Ascendant Resources Inc. (TSX:ASND)
(OTCQX:ASDRF) (FRA:2D9) ("Ascendant" or the "Company”) is
pleased to report its fourth consecutive month of positive and
increasing adjusted EBITDA1 of $1.3 million at the El Mochito mine
for the month of October as well as continued operational
improvements. These results support management’s view that the El
Mochito mine is on a solid path to profitability.
Milled production for October at the El Mochito
mine was 64,449 tonnes of ore (or an average of 2,184 tonnes per
day on an operating basis), a 8% increase over September production
of 59,601 (or an average of 2,055 tonnes per day on an operating
basis) and representing a 67% increase in tonnes milled per month
since January 2017.
October results continue to reflect the ongoing
benefit from the introduction of new mining equipment that began in
mid-July, continued general mine operating improvements and the
start of conventional underground mining operations in narrow but
high-grade areas. With two additional trucks and scoops expected to
arrive through the remainder of the year, the Company remains
confident in continuing its 2017 ramp up in ore production and
attaining its fourth quarter production target while providing
further growth into 2018.
President and CEO Chris Buncic commented: “With
the turnaround of the operations at El Mochito nearly complete, the
mine has confirmed its capacity for higher production rates and its
tremendous long-term potential. Following the strong financial
performance for Q3 2017, near-term improvements in head grade are
expected from several conventional sections that are now being
introduced to the production schedule supporting an increased value
per tonne mined that should improve our financial performance as we
continue through Q4 and into 2018.” He continued, “The solid growth
trajectory for the remainder of the year and into 2018 will
continue to provide the company with significantly higher revenues
and with additional new equipment entering operations in the fourth
quarter we expect the mine performance to continue to improve as we
increase our focus on reducing costs and improving the
profitability of the mine.”
1 Adjusted EBITDA is a Non-IFRS measure and
is calculated by considering the Company's earnings before interest
payments, tax, depreciation and amortization, adjusted for net
foreign exchange expenses.
About Ascendant Resources
Ascendant Resources Inc. is a Toronto-based
mining company focused on its 100%-owned producing El Mochito zinc,
silver and lead mine in west-central Honduras, which has been in
production since 1948. Since acquiring the mine in December 2016,
Ascendant has been focused on a continuous optimization program
aimed at restoring the historic potential of the El Mochito mine.
To date, the Company has been successful at increasing production
and reducing costs with the expectation of free cash flow in the
near-term. Ascendant is also focused on expanding and upgrading
known resources through extensive exploration work for near-term
growth. With a significant land package of 11,000 hectares and an
abundance of historical data there are several regional targets
providing longer term exploration upside which could lead to
further resource growth. The Company is also engaged in the
evaluation of producing and advanced 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.
Neither the Toronto Stock Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX) accepts responsibility for the adequacy or
accuracy of this release. For further information please
contact:
Katherine PrydeDirector, Communications &
Investor RelationsTel: 888-723-7413
info@ascendantresources.com
Cautionary Notes to US
Investors
The information concerning the Company’s mineral
properties has been prepared in accordance with National Instrument
43-101 (“NI-43-101”) adopted by the Canadian Securities
Administrators. In accordance with NI-43-101, the terms
“mineral reserves”, “proven mineral reserve”, “probable mineral
reserve”, “mineral resource”, “measured mineral resource”,
“indicated mineral resource” and “inferred mineral resource” are
defined in the Canadian Institute of Mining, Metallurgy and
Petroleum (the “CIM”) Definition Standards for Mineral Resources
and Mineral Reserves adopted by the CIM Council on May 10,
2014. While the terms “mineral resource”, “measured mineral
resource”, “indicated mineral resource” and “inferred mineral
resource” are recognized and required by NI 43-101, the U.S.
Securities Exchange Commission (“SEC”) does not recognize
them. The reader is cautioned that, except for that portion
of mineral resources classified as mineral reserves, mineral
resources do not have demonstrated economic value. Inferred
mineral resources have a high degree of uncertainty as to their
existence and as to whether they can be economically or legally
mined. It cannot be assumed that all or any part of any
inferred mineral resource will ever be upgraded to a higher
category. Therefore, the reader is cautioned not to assume
that all or any part of an inferred mineral resource exists, that
it can be economically or legally mined, or that it will ever be
upgraded to a higher category. Likewise, you are cautioned
not to assume that all or any part of a measured or indicated
mineral resource will ever be upgraded into mineral reserves.
Readers should be aware that the Company’s
financial statements (and information derived therefrom) have been
prepared in accordance with International Financial Reporting
Standards (“IFRS”) as issued by the International Accounting
Standards Board and are subject to Canadian auditing and auditor
independence standards. IFRS differs in some respects from United
States generally accepted accounting principles and thus the
Company’s financial statements (and information derived therefrom)
may not be comparable to those of United States companies.
Forward Looking InformationThis
news release contains "forward-looking statements" and
"forward-looking information" (collectively, "forward-looking
information") within the meaning of applicable Canadian securities
legislation. All information contained in this news release, other
than statements of current and historical fact, is forward-looking
information. Often, but not always, forward-looking information can
be identified by the use of words such as "plans", "expects",
"budget", "guidance", "scheduled", "estimates", "forecasts",
"strategy", "target", "intends", "objective", "goal",
"understands", "anticipates" and "believes" (and variations of
these or similar words) and statements that certain actions, events
or results "may", "could", "would", "should", "might" "occur" or
"be achieved" or "will be taken" (and variations of these or
similar expressions). Forward-looking information is also
identifiable in statements of currently occurring matters which may
continue in the future, such as "providing the Company with", "is
currently", "allows/allowing for", "will advance" or "continues to"
or other statements that may be stated in the present tense with
future implications. All of the forward-looking information
in this news release is qualified by this cautionary note.
Forward-looking information in this news release
includes, but is not limited to, statements regarding the
continuous ramp up in ore production, production targets, further
growth, improvement of the mine performance and improvement of
profitability. Forward-looking information is not, and cannot be, a
guarantee of future results or events. Forward-looking information
is based on, among other things, opinions, assumptions, estimates
and analyses that, while considered reasonable by Ascendant at the
date the forward-looking information is provided, inherently are
subject to significant risks, uncertainties, contingencies and
other factors that may cause actual results and events to be
materially different from those expressed or implied by the
forward-looking information. The material factors or assumptions
that Ascendant identified and were applied by Ascendant in drawing
conclusions or making forecasts or projections set out in the
forward-looking information include, but are not limited to, the
ability of the Company to continue the ramp up in ore production,
its ability to achieve production targets, future growth,
improvements in performance and profitability and other events that
may affect Ascendant's ability to develop its project; and no
significant and continuing adverse changes in general economic
conditions or conditions in the financial markets.
The risks, uncertainties, contingencies and
other factors that may cause actual results to differ materially
from those expressed or implied by the forward-looking information
may include, but are not limited to, risks generally associated
with the mining industry, such as economic factors (including
future commodity prices, currency fluctuations, energy prices and
general cost escalation), uncertainties related to the development
and operation of Ascendant's projects, dependence on key personnel
and employee and union relations, risks related to political or
social unrest or change, rights and title claims, operational risks
and hazards, including unanticipated environmental, industrial and
geological events and developments and the inability to insure
against all risks, failure of plant, equipment, processes,
transportation and other infrastructure to operate as anticipated,
compliance with government and environmental regulations, including
permitting requirements and anti-bribery legislation, volatile
financial markets that may affect Ascendant's ability to obtain
additional financing on acceptable terms, the failure to obtain
required approvals or clearances from government authorities on a
timely basis, uncertainties related to the geology, continuity,
grade and estimates of mineral reserves and resources, and the
potential for variations in grade and recovery rates, uncertain
costs of reclamation activities, tax refunds, hedging transactions,
as well as the risks discussed in Ascendant's most recent Annual
Information Form on file with the Canadian provincial securities
regulatory authorities and available at www.sedar.com.
Should one or more risk, uncertainty,
contingency or other factor materialize, or should any factor or
assumption prove incorrect, actual results could vary materially
from those expressed or implied in the forward-looking information.
Accordingly, the reader should not place undue reliance on
forward-looking information. Ascendant does not assume any
obligation to update or revise any forward-looking information
after the date of this news release or to explain any material
difference between subsequent actual events and any forward-looking
information, except as required by applicable law.
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