Investment Update
MINERAL AND FINANCIAL INVESTMENTS LIMITED
Investment Update: Lagoa Salgada Measured & Indicated Resources Increased By 71% in 2019 Exploration Program to date
HIGHLIGHTS:
· Total Measured & Indicated Resources +71% to 10.3Mt in the North Zone
· Grade is maintained at 9.1% Zn Equivalent
· This follows 2018 success which more than doubled Measured, Indicated & Inferred Resources to 20.7Mt from the 10.0Mt reported in August 2018, with overall grades being maintained
· The new resource assessment will be used as a basis for a Preliminary Economic Assessment to be published before the year end
GEORGE TOWN CAYMAN ISLANDS, 25 SEPTEMBER, 2019 - Mineral and Financial Investments Limited (LSE-AIM: MAFL) ("M&FI" or the "Company") is very pleased to announce an updated Mineral Resource Estimate in accordance with National Instrument 43-101 at the Lagoa Salgada polymetallic VMS Project located on the prolific Iberian Pyrite Belt ("IPB") in Portugal. The work completed by Redcorp is funded and guided by Ascendant Resources (Ascendant) as part of Ascendant's previously announced earn-in agreement with TH Crestgate, Mineral and Financial's wholly owned subsidiary. The new Mineral Resource Estimate will be used as a basis for the Preliminary Economic Assessment ("PEA") to be completed by the end of 2019.
Redcorp Empreedimentos Mineiros Lda. (Redcorp) ran a relatively modest 8,164-metre, 24-hole, drill program focused primarily on infill drilling to increase the confidence in the grade and tonnage of the North Zone, with four holes designed to test the strong geophysical anomaly in the Central and South Zones. Results demonstrate material growth in the North Zone (the main massive sulphide) with the conversion of significant resources into the Measured & Indicated ("M&I") category. To date the North Zone has been delineated by less than a total of 76 holes.
The North Zone is characterized as a zinc-rich massive sulphide deposit with a precious metal rich oxide gossan lying on top. The four widely spaced holes in the Central and South Zones, have identified a copper-rich sulphide zone that will be the focus of the next phase of drilling to expand these zones. All zones sit on a continuous coincidental Induced Polarization ("IP") chargeability anomaly with an estimated geological strike length of 1.7km. The most recent drill program corroborated a strong correlation between the IP chargeability anomaly to the massive sulphide mineralization, leaving significant encouragement in the exploration upside to continue to expand the resource. All zones remain open along strike and at depth.
Highlights are as follows:
· North Zone: Measured Mineral Resources increase 57% to 2.8 Mt at 10.7% ZnEq[1]
o North Zone: Measured & Indicated Mineral Resources increase 71% to 10.3 Mt at 9.1% ZnEq1:
· 170% increase in the precious metal rich gossan zone to 1.7 Mt at 4.6g/t Gold Equivalent Ounces[2].
· Global NI 43-101Measured and Indicated Resources of 12.8 million tonnes and Inferred Resources of 8.6 million tonnes
· Drilling in the Central and South Zones identified Copper rich sulphide mineralization. The new resources in these zones are reported in Copper equivalents. Future drill programs will focus on expanding and upgrading these zones.
· Results from a PEA are expected in the fourth quarter and will be based upon this new Mineral Resource Estimate
James Lesser, Chief Operating Officer of Mineral & Financial Investments stated - "The Mineral Resource Estimate is a highly satisfying result as it demonstrates a substantial milestone towards the goal of developing Lagoa Salgada. Ascendant believe there is ample opportunity to expand the resource substantially as this resource follows a rather modest drill program targeted at infill drilling the North Zone. Lagoa Salgada has many traits common to other VMS deposits and mines in the IPB, and it appears to be at the higher end of the grade scale, and we continue to be encouraged by the mineable potential of the project. A PEA is planned for completion before the end of the year."
Additionally he added- "Redcorp and Ascendant's exploration work continues to better define and expand the known zones which still remain open along strike and at depth, highlighting the significant growth opportunity remaining in the North Zone and especially in the Central and South Zones where the massive sulphides have yet to be fully tested. The success of drilling achieved to date, correlating drill results to anticipated mineralization with IP tools in the LS West region, has led the Company to replicate this strategy further down the 8km gravity anomaly in the LS North and LS East regions and we remain optimistic of the long-term, large-scale exploration and resource potential of the project as a whole."
Lagoa Salgada Updated Mineral Resource Estimate
Effective September 5, 2019
(Table 1)
The new Technical Report to disclose the Mineral Resource Estimate is being prepared in accordance with the CIM Standards for mineral disclosure and the National Instrument 43-101 ("NI 43-101") by Micon.
A summary of the Mineral Resource Estimate for LS North is set out in Table 1 below:
(Using Cut-offs: Zn-Eq ≥ 2.90% (M&I), ≥ 2.80% (Inferred)
http://www.rns-pdf.londonstockexchange.com/rns/6720N_1-2019-9-25.pdf
A summary of the Mineral Resource Estimate for the Central and South Zones is set out in Table 2 below:
(Using a Cut-off: Cu-Eq ≥ 0.90%)
http://www.rns-pdf.londonstockexchange.com/rns/6720N_1-2019-9-25.pdf
Table 3: Lagoa Salgada Updated Mineral Resource Estimate
North Zone Mineral Resource Estimate - Effective September 5, 2019
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Central and South Zones Mineral Resource Estimate - Effective September 5, 2019
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|
|
|
|
|
Average Grade |
Contained Metal |
|||||||||||||
|
Deposit |
Category |
Min |
Cut-off |
Tonnes |
Cu |
Zn |
Pb |
Sn |
Ag |
Au |
CuEq |
|
Cu |
Zn |
Pb |
Sn |
Ag |
Au |
|
|
|
|
Zones |
CuEq% |
(kt) |
(%) |
(%) |
(%) |
(%) |
(g/t) |
(g/t) |
(%) |
|
(kt) |
(kt) |
(kt) |
(kt) |
(kt Oz) |
(kt 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 |
0 |
- |
- |
- |
- |
- |
- |
- |
|
|
|
|
|
|
|
|
|
|
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 |
0.0 |
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 |
0.0 |
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 |
0.0 |
3,285.2 |
10.0 |
|
Notes to tables:
(1) Min(eralized) 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
The North Zone, which makes up the majority of the updated Mineral Resource Estimate saw a substantial conversion of Inferred Resources to M&I Resources, growing by 71%. This was the focus of the 8,164-metre drill program in 2019 which saw 20 new holes drilled in the North Zone. The Central and South Zones were tested by only 4 holes primarily to test the continuation of the strong geophysical anomaly. While drilling was limited, the results to date are very encouraging to support the future expansion of the total resource with indicated growth from all zones. Further drilling will be required to expand and upgrade these resources in the future.
Of particularly interesting importance is the gossan zone; a precious metals-rich oxidized cap on top of the massive sulphide, which is noted in the highlights and table above. Also of note is the wide zone of copper-rich mineralization highlighted in hole LS_ST_16 (see September 3, 2019 press release), which correlates to the mineralization found in the Central and South Zones. Further exploration of this zone will also be a focus in future drill programs.
Plan View in the North Zone 2019 Drill Holes
(Fig.1)
http://www.rns-pdf.londonstockexchange.com/rns/6720N_1-2019-9-25.pdf
The Mineral Resource Estimate update incorporates all historic drilling, the high-grade drill results from the 2018 and 2019 exploration programs and includes all the holes announced in the Company's recent press releases. Metallurgical testing is underway, and the Company expects to complete a PEA prior to the end of 2019.
Updated IP Chargeability Anomaly
There is a strong correlation between the strong continuous IP Chargeability anomaly and coincidental gravity anomaly and the massive sulphide mineralization drilled at Lagoa Salgada. That anomaly extends from just north of the North Zone continuously for over 1.7kms to just south of the South Zone (see Figure 3). The IP work supports the further growth potential in the area.
Plan View of the 2019 Drill Holes for Lagoa Salgada
(Fig. 2)
http://www.rns-pdf.londonstockexchange.com/rns/6720N_1-2019-9-25.pdf
During the 2019 drilling program, Ascendant conducted ground IP along the 8-kilometre-long gravity anomaly in the northern part of the property in the LS North region, and Ascendant continues to see a strong chargeability IP anomaly coincidental to the gravity anomaly. Where the tertiary cover is not deep and/or there is not a lot of sand, we are able to see strong chargeability IP anomalies coincident with the gravity to both the east and west of the current Resource area, making these good targets for future drilling (see Figure 4). As has been demonstrated during the 2018 and 2019 drill programs, downhole techniques can successfully be used to further delineate such prospective targets.
Induced Polarization ("IP") Anomaly Coincident with the Gravity Anomaly at LS West region
(Fig. 3)
http://www.rns-pdf.londonstockexchange.com/rns/6720N_1-2019-9-25.pdf
Regional 3D Coloured Chargeability Model with Black Gravity Contours
(Fig. 4)
http://www.rns-pdf.londonstockexchange.com/rns/6720N_1-2019-9-25.pdf
Mineral Resource Estimate
The Mineral Resource Estimate was prepared by MICON INTERNATIONAL LIMITED ("Micon"). 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 4.4.2 software was used to construct three dimensional ("3D") solid models of massive sulphide, gossan and stringer mineralization reflecting a minimum grade of 3% ZnEq, 2.5% ZnEq, and 2.5% ZnEq 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. Up to four 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 new Technical Report to disclose the Mineral Resource Estimate is being prepared in accordance with National Instrument 43-101 ("NI 43-101") and the CIM Standards for mineral disclosure by Micon. This Technical Report will be filed on SEDAR (www.sedar.com) within 45 days of this press release.
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.
Qualified Persons
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 15 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.
Review of Technical Information
The scientific and technical information in this press release has been reviewed and approved by Robert Campbell, P.Geo., Vice President, Exploration and Director for Ascendant Resources Ltd, who is a Qualified Persons as defined in National Instrument 43-101.
FOR MORE INFORMATION:
Katy Mitchell and Jessica Cave, WH Ireland Limited +44 161 832 2174
Jon Belliss, Novum Securities Limited +44 207 399 9400
Jacques Vaillancourt, Mineral & Financial Investments Ltd. +44 780 226 8247
TECHNICAL GLOSSARY
Abbreviations:
Mt: Million tonnes
ZnEq: Zinc Equivalent
Zn: Zinc
Cu: Copper
Pb: Lead
PPB: Parts per Billion
PPM: Parts per Million
Sn: Tin
Ag: Silver
Au: Gold
Anomaly: Any derivation from the norm. In mineral exploration, one is mainly concerned with anomalies in the geophysical and geochemical character of rocks, tills, soils, water or unconsolidated sediment in streams or lakes sediments. Anomalies are classed as positive or negative.
Cut Off grade: Cut-Off grade is the minimum grade required in order for a mineral or metal to be economically mined.
Gossan: an iron-containing secondary deposit, largely consisting of oxides and typically yellowish or reddish, occurring above a deposit of a metallic ore.
Indicated Mineral Resource : The part of a mineral resource for which quantity, grade, quality, etc., can be estimated with a level of confidence sufficient to allow the appropriate application of technical and economic parameters, to support mine planning and evaluation of economic viability.
Inferred Mineral Resource: The part of a mineral resource for which quantity and grade or quality can be estimated on the basis of geological evidence and limited sampling and reasonably assumed, but not verified, geological and grade continuity
Kriging: In statistics, originally in geostatistics, kriging or Gaussian process regression is a method of interpolation for which the interpolated values are modeled by a Gaussian process governed by prior covariances.
Measured Mineral Resource: The part of a mineral resource for which quantity, grade or quality, etc., are so well established that they can be estimated with confidence sufficient to allow the appropriate application of technical parameters to support production planning and evaluation of economic viability.
Mineral Resources: Mineral Resources are sub-divided, in order of increasing geological confidence, into Inferred, Indicated and Measured categories. An Inferred Mineral Resource has a lower level of confidence than that applied to an Indicated Mineral Resource. An Indicated Mineral Resource has a higher level of confidence than an Inferred Mineral Resource but has a lower level of confidence than a Measured Mineral Resource.
NI 43-101 National Instrument: 43-101 Canadian Standard if reporting incorporates Canadian Institute of Mining standards.
Stockwork: In geology, a stockwork is a complex system of structurally controlled or randomly oriented veins. Stockworks are common in many ore deposit types and in greisens. They are also referred to as stringer zones.
Soil sampling: A rapid chemical analysis to access available nutrient status of the soil and includes interpretation, evaluation and fertilizer recommendation based on the result of chemical analysis and other considerations.
QA/QC: Quality Control and Quality Assurance, a set of defined procedures in all aspects of the mineral deposit evaluation to ensure the best possible confidence in resultant mineral Resource and Reserve estimates are achieved; the quality of an estimate is dependent on the quality of the data used
VMS: Volcanognic Massive Sulphide. VMS type of metal sulfide ore deposit, mainly copper-zinc which are associated with and created by volcanic-associated hydrothermal events.
ZnEq: Zinc Equivalent metal content is a calculation that converts metal content into a reference metal, in this case zinc. The calculations are based on using the following metal prices: US$1.15/lb Zn, US$1.05/lb Pb, $3.05/lb Cu, US$8.70/lb Sn, US$19.40/oz Ag, and 1,250/oz Au. (No recoveries were applied). By using the above cited prices the ZnEq % was calculated as follows: [Zn%]+([Cu%]*2.652)+([Pb%]*0.913)+([Au g/t]*1.585)+([Ag g/t]*0.025) + ([Sn%]*7.565)
[1] Zinc Equivalent = ((Zn Grade x 25.35)+(Pb Grade x 23.15)+(Cu Grade x 67.24)+(Au Grade x 40.19)+(Ag Grade x 191.75))/25.35
[2] Gold Equivalent = ((Zn Grade x 25.35)+(Pb Grade x 23.15)+(Cu Grade x 67.24)+(Au Grade x 40.19)+(Ag Grade x 191.75)+(Sn Grade x 191.75))/40.19
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