Ascendant Resources Inc. (TSX:ASND)
(OTCQX:ASDRF) (FRA:2D9) ("Ascendant" or the "Company”) is very
pleased to report the results of an updated Mineral Resource &
Reserve Estimate for its El Mochito mine in Honduras prepared in
accordance with National Instrument 43-101 and the CIM Standards.
The new Estimate shows a material increase in both Mineral
Resources and Reserves against the previous Mineral Resource and
Reserve Estimates dated December 31, 2015, underscoring the mine’s
long history of expanding and upgrading Mineral Resources.
Highlights include the following:
- Proven & Probable Mineral Reserves increase life of
mine beyond seven years (at a rate of 820kt/yr):
- Contained zinc increased 193% from 204Mlbs to
597Mlbs
- Contained lead increased 109% from 100Mlbs to
209Mlbs
- Contained silver increased 106% from 3.5Moz to
7.2Moz
- Measured & Indicated Mineral Resources
increase
- 50% to 869Mlbs contained zinc from 578Mlbs,
and
- 28% to 1,216Mlbs contained zinc equivalent
metal, up from 953Mlbs
- Inferred Mineral Resources also
increase by 14% to 739Mlbs contained zinc equivalent
metal, up from 648Mlbs.
A summary of the Mineral Reserve Estimate is set
out in Table 1 and the Mineral Resource Estimate can be found in
Table 2 below:
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Table 1: El Mochito Mineral Reserve Statement
- Effective 01 January 2018 |
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Category |
Tonnes |
Grade |
Contained Metal |
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Zn |
Pb |
Ag |
ZnEq. |
Zn |
Pb |
Ag |
ZnEq. |
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(kt) |
(%) |
(%) |
(g/t) |
(%) |
Mlbs |
Mlbs |
Moz |
Mlbs |
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Proven Reserves |
787 |
4.7 |
2.0 |
54 |
7.2 |
81 |
35 |
1.4 |
124 |
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Probable Reserves |
5,002 |
4.7 |
1.6 |
36 |
6.5 |
516 |
174 |
5.8 |
717 |
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Proven & Probable Reserves |
5,789 |
4.7 |
1.6 |
38 |
6.6 |
597 |
209 |
7.2 |
841 |
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Notes: |
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(1) Mineral Resources are stated inclusive of Mineral
Reserves, Tonnage, grade and contained metal values have been
rounded, totals may vary due to rounding. |
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ZnEq% conversion factors used
were: Pb x 0.8175 and Ag x 0.0149 |
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(2) Price assumptions used were US$1.21/lb Zn,
US$1.06/lb Pb and US$18/troy oz Ag. Processing recoveries used were
88.9% Zn, 74.3% Pb, and 77.7% Ag |
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(3) A cut-off of 4.76% ZnEq was used to
estimate Mineral Reserves which includes factors for metal
recovery, operating & sustaining costs, royalties, |
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concentrate treatment
charges, payables, penalties and transportation/selling costs.
Average modifying factors for Mineral Reserves included internal
dilution |
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1.2%, external dilution 14.3%
and mining recovery 90.8%. |
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Table 2: El Mochito Mineral Resource Statement
- Effective 01 January 2018 |
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Category |
Tonnes |
Grade |
Contained Metal |
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Zn |
Pb |
Ag |
ZnEq. |
Zn |
Pb |
Ag |
ZnEq. |
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(kt) |
(%) |
(%) |
(g/t) |
(%) |
Mlbs |
Mlbs |
Moz |
Mlbs |
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Measured Resources |
1,100 |
5.5 |
2.0 |
65 |
8.2 |
134 |
48 |
2.3 |
198 |
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Indicated Resources |
6,452 |
5.2 |
1.7 |
41 |
7.2 |
735 |
241 |
8.4 |
1,019 |
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Measured & Indicated
Resources |
7,553 |
5.2 |
1.7 |
44 |
7.3 |
869 |
289 |
10.7 |
1,216 |
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Inferred Resources |
4,972 |
5.1 |
1.4 |
33 |
6.7 |
556 |
156 |
5.4 |
739 |
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Notes: |
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(1) Mineral Resources are stated inclusive of Mineral
Reserves, Tonnage, grade and contained metal values have been
rounded, totals may vary due to rounding. |
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(2) Price assumptions used were US$1.21/lb Zn,
US$1.06/lb Pb and US$18/troy oz Ag. Zinc equivalent metal grade
(ZnEq. %) was calculated as follows: |
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Zn% +(Pb % x 0.82) +(Ag g/t x
0.0149) = ZnEq% and is based on 88.9% Zn recovery, 74.3% Pb
recovery and 77.7% Ag recovery. |
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(3) A cut-off of 3.1% ZnEq. was used to
estimate Mineral Resources and is based on fourth quarter
2017 marginal direct operating costs. |
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(4) Results of an interpolated bulk density deposit
model have been applied, and contributing 5ft downhole assay
composites were capped at 38% Zn, 36% Pb and |
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2000g/t Ag. |
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(5) Mineral Resources that are not Mineral Reserves do
not have demonstrated economic viability. |
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(6) The Inferred Mineral Resource in this estimate has
a lower level of confidence than that applied to an Indicated
Mineral Resource and must not be converted to a |
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Mineral Reserve. It is reasonably
expected that the majority of the Inferred Mineral Resource could
be upgraded to an Indicated Mineral Resource with
continued |
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exploration. |
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The new Technical Report is being prepared in
accordance with National Instrument 43-101 (“NI 43-101”) and the
CIM Standards by Mercator Geological Services Limited, with
contributions which were made by P&E Mining Consultants Inc.
with reference to the Mineral Reserve Estimate, mining and
metallurgical engineering sections. This Technical Report will be
filed on www.sedar.com within 45 days of this news release.
This Mineral Reserve and Resource Estimate marks
the first compiled since Ascendant acquired the El Mochito mine in
December 2016 and replaces the previous estimates with the
effective date of December 31, 2015. The current Mineral Reserve
Estimate is based on the completion of a life-of-mine plan that
results from 46,100 metres of new exploration and definition
drilling that was carried out in 2016 and 2017 as well as the
reinterpretation of historical data, including of over 1.2 million
metres of drilling.
The bulk of the Mineral Reserves are contained
in the Esperanza, Palmar Dyke, Santa Elena, Santa Barbara, Santo
Nino and Victoria zones, and where the Company is expected to
produce from in 2018 into 2019, are shown below in both plan and
cross section (Figures 1 & 2). With an additional 40,000 metre
drill program planned at El Mochito in 2018, the company expects to
further enhance the overall Mineral Resource base at the mine
supporting a long operating life.
Chris Buncic, President and CEO of Ascendant
commented: “We are very excited to be able to announce such a
significant Mineral Reserve and Resource Estimate for the El
Mochito mine. As we anticipated, our 2017 exploration success has
demonstrated the potential upside and longevity of the mine and is
a testament to the quality of the asset, reaffirming the mine’s
long history of upgrading and defining new Mineral Resources
through focused exploration. Based on current mining rates, a mine
life beyond 7 years is indicated, and given the mine’s 70-year
history, we would anticipate operating El Mochito long into the
future.”
He continued “Historically, the El Mochito mine
has achieved great success in converting Inferred Mineral Resources
into the Measured and Indicated categories and this has been
demonstrated once again with this latest Mineral Resource Estimate.
Management therefore has the confidence that with further
exploration work the Mineral Resources will continue to grow as we
position El Mochito for the long-term. In the near-term, we remain
focused on bringing up process plant feed grades to those seen in
our Mineral Reserve Estimate.”
Mineral Reserve Estimate
The P&E Mining Consultants Inc. Mineral
Reserve Estimate (Table 1) review strategy was based on a review
and check for reasonableness of the ZnEq% (percent zinc equivalent)
cut-off value. Subsequently, the internal dilution, external
dilution, and mine extraction (mining recovery) was scrutinized for
each of the four mining methods employed to ensure they fell within
acceptable limits for Mineral Reserve Estimate reporting. In
addition, the remaining Mineral Resource Estimate not converted to
a Mineral Reserve Estimate was reviewed to ensure it balanced with
the mine extraction data. The Mineral Reserve Estimate reviews were
summarized into overall dilution and mine extraction percentile for
a reasonable value comparison analysis. The average values are as
follows: Internal Dilution = 1.2%, External Dilution = 14.3% and
Mine Extraction = 90.8%.
Mineral Resource Estimate
The Mineral Resource Estimate, as set out in
Table 2, was prepared by Mercator Geological Services Limited. The
effective date of this Mineral Resource Estimate is January 1,
2018, and it is based on 26 contiguous areas of “manto” and/or
“chimney” style skarn mineralization defined by 2,176 diamond drill
holes up to December 31, 2017. 3D solid models of skarn
mineralization reflecting a minimum grade of 3% ZnEq. were depleted
for previously mined areas to constrain resource volumes. GEOVIA
Surpac® 6.8.1 software was used to assign block grades for zinc
(%), lead (%), silver (g/t) and density (g/cm3) for Measured,
Indicated and Inferred Mineral Resources using inverse distance
squared (ID2) interpolation methodology and capped 5 foot down 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 10 feet (x) by 10
feet (y) by 10 feet (z) with two levels of sub-blocking allowed to
a minimum block size of 2.5 feet (x) by 2.5 feet (y) by 2.5 feet
(z). Resource categorization was applied using discrete solid
models developed from contributing drill hole and assay composite
parameters.
Qualified Persons
The Mineral Reserve and Metallurgical technical
contents of this press release have been reviewed and approved by
Eugene Puritch, P.Eng. FEC, CET, James Pearson, P.Eng. and D. Grant
Feasby, P.Eng. of P&E Mining Consultants Inc., all “Independent
Qualified Persons” as defined by NI 43-101.
The Mineral Resource content of this press
release has been reviewed and approved by Michael Cullen, P. Geo.
of Mercator Geological Services Limited, Mr. Cullen supervised and
is responsible for the Mineral Resource Estimate and is an
“Independent Qualified Person” as defined by NI 43-101.
Quality Assurance and Quality Control
Prior to December 2008, quality assurance and
quality control (QAQC) programs for drill core were implemented on
a routine basis at the mine laboratory. This included use of blank
and calibration materials plus analysis and monitoring of duplicate
sample results. Subsequent to 2008 and prior to 2015, systematic
insertion of additional blank samples was added along with periodic
analysis of check samples at independent accredited commercial
laboratories. Systematic insertion of certified reference materials
was subsequently initiated. Since acquisition of the project in
December 2016, Ascendant has introduced additional project-specific
reference materials to the QAQC protocol, with core analysis being
carried out by Bureau Veritas Commodities Canada Ltd. (ACME), in
Vancouver, Canada, a fully accredited analytical services firm that
operates internationally.
Drill core samples in 2017 and 2018 were
prepared in Bureau Veritas’s laboratory in Guatemala City,
Guatemala. Pulp samples were then sent to their analytical
laboratory in Vancouver, Canada. All samples were analyzed for
zinc, lead, copper, iron and silver values determined by method
code AR402 atomic absorption spectrometry, and any over limit
values were determined using method code FA410. Bureau Veritas has
routine quality control procedures which ensure that every batch of
36 prepared samples includes three sample repeats, two commercial
standards and blanks. Bureau Veritas is independent from Ascendant.
Ascendant uses standard QA/QC procedures, and randomly includes
five QAQC samples into every batch of 36 samples at an insertion
rate of approximately one QAQC sample for every seven core
samples.
Review of Technical
Information
The scientific and technical information in this
press release has been reviewed and approved by Patrick E. Toth,
P.Geo., Director of Exploration for Ascendant and a Qualified
Person as defined by National Instrument 43-101.
About Ascendant Resources
Inc.
Ascendant 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. After acquiring the mine in December 2016, Ascendant
implemented a rigorous optimization program aimed at restoring the
historic potential of the El Mochito mine. In 2017, the Company
successfully completed the operational turnaround it set out to
achieve with sustained production at record levels and
profitability restored. The Company now remains focused on cost
reduction and further operational improvements to drive robust free
cash flow in 2018 and beyond. Ascendant is also focused on
expanding and upgrading known Mineral 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 Mineral Resource
growth. The Company is also engaged in the 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.
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: 888-723-7413info@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
Information
This 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
improvements of grades in 2018, the potential for mineralized
bodies to be significantly larger than anticipated, the potential
for larger source of feed and the potential to expand Mineral
Resources and grades, the increase of life of mine, the expectation
to produce from areas with the bulk of Mineral Reserves, the
enhancement of the overall Mineral Resource base, the expectation
that the Mineral Resources will continue to grow. 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 size of the mineralized bodies, the ability
to increase the feed and the ability to expand Mineral Resources
and grades at the mine, the ability to increase the life of
mine, the ability to carry out additional drilling programs and
exploration, 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.
Figure 1: Long W-E Section of El Mochito Mine – Showing
Mined Areas in Blue and Mineral Resources in Red.A photo
accompanying this announcement is available at
http://resource.globenewswire.com/Resource/Download/8799d9bd-c9d3-42e1-b8b8-bf6d14e31e70
Figure 2: Plan of El Mochito Mine –
Showing Mined Areas in Blue and Mineral Resources in Red.A
photo accompanying this announcement is available at
http://resource.globenewswire.com/Resource/Download/362e2638-1f99-4590-9e64-34e3771c4b59
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