Drilling Update

RNS Number : 6236T

Mineral & Financial Invest. Limited

16 October 2017

 

MINERAL AND FINANCIAL INVESTMENTS LIMITED

Drilling Update

27.0m of 20.25% Zinc Equiv.¹ drilled at Lagoa Salgada in Resource Expansion Program - Hole LS-MS-06 Strikes a 98.0m zone of 8.42% of Zinc Eq¹. Mineralization

HIGHLIGHTS:

-   Hole LS-MS-06 strikes 98 meters of mineralization grading an average of 8.4% of Zn Equivalent¹ from 127m

-   Includes massive sulphide intercept of 37.0m averaging 16.83% of zinc equivalents¹, with 27m of 20.25% of zinc equivalent¹.

-   Lead-rich gossan layer overlying massive sulphide includes 27m averaging 6.2% lead equivalent¹ from 127m.

-   Zinc grades nearly triple to 9.47%, while lead grades nearly double to 6.68%, at between 163m and 191m.

-   All of first 5 holes of resource expansion drill-program have met, or exceeded expectations and expanded the dimensions of mineralised zones.

George Town, Cayman Island - October 12, 2017 - Mineral & Financial Investments is pleased to announce that its 49%-owned investment, TH Crestgate GmbH, a private Swiss-based investment company has released the fifth set of assay results from its new drilling campaign designed to try to expand the LS-1 resource at the 100%-owned Lagoa Salgada zinc-copper project in southern Portugal.

The holes were completed by wholly owned local subsidiary, Redcorp Empreedimentos Lda.  The current resource is 4.5Mt, with a zinc equivalent grade of 8.2% (see RNS of August 27, 2015). This drill program, announced and initiated in June 2017, is focussed on expanding the existing LS-1 Resource. This drilling program is targeting expanding the resource by 75%-to-125% to between 8.0Mt and 10.0Mt, although at this stage there can be no certainty that this can be achieved.

Drill Results Hole LS-MS-06

Hole	Depth (m)	Thickness (m)	Cu (%)	Zn (%)	Pb (%)	Au (g/t)	Ag (g/t)	Cu Equiv. (%)[1]	Zn Equiv. (%)1
LS-MS-06 (New)	127 to 225	98.0	0.18	3.15	3.38	0.51	62.50	4.02%	8.42%
Including (General)	128 to 191	63.0	0.20	4.35	5.12	0.73	90.21	5.73%	12.01%
Including (Gossan)	127 to 154	27.0	0.07	0.41	4.40	0.25	28.78	5.21%	5.21%
Including (Massive Sulphide)	154 to 191	37.0	0.29	7.13	5.57	1.15	133.4	8.04%	16.83%
Including (Massive Sulphide)	163 to 190	27.0	0.26	9.38	6.68	1.40	133.8	9.67%	20.25%

Jacques Vaillancourt, Chairman of Mineral and Financial, commented: "This fifth hole is exciting. We believe when you hit 63 meters of 12% zinc equivalent starting at 128m of depth in a infrastructure-rich, mining friendly jurisdiction - you have done very well. Needless to say, the hole significantly exceeded our expectations. We will await the assays from LS-MS-05, the last hole of the most recent drilling program and ensure that AGP, which TH Crestgate has retained to complete a resource update on LS-1,  incorporates the data into the resource update, which is expected before year-end. Redcorp & TH Crestgate must be commended on the efficiency and results of the program."

The fifth hole (LS-MS-06) of a six-hole program being undertaken by TH Crestgate has just returned with assays. LS-MS-06 is a 70^° drill hole located about 40m south of the historic LS-04 hole on the western limb of the LS-1 Resource and its known zone of massive sulphides. The LS-MS-06 drill hole is mineralized from a depth of 115m (where the hard rock begins) just below the tertiary cover and extends to a depth of to the bottom of the hole at 247m.

The mineralisation observed within hole LS-MS-06 extends from 127m to 200m. It is noteworthy that the average grade of zinc at the bottom of the intercept is double the overall interval average, while the lead content is nearly triple the average grade of the mineralized zones. This hole further confirms TH Crestgate's belief that the resource will be expanded in size and there is now reason to believe that the average grade of the resource could also increase. The grade in the core of LS-MS-06 increases gradually and consistently at depth. Earlier holes have also indicated that mineralization is open and dipping towards the east.

The last hole (LS-MS-05) of this drilling program drilled through several faulted zones and was evaluated thoroughly before the core sample was sent to ALS Global in Seville, Spain for assaying. We expect the results to be returned to TH Crestgate within the next 2 to 3 weeks. Additionally, AGP Mineral Consultants of Canada have been retained to review and update the resource estimate. We expect a resource estimate on Lagoa Salgada to be completed before year-end.

Cross Section of LS-MS-06 Intersection Overlayed With The Historical Resource Outline

http://www.rns-pdf.londonstockexchange.com/rns/6236T_-2017-10-15.pdf

The LS-1 resource expansion drill program of 6 angled holes will additionally help define the true width of the mineralization. Based on cost estimates provided by TH Crestgate to Mineral & Financial, the Company has adequate resources to complete this programme.  

LOCATION OF LS-1 SECTOR RESOURCE & "CENTRAL SECTOR" ALONG WITH NEW (Green) AND HISTORICAL (Black) DRILL HOLES

http://www.rns-pdf.londonstockexchange.com/rns/6236T_-2017-10-15.pdf

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.  Mineralisation is composed of a central stock work zone - a more than 700m thick volcano-sedimentary complex - and a massive sulphide 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 summarised below:

Category	LS-1 Resource Summary
LS-1 Sector	Tonnes	Mineral	Grade	Contained Metal	Units
Indicated	2,942,000	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.
		Au (g/t)	0.82	77,562	Oz.
Inferred	1,554,000	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.
		Au (g/t)	0.78	38,971	Oz.
Total	4,496,000	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.
		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 and Jessica Cave WH Ireland                   [phone]

Jon Belliss, Beaufort Securities Limited                           [phone]

Alastair Ford, Chief Operating Officer                            [phone]

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[1] Cu. and Zn. equivalency calculated using the following spot prices: Cu $5,782 /t; Zn $2,761/t; Pb $2,307/t; Au $1,252/oz.; Ag $18.33/oz.

 

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