s
website.
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.
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 Honduras and its high-grade Lagoa Salgada VMS
project located in the prolific Iberian Pyrite Belt in
Portugal.
After acquiring the El Mochito mine in December
2016, Ascendant spent two years 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. With steady state
production achieved, the Company was able to drive further metal
production growth in 2019 as it focused on grade improvements and
now remains focused on further cost reduction and operational
improvements to drive profitability in 2020. Given the 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.
The Company is engaged in exploration and the
advancement of the Lagoa Salgada project with the goal of building
upon the defined Mineral Resources and robust results of the maiden
Preliminary Economic Assessment completed in January 2020 and
advancing the project towards construction. Ascendant holds a
21.25% interest in the Lagoa Salgada project through its 25%
position in Redcorp - Empreendimentos Mineiros, Lda, (“Redcorp”)
and has an earn-in opportunity to increase its interest in the
project to 80%. Mineral & Financial Investments Limited owns
the additional 75% of Redcorp. The remaining 15% of the project is
held by Empresa de Desenvolvimento Mineiro, S.A. (EDM), a
Portuguese Government owned company supporting the strategic
development of the country’s mining sector. The Company’s interest
in the Lagoa Salgada Project offers a low-cost entry to a
potentially significant exploration and development opportunity,
already demonstrating its mineable scale.
Ascendant Resources is also engaged in the
ongoing evaluation of producing and development stage mineral
resource opportunities, on an ongoing basis. The Corporation'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 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.
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