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

Mineral & Financial InvestmentsAnnouncement

11/12/2024 11:15

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20241211:nRSK7061Pa&default-theme=true

RNS Number : 7061P  Mineral & Financial Invest. Limited  11 December 2024

 

MINERAL AND FINANCIAL INVESTMENTS LIMITED

Investment Update: Ascendant / Redcorp Announce Transformative Developments at
Lagoa Salgada VMS Project, Portugal

 

HIGHLIGHTS:

Ascendant has provided the following updates:

·    Lagoa Salgada poised to become the next new mine on the Iberian
Pyrite Belt

·    Exploration Continues to Expand Resource Potential

·    Phase I test work resulted in a high-quality saleable concentrate
with limited impurities. Phase II metallurgical test work of the Gossan domain
demonstrates stronger Lead, Vanadium and Precious Metals recoveries - Results
expected in Q1-2025.

·    Feasibility Study ("FS") Optimization should result in a lower Capex
to NPV ratio

·    Environmental Impact Assessment (EIA) submitted with final approval
expected in Q1 2025.

·    Construction approval anticipated in Q4 2025.

 

Camana Bay, Cayman Islands -11 December 2024 - Mineral and Financial
Investments Limited (LSE-AIM: MAFL) ("M&F" "MAFL" or the "Company") is
pleased to note the announcement from Ascendant Resources Inc ("Ascendant")
highlighting the significant advancements that have been achieved in 2024 by
Ascendant and Redcorp Empreedimentos Mineros Lda. ("Redcorp"), , who are
developing the Lagoa Salgada Polymetallic Project in Portugal (the Project).
The Project is also being 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).  The Lagoa Salgada
VMS Project is located in Portugal's Iberian Pyrite Belt.

Ascendant has confirmed that recent progress in exploration, metallurgy,
permitting and feasibility optimization have reinforced Lagoa Salgada's
potential to become a significant global polymetallic project poised for rapid
development with a construction decision expected in 2025.

Jacques Vaillancourt, M&F's Chief Executive Officer, commented: "This
year, work on the Lagoa Salgada Project has made transformative progress to
advance development beyond our expectations. Validating our belief in the
potential this deposit holds as a near term world-class operation and a
cornerstone of sustainable mining on the Iberian Pyrite Belt. We believe the
recent exploration breakthroughs demonstrate the district-scale potential at
Lagoa Salgada and that the metallurgical advancements, innovative DFS
optimizations continue to strengthen the project's potential returns. The
ongoing efforts of management this year have continued to push this project
forward making it, what we believe it the most advanced project on the IBP
belt and ready for a hoped-for construction decision in 2025."

As announced on November 4, 2024, Ascendant initiated a precision drill
program targeting the newly identified anomalies. To date, drilling has
targeted the SW North Zone. A gravity anomaly west and below the North
Deposit.

Recent drilling has unveiled a previously unrecognized copper-rich feeder
system west of the Venda Nova North Deposit. This discovery, characterized by
high-grade stringer sulphide mineralization opens new resource potential for
ongoing drilling. The mineralization exhibits distinct geological
characteristics:

·   Fault Zone Transition: Drilling intersected a fault zone transitioning
into acid volcanic formations, marked by intense sericitization and sulphide
dissemination.

·   Chalcopyrite bearing Zones: Based upon visual review Stringer
mineralization intersected between 449.50m and 454.30m depth showcased
significant chalcopyrite, accompanied by traces of galena, confirming the
presence of robust copper mineralization.

·   Expansive Potential: The observed sulphide dissemination from 400m
depth strongly suggests proximity to a massive sulphide lens, with potential
to significantly expand the resource base.

Assays are currently pending and expected to be released before year end. The
discovery of this potential feeder zone warrants further follow-up drilling to
determine if a proximal massive sulphide lens can be located. While the
current drill plan is limited in scale, initial results appear highly
encouraging to have outlined a new, separate zone to grow the overall resource
base at Lagao Salgada.

 

igure 1: Planned Drill Holes

 

 

Figure 2 : Longitudinal section and plan view with location of the current
drill program, outlining new zone with notable Chalcopyrite bearing stringers

 

Figure 3: Copper Stringer Intercepts

Metallurgy

Metallurgical test work programs have continued after the successful Phase I
metallurgical test works and have demonstrated the ability to produce
high-grade concentrates with competitive recovery rates across multiple
domains:

·   Zinc Recovery and Grade: Achieved recoveries of approximately 79% with
grades exceeding 45% zinc.

·   Lead Concentrates: Delivered recoveries of 53% with grades up to 45% in
the Stockwork domain.

·   Copper Recovery: Recoveries range from 48% to 60%, with concentrate
grades surpassing 20%.

The above results establish Lagoa Salgada's concentrates as highly
competitive. Notably, mercury-reduction techniques have improved concentrate
marketability, with mercury levels reduced to below 500 ppm in zinc
concentrates after thermal treatment.

Phase II: Breakthroughs and Ongoing Optimization

The Phase II metallurgical test work at Lagoa Salgada is focused on unlocking
additional value across multiple mineralized domains, building on the progress
achieved during Phase I.

 

Gossan Domain Optimization in Final Stages

The metallurgical optimization of the Gossan domain is nearing completion,
with significant advancements in lead and vanadium recoveries. Initial rougher
tests have already demonstrated:

·   Lead Recoveries of 45% and Vanadium Recovery of 35%, with ongoing
efforts to refine recovery efficiency by adjusting depressant dosages.

·   Precious metal recoveries have also ranged within 50-60% suggesting the
potential to remove the requirement for leaching to recover this value.

·   Strong reporting of Tin to the tailings suggesting the potential to
also improve concentrate and recoveries for the Tin concentrate.

These optimizations ensure higher-grade concentrates suitable for cleaner
stages while targeting additional improvements in recovery rates to maximize
economic returns.

Following the success in the Gossan domain, Phase II test work will now expand
to the other key mineralized zones at Lagoa Salgada. Fresh core samples from
these domains from the current drill program have been meticulously prepared
and stored in a freezer container to prevent oxidation. These samples are now
being transported to Wardell Armstrong and Petrolab, where advanced
metallurgical testing will commence.  The enhancement in recoveries seen in
the various domains and the reduction in deleterious elements are expected to
further enhance overall project economics.

DFS Optimization: Enhancing Robust Economics

Ascendant Resources has implemented a series of strategic initiatives to
optimize the Lagoa Salgada Project's Definitive Feasibility Study (DFS),
aiming to establish a foundation for robust financial performance and
long-term operational resilience. The refinements are focused on maximizing
resource utilization, minimizing environmental impacts, and improving project
flexibility while adhering to sustainability principles. Ascendant is
currently engaging third party engineering firms to formalize the optimization
programs which is targeted for completion in H2/25. It is expected the
optimization will result in a significant inversion of the NPV to Initial
Capex ratio.

Key Optimization Efforts

·   Tailings Management Innovation: Ascendant is reviewing a transition to
a dry stack tailings system which represents a critical improvement, reducing
water usage and environmental risks. This approach should enable progressive
reclamation of mined areas, decreases maintenance costs, and ensures
compliance with stringent environmental standards. The revised system also
eliminates the need for large-scale pond construction.

·   Flexible Infrastructure Solutions: A mobile pastefill plant is being
considered to enhance operational flexibility and reduce initial investment
costs. This solution is particularly advantageous for adapting to evolving ore
zones, allowing the project to scale infrastructure dynamically as production
expands.

·   Streamlined Crushing and Plant Layouts: The crushing circuit is
expected to be redesigned to lower the crusher, eliminate silos, and optimize
material flow. These changes reduce bottlenecks, improve operational
reliability, and simplify maintenance.

·   Integrated Water Management Systems: The consolidated water treatment
strategy centralizes operations near the mine portal, streamlining water use
and ensuring sustainable operations throughout the mine's lifecycle. Divided
pond systems will reduce downtime during maintenance and improve water
recycling rates.

·   Project Layout Optimization: Revisions to the project layout designed
to address inefficiencies in infrastructure placement, transportation routes,
and facility organization are being implemented. Equipment such as the
flotation, thickener, and reagent areas has been strategically repositioned to
improve accessibility, reduce operational costs, and support streamlined
workflows.

Pioneering Partnership with the University of Lisbon

Ascendant Resources has formalized a Protocol of Cooperation with the Faculty
of Sciences at the University of Lisbon. This strategic agreement focuses on
establishing a collaborative framework for education, research, and training
in natural resources and environmental stewardship, with a strong emphasis on
innovation and sustainability.

Key Areas of Collaboration:

·   Development of cutting-edge training programs to equip the next
generation of mining professionals with practical and theoretical skills.

·   Joint research initiatives focusing on sustainable mining practices and
technological advancements in natural resource management.

·   Promoting community engagement and educational outreach to amplify the
positive societal impacts of the Lagoa Salgada Project.

HYPERMETAL Project: Revolutionizing Exploration with AI and Hyperspectral
Technologies

Ascendant has also partnered with the University of Évora to launch the
innovative HYPERMETAL Project, pending approval under the Portugal 2030
funding framework. The project is set to integrate hyperspectral imaging,
Artificial Intelligence (AI), and machine learning into the exploration
process at Lagoa Salgada, marking a transformative approach to mineral
characterization.

Key Goals of the HYPERMETAL Project:

·   Enhance orebody visualization and mineral mapping through hyperspectral
imaging.

·   Create a cutting-edge digital twin of the orebody by combining
geochemical, mineralogical, and hyperspectral data.

·   Improve the precision of exploration targeting and expand known
mineralization at Lagoa Salgada.

As part of the project, historical drill cores will be reanalyzed using
advanced imaging techniques, with data processed through AI and machine
learning to identify ore occurrences and alteration halos. This innovative
methodology will generate precise digital models, enabling the efficient
identification of new exploration targets.

The funding decision for the HYPERMETAL Project is anticipated by the end of
December 2024.

UNDERCOVER Project: Unlocking Hidden Mineral Deposits with Advanced
Geophysical Methods

Ascendant Resources is also set to participate in the EU-funded UNDERCOVER
Project, an ambitious initiative focused on advancing mineral exploration
techniques to uncover hidden mineral systems. Leveraging cutting-edge
geophysical technologies, the project aims to enhance the efficiency and
sustainability of exploration at Lagoa Salgada.

Innovative Geophysical Techniques to Be Applied:

·   Seismic Imaging: Generates detailed subsurface images to locate deep
geological structures.

·   Magnetotellurics (MT): Maps subsurface conductivity to identify
conductive mineral deposits.

·   Electromagnetic (EM) Surveys: Detects sulphide-hosted critical metals
like copper, lead, and zinc.

·   Gravity and Magnetic Surveys: Identifies dense ore bodies through
variations in gravitational and magnetic fields.

·   Joint Inversion Techniques: Combines geophysical data to create an
integrated 3D model of subsurface structures.

The Lagoa Salgada Project, as one of the key focus areas, will benefit
immensely from these innovative exploration techniques. The goal is to
identify deeper mineralization zones that conventional methods may miss,
significantly expanding the project's resource base while maintaining a focus
on environmental responsibility.

The UNDERCOVER Project, funded by the EU's Horizon Europe program, is set to
run for 36 months starting in early 2025. It will play a pivotal role in
enhancing Ascendant's exploration capabilities, ensuring that the Lagoa
Salgada Project remains at the forefront of critical raw material supply in
Europe.

Positioned for The Future

The various work programs completed in 2024 have positioned the Lagoa Salgada
Project to continue to advance in all areas of development going into 2025.
The results highlight significant expansive exploration potential, strong
metallurgical advancements, and results of the optimized feasibility study
position the project to deliver exceptional value to stakeholders while
setting a new standard for responsible mining. Located just 80km from Lisbon
and supported by world-class infrastructure, Lagoa Salgada is primed to become
a key contributor to Portugal's mining sector and the global supply chain for
critical metals.

As we approach 2025, Ascendant Resources advises that it remains committed to
driving innovation and sustainability at Lagoa Salgada. By leveraging
cutting-edge technologies, fostering strategic partnerships, and maintaining a
steadfast focus on environmental stewardship, the directors believe Ascendant
 is well-positioned for continued exploration success, operational
advancements, and key project milestones. Lagoa Salgada represents the future
of mining-sustainable, impactful, and transformative for shareholders, local
communities, and global markets alike.

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 20% 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:

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

Katy Mitchell and Sarah Mather, Zeus
                            +44 203 829 5000

Jon Belliss, Novum Securities Limited
                 +44 207 382 8300

 

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulations
(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
announcement via Regulatory Information Service (RIS), this inside information
is now considered to be in the public domain.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  UPDGPGGUPUPCGGG