Investment Update

RNS Number : 7169S

Mineral & Financial Invest. Limited

08 November 2019

 

MINERAL AND FINANCIAL INVESTMENTS LIMITED

Investment Update: Ascendant Resources Files Technical Report an Updated Mineral Resource Estimate for The Lagoa Salgada VMS Project In Portugal

HIGHLIGHTS:

·    North Zone: Total Measured & Indicated Resources +71% to 10.3Mt; Grade is maintained at 9.1% Zn Equivalent[1]

§ Measured Mineral Resources increased by 57% to 2.8 Mt at 10.7% ZnEq¹.

§ 70% increase in the precious metal rich gossan zone to 1.7 Mt at 4.6g/t AuEq[2].

·    Total NI 43-101 Measured and Indicated Resources of 12.8Mt and Inferred Resources of 10.3[3]Mt.

·    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

·    Drilling in the Central and South Zones identified Copper rich sulphide mineralization. Future drill programs will focus on expanding and upgrading the strong potential anticipated in these zones.

·    The new resource assessment follows a modest 8,164m drill program that provides strong encouragement for a Preliminary Economic Assessment to be published before the year end

GEORGE TOWN CAYMAN ISLANDS, NOVEMBER 8, 2019 - Mineral and Financial Investments Limited (LSE-AIM: MAFL) ("M&FI" or the "Company") is very pleased to announce that Ascendant is filing the Technical Report, as had been stated in the September 25, 2019 RNS, entitled, "Technical Report on the Resource Estimate Update for the Lagoa Salgada Project Setúbal District Portugal", supporting the updated Mineral Resource Estimate, significantly upgrading the resources at the Lagoa Salgada Volcanogenic Massive Sulphide ("VMS") Project in Portugal. The Technical Report dated November 5, 2019 has an effective date of September 5, 2019 and was prepared in accordance with Canadian National Instrument 43-101 ("NI 43-101") and will be used as a basis for the Preliminary Economic Assessment ("PEA") to be completed by year end.  The following data is a repeat of the information set out in the announcement dated 25 September 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.

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.

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)

100%  Average Grade Total Contained Metal (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 North M & I All 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 North Inferred All 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 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                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 North M & I All 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 North Inferred All 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)

					AVERAGE GRADE								TOTAL CONTAINED METAL*** (100%)
Deposit	Category	Min	Cut-off	Total Tonnes	Cu	Zn	Pb	Sn	Ag	Au	CuEq		Cu	Zn	Pb	Sn	Ag	Au
		Zones	CuEq%	100% (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)

					AVERAGE GRADE								CONTAINED METAL*** (75%)
Deposit	Category	Min	Cut-off	Net Tonnes	Cu	Zn	Pb	Sn	Ag	Au	CuEq		Cu	Zn	Pb	Sn	Ag	Au
		Zones	CuEq%	75% (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 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.

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.

 

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 4.5.2 software was used to construct three dimensional ("3D") solid models of massive sulphide, gossan and stringer mineralization reflecting a minimum grades 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.

 

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.

 

FOR MORE INFORMATION:

Katy Mitchell and Jessica Cave, WH Ireland Limited             [phone]

Jon Belliss, Novum Securities Limited                                    [phone]

Jacques Vaillancourt, Mineral & Financial Investments Ltd.  [phone]

 

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] ZnEq% = ((Zn Grade*25.35)+(Pb Grade*23.15)+(Cu Grade * 67.24)+(Au Grade*40.19)+(Ag Grade*191.75))/25.35

[2] 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

[3] In the September 25, 2019 press release, the Company made a calculation error and understated this total number value as 8.6 million tonnes

 

END

 

 

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