Investment Update

RNS Number : 3120V

Mineral & Financial Invest. Limited

02 November 2017

 

Mineral & Financial Investments Limited

("MAFL" or the "Company")

Elevated Indium And Selenium Content Assayed At

Lagoa Salgada Hole LS-MS-02 (105m Of 10.24% Zinc Eq.¹);

Indium And Selenium Also Present In LS-1's Central Sector Area

HIGHLIGHTS:

-   Recent hole LS-MS-02 re-assayed and shows meaningful and consistent indium (In) content

-   Assay included indium grades as high as 107g/t over 2.0m

-   The re-assayed hole LS-MS-02 contained indium averaging 28 g/t over 80.0 meters, including 23.0m at 54.5 g/t and including 6.0m averaging 85.1g/t

-   Selenium (Se) averaged 48.2 g/t over 80m, which includes 17m with 104.1 g/t and 8.0m with 153 g/t.

-   Central Sector holes LS-ST-01 and LS-ST-02 selectively re-assayed and also found to carry In & Se

-   Indium is a critical raw material for information technology markets, including fibre optics, mobile phones and all types of computers.

George Town, Cayman Island - November 2, 2017 - Mineral & Financial Investments is very pleased to announce assay results from its 49%-owned investment, TH Crestgate GmbH, a private Swiss-based investment company. TH Crestgate has released its first indium and selenium assay results from the winter and spring drilling campaign on the Central Sector at the 100%-owned Lagoa Salgada zinc-lead-copper project in southern central Portugal. The holes were completed by wholly-owned local subsidiary, Redcorp Empreedimentos Lda.

Hole LS-MS-02 of the recent drill program was re-assayed by ALS in Seville, Spain. The full intercept assayed was 80.0m. This contained 28.01 gr/t of indium, including 23.0m of 54.5 g/t, 6.0m of 85.1g/t and 2.0m of 106.8 g/t. The indium grades are much higher in the massive-sulphide rich areas of the LS-1 resource, than in the stockwork-rich areas of the Central Sector. Selenium was also present in the LS-MS-02 hole. Selenium graded 48.1 g/t over 80.0m. Highest measurable observations exceeded 250 g/t in both the LS-1 hole and the Central Sector hole. The assay methodology will only read to a maximum of 250/t without having to re-do the assay a third time.

Indium And Selenium Assays On Holes In LS1 Resource & Central Sector

Hole	Depth (m)	Thickness (m)	Indium (In) gr/t	Selenium (Se) gr/t
LS-MS-02	150 to 229	79.00	28.01	48.16
Including	151 to 166	16.00	5.27	104.10
Including	159 to 166	8.00	3.99	153.06
Including	186 to 208	23.00	54.51	31.06
Including	187 to 192	6.00	85.07	39.37
Including	187 to 188	2.00	106.8	43.80
LS-ST-01	195 to 215	20.00	1.22	78.00
Including	206 to 211	10.00	2.61	130.34
LS-ST-02	329 to 361	32.00	1.92	64.20
Including	329 to 330	1.00	10.00	>250.00
Including	329 to 334	6.00	4.33	106.40
Including	344 to 346	3.00	4.16	94.40
Including	350 to 352	2.00	3.19	84.50
Including	357 to 359	3.00	2.26	118.33
Including	329 to 330	1.00	10.00	>250.00

The selective assays come from the Central Sector holes LS-ST-01 and LS-ST-02 drilled in the first half of 2017, located in an area where the mineralization is predominantly stockwork, immediately to the south of the 4.5 million tonne LS-1 resource. Although indium is not normally present in stockwork zones, there were consistent quantities in the assayed zones in these areas. The indium content was not as rich as in the LS-1 zone as it is not as rich in sphalerite and arsenopyrite rich massive sulphides.

Recent Drill Results from hole LS-MS-02 in LS-1 Resource Area

Hole	Depth (m)	Thickness (m)	Cu (%)	Zn (%)	Pb (%)	Au (g/t)	Ag (g/t)	Cu Equiv. (%)2	Zn Equiv. (%)1
LS-MS-02 (new)	150 to 255	105.00	0.27	4.48	3.05	0.94	59.47	4.89%	10.24%
Including (Gossan)	150 to 160	10.00	0.18	0.76	2.66	1.59	67.20	3.40%	7.11%
Including (Massive-Sulphide)	160 to 230	70.00	0.29	5.67	3.68	1.02	68.25	5.86%	12.28%
Including (Massive-Sulphide)	166 to 230	64.00	0.28	6.90	4.42	1.25	81.44	7.05%	14.76%
Including (Massive-Sulphide)	199 to 230	28.00	0.31	8.23	6.06	1.72	95.13	8.78%	18.40%
Including (Massive-Sulphide)	206 to 226	20.00	0.25	9.37	7.01	1.50	101.75	9.60%	20.10%

TH Crestgate is currently selectively testing core from other holes drilled in the LS-1 historical resource area. The completed drill program's objective is to expand the existing historical 4.5 million tonne resource. TH Crestgate expects to be reporting further assays for indium and selenium after reporting zinc, lead, copper, gold and silver contents, as they require a separate assaying process.

Jacques Vaillancourt, Chairman of Mineral and Financial, commented: "Indium and selenium were well known to be present at Lagoa Salgada, and this confirms our understanding as we  work towards the upcoming resource update being completed by AGP out of Toronto. The presence of indium in the LS-1 resource was established in a study completed by the University of Porto's geological research team. The presence of indium and selenium will potentially increase the economic value of the concentrate, if and when the Lagoa Salgada project is in production. Indium can be a valuable addition to concentrate."

Indium and Selenium Distribution within Hole LS-MS-02

http://www.rns-pdf.londonstockexchange.com/rns/3120V_-2017-11-1.pdf

Indium and selenium are known to be present in the Iberian Pyrite Belt , where the Lagoa Salgada project is located. Known local producers of these minerals, as by-products in their zinc, lead and copper concentrate production, are Lundin Mining's Neves Corvo mine and the neighbouring Aljustrel mine. The average indium grade in zinc deposits from which it is recovered ranges from 1 g/t to 100 g/t. Generally, the lead-zinc rich massive sulphide deposits contain the highest indium concentrations with values of up to 120ppm of indium in sphalerite.³ The presence of indium at Lagoa Salgada was initially identified in LS-1 resource by work completed by the University of Porto. A team of geologists from the University is completing some work to update the historical assessment of indium at Lagoa Salgada.

The highest grade in the LS-MS-02 hole was 109ppm (i.e.109 g/t). The grade of indium in this hole is encouraging and in line with other deposits in the Iberian Pyrite Belt.  If the indium were to be payable in the concentrate, or allowed for lower treatment charges offered by the smelter, this would help improve the economics of any mining operation

Further information on selenium and indium can be found below, at the end of this release

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

http://www.rns-pdf.londonstockexchange.com/rns/3120V_-2017-11-1.pdf

Asset Description

The Lagoa Salgada resource is centred on one gravimetric anomaly, LS-1. There are a total of 17 gravimetric anomalies on the property. These anomalies remain to be fully tested. A petrographic study recently 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 sphaleritic zones of mineralization. The orebody is composed of a central stockwork 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 (Lima et al., 2013, see below).

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
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, WH Ireland                              [phone]

Jon Belliss, Beaufort Securities Limited            [phone]

Alastair Ford, M&FI                                       [phone]

NOTES FOR EDITORS:

Indium is a soft, silvery metal that is stable in air and water with the chemical symbol In and the atomic number 49. The spot price of indium as of October, 2017 was US$207,000/t, and is now up 18% from the lows of this summer. In 2014 Indium prices were as high as US$750,000/t. Most indium is used to make indium tin oxide, which is an important part of touchscreens, flat screen TVs and solar panels. This is because it conducts electricity, bonds strongly to glass and is transparent. Indium nitride, phosphide and antimonide are semiconductors used in transistors and microchips. An indium alloy has been used for fire-sprinkler systems in shops and warehouses because of its low melting point. Indium metal sticks to glass and can be used to give a mirror finish to windows of tall buildings, and as a protective film on welders' goggles. It has also been used to coat ball bearings in Formula 1 racing cars because of its low friction. 

Indium is one of the least abundant minerals on Earth. It has been found un-combined in nature, but typically it is found associated with zinc minerals, and iron, lead and copper ores. It is commercially produced as a by-product of zinc refining.

Selenium is a chemical element with symbol Se and atomic number 34. The average price per Kg, as estimated by the USGS in 2016 was US$57.32 per kg. Selenium is a non-metal with properties that are intermediate between the elements above and below it in the periodic table, sulphur and tellurium. It rarely occurs in its elemental state or as pure ore compounds in the Earth's crust.

Selenium is found in metal sulphide ores, where it partially replaces the sulphur. Commercially, selenium is produced as a by-product in the refining of these ores, most often during production. Minerals that are pure selenide or selenate compounds are known but rare. The chief commercial uses for selenium today are glassmaking and pigments. Selenium is a semiconductor and is used in photocells. Selenium is an ingredient in many multivitamins and other dietary supplements, including infant formula. Selenium is an essential micronutrient and is used as a human dietary supplement, a dietary supplement for livestock, and as a fertilizer additive to enrich selenium-poor soils. Selenium is also used as an active ingredient in antidandruff shampoos.

Estimates for world consumption of selenium are as follows: metallurgy (including manganese production): 40%; glass manufacturing: 25%; agriculture: 10%; chemicals and pigments: 10%; electronics: 10%; and other uses: 5%.

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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.

2 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.

These statistics relate to 100% of the reserves attributable to the licence. MAFL retains only a 49% interest in TH Crestgate.

3 U. Schwartz-Schampera, P.M. Herzig, INDIUM: Geology, Mineralogy and Economics, (Heidelberg, Springer, 2002)

 

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