REG - Mineral & Financial - Investment Update: Ascendant / Redcorp

Mineral & Financial InvestmentsAnnouncement

10/04/2024 11:00

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RNS Number : 0346K  Mineral & Financial Invest. Limited  10 April 2024

 

MINERAL AND FINANCIAL INVESTMENTS LIMITED

Investment Update: Ascendant / Redcorp Report Significant Metallurgical
Improvements at The Lagoa Salgada VMS Project, Portugal

 

HIGHLIGHTS:

·      Results demonstrate ability to produce saleable Zinc and Lead
concentrates from the Primary Massive Sulphide domain.

·      Significant improvement in Zinc recoveries (+13% increase) and
concentrate grades (+22% increase) compared to the Feasibility Study.

·      Metallurgical results, completed at coarser grind sizes
supporting simplified flow sheet and lower capital and operating costs
relative to the Feasibility Study ("FS").

·      Demonstrated potential to lower operating and capital costs
relative to the current FS by using a proven flotation reagent suite,
simplified flowsheet, and coarser primary grind.

·      Further improvement anticipated from additional ongoing
metallurgical optimization test work.

Camana Bay, Cayman Islands - 10 April 2024 - Mineral and Financial Investments
Limited (LSE-AIM: MAFL) ("M&F" "MAFL" or the "Company") is pleased to
provide an update on its investments in Redcorp Empreedimentos Mineros Lda.
("Redcorp") and Ascendant Resources Inc. ("Ascendant") which are developing
the Lagoa Salgada Polymetallic Project in Portugal (the Project). The Project
is managed by Ascendant. M&F owns a conditional 20% carried interest in
Redcorp and Ascendant owns the balance (please see the announcement dated 28
November 2022 for further details). Redcorp has provided an update on the
optimization metallurgical test program on the primary massive sulphides
("PMS") domain at Lagoa Salgada. The Massive Sulphides are the highest margin
domain and a large value driver of NPV for the Lagoa Salgada Project. Bench
scale metallurgical testing on composite samples from the PMS ore body were
completed by Maelgwyn Metallurgical Laboratories (South Africa) with oversight
from Minepro Solutions (Spain) and DRA Global (South Africa).

Following completion of the July 2023 43-101 Feasibility Study ("FS"),
Redcorp/Ascendant initiated an optimization program for metallurgical
performance to improve metal recoveries, concentrate grades and
characterization of the deleterious elements to enhance the revenue potential
for its Lagoa Salgada Project. The initial phase of the optimization program
has been focused on the Primary Massive Sulphide mineralization from its Venda
Nova North Sector, as this zone is the major revenue contributor for the
project and is exploited early in the mine life.  In addition to the
metallurgical work, Redcorp continues to progress its environmental permitting
activities and expects to be granted the permit in Q3/24 which would position
Lagoa Salgada as the next mine ready project on the Iberian Pyrite belt.

Jacques Vaillancourt, President & CEO of M&F Investments Ltd. offered
the following comment - "This is a very exciting step forward for the Lagoa
Salgada project. The metallurgical test work optimization program carried out
on the zinc and lead sulphide dominant mineralisation (PMS) has returned
exceptional recoveries and grades via a simplified and straightforward
flotation process. It compares favourably to current zinc and lead producers
and is positioned at the higher end of benchmarks for the Iberian Pyrite Belt.
Furthermore, these recoveries have been achieved at coarse grind sizes with an
industrially proven reagent suite supporting a simple and conventional process
flowsheet that will potentially result in lower capital and operating costs to
those typically observed in Iberian Pyrite Belt operations of this scale.

Optimization of metallurgical test works continues for the remaining ore
domains as we complete the optimization program for the planned updated
Feasibility Study of the Lagoa Salgada VMS project."

 

KEY METALLURGICAL TEST WORK HIGHLIGHTS:

·     Results from the optimization phase metallurgical Locked Cycle
flotation testing conducted by Maelgwyn Metallurgical Lab has achieved:

o  Zinc Concentrates at 43% Zn (+8% points or 22% higher grade than FS
results) with a corresponding Zn recovery of 79% (+9% points or a 13% increase
in Zn recovery to concentrate as compared to the FS); and

o  Lead Concentrates at 24% Pb with a Lead recovery of 53%, from a sample
with comparatively lower contained Pb in feed, confirming the lead recovery
potential demonstrated in the FS testing phase.

·   Results demonstrate the potential to produce saleable and highly
marketable Lead and Zinc concentrates from the PMS domain.

·   Demonstrated potential to lower operating and capital costs relative to
the current FS as a result of using a proven flotation reagent suite,
simplified flowsheet, and coarser primary grind.

·   Optimization bench scale test work is ongoing for the Stockwork domain,
where initial open circuit test work has also demonstrated improved Zinc
recovery and concentrate grades, with an efficient separation of Copper and
Lead for discrete concentrate production.

·   Further optimisation work on the Gossan and Transition domains to
commence shortly.

 

Metallurgical Test Update

The recent metallurgical testing on a composite sample from the PMS ore body
at Lagoa Salgada was conducted by Maelgwyn Laboratories, with oversight from
Minepro and DRA Global. Composite head grades are presented in Table 1.

PMS COMPOSITE SAMPLE CHEMICAL ASSAYS

(Table 1)

                       Cu (%)  Pb (%)  Zn (%)  Fe (%)  Ag (ppm)  As (ppm)  Bi (ppm)  Cd (ppm)  Hg (ppm)  Sb (ppm)
 PMS Composite Sample  0.25    2.84    4.47    39.00   54.9      15,961.3  85.2      224.0     423.0     589.0

Through the implementation of an optimized circuit configuration, along with a
new reagent suite and coarser primary grinding, the test work has yielded
enhanced Zinc concentrate grades and recoveries. Additionally, it has
showcased the potential to streamline the process flow sheet, decrease
grinding size, and diminish penalty elements. These modifications are
anticipated to lead to cost savings in operations owing to a simplified
process compared to the feasibility study.

Seven flotation tests were carried out in open circuit, alongside two locked
cycle tests, utilizing the described composite sample. The most successful
open circuit test identified the circuit configuration and reagent regimes for
the locked cycle tests, with performance metrics outlined in Table 2 below:

 

HIGHLIGHTED METALLURGICAL RESULTS

(Table 2)

                               July 43-101 Feasibility Study     Latest Test Results
 PMS Results                   Zn Concentrate   Pb Concentrate   Zn Concentrate  Pb Concentrate*
 Primary grind Size (microns)  29               29               30              45
 Regrind Size (microns)        15               7                15              10
 Grade in Concentrate (%)      35%              30%              43%             24%
 Primary Metal Recovery (%)    70%              60%              79%             53%

 

The Zinc circuit performance indicates that a concentrate with saleable grade
can be produced with a recovery ranging around 79%. Based upon the calculated
grade/recovery curves a concentrate grade +45% Zinc with slightly lower
recoveries is expected to be achieved at an industrial scale. Additionally,
selectivity and cleaning have notably improved compared to previous works,
leading to lower penalties content. The Zinc concentrate now exhibits arsenic
levels below 1.5% and antimony levels in the range of 500 ppm (0.05%). Mercury
grades are awaiting confirmation as the reconstructed head grade reveal a
lower mercury concentration than the initial head grade sample analysis.

 

Lead concentrates at 24% Pb with a lead recovery of 53% align with previous
works completed for the FS, as the head grade of the current composite sample
exhibits lower contained metal (1% less Pb content than the FS sample),
confirming the lead recovery potential demonstrated in the FS testing phase.
However, these results have been achieved at bench scale only and there can be
no guarantee at that stage that these results will be achieved on a larger
scale. Additional testing on the remaining orebodies is currently underway,
with completion of the Stockworks testing expected in the next few weeks and
the results for the remaining lesser valued domains expected to be
incorporated into a planned updated Feasibility Study scheduled towards Q3 of
this year.

 

 

Review of Technical Information

The scientific and technical information in this press release has been
reviewed and approved by Joao Barros, BSc (Engineering), MSc (Geology), who
has more than 18 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 50% owned
subsidiary of M&FI, and has consented to the inclusion of the material in
the form and context in which it appears.

The scientific and technical information contained in this release in relation
to metallurgical test work has been approved and verified by Mr. David Castro
López (MIMMM), who serves as Process Engineer at Minepro Solutions and is a
"Qualified Person" in accordance with National Instrument 43-101 - Standards
of Disclosure for Mineral Projects.

 

 

FOR MORE INFORMATION:

Jacques Vaillancourt, Mineral & Financial Investments Ltd.
 +44 780 226 8247

Katy Mitchell and Sarah Mather, WH Ireland
Limited                    +44 207 220 1666

Jon Belliss, Novum Securities
Limited
+44 207 382 8300

 

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(EU) No. 596/2014 (MAR) as in force in the United Kingdom pursuant to the
European Union (Withdrawal) Act 2018. Upon the publication of this
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