REG - Mineral & Financial - Investment Update: Lagoa Salgada Project Update

Mineral & Financial InvestmentsAnnouncement

16/05/2022 12:30

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RNS Number : 6381L  Mineral & Financial Invest. Limited  16 May 2022

MINERAL & FINANCIAL INVESTMENTS LIMITED

Investment Update: Redcorp Provides update of Geological and Exploration
Activities at Lagoa Salgada Project in Portugal

 

HIGHLIGHTS:

·     Copper Stockworks Identified Below Current Venda Nova North
Mineralization

·     Discovery Of Copper Rich Enrichment Zone at Venda Nova North

·     Potential For New Massive Sulphide Lens at Venda Nova South

·     Additional Geophysical Anomalies Identified on Lagoa Salgada
Property

 

GEORGE TOWN, CAYMAN ISLANDS, May 16, 2022 - Mineral and Financial Investments
Limited (LSE-AIM: MAFL) ("M&FI" or the "Company") is pleased to report an
investment update from its investment, Redcorp Empreedimentos Mineiros Lda and
Ascendant Resources Inc. (who are operating the site), which include the
following:

i.    Identification of copper rich stockworks below the North zone at
Venda Nova;

ii.   Identification of a Copper rich transition/enrichment zone at the
North zone at Venda Nova;

iii.  Identification of a potential massive sulphide lens lateral to the
South zone at Venda Nova; and

iv.  New drill ready geophysical anomalies identified from the results of the
Deep Penetrating Electromagnetic Survey ("DPEM").

 

Jacques Vaillancourt, CEO of M&FI stated, "The infill drilling and DPEM
programs have uncovered some very positive unexpected outcomes which solidify
our long-held belief that the Lagoa Salgada property is still in the very
early discovery phase of exploration, with significant untapped resource
growth remaining.  The potential to grow both the North and South zones of
Venda Nova, which are approximately 400 meters apart, as well as a prospective
new target to the northeast of the property has the potential to be
transformational for Redcorp.  We look forward to initiating future drilling
programs as we look to expand the overall resource potential on the greater
Lagoa Salgada land package."

 

North Zone of Venda Nova: Copper Rich Stockwork

Based on recent drilling, the results for which have not yet been received, a
new potential copper zone has been identified at depth in the North zone of
Venda Nova (shown in Fig. 2.).

The new Stockworks zone occurs downdip from the northern segment of the North
Zone and has been identified as a result of visual intercepts from hole
LS_MS-41 (assays pending). Visual inspection of the core identifies a
potential Copper rich stringer zone with seams of semi massive chalcopyrite
that spatially relates to the higher Copper grades in the massive sulphide,
suggesting a possible feeder zone. Further updates will be provided when the
results of the assays have been received.

Copper feeders can generate high grade ore zones in VMS systems and can also
include high gold values. The results of hole MS -41, if they confirm the
visual observations, will prompt follow up and a subdomain effort within the
stringer zone that in the current resource model only contributes minor
tonnage.

 

Drill core and cross section along hole LS_MS-41

(fig. 1)

http://www.rns-pdf.londonstockexchange.com/rns/6381L_1-2022-5-16.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/6381L_1-2022-5-16.pdf)

 

North Zone of Venda Nova: Copper Rich Secondary Enrichment Zone

A new understanding of metal domaining has been developed because of the
ongoing infill and metallurgical drill program at the North Zone; principally,
the presence of an enriched copper blanket in the shallower part of the
massive sulphide ore which is immediately below the gossan. The identification
of this zone, which is rich in copper and silver (as highlighted by the
results of MET_MS_01 previously reported in press release dated May 3(rd),
2022) has a different mineral profile than the massive sulphides which has a
potential for a significant impact on optimizing recoveries for the project.

 

Longitudinal 3D view of the North Zone

(Fig.2)

http://www.rns-pdf.londonstockexchange.com/rns/6381L_1-2022-5-16.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/6381L_1-2022-5-16.pdf)

 

The enhanced understanding of the metal domaining has aided in further
refinement of "Primary metal zoning" which is a common characteristic in
Volcanic Massive Sulphide ("VMS") systems, which tend to have Copper dominated
ore spatially separated from Zinc/ lead Ore. Additionally, secondary processes
(oxidation and metal re-distribution) can generate the gold rich gossan caps
and related enriched secondary sulphide blankets in the upper levels of the
massive sulphides.

The new sub domaining of the massive sulphide body follows Geochem proxies
based on metal ratios. The Geochem proxies analysis is being extrapolated to
the entire North zone sector, making use of the historic geochemical database,
preliminarily defining a continuous secondary horizon (Copper rich) underlying
the Gossan and overlying the primary mineralization.

As we better understand the mineralogy and zoning of the deposit, we can
further refine the metallurgical process and potential to enhance overall
recoveries. These results are being built into the metallurgical testwork
program that is currently underway.

 

South Zone of Venda Nova: Massive Sulphide Potential

In the South zone, the new drill results from 3 May 2022 have identified the
presence of "Cap rocks" (Hanging wall volcanics similar to the massive
sulphide lenses in the North) suggesting the potential proximity of a new zone
of massive sulphides. The Cap rocks crossed in hole LS_ST-29 are overlying the
Exhalative sedimentary unit that represents the hanging wall of the fissural
ore (stockwork ore) of the south zone (see Figure 3.). This stratigraphic
observation is relevant as it reveals the potential of connecting the north
and south zones along a trend that is yet untested immediately to the east of
the drilled pattern that has targeted mainly the fissural ore in the south
zone.

In fact, visual interpretation of hole LS_ST-29 (assays pending) identified in
the immediate footwall of the cap rock contains massive pyrite dominated
massive sulphide mineralization (see Figure 3). Moreover, Ascendant had
previously highlighted the occurrence of some discrete massive sulphide lenses
contained in the exhalative sedimentary horizon in the south zone. This area
will be followed up with additional holes that were part of the original
infill program.  Future follow up drilling will target the potential for a
massive new sulphide zone in the South zone to further expand the overall
mineral endowment at Venda Nova.

Cross Section of LS_ST-29

(Fig. 3)

http://www.rns-pdf.londonstockexchange.com/rns/6381L_1-2022-5-16.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/6381L_1-2022-5-16.pdf)

 

Lagoa Salgado:  New Regional Geophysical Target

Ascendant retained International Geophysical Technology ("IGT") to undertake 2
phases of Deep Penetrating Electromagnetic ("DPEM") surveying over the Venda
Nova deposit at Lagoa Salgada. Phase one included two large loops centered
along strike of the known mineralization, both north and south sectors.

Phase one revealed a possible deep anomaly to the northeast of Venda Nova. To
properly constrain and further model this East anomaly a third loop was
completed (Phase 2) in March 2022 (see Figure 4).

 

Geophysical anomalies (EM & Chargeability)

(Fig. 4)

http://www.rns-pdf.londonstockexchange.com/rns/6381L_1-2022-5-16.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/6381L_1-2022-5-16.pdf)

 

As shown above, the Phase 2 program identified a new large target to the
northeast of the Venda Nova deposit ("EM Anomaly B") which the Company
believes has the potential to host an additional massive sulphide lens. The
Electromagnetic response in this area is partially affected by the conductive
character of the tertiary overburden (140m sequence above the permissive
volcanic). Results of the survey have been thoroughly modeled and every effort
has been made to determine if EM Anomaly B is caused by the conductive
overburden or by a combination of the overburden and a more highly conductive
deep body, which could represent a Massive Sulphide lens. There are several
compelling reasons to believe that this anomaly is caused by a conductive
source which is separate but additional to the regional conductive overburden.
The deep response has been modeled as a subvertical domain with a general
azimuth of 330 and a possible depth of ~ 400 m. (See Figure 5.)

Cross section showing modeled plate (Anomaly B) and proximity to Venda Nova
North

(Fig. 5)

http://www.rns-pdf.londonstockexchange.com/rns/6381L_1-2022-5-16.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/6381L_1-2022-5-16.pdf)

 

Anomaly B defined by the Phase 2 work will be drill tested jointly with other
targets using previous geophysical surveys (e.g., Induced Polarization).
Chargeability anomalies along the contact between the tertiary and volcanic
rocks are believed to represent Gossan zones as proved empirically at Venda
Nova. Several zones have been identified when evaluating the IP 3D inversion
over the tertiary contact surface. These anomalies resemble the Venda Nova
footprints and will be systematically tested.

Additionally, Ascendant is planning borehole EM in the north sector to
penetrate under the conductive gossan seem effectively reducing any masking
and a possible 4(th) DPEM loop to test deeper roots of the chargeability
anomalies mentioned above and outlined in Figure 4.

In summary the Company is pleased by the results to date of this year's
Geophysical programs confirming:

·    Even though the tertiary overburden exhibits conductive seams that
partially mask deeper responses, both EM and IP accurately footprint
mineralization on bedrock immediately below the tertiary sedimentary
sequence.

·    Both chargeable and conductive zones respond either to gossan and/ or
sulphides. The former being the oxidation product of primary mineralization.

·    A notable new deep EM conductor has been defined to the Northeast of
Venda Nova. Relevant anomalies tend to be aligned and follow structural and
stratigraphic trends warranting drill testing

·    Refined stratigraphic framework reveals consistent sequence with key
markers (e.g. Cap rock and massive sulphide) extending probably for the full
combined strike length of the combined deposits: approximately 1.5 km.

·    The relevance of this stratigraphic correlation is the extent of
untested areas along the permissive stratigraphic horizon permissive for
exhalative or immediate sub sea for massive sulphide development.

·    Sub domaining of previous bulk domains (e.g. massive sulphide and
Stringer) is a relevant tool for improving processing outcome, defining
dominant metals and as a vectoring exploration tool

As a result of the enhanced understanding of Venda Nova and the regional
exploration work, Ascendant is confident that considerable resource endowment
upside remains on the property.  As results of the infill program continue to
become available, Ascendent will look to develop a separate exploration
program to follow up on this potential.

 

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 17 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 75% 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 7 802 268 247

Katy Mitchell and Ben Good, WH Ireland
Limited                              +44 207 220
1666

Jon Belliss, Novum Securities
Limited
            +44 207 399 9400

 

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