TIDMMAFL
RNS Number : 7656Z
Mineral & Financial Invest. Limited
14 January 2020
Mineral and Financial Investments Limited
Lagoa Salgada: PEA Outlines A Positive and Robust Economic
Assessment for a Mine at Lagoa Salgada
HIGHLIGHTS:
-- The PEA demonstrates compelling economics with a Pre-Tax NPV[1] of $137M[2] and a 37% IRR
-- The PEA outlines a 9 year mine life with production scenario of 2,700 tons per day (TPD)
-- Average annual EBITDA of $54.2 million
-- Four-year payback period of initial Capex of $162.7 million
-- Average operating costs of $49.43/t milled represents low cost production scenario
-- Low avg. annual cash costs of $0.44/lb ZnEq and avg. annual
All-In Sustaining Cost (AISC) of $0.66/lb ZnEq
-- PEA on LS North only - Significant upside opportunities
remain with near-resource exploration targets identified, multiple
deposits remain open laterally and at depth, and broader targets
remain untested
George Town, Cayman Island - 14 January 2020 - Mineral &
Financial Investments ("M&FI" or the "Company")), the AIM
quoted resources investment company, is very pleased to announce
exceptional results of a maiden Preliminary Economic Assessment
("PEA") for the Lagoa Salgada VMS project by M&FI's 75% owned
investee company Redcorp Empreedimentos Mineiros Lda. (Redcorp).
The work completed by Ascendant Resources (Ascendant) and Redcorp,
is funded and guided by, as part of Ascendant's previously
announced earn-in agreement with M&FI.
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, which 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 second 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 a
gold and silver doré. There is ample opportunity for extensive
expansion from future exploration work to define additional ore
resources to extend the mine life or increase the scale of the
outlined operation.
Jacques Vaillancourt, Chairman of Mineral and Financial
Investments stated - "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 we have partnered with Ascendant they have advanced the Lagoa
Salgada project, we have demonstrated a long-life mine with a
modest initial capital and very low operating costs while also
having a rapid timeline to production. This study outlines a low
cost, high-margin mining operation which the Company intends to
improve through continued resource growth and ore quality expected
at the project. 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 Ascendant over the coming years. Moreover, the
remaining Mineral Resources in the South and Central Zones, 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 gravimetric targets on the property that
are extremely encouraging and remain untested. We expect the strong
correlation between gravimetric testing and subsequent high-grade
drilling results in the North Zone to continue in these zones.
Follow up drilling is intended to support our objective of
identifying additional resources to support future studies."
This maiden PEA provides an initial economic assessment for the
Lagoa Salgada project in the North Zone only. Redcorp and Ascendant
intends to expand on this 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, 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, yet it has already achieved a significant
resource-to-drilling ratio with the identification of a high-grade
copper-rich massive sulphide mineralization, warranting further
follow-up drilling.
Results from the PEA supports the Redcorp and Ascendant'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 with the
potential to become a first quartile operation and will be the
flagship for Ascendant. With historic exploration work indicating
low-risk, near-term growth potential, we are confident in the
ability to increase the economics of this initial PEA through
resource growth, optimization and economic improvements through
improved recoveries with additional metallurgical work. Redcorp and
Ascendant will perform additional metallurgical testing in parallel
with its future exploration programs.
PEA Summary Table:
Highlights of the key metrics are provided in the following
table on a 100% basis:
PEA Key Highlights
Project IRR pre-tax 37%
---------------------
NPV(8%) pre-tax $137 million
---------------------
Project IRR after-tax 31%
---------------------
NPV(8%) 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 $0.66 /lb ZnEq
(AISC)
---------------------
Metal Price Assumptions[3]
---------------------
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
---------------------
Zinc 80%
---------------------
Lead 65%
---------------------
Copper 25%
---------------------
Silver 75%
---------------------
Gold 75%
---------------------
Tin 30%
---------------------
Recovery Assumptions Gossan
---------------------
Lead 65%
---------------------
Tin 40%
---------------------
Silver 86%
---------------------
Gold 66%
---------------------
Average Annual Metal Production
---------------------
Zinc 12.5kt
---------------------
Lead 13.7kt
---------------------
Copper 0.2kt
---------------------
Silver 1.1Moz
---------------------
Gold 13koz
---------------------
Tin 0.3kt
---------------------
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, 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 MS 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 MS zone. Mining recovery of 90%
was assumed for the Gossan and 93% for the MS.
http://www.rns-pdf.londonstockexchange.com/rns/7656Z_1-2020-1-14.pdf
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 m(3) 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.
http://www.rns-pdf.londonstockexchange.com/rns/7656Z_1-2020-1-14.pdf
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 m(2) 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 m(3) . Loss to
the tailings is estimated at 250,000 m(3) 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 m(3) 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 Cash Cost
$/tonne milled $/lb ZnEq Payable
Mining $16.84 $0.15
Processing $29.17 $0.26
Admin (G&A) $3.42 $0.03
Total Unit $49.43/tonne $0.44/lb ZnEq
Costs
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 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 NPV(8%) increase of 23% to
$130 million. Similarly, a 15% increase to the lead price results
in a post-tax NPV(8%) increase of 20% to $127.7 million.
http://www.rns-pdf.londonstockexchange.com/rns/7656Z_1-2020-1-14.pdf
Sensitivities
The Lagoa Salgada project is most levered to the zinc price and
other metals prices. A 15% increase in the zinc price results in an
after-tax NPV8% of $129M, an increase of $24M or 23% over the base
case PEA scenario.
http://www.rns-pdf.londonstockexchange.com/rns/7656Z_1-2020-1-14.pdf
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.
LAGOA SALGADA UPDATED MINERAL RESOURCE ESTIMATE
Prepared in accordance with the CIM Standards for mineral
disclosure and the National Instrument 43-101 ("NI 43-101") by
Micon.
LS NORTH ZONE: summary of the Mineral Resource Estimate for is
set out in below:
(Using Cut-offs: Zn-Eq >= 2.90% (M&I), >= 2.80%
(Inferred) Effective September 5, 2019
Lagoa Salgada Updated Mineral Resource Estimate - North Zone:
Total (100%)
(Table 1-A)
Total Contained Metal
100% Average Grade (100%)
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) (k/oz) (k/oz)
North Measured(M) GO 2.5 234 0.13 0.70 4.32 0.36 51 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 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 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 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 72 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 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 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 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 17 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 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 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 17 0.09 2.95 1.86 0.3 1.6 0.6 0.1 75.6 0.4
All
North M & I zones 2.9 10,334 0.37 2.12 2.39 0.16 64 0.64 9.06 5.72 38.2 219.0 247.2 16.2 21,377.7 212.0
All
North Inferred zones 2.8 2,502 0.18 1.42 1.70 0.12 38 0.43 5.93 3.74 4.6 35.6 42.6 2.9 3,022.8 34.3
Lagoa Salgada Updated Mineral Resource Estimate - North Zone:
Net to MAFL (75%)
(Table 1-B)
75% Average Grade 75% of Contained Metal
Deposit Category Min 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) (k/oz) (k/oz)
North Measured(M) GO 2.5 176 0.13 0.70 4.32 0.36 51 1.50 11.38 7.18 0.2 1.2 7.6 0.6 288.9 8.4
Indicated(I) GO 2.5 1,096 0.08 0.43 2.55 0.26 37 0.51 6.63 4.18 0.9 4.7 28.0 2.8 1,306.6 17.9
M & I GO 2.5 1,272 0.09 0.47 2.79 0.27 39 0.64 7.28 4.60 1.1 5.9 35.5 3.5 1,595.4 26.3
Inferred GO 2.5 624 0.08 0.48 2.62 0.17 27 0.37 5.66 3.57 0.5 3.0 16.4 1.1 545.7 7.4
Measured(M) MS 3.0 1,833 0.40 3.12 2.97 0.15 72 0.74 10.95 6.91 7.3 57.2 54.4 2.7 4,217.9 43.8
Indicated(I) MS 3.0 4,093 0.45 2.35 2.30 0.13 75 0.67 9.55 6.03 18.3 96.1 94.2 5.5 9,916.2 87.6
M & I MS 3.0 5,926 0.43 2.59 2.51 0.14 74 0.69 9.98 6.30 25.6 153.3 148.6 8.2 14,134.1 131.4
Inferred MS 3.0 1,147 0.23 1.96 1.32 0.09 45 0.49 6.36 4.01 2.7 22.5 15.1 1.1 1,664.7 18.0
Measured(M) Str 2.5 70 0.37 0.88 0.28 0.05 17 0.12 3.08 1.94 0.3 0.6 0.2 0.0 38.2 0.3
Indicated(I) Str 2.5 482 0.34 0.90 0.23 0.09 17 0.06 3.23 2.04 1.6 4.3 1.1 0.4 265.5 1.0
M & I Str 2.5 552 0.34 0.90 0.24 0.09 17 0.07 3.21 2.03 1.9 5.0 1.3 0.5 303.7 1.3
Inferred Str 2.5 106 0.24 1.12 0.39 0.04 17 0.09 2.95 1.86 0.3 1.2 0.4 0.0 56.7 0.3
All
North M & I zones 2.9 7,750 0.37 2.12 2.39 0.16 64 0.64 9.06 5.72 28.7 164.2 185.4 12.1 16,033.3 159.0
All
North Inferred zones 2.8 1,877 0.18 1.42 1.70 0.12 38 0.43 5.93 3.74 3.4 31.9 31.9 2.2 2,267.1 25.8
Source: The Mineral Resource Estimate was prepared by Micon
International Limited
(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*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
* Subject to Final Approval by Portuguese Secretary of State of
EDM's sale of 15% of Lagoa Salgada to Redcorp;
**Current Redcorp Ownership: TH Crestgate 75%, Ascendant 25%;
Operator: Ascendant Resources
*** Contained Metal Calculation: Tonnes x Grade
CENTRAL AND SOUTH ZONES:
Summary of the Mineral Resource Estimate for the is set out in
below:
(Using a Cut-off: Cu-Eq >= 0.90%) Effective September 5,
2019
Lagoa Salgada Central and South Zones: Updated Mineral Resource
Estimate - Total (100%)**
(Table 2-A)
TOTAL CONTAINED METAL***
AVERAGE GRADE (100%)
Total
Deposit Category Min Cut-off Tonnes Cu Zn Pb Sn Ag Au CuEq Cu Zn Pb Sn Ag Au
100%
Zones CuEq% (Kt) (%) (%) (%) (%) (g/t) (g/t) (%) (kt) (kt) (kt) (kt) (k/oz) (k/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 - - - - - - - - - - - - - -
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 - 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 - 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 - 3,285.2 10.0
-------- ------------- ------- ------- --------------- ---- ---- ---- ---- ----- ----- ---- ------------- ------------- ------------- ---- ------------------ -----------
Lagoa Salgada Central and South Zones Updated Mineral Resource
Estimate- Net to MAFL (75%)*
(Table 2-B)
CONTAINED METAL***
AVERAGE GRADE (75%)
Net
Deposit Category Min Cut-off Tonnes Cu Zn Pb Sn Ag Au CuEq Cu Zn Pb Sn Ag Au
75%
Zones CuEq% (kt) (%) (%) (%) (%) (g/t) (g/t) (%) (kt) (kt) (kt) (kt) (k/oz) (k/oz)
Central Inferred Str 0.9 1,280 0.15 0.16 0.06 0 11.57 2.22 1.66 1.9 2.0 0.8 - 476.4 91.4
South Measured(M) Str/Fr 0.9 - - - - - - - - - - - - - -
Indicated(I) Str/Fr 0.9 1,855 0.47 1.53 0.83 0.00 18.67 0.06 1.54 8.6 28.5 15.4 - 1,113.5 3.5
South M & I Str/Fr 0.9 1,855 0.47 1.53 0.83 0.00 18.67 0.06 1.54 8.6 28.5 15.4 - 1,113.5 3.5
South Inferred Str/Fr 0.9 4,564 0.40 1.34 0.80 0.00 16.79 0.05 1.37 18.4 61.2 36.5 - 2,463.9 7.5
-------- ------------- ------- ------- --------------- ---- ---- ---- ---- ----- ----- ---- ------------- ------------- ------------- ---- ------------------ ------
Source: The Mineral Resource Estimate was prepared by Micon
International Limited
(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*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
* Subject to Final Approval by Portuguese Secretary of State of
EDM's sale of 15% of Lagoa Salgada to Redcorp;
**Current Redcorp Ownership: TH Crestgate 75%, Ascendant 25%;
Operator: Ascendant Resources
*** Contained Metal Calculation: Tonnes x Grade
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 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 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 16 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 75% owned subsidiary of M&FI, and has
consented to the inclusion of the material in the form and context
in which it appears.
FOR MORE INFORMATION:
James Lesser, Mineral & Financial Investments Ltd. +44 777 957 7216
Katy Mitchell, WH Ireland Group Limited +44 161 832 2174
Jon Belliss, Novum Securities Limited +44 207 399 9400
About Mineral and Financial Investments Limited.:
Mineral and Financial Investments Limited is a Cayman Island
based investment company quoted on AIM, a market of the London
Stock Exchange. M&FI has 20 investments in the natural resource
sector with the majority in the metals and minerals sector and has
about 29% of its investment portfolio in precious metal
investments. M&FI's Net Asset Value per share (NAVPS)is 15.15p,
as of September 30, 2019. M&FI's NAVPS has risen at a Compound
Annual Growth Rate (CAGR) of 34.1% over the past 5 years.
[1] Based on an 8% discount rate
[2] All dollar amounts are in US dollars, unless otherwise
specified, results are reported on 100% basis
[3] The project economics have been calculated using consensus
prices at the time of the Resource Estimate report in September
2019.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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