Ascendant Resources Begins Preliminary Economic Assessment Combining the North and South Zones at Its Lagoa Salgada VMS Project in Portugal
- New 43-101 Resource followed by results from PFS level metallurgical testing expected to be issued in the near term
- New PEA expected by end of July 2021, to show increased scale and economic potential versus PEA published in December 2019
TORONTO, June 09, 2021 -- Ascendant Resources Inc. (TSX: ASND) (FRA: 2D9) ("Ascendant" or the "Company") is pleased to announce that it has engaged to undertake the new NI 43-101 Preliminary Economic Assessment ("PEA") for its Lagoa Salgada VMS project in Portugal. Both Quadrante and IGAN have extensive experience on the Iberian Pyrite Belt, The PEA will be designed to look at a combined mining operation encompassing the mineralization contained within the North and South Zones and incorporating the updated metallurgical test work that is currently underway.
Mark Brennan, Executive Chairman of Ascendant stated, "We are very excited to start our larger scale Preliminary Economic Assessment for Lagoa Salgada. We believe the results from the detailed metallurgical studies and the enhanced scale of operations should deliver robust economics. We believe Quadrante and IGAN, who will complete the studies, are well positioned given their local knowledge and expertise of the Iberian Pyrite Belt to deliver the best development scenario based on the current resources at Lagoa Salgada. Longer term, we expect exploration to significantly grow the overall resource base to continue to provide the opportunity to expand operations further and add significant value."
The new PEA is planned to encompass an updated NI 43-101 Resource for both the North and South Zones at Lagoa Salgada which should be completed shortly. This resource will reflect an update from the current resource as outlined in Table 1 below to reflect the results of 3 additional drill holes in the South Zone. Given the increased combined resource size, it is anticipated that the PEA will review a larger scale operation relative to the previous PEA completed on the North Zone on a standalone basis as reported in December 2019.
Table 1: Lagoa Salgada Resources (North and South Zones)
A table accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/8ec9b9f5-c876-482a-bf8f-253657264532
Notes To Table
1. Mineral resources unlike mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues.
2. The mineral resources have been estimated in accordance with the CIM Best Practice Guidelines (2019) and the CIM Definition Standards (2014)
3. The resources for the South Zone are reported at a cut-off grade of 1.10 % CuEq; for the North zone, resources contained in the Gossan and Stringer domains are reported at a cut-off grade of 2.5 % ZnEq, and within the Massive Sulphide domain at 3.0 % ZnEq.4. Totals may not tally due to rounding
5. CuEq% = ((Zn Grade*25.35)+(Pb Grade*23.15)+(Cu Grade * 67.24)+(Au Grade*40.19)+(Ag Grade*0.62))/67.24
6. 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
7. 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
8. Densities: GO=3.12, MS=4.76, Str=2.88, Str/Fr=2.88 (north Zone) & 3.00 (South Zone)
9. MMlb: Million Pounds
The PEA is expected to be completed by end of July 2021, subject to the completion of the Phase 2 metallurgical investigations as outlined in our press release dated March 17 ,2021.
Technical work on the PEA will be guided by Micon International, who will be responsible for the resource determination and metallurgical results validation, and will act as the QP for the NI 43-101 report. Work regarding the site infrastructure will be undertaken by QUADRANTE, a multidisciplinary engineering and consulting company with more than 23 years of activity and projects completed in Europe, Africa and Americas. QUADRANTE's activity develops across 7 main business Units - Industry and Energy (including Mining Segment), Buildings, Transports, Airports, Environment, Water Utilities, and Construction Management and Supervision, QUADRANTE has been involved in recent years in several mining projects, mainly in Portugal, Spain, Chile, Mozambique, and Zimbabwe and has a staff of over 200 employees. The company has significant direct experience at numerous operations within the Iberian Pyrite Belt.
Mine planning, design and engineering will be undertaken by IGAN INGENIER?A, an independent consulting firm specializing in mine planning and engineering for open pit and underground mining projects and operations. Based in Spain, IGAN has completed projects across 8 countries and 3 continents for international mining companies (both private and publicly listed), equity firms and state-owned companies. The company has significant direct experience at numerous operations within the Iberian Pyrite Belt.
Metallurgical testwork is being carried out by Grinding Solutions Limited (GSL), a UK mineral processing services company with a strong technical knowledge on the mineral processing of the IBP ores. Grinding Solutions specialises in exploring novel approaches for mineral liberation and separation to help his clients maximise their value and opportunities to meet the ever-increasing global challenges that the mining industry now faces. Another GSL objective is to reduce mining and processing costs as well as the environmental impact whilst maximising value for Ascendant.
Review of Technical Information
The scientific and technical information in this press release has been reviewed and approved by Sergio Gelcich, 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 Resources Inc. is a Toronto-based mining company focused on the exploration and development of the highly prospective Lagoa Salgada VMS project located on the prolific Iberian Pyrite Belt in Portugal. Through aggressive exploration and development plans, the Company aims to unlock the significant potential of the project and maximize value for shareholders.
Lagoa Salgada contains over 14.8 million tonnes of M&I Resources and over 11.9 million tonnes in Inferred Resources within the North, Central and South Zones and demonstrates typical mineralization characteristics of Iberian Pyrite Belt VMS deposits containing zinc, copper, lead, tin, silver and gold. Extensive exploration upside potential lies both near deposit and at prospective step-out targets across the large 10,700ha property concession. The project also demonstrates compelling economics with scalability for future resource growth in the results of the Preliminary Economic Assessment completed in 2020. Located just 80km from Lisbon, Lagoa Salgada is easily accessible by road and surrounded by exceptional Infrastructure. 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. 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:
Mark Brennan
Executive Chairman
Tel: 647-796-0023
mbrennan@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 ability of the Company to advance the Lagoa Salgada Project to a Preliminary Economic Assessment, and the ability of the Company to fund the exploration with funds from operations. 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 Company advancing the project to a Preliminary Economic Assessment, the ability of the Company to fund the exploration program at Lagoa Salgada with funds from operations , 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.