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Tuesday 15 August, 2017

Mineral & Financial

Lagoa Salgada Update

RNS Number : 9456N
Mineral & Financial Invest. Limited
15 August 2017
 

 

Minerals and Financial Investments Limited

 

Lagoa Salgada LS-1 Resource Expansion Program - Hole LS-MS-03 Strikes 13.0m Of 12.42%1 Zinc Equivalent; Discovery Of New Mineralized Zone grading 1.24% Copper

 

HIGHLIGHTS:

 

-   LS-MS-03 drill hole strikes 131m of 0.49% copper, including 20m of 1.24% copper

-   Copper grades more than double to 1.24% at depth (231m)

-   Massive sulphide zone of 28.0m grading 8.85% zinc equiv1., including 13m of 12.42% zinc equiv.1

-   LS-MS-03's new stockwork zone is copper rich, could  be economic without by-product credits

-   First three holes of resource expansion program strike larger zones, along with higher grades.

George Town, Cayman Island - August 15, 2017 - Mineral & Financial Investments is very pleased to announce its 49%-owned investment, TH Crestgate GmbH, a private Swiss-based investment company has released the third 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.  The current resource is 4.5Mt, with a zinc equivalent grade of 8.2%. 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 guarantee that can be achieved.

 

Drill Results Hole LS-MS-03

 

Hole

Depth (m)

Thickness (m)

Cu (%)

Zn (%)

Pb (%)

Au (g/t)

Ag (g/t)

Cu Equiv.

(%)[1]

Zn Equiv.

(%)1

LS-MS-03 (New)

147 to 278

131.0

0.49

0.83

1.18

0.24

41.4

2.08 %

4.36%

Including (Gossan)

147 to 160

13.0

0.41

0.75

4.91

0.61

30.1

3.37%

7.07%

Including (Massive-Sulphide)

160 to 188

28.0

0.49

1.51

2.74

0.61

123.2

4.22%

8.85%

Including (Massive-Sulphide)

175 to 188

13.0

0.26

2.69

4.36

1.03

189.2

5.93%

12.42%

    Including (Stock work)

204 to 278

74.0

0.59

0.66

0.15

0.04

19.2

1.19%

2.49%

    Including (Stock work)

223 to 277

54.0

0.72

0.70

0.16

0.03

20.8

1.36%

2.85%

    Including (Stock work)

230 to 266

36.0

0.92

0.56

0.14

0.03

14.8

0.77%

1.62%

    Including (Stock work)

231 to 259

28.0

1.05

0.81

0.13

0.03

25.6

1.75%

3.67%

    Including (Stock work)

231 to 251

20.0

1.24

0.86

0.11

0.02

26.2

1.97%

4.12%

 

The third hole of a six-hole program being undertaken by TH Crestgate has just returned with assays. LS-MS-03 is a 70° drill hole located in the northern half of the current resource 50m to the south of the first hole, LS-MS-02. This angled hole intercepted mineralization 50m above where mineralization was previously thought to begin. The LS-MS-03 drill hole is mineralized from a depth of 147m (where the assaying began) to the bottom of the hole at 331m. The hole intercepted 28m of massive sulphides in what had been an unknown area of mineralization. This intercept  carries an average grade of 8.85% zinc equivalent1, which is slightly above the historical preliminary resource grade of 8.2%. This interval also indicated that the mineralization is open to the east and down dip. Copper grades more than double to 1.24% at depth (231m). These grades would be very likely economic to mine without any by-product credits from any other mineralization.

 

Jacques Vaillancourt, Chairman of Mineral and Financial, commented: "This third hole expands the dimensions and tonnage of the mineralized zone and continues to validate our belief that the resource can be significantly expanded from its historical size of 4.5Mt. This third hole follows on from the highly encouraging first and second holes. Additionally, it demonstrates that the stockwork mineralization, in the stringer zones, likely has sufficient copper to be economic on its copper content alone. This new copper rich stringer zone is found in the ore bodies supporting the both the Neves Corvo and Aljustrel mines located nearby on the Iberian Pyrite Belt."

 

CROSS SECTION OF LS MS-03 NTERSECTION OVERLAYED WITH THE HISTORICAL RESOURCE ESTIMATE OF LAGOA SALGADA

 

 

http://www.rns-pdf.londonstockexchange.com/rns/9456N_-2017-8-14.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 provide support for 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/9456N_-2017-8-14.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 (zinc-rich) zones of mineralization. The orebody 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 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                               +44 161 832 2174

Jon Belliss, Beaufort Securities Limited           +44 207 382 8300

Alastair Ford, M&FI COO                               +44 780 226 8247



[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.

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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