TIDMMAFL
RNS Number : 9368B
Mineral & Financial Invest. Limited
16 January 2018
Minerals and Financial Investments Limited
Lagoa Salgada Positive Results From Mineralogical Tests
HIGHLIGHTS:
-- Encouraging mineralogical test results which point to
relatively good expected metallurgical recoveries
-- Unexpected positive results from the tests on the Gossan with
high tin assays of 2.25% (SnO(2) ) by weight.
-- Indicated Tin content in the Gossan could significantly
improve the economics of the deposit.
-- Within the massive sulphides - zinc is mostly as sphalerite.
-- The sum of the liberated and high grade sphalerite (zinc)
averages 72%, which is a good liberation average in light of the
grind size.
-- Lead is mostly as galena within the massive sulphide and has
a relatively high liberation average of 62% on a first grind
-- The LS-1 Central Sector ore has very few contaminants and
could improve the overall value of the LS-1 concentrate through
blending.
George Town, Cayman Island - January 16 2018 - Mineral &
Financial Investments is very pleased to announce its 49%-owned
investment, TH Crestgate GmbH, a private Swiss-based investment
company has released the results of mineralogical tests on the LS-1
deposit at the 100%-owned Lagoa Salgada zinc-copper project in
southern Portugal. The deposit's current resource is 4.5Mt, with a
zinc equivalent grade of 8.2% (see RNS of August 27, 2015). A
resource update is expected to be released shortly. The results
partly delayed pending the completion of these mineralogical test
results, which will be incorporated into the resource update
document. The resource update is being completed by AGP Mining
Consultants Inc. of Canada.
The Iberian Pyrite Belt (IPB) is home to some of the largest
Volcanogenic Massive Sulphide (VMS) ore bodies in the world. The
VMS ore bodies of the IBP have the potential to be both large and
poly-metallic. These ore bodies are normally zinc, lead and copper
rich, as is the Lagoa Salgada ore body, situated at the
north-central edge of the IPB. VMS systems often have some
paragenetic complexity, due to the different metals, mineralogy,
size of particles and any contaminants. Metallurgy can be an
important determinant of a project's economics on the IPB.
Jacques Vaillancourt, Chairman of Mineral and Financial, stated
that -"These results from TH Crestgate were better than we had
expected. Metallurgy is an important determinant of the economics
of the Iberian Pyrite Belt ore bodies. The good liberation of the
sphalerite and galena appears to match, and we believe it could
perhaps exceed that of neighbouring major operating mines.
Secondly, the major contaminant appears to be arsenopyrite, which
can be preferentially excluded from the final concentrates.
Thirdly, the ore from the Central Sector is very clean and could
easily be blended into the LS-1 concentrate, which would serve to
reduce any overall penalties from the smelters. Lastly, the big
surprise was the presence of high-grade (2.25% Sn) tin in the
Gossan. TH Crestgate had not initially asked ALS to assay for tin
when testing the core from the 2017 drilling campaign. On the back
of this result, a sample from LS-MS-01 has been resent to ALS for a
secondary assay to confirm the presence of tin in the sample. "
TH Crestgate retained Empresa de Perfuração e Desenvolvimento
Mineiro, S.A. (EDPM) to complete a mineralogical analysis using an
Automated Mineralogy by Mineral Liberation Analyzer (MLA). EDPM is
an independent mining contractor and formerly owned by Almina, a
private Portuguese company that owns the Aljustrel Mine, located in
Portugal, which is the second largest mine in Portugal on the
Iberian Pyrite Belt, after Neves Corvo (Lundin Mining). EDPM was
selected because of their in depth knowledge and experience on the
metallurgy of the IPB.
The tests were performed on samples from all 3 types of
lithologies found in the Lagoa Salgada ore body: Gossan,
Massive-Sulphides, and Stockwork mineralisation. The fifteen
samples were from pulps of core samples from the 2017 drill
program. These samples are representative of a first grind mill
process (i.e. 60 microns (<MU>m)).
Sphalerite is the main zinc bearing mineral, usually
representing 99% of the contained zinc. In general most of the
sphalerite is liberated at the 60<MU>m grain size. In each of
the sphalerite samples liberation levels achieved ranged between
50% and 90% with an average of 63%, which is relatively high for
the IBP, especially considering the grind size of 60<MU>m.
The sum of the liberated particles is considerably higher, reaching
an average of 72% of the sphalerite.
The results by mineralization type reveal that the best
theoretical recovery for the sphalerite will come from the
stockworks, followed by the Massive Sulfide zones. The stockwork
mineralization will require a smaller, likely secondary grind
cycle. The sphalerite liberation in all the samples ranged from as
high as 92.9% to a low of 36.8% with an average of 72%, from what
is a first grind equivalency.
Galena is the main lead-bearing mineral, with the exception of
the Gossan, where lead is distributed mostly in schultenite.
Schultenite was found in very small percentages, and was found in
only 2 samples, (Samples: MS-01-159 = 0.07%, and; MS-01-159 =
1.22%). The liberation of the Galena is very similar to the
sphalerite. The un-liberated galena can be released by a smaller
grind size, with some limitations. The Galena samples for the
Stock-work mineralization, similar to the Sphalerite samples, will
likely achieve the highest recoveries, followed by the Massive
Sulfides. The Galena found in the Stringer zones is finer;
regrinding may imply losses due to ultrafine particles. The Galena
liberation (liberated particles and high grade[1]) in all the
samples ranged from as high as 90.3% to a low of 22.3% with an
average of 62%, from what is a first grind equivalency.
MODAL MINERALOGY FOR THE DIFFERENT LITHOLOGIES
see table 1 for detailed breakdown
http://www.rns-pdf.londonstockexchange.com/rns/9368B_-2018-1-15.pdf
MODAL MINERALOGY OF ALL SAMPLES
http://www.rns-pdf.londonstockexchange.com/rns/9368B_-2018-1-15.pdf
DIFFERENT LIBERATION BY COMPOSITION
Target mineral is in blue
http://www.rns-pdf.londonstockexchange.com/rns/9368B_-2018-1-15.pdf
SPHALERITE GRADE RECOVERY
Fissural Remobilization (i.e. Stock-work) Samples - Theoretical
Grade-Recovery Curve
http://www.rns-pdf.londonstockexchange.com/rns/9368B_-2018-1-15.pdf
SPHALERITE GRADE RECOVERY
Massive Sulfide Samples - Theoretical Grade-Recovery Curve
http://www.rns-pdf.londonstockexchange.com/rns/9368B_-2018-1-15.pdf
SPHALERITE GRADE RECOVERY
Stringer Zone Samples - Theoretical Grade-Recovery Curve
http://www.rns-pdf.londonstockexchange.com/rns/9368B_-2018-1-15.pdf
GALENA GRADE RECOVERY
Fissural Remobilization (i.e. Stockwork) - Theoretical
Grade-Recovery Curve
http://www.rns-pdf.londonstockexchange.com/rns/9368B_-2018-1-15.pdf
GALENA GRADE RECOVERY
Massive Sulfide Zone Samples - Theoretical Grade-Recovery
Curve
http://www.rns-pdf.londonstockexchange.com/rns/9368B_-2018-1-15.pdf
GALENA GRADE RECOVERY
Stringer Zone Samples - Theoretical Grade-Recovery Curve
http://www.rns-pdf.londonstockexchange.com/rns/9368B_-2018-1-15.pdf
EDPM's analysis by metal determined that the metals of primary
interest (zinc, lead, copper, silver and gold) are associated,
mainly, with mono-mineralic crystallizations, with good percentages
of liberated + high-grade particles from a 60<MU>m grind and
some high-purity ores that may allow a blending to increase the
quality of a future concentrate.
Zinc: Within the "LS-1" ore body massive sulfides zone, the zinc
is (99%) hosted in sphalerite. Within the "Central Sector" the
majority of the zinc is hosted in carbonates (smithsonite). The
LS-1 Central Sectors ore is particularly distinguished by the lower
concentrations of Mercury (Hg) and would likely become an important
blending asset, creating a more valuable and saleable
concentrate.
The sum of the liberated and high-grade sphalerite particles is
considerably high (considering the grind size) reaching an average
of 72% of the total sphalerite. Plus, an important fraction of the
un-liberated sphalerite is incorporated in the coarser particles
that might be simply liberated a secondary grind stage.
Lead: The lead is practically exclusively hosted as galena, with
the exception of the lead found in the Gossan (i.e. schultenite).
The liberation of the galena at an average 60<MU>m grind is
very similar to the sphalerite. The portion of the liberated and
high-grade galena particles is high with an average of 62% in this
simulated 60<MU>m first grind. Galena is finer than
sphalerite and would require a smaller grind for a higher
liberation measure.
Copper: Most of the copper is distributed as chalcopyrite and
chalcocite on the higher Cu grade samples (Stringer, Stockwork and
Gossan). Within the massive sulphides there are some other copper
minerals e.g. enargite, tetrahedrite and kesterite.
Silver: The EDPM work reveals a very important feature about the
silver mineralization. The report reveals that the silver is
essentially linked to the galena. This is positive, inasmuch as the
galena concentrates will carry most of the recoverable silver and
this would improve payability for the silver in the concentrate
overall. In the IPB silver can often be associated with other
minerals which makes it much more difficult to recover and/or be
paid for. Within the Gossan, the silver was identified in native
metal, along with gold.
Gold: Due to the naturally fine size of gold, little information
was expected from the EDPM report, however it was found with
silver, in the Gossans.
Indium / selenium: The low concentration levels of Indium (In)
and Selenium (Se) make it difficult to fully analyses the metals
using Energy- dispersive X-ray Spectroscopy (EDS). Nevertheless,
the indium is correlated with the sphalerite, indicating that the
zinc concentrates may end up with high-levels of indium. An unusual
feature of the Gossan is that it carries Selenium.
Tin: Historical drill assays at Lagoa Salgada identified the
presence of tin (Sn). Moreover, the presence of tin is a known
feature of several of the IBP VMS systems (e.g. Neves Corvo).
However, the Gossan hosted unusually high levels of tin as
cassiterite with one grade of 2.25% SnO(2) reported. For the most
part, the cassiterite is liberated or associated with friable
goethite. Samples from hole LS-MS-01 have been resent to ALS for
re-assay following this discovery as tin was not one of the metals
that ALS initially assayed for in the 2017 drill campaign.
Deleterious metals: There were no new issues of deleterious
metals identified within the EDPM report. The assays identified the
known presence of Hg and Cd associated with sphalerite. There is
now clear evidence that a "clean" zinc concentrate could be
produced from the mineralization found in the Central Sector of the
LS-1 deposit allowing for reduction in the average level of
contaminants in any blended concentrate. Within the massive sulfide
arsenic appears mostly as arsenopyrite, and not present in high
concentrations in the main zinc or lead bearing minerals. With the
removal, segregation and disposal of the arsenopyrite most part of
the As and Sb will be removed. This means that any Zn, Pb, or Cu
concentrates produced from LS-1 would not have significant
penalties applied by smelters.
ASSET DESCRIPTION
The Lagoa Salgada resource is centred on one gravimetric anomaly
called LS-1. There are a total of 17 gravimetric anomalies on the
property. These anomalies remain to be fully tested. A petrographic
study undertaken by TH Crestgate focused on the LS-1 area of the
Lagoa Salgada property and also indicated the presence of
anomalously high levels of indium in sphalaritic zones of
mineralization. The ore body is composed of a stock work zone (LS-1
Central Sector) - a more than 700m thick volcano-sedimentary
complex - and a massive sulfide lens in the northwest. It is
covered by more than one hundred meters of sediments of the
Sado-Tertiary basin.
The historical, Canadian Institute of Mining (CIM) compliant,
resource estimate, located on LS-1, completed in 2012 by Paul
Daigle, P.Geo, is summarized below:
Category LS-1 Resource Summary
---------------------- -------------------------------------------------------------------
Contained
LS-1 Tonnes Mineral Grade Metal Units
Sector
---------------------- --------------------- ---------- -------- ------------ --------
Pb (%) 2.94 190,686,436 Lbs.
---------------------- --------------------- ---------- -------- ------------ --------
Zn (%) 3.40 220,521,729 Lbs.
---------- -------- ------------ --------
Cu (%) 0.34 22,052,173 Lbs.
---------- -------- ------------ --------
Ag (g/t) 54.72 5,175,824 Oz.
---------- -------- ------------ --------
Indicated 2,942,000 Au (g/t) 0.82 77,562 Oz.
---------------------- --------------------- ---------- -------- ------------ --------
Pb (%) 2.50 85,648,710 Lbs.
---------------------- --------------------- ---------- -------- ------------ --------
Zn (%) 1.80 61,667,071 Lbs.
---------- -------- ------------ --------
Cu (%) 0.35 11,990,819 Lbs.
---------- -------- ------------ --------
Ag (g/t) 51.00 2,548,073 Oz.
---------- -------- ------------ --------
Inferred 1,554,000 Au (g/t) 0.78 38,971 Oz.
---------------------- --------------------- ---------- -------- ------------ --------
Pb (%) 2.79 276,335,146 Lbs.
---------------------- --------------------- ---------- -------- ------------ --------
Zn (%) 2.85 282,188,800 Lbs.
---------- -------- ------------ --------
Cu (%) 0.34 34,042,992 Lbs.
---------- -------- ------------ --------
Ag (g/t) 53.43 7,723,897 Oz.
---------- -------- ------------ --------
Total 4,496,000 Au (g/t) 0.81 116,532 Oz.
---------------------- --------------------- ---------- -------- ------------ --------
Source: Tetra-Tech Wardrop
References in this announcement to exploration results and
resource updates have been approved for release by Joao Barros, BSc
(Engineering), MSc (Geology), who has more than 14 years of
relevant experience in the field of activity concerned. Mr. Barros
is a Member of the Portuguese Engineers Association. Mr. Barros is
employed by Redcorp Empreedimentos Mineiros, Lda., a wholly owned
subsidiary of TH Crestgate GmbH, and has consented to the inclusion
of the material in the form and context in which it appears.
This report should be seen as indicative of possible mineral
content and not definitive, as the sample group is insufficient to
arrive at any economic conclusions.
For more information:
Katy Mitchell, WH Ireland Group Limited +44 161 832 2174
Jon Belliss, Beaufort Securities Limited +44 207 382 8300
Jacques Vaillancourt, Mineral & Financial Investments Ltd. +44 780 226 8247
[1] The "high-grade particles" are from the "75%< x <90%"
liberation class (see table 2). Usually these particles are not
considered "liberated" but as they carry, at least, 75% of the
mineral of interest they use to go directly to the concentrate,
without need of regrind.
This information is provided by RNS
The company news service from the London Stock Exchange
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