Investment Update: Lagoa Salgada Drill Results

RNS Number : 0141N

Mineral & Financial Invest. Limited

14 January 2019

 

MINERAL AND FINANCIAL INVESTMENTS LIMITED

Lagoa Salgada Exploration Program Successfully Expands and Improves Grades at The Main Massive Sulphide Zone and Significantly Expands The Stockwork Zone

HIGHLIGHTS:

·     Excellent results from new holes drilled, such as: LS_MS_19 which intersected 79.4m of high grade Massive Sulphide which contained 10.16% of Zn Eq.;  LS_MS_16 which intersected 76.6m of 9.84% ZnEq, and; LS_MS_17 which intersected 30.8m of 15.6% ZnEq.

·     Newly identified tin mineralization increases ZnEq grade by 15% in the Main Zone

·     IP survey identifies 1.6km anomaly which includes the 2 known mineral deposits

·     Geophysics work significantly expands the Project's overall exploration potential by identifying new targets

·     Drill results expected to significantly increase new Mineral Resource in NI 43-101 estimate due by end of January

GEORGE TOWN CAYMAN ISLANDS, January 14, 2019 - Mineral and Financial Investments Limited (LSE-AIM: MAFL) ("M&FI" or the "Company") is very pleased to announce the results from the first full drill program completed by Redcorp Empreedimentos Mineiros Lda. (Redcorp), 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. In conjunction with Ascendant, M&FI is very pleased to announce these transformational results from this 20-hole drill program totaling  7,077 meters. Additionally, an additional geophysics program was completed at the Lagoa Salgada, a polymetallic VMS Project located on the Iberian Pyrite Belt ("IPB") in Portugal. The IPB is home to some of the world's largest volcanogenic massive sulphide mines.

Drill Hole Highlights: 

·     LS_MS_19: Intersected 79.4m massive sulphide zone at 0.64% Cu, 1.94% Pb, 3.36% Zn, 0.57g/t Au, 60.11g/t Ag and 0.17% Sn (10.16% ZnEq)

·     LS_MS_16: Intersected 76.6m massive sulphide zone at 0.48% Cu, 2.06% Pb, 3.43% Zn, 0.39g/t Au, 40.30g/t Ag and 0.22% Sn (9.84% ZnEq)

·     LS_MS_17: Intersected 30.8 meters of high-grade massive sulphide at 0.32% Cu, 8.44% Pb, 1.91% Zn, 1.79g/t Au, 61.39g/t Ag and 0.26% Sn (15.6% ZnEq)

The drill program at Lagoa Salgada consisted of 12 holes (3,964 meters) in the Main Massive Sulphide Zone and 8 holes (3,113 meters) in the Stockwork Zone. The program has been very successful at confirming and expanding high-grade mineralization in the Main Massive Sulphide Zone and in expanding and improving the continuity of the sulphide mineralization in the Stockwork Zone. Results from the Main Massive Sulphide Zone indicate additional massive sulphide mineralization at grades in excess of 10% ZnEq. The identification of tin mineralization within the massive sulphides has contributed significantly to this grade improvement. In the Stockwork Zone results indicate that a thick, well mineralized ore zone has not yet been fully defined.

Concurrent geophysical work has confirmed a strong 1.6 km long chargeability anomaly which includes the Main Massive Sulphide and Stockwork Zones. The Residual Bouguer Gravity Map that includes the Chargeability anomaly identifies numerous additional anomalies within Lagoa Salgada's property boundary.

Jacques Vaillancourt, Chairman of M&FI stated "We are very pleased by the success of the latest exploration program at Lagoa Salgada. The drill results have more than exceeded our expectations in identifying similar high-grade massive sulphide and stockwork mineralization identified in previous drill campaigns at Lagoa Salgada. The addition of newly identified high-grade tin mineralization in the Main Zone provides further confidence in the potential to quickly increase high-grade tonnes to the known Mineral Resource. An update to the Mineral Resource Estimate is expected in January."

He continued, "In addition to the drill program the company has completed ground and downhole IP surveys. The results from these surveys have identified a 1.6 km IP anomaly coincident with the massive sulphide mineralization intersected by the drill program from the layered massive sulphides in the northwest (Massive Sulphide Zone) to the Stockwork Zone in the southeast. The IP anomaly is also coincident with a significant regional gravity anomaly which greatly expands exploration potential to the east."

Drill Hole Details

Tables 1 and 2 below provide assay results for 9 holes in the Main Massive Sulphide Zone and 5 holes in the Stockwork Zone. Drill holes in this program were collared in an area targeting the eastern expansion of the known main volcanogenic massive sulphide mineralization contained within the current Mineral Resource Estimate as defined in the National Instrument 43-101 report dated January 5, 2018 and targeting expansion of the Stockwork Zone.

The drill holes were drilled at an angle of 60^o to provide additional information of the true thickness and orientation of the ore zone. Significant thickness of gossan and massive sulphide mineralization were intersected in holes LS_MS_07, LS_MS_16 through LS_MS_20. In several of the holes, including LS_MS_07, LS_MS_16, LS_MS_18 and LS_MS_19, a second massive sulphide horizon was intersected on the west side of a major fault identifying a possible new lens.

Figure 1: Plan View of the 2018 Planned Drill Holes

http://www.rns-pdf.londonstockexchange.com/rns/0141N_1-2019-1-14.pdf

Introduction of Tin in Mineralization

A significant achievement of the exploration program has been the identification of cassiterite (SnO2) associated with the Main Massive Sulphide Zone. The IBP is known for having areas rich in tin, however, there has been no historical assaying for tin on previous drill holes at Lagoa Salgada. As such, Ascendant has incorporated into the exploration program the analysis of all historic (2017) and current drill holes in the Main Massive Sulphide Zone being tested for tin (Sn). Significant tin values have been recognized in the holes and are being reported in Table 1 below for the current LS_MS holes. In many of the holes the results are material and add an average 1.5% to the ZnEq grade. The tin is significant in the gossan, massive sulphide and stringer zones of the Main Massive Sulphide Zone. In the Q1- 2019 period Redcorp will complete a preliminary metallurgical recovery test work assessment which will provide guidance on expected mineral recovery levels

Geophysical Surveys

In addition to the drill program, recently completed ground and downhole IP surveys have identified a chargeability anomaly 1.6 kilometers long by 200-300 meters wide that is coincidental with the sulphide mineralization both in the Main Massive Sulphide Zone and the Stockwork Zone (Figure 2). This broad N-S zone of elevated chargeability can be traced from the Main Massive Sulphide Zone southwards to beyond the zone where the Stockwork Zone was drilled in 2018 with no evidence of a gap or eastward offset in mineralization suggested by a 2016 IP/Res survey. The IP 3D model suggests that the drilling at the Main Massive Sulphide Zone is coincident with the chargeability anomaly. However, the model for the Stockwork Zone suggests the stronger part of the anomaly lies to the east and remains untested.  Furthermore, on the southern lines (lines 14 and 15) on the eastern extremity, a new anomaly is appearing with the possibility of a new zone developing that is also untested.

Figure 2: IP Survey Map Coincident with Known Mineral Resources

http://www.rns-pdf.londonstockexchange.com/rns/0141N_1-2019-1-14.pdf

The IP anomaly is also coincident with the more extensive regional Bouguer gravity anomaly that stretches southeast by approximately 8km to the Rio de Moinhos Target (Figure 3), highlighting a significant number of targets for the future. Pseudosections prepared for the 2018 IP lines indicate a second target southeast of the Main Massive Sulphide Zone, near the eastern end of lines 8-10 and extending as far south as line 14. This target shows a clear association with the anomaly shown on the map of residual Bouguer Gravity. We are establishing a naming convention referring to the greater areas within Lagoa Salgada region as indicated on Figure 3. Note that the Company's work to date has be focused within the LS West area.

Figure 3: Gravimetric Survey Map with High Bouguer Gravity Coincident with Known Mineral Resources

http://www.rns-pdf.londonstockexchange.com/rns/0141N_1-2019-1-14.pdf

Table 1: Drill Intersections

Main Zone (Massive Sulphide Zone)

	From	To	Length	True Width	Cu	Pb	Zn	Sn	Au	Ag	Zn Eq2
	(m)	(m)	(m)	(m)	(%)	(%)	(%)	(%)	(ppm)	(ppm)	With Sn (%)
LS_MS_07*	168.95	300.00	131.05	106.15	0.54	2.72	3.22	0.17	0.81	77.86	11.51
including	176.00	297.00	121.00	98.01	0.58	2.89	3.42	0.18	0.87	82.95	12.24
gossan	168.95	182.15	13.20	11.35	0.06	1.00	0.23	0.35	1.73	143.08	10.32
including	176.00	181.00	5.00	4.30	0.11	1.57	0.25	0.76	3.91	324.80	21.87
1st MS	182.15	253.90	71.75	55.25	0.33	4.49	4.89	0.14	1.09	98.21	14.91
including	216.00	236.00	20.00	15.40	0.20	6.35	8.07	0.18	1.58	112.20	21.00
STKW	262.00	274.00	12.00	9.24	3.19	0.14	0.91	0.33	0.01	28.42	12.68
Including	264.00	273.00	9.00	6.93	4.06	0.16	1.03	0.30	0.01	27.56	14.94
including	269.00	273.00	4.00	3.08	8.22	0.26	1.44	0.27	0.01	47.75	26.68
2nd MS	280.35	289.60	9.25	7.12	0.44	0.89	2.58	0.26	0.29	44.40	7.53
LS_MS_08	189.00	373.25	184.25	149.24	0.11	0.04	0.34	n.m.	0.02	5.32	0.81
STKW	208.00	219.00	11.00	8.47	0.56	0.15	1.20	n.m.	0.09	24.27	3.56
Including	209.00	218.00	9.00	6.94	0.67	0.15	1.25	n.m.	0.10	27.89	4.01
Including	213.00	218.00	5.00	3.85	1.04	0.22	1.60	n.m.	0.15	45.60	5.92
and	305.00	306.00	1.00	0.77	0.82	0.02	1.26	n.m.	0.05	15.00	3.90
LS_MS_09	194.00	370.00	176.00	142.56	0.12	0.02	0.24	n.m.	0.01	2.97	0.68
STKW	215.00	217.00	2.00	1.54	0.67	0.08	1.29	n.m.	0.01	22.50	3.71
STKW	267.00	268.00	1.00	0.77	0.08	0.18	1.85	n.m.	0.05	49.00	3.51
STKW	284.00	290.00	6.00	4.62	0.86	0.01	1.20	n.m.	0.03	5.83	3.67
Including	284.00	289.00	5.00	3.85	1.02	0.01	1.39	n.m.	0.02	6.80	4.30
STKW	320.00	322.00	2.00	1.54	1.13	0.01	0.61	n.m.	0.03	15.00	4.03
STKW	331.00	332.00	1.00	0.77	0.87	0.04	0.99	n.m.	0.00	11.00	3.59
LS_MS_10	146.40	267.00	120.60	97.69	0.05	0.09	0.37	0.01	0.05	3.89	0.81
gossan	147.00	149.00	2.00	1.72	0.80	0.28	1.33	0.07	0.07	0.00	4.31
Stringer	233.00	261.00	28.00	21.56	0.03	0.13	0.72	0.00	0.07	6.04	1.20
LS_MS_12	No Significant Mineralization
LS_MS_13	167.00	200.00	33.00	26.73	0.05	0.70	1.25	0.03	0.02	10.52	2.55
Including	167.00	189.00	22.00	17.82	0.07	0.84	1.42	0.04	0.02	12.77	2.98
gossan	151.30	153.05	1.75	1.51	0.09	0.10	0.26	0.02	0.01	0.00	0.64
Stringer	167.00	168.00	1.00	0.77	0.76	0.05	0.15	0.01	0.01	100.00	4.74
Including	173.00	189.00	16.00	12.32	0.04	1.06	1.85	0.05	0.02	10.50	3.55
Including	180.00	187.00	7.00	5.39	0.06	1.60	2.70	0.06	0.03	12.86	5.12
LS_MS_16	163.15	349.00	185.85	150.54	0.29	1.43	2.18	0.15	0.35	27.9	6.59
including	163.15	273.55	110.40	89.42	0.45	2.15	3.17	0.23	0.53	39.8	9.87
gossan	163.15	174.10	10.95	9.42	0.15	2.94	0.80	0.34	1.80	35.1	10.18
including	170.00	174.10	4.10	3.53	0.09	2.90	0.48	0.53	4.31	54.3	15.48
MS	174.10	273.55	99.45	76.58	0.48	2.06	3.43	0.22	0.39	40.3	9.84
including	194.00	222.00	28.00	21.56	0.28	3.65	5.16	0.20	0.44	43.5	12.47
including	257.00	262.00	5.00	3.85	2.64	0.35	2.12	1.00	0.06	63.60	18.61
MS	239.00	273.55	34.55	26.60	0.68	0.86	2.47	0.30	0.26	42.72	8.74
Stringer	277.00	284.00	7.00	5.39	0.19	0.63	1.76	0.07	0.19	35.9	4.54
and	312.00	315.00	3.00	2.31	0.15	1.93	2.72	0.13	0.18	28.3	6.85
and	347.00	349.00	2.00	1.54	0.19	2.37	3.30	0.15	0.15	33.5	8.16
LS_MS_17	161.00	199.00	38.00	30.78	0.32	8.44	1.91	0.26	1.79	61.39	15.57
including	162.00	192.00	30.00	24.30	0.40	10.56	2.31	0.34	2.23	73.75	19.35
gossan	162.50	170.75	8.25	7.10	0.16	13.44	1.43	0.60	3.06	52.89	22.12
including	163.00	170.75	7.75	6.67	0.17	12.61	1.44	0.63	3.08	58.38	23.16
MS	170.75	194.30	23.55	18.13	0.45	7.77	2.33	0.19	1.78	79.56	16.47
including	171.00	191.00	20.00	15.40	0.53	9.00	2.86	0.22	2.07	87.05	19.54
Stringer	198.00	199.00	1.00	0.77	0.04	0.43	1.83	0.01	0.23	12.00	3.05
and	259.00	262.00	3.00	2.31	0.07	1.00	1.77	0.03	0.04	16.00	3.56
LS_MS_18	164.40	304.00	139.60	113.08	0.20	1.04	1.17	0.09	0.29	46.65	4.91
including	167.00	231.00	64.00	51.84	0.35	2.07	1.86	0.19	0.57	92.81	9.30
gossan	164.40	175.90	11.50	9.89	0.12	1.71	0.54	0.39	1.05	69.25	8.41
including	167.00	175.90	8.90	7.65	0.13	1.90	0.46	0.51	1.40	92.22	10.56
MS	175.90	247.80	71.90	55.36	0.31	1.67	1.70	0.11	0.34	73.76	7.24
including	175.90	231.00	55.10	42.43	0.39	2.09	2.09	0.14	0.44	92.91	9.10
including	175.90	197.00	21.10	16.25	0.59	3.75	3.25	0.27	0.64	159.00	15.34
Stringer	249.00	250.00	1.00	0.77	0.21	0.11	1.88	0.02	0.03	17.00	3.15
and	259.00	261.00	2.00	1.54	0.17	0.67	1.63	0.02	0.18	15.00	3.49
and	281.00	283.00	2.00	1.54	0.04	0.86	2.38	0.04	0.03	8.00	3.78
and	291.00	293.00	2.00	1.54	0.24	0.12	2.36	0.04	0.15	19.50	4.11
2nd MS	300.60	303.30	2.70	2.08	0.35	0.22	0.77	0.02	0.18	31.75	2.50
including	301.00	303.00	2.00	1.54	0.52	0.27	1.04	0.04	0.28	39.00	4.32
LS_MS_19	168.40	344.00	175.60	142.24	0.46	1.37	2.39	0.13	0.44	45.67	7.33
including	169.00	280.00	111.00	89.91	0.60	2.00	3.18	0.18	0.63	63.86	10.10
gossan	168.40	177.50	9.10	7.83	0.19	2.45	1.00	0.32	1.19	95.50	8.13
including	174.00	177.50	3.50	3.01	0.23	3.10	0.49	0.35	2.63	223.25	11.13
MS	177.50	280.65	103.15	79.43	0.64	1.94	3.36	0.17	0.57	60.11	10.16
including	236.00	280.65	44.65	34.38	0.73	1.63	3.25	0.25	0.49	66.13	10.50
Alunite	258.60	264.80	6.20	4.77	2.77	0.22	0.84	0.57	0.04	121.86	13.64
2 lens MS	311.70	314.40	2.70	2.08	0.73	0.35	2.00	0.05	0.31	25.75	4.03
Stringer	293.00	295.00	2.00	1.54	0.50	0.52	2.88	0.02	0.11	27.50	5.66
and	306.00	308.00	2.00	1.54	0.07	0.16	0.36	0.46	0.17	17.50	4.81
and	325.00	327.00	2.00	1.54	1.60	0.58	1.97	0.13	0.32	50.50	9.41
and	343.00	345.00	2.00	1.54	0.13	2.24	2.74	0.10	0.05	16.50	6.33
LS_MS_20	141.00	198.00	57.00	46.17	0.06	0.71	0.57	0.03	0.16	24.68	2.32
	141.00	163.00	22.00	18.04	0.09	1.26	0.33	0.06	0.17	40.87	3.19
gossan	146.60	171.10	24.50	21.07	0.08	1.07	0.29	0.05	0.23	33.44	2.87
including	151.00	163.00	12.00	10.32	0.14	1.45	0.26	0.09	0.16	24.67	3.50
including	149.00	155.00	6.00	5.16	0.05	2.88	0.48	0.17	0.18	14.50	5.19
including	162.00	164.00	2.00	1.72	0.71	0.46	0.10	0.02	0.42	109.50	5.87
Stringer	178.00	181.00	3.00	2.31	0.07	0.96	2.25	0.03	0.16	21.75	3.81
including	197.00	199.00	2.00	1.54	0.07	0.61	2.49	0.03	0.12	14.00	3.99

* Hole LS_MS_07 was originally reported in the Company's press release dated October 15, 2018 and is restated here to include the tin grades previously not reported.

Notes:  ZnEq% was calculated as follows: 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

2 Metal prices used: 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.

Stockwork Zone

	From	To	Length	True Width	Cu	Pb	Zn	Au	Ag	Zn Eq1
	(m)	(m)	(m)	(m)	(%)	(%)	(%)	(ppm)	(ppm)	(%)
LS_ST_05	187.00	341.00	154.00	100.10	0.06	0.24	0.39	0.03	2.04	0.87
STKW	207.00	208.00	1.00	0.65	0.14	1.59	2.09	0.03	7.00	4.14
STKW	225.00	229.00	4.00	2.60	0.24	1.20	1.36	0.04	7.00	3.32
STKW	236.00	238.00	2.00	1.30	0.38	1.30	1.80	0.02	13.50	4.35
STKW	256.00	258.00	2.00	1.30	0.24	1.43	2.07	0.02	8.50	4.24
STKW	272.00	278.00	6.00	3.90	0.14	0.94	1.55	0.15	5.67	3.14
LS_ST_07	170.00	421.00	251.00	163.15	0.26	0.55	1.02	0.04	11.53	2.57
STKW	170.00	175.00	5.00	3.25	0.70	0.65	0.83	0.08	26.40	4.04
Including	170.00	173.00	3.00	1.95	1.08	0.71	0.68	0.10	38.33	5.30
STKW	187.00	218.00	31.00	20.15	0.65	0.93	1.97	0.13	22.10	5.29
Including	206.00	218.00	12.00	7.80	1.57	1.81	3.55	0.15	44.50	10.69
STKW	228.00	236.00	8.00	5.20	0.34	1.45	1.97	0.05	12.75	4.59
Including	228.00	232.00	4.00	2.60	0.45	1.58	2.40	0.05	14.50	5.46
STKW	249.00	255.00	6.00	3.90	0.50	1.72	2.27	0.07	22.17	5.80
Including	253.00	255.00	2.00	1.30	1.39	4.34	5.90	0.18	59.50	15.28
STKW	274.00	284.00	10.00	6.50	0.59	1.18	1.24	0.09	18.80	4.47
Including	275.00	282.00	7.00	4.55	0.76	1.32	1.29	0.09	23.43	5.24
STKW	337.00	367.00	30.00	19.50	0.38	1.05	2.11	0.02	20.30	4.61
Including	337.00	361.00	24.00	15.60	0.43	1.21	2.44	0.02	23.83	5.30
Including	347.00	350.00	3.00	1.95	1.09	4.80	5.31	0.05	58.33	14.10
STKW	376.00	378.00	2.00	1.30	0.62	1.56	4.21	0.30	39.50	8.72
STKW	400.00	421.00	21.00	13.65	0.66	0.93	1.71	0.03	32.29	5.16
Including	400.00	409.00	9.00	5.85	1.19	0.86	2.11	0.05	34.44	6.97
Including	418.00	421.00	3.00	1.95	0.73	3.30	3.62	0.03	103.0	11.16
LS_ST_08	159.00	338.00	179.00	116.35	0.11	0.44	0.77	0.01	3.30	1.57
Main	170.00	194.00	24.00	15.60	0.30	0.97	1.35	0.02	3.96	3.17
Including	209.00	228.00	19.00	12.35	0.16	0.69	1.79	0.01	6.05	3.02
Including	276.00	291.00	15.00	9.75	0.34	1.20	1.77	0.03	16.93	4.22
Including	333.00	338.00	5.00	3.25	0.27	1.13	2.29	0.01	6.80	4.23
STKW	170.00	177.00	7.00	4.55	0.85	2.55	3.25	0.04	2.71	7.95
Including	171.00	174.00	3.00	1.95	1.78	5.01	6.50	0.07	2.67	15.96
STKW	219.00	229.00	10.00	6.50	0.32	1.21	2.94	0.01	10.70	5.17
Including	222.00	228.00	6.00	3.90	0.48	1.53	3.72	0.02	14.50	6.77
STKW	276.00	283.00	7.00	4.55	0.46	1.32	2.43	0.01	15.71	5.26
Including	276.00	279.00	3.00	1.95	0.85	2.30	4.86	0.02	30.33	9.98
STKW	287.00	291.00	4.00	2.60	0.66	1.85	1.45	0.08	31.25	5.05
Including	287.00	289.00	2.00	1.30	0.66	3.15	1.86	0.11	53.50	7.96
STKW	333.00	334.00	1.00	0.65	0.46	1.92	4.58	0.01	12.00	7.87
STKW	336.00	337.00	1.00	0.65	0.49	1.89	3.32	0.02	10.00	6.62
LS_ST_10	180.00	363.00	183.00	118.95	0.17	0.55	0.84	0.02	5.87	1.97
Including	181.00	331.00	150.00	97.50	0.20	0.64	0.98	0.02	6.87	2.29
Including	245.00	331.00	86.00	55.90	0.29	0.89	1.26	0.03	10.03	3.14
STKW	181.00	196.00	15.00	9.75	0.25	0.99	1.34	0.05	8.53	3.21
Including	181.00	189.00	8.00	5.20	0.43	1.47	1.80	0.07	12.88	4.70
STKW	245.00	249.00	4.00	2.60	0.59	1.02	3.61	0.08	11.75	6.50
Including	247.00	249.00	2.00	1.30	1.08	1.59	5.95	0.10	20.00	10.90
STKW	269.00	304.00	35.00	22.75	0.54	1.88	2.26	0.04	20.23	5.96
Including	269.00	283.00	14.00	9.10	0.89	3.28	2.93	0.04	36.36	9.24
Including	269.00	272.00	3.00	1.95	2.54	5.84	8.73	0.12	85.67	23.10
Including	294.00	304.00	10.00	6.50	0.50	1.41	2.91	0.08	14.60	5.99
STKW	320.00	322.00	2.00	1.30	0.87	0.82	1.50	0.02	9.50	4.80
STKW	330.00	331.00	1.00	0.65	0.85	1.33	1.76	0.02	30.00	5.98
LS_ST_11	155.00	259.00	104.00	67.60	0.49	0.95	1.53	0.06	15.02	4.16
Including	160.00	175.00	15.00	9.75	1.86	0.88	0.66	0.19	39.47	7.67
Including	209.00	259.00	50.00	32.50	0.36	1.32	2.47	0.05	16.06	5.11
STKW	160.00	175.00	15.00	9.75	1.86	0.88	0.66	0.19	39.47	7.67
Including	165.00	169.00	4.00	2.60	6.54	2.20	0.80	0.32	139.0	24.07
STKW	201.00	203.00	2.00	1.30	0.36	1.85	2.20	0.03	13.00	5.21
Including	202.00	203.00	1.00	0.65	0.71	3.43	3.79	0.05	25.00	9.49
STKW	209.00	222.00	13.00	8.45	0.54	2.08	3.85	0.07	25.15	7.90
Including	209.00	217.00	8.00	5.20	0.72	2.34	4.68	0.08	29.50	9.56
STKW	225.00	229.00	4.00	2.60	0.82	1.69	4.80	0.11	32.75	9.47
Including	227.00	229.00	2.00	1.30	1.56	2.96	8.35	0.21	60.50	16.98
STKW	234.00	247.00	13.00	8.45	0.37	1.46	2.32	0.06	16.15	5.11
Including	240.00	242.00	2.00	1.30	0.75	2.95	4.68	0.10	32.50	10.32
STKW	255.00	259.00	4.00	2.60	0.53	2.25	3.82	0.10	21.75	7.96
Including	256.00	258.00	2.00	1.30	0.91	3.63	5.67	0.10	36.50	12.43

Notes:  ZnEq% was calculated as follows: ZnEq% = ((Zn Grade*25.35)+(Pb Grade*23.15)+(Cu Grade * 67.24)+(Au Grade*40.19)+(Ag Grade*0.62))/25.35

2 Metal prices used: US$1.15/lb Zn, US$1.05/lb Pb, $3.05/lb Cu, US$19.40/oz Ag, and 1,250/oz Au. No recoveries were applied.

Table 2: Drill Hole Information

Drill Hole	Easting	Northing	Total Depth (m)	Elevation	Azimuth	Dip
LS_MS_07*	546900	4232246	346.40	95.00	253	-60
LS_MS_08	546946	4232211	373.25	95.00	253	-60
LS_MS_09	546957	4232158	371.80	95.00	253	-60
LS_MS_10	546902	4232084	291.30	95.00	253	-60
LS_MS_12	546949	4232047	317.35	95.00	253	-60
LS_MS_13	546952	4231993	302.45	95.00	253	-60
LS_MS_14	546761	4231865	300.00	95.00	73	-60
LS_MS_16	546868	4232232	356.35	95.00	255	-60
LS_MS_17	546843	4232228	332.35	95.00	255	-60
LS_MS_18	546918	4232199	310.50	95.00	255	-60
LS_MS_19	546794	4232330	375.05	95.00	200	-60
LS_MS_20	546936	4231942	160.10	95.00	250	-60
LS_ST_05	547311	4231359	401.25	92.00	235	-60
LS_ST_07	547360	4231274	453.00	92.00	235	-60
LS_ST_08	547304	4231235	347.40	92.00	235	-60
LS_ST_10	547350	4231212	396.00	92.00	235	-60
LS_ST_11	547384	4231173	407.35	92.00	235	-60

* Hole LS_MS_07 was originally reported in the Company's press release dated October 15, 2018

Quality Assurance and Quality Control

Analytical work was carried out ALS Laboratories.  Drill core samples were prepared in 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]

James Lesser, Mineral & Financial Investments Ltd.                      [phone]

About Ascendant Resources Inc.

Ascendant is a Toronto-based mining company focused on its flagship 100%-owned producing El Mochito zinc, lead and silver mine in west-central Honduras, which has been in production since 1948. After acquiring the mine in December 2016, Ascendant spent 2017 implementing a rigorous and successful optimization program restoring the historic potential of El Mochito delivering record levels of production with profitability restored. The Company now remains focused on cost reduction and further operational improvements to drive robust profitability in 2018 and beyond. Expanding and upgrading El Mochito's significant Mineral Reserves and Resources through exploration work for near-mine growth is an ongoing focus for the Company. With a significant land package of 11,000 hectares in Honduras and an abundance of historical data, there are several regional targets providing longer term exploration upside which could lead to further resource growth.

Ascendant also holds an interest in the high-grade polymetallic Lagoa Salgada VMS Project located in the prolific Iberian Pyrite Belt in Portugal. The Company is engaged in exploration of the Project with the goal of expanding already substantial defined Mineral Resources and testing additional known targets. The Company's acquisition of its interest in the Lagoa Salgada Project offers a low-cost entry point to a potentially significant exploration and development opportunity. The Company holds an additional option to increase their interest in the Project upon completion of certain milestones.

Ascendant Resources is engaged in the ongoing evaluation of producing and development stage mineral resource opportunities, on an ongoing basis. The Company'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.

 

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