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

Mineral & Financial InvestmentsAnnouncement

04/04/2022 11:00

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RNS Number : 0203H  Mineral & Financial Invest. Limited  04 April 2022

MINERAL & FINANCIAL INVESTMENTS LIMITED

Investment Update: Redcorp Provides Update on Its Feasibility Study Progress
And Related Activities At Its Lagoa Salgada Project, Portugal

 

HIGHLIGHTS:

·    3,520m Completed of the 18,000m Infill and Exploration Drill Program

·    Six Metallurgical Holes Completed - Detailed Metallurgical Testing
Underway

·    Hydrogeological Drill Holes Being Completed - Test Work Underway

·    Deep Penetrating Electromagnetic survey has identified an additional
large anomaly NE of the current deposit

·    Environmental Impact Assessment Study Scope Submitted to Portuguese
Gov't.

·    Bankable Feasibility Study Expected to be Completed by December 22,
2022

 

GEORGE TOWN, CAYMAN ISLANDS, April 4, 2022 - Mineral and Financial Investments
Limited (LSE-AIM: MAFL) ("M&FI" or the "Company") is very pleased to
provide an update on the various work streams currently underway as part of
the ongoing program to deliver a Feasibility Study at the Venda Nova deposit
at its Lagoa Salgada Project in Portugal. The Feasibility Study is targeted
for completion by year end 2022. These expenditures and studies are part of a
Earn-In Agreement (Re: MAFL RNS August 2, 2018) between MFI's wholly owned
subsidiary, TH Crestgate GmbH, and Ascendant  Resources Inc ("Ascendant" -
ASND on TSX) which entitles Ascendant to earn into 80% of Redcorp and the
Lagoa Salgada Project, if and when Ascendant completes in 2022 US of US$9.0M
expenditure milestones, makes payments of US$3.5M to M&FI and completes a
Bankable Feasibility Study by December 22, 2022.

The Feasibility program is being led by Quadrante Engenharia e Consultoria, SA
(Portugal) with input from MICON International (Canada) who will act as the
Qualified Person ("QP") for the 43-101 Resource Update and Metallurgy, Coffey
(UK) who will manage Flowsheet Design and Plant Engineering Services, SLR
Consulting (Canada) for paste fill and tailings assessment, Grinding Solutions
Limited (UK) who is undertaking the detailed Metallurgical Test Work and
Golder Associates (Europe) who will undertake a peer review of the Feasibility
Study.

Jacques Vaillancourt, CEO, stated, "The Redcorp/Ascendant team in Portugal
continues to work on several fronts to deliver the planned Bankable
Feasibility study for the Venda Nova deposit by the end of 2022.  We remain
confident these programs will deliver a robust development plan for an initial
mine at the Venda Nova property.  Over time, we expect ongoing exploration
efforts to continue to expand the overall resources at Lagoa Salgada to expand
the operations well beyond this initial development plan."

Infill Drilling Campaign Update

Ascendant's infill and expansion drill program at the Venda Nova Deposit at
Lagoa Salgada continues to progress well (see November 23, 2021 Press Release
for more details). Drilling is focused on upgrading a significant component of
the Venda Nova deposit to the Measured and Indicated Resource categories to
support the Feasibility Study program.  In addition, some drill holes are
also more exploratory in nature to expand the overall potential resources seen
in the area. As of March 20(th), 3,520m of the total 18,000m drill program has
been completed. See Figure 1 below for a summary of progress to date.
Currently there are three core drill rigs on site, and we expect delivery of a
fourth rig in early April.

All six planned metallurgical holes have been completed, including two in the
South Zone and four in the North Zone of the Venda Nova deposit. Assay results
from these holes are expected in mid-April 2022.

Metallurgical Testing

As of March 20(th), samples from drill holes Met_ST_01 & Met_ST-02 have
been prepared and shipped to Grinding Solutions Ltd. ("GSL") in the United
Kingdom. These metallurgical testing programs will look to build on previous
test work to enhance our understanding of the metal recovery from the various
ore types seen within the Venda Nova deposit.  Over the coming weeks
flotation testing and optimization tests will be conducted to determine
recoveries for the South Zone. Samples collected from the North Zone will
arrive at GSL in the coming days.

Hydrogeology

As part of the overall Feasibility Study program the Company is currently
drilling the final hydrogeological hole in the North Zone (of a total of 7
holes) and is expected to be completed by the first week of April. Post
completion, various pumping tests will be conducted, and a hydrological model
built by Consmaga, Lda, a specialist in hydrogeological assessment for
numerous projects in the Iberian Pyrite Belt. The hydrological model together
with the already established grid of surface and underground water monitoring
stations, will be an important part of the Feasibility Study and the
environmental impact assessment.

 

Lagoa Salaga - Drilling progress (Fig. 1)

http://www.rns-pdf.londonstockexchange.com/rns/0203H_1-2022-4-1.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/0203H_1-2022-4-1.pdf)

 

Environmental Impact Assessment ("EIA" - Estudo de Impacte Ambiental)

A Scope Definition Proposal ("PDA" - Proposta de Definição de Âmbito) has
been prepared and presented to the Portuguese Environmental Authorities ("APA"
- Agência Portuguesa do Âmbiente). This preliminary and optional phase of
the EIA procedure identifies and analyses the significant environmental
aspects to be considered as part of the Environmental Impact Study. This
document is subject to revision by the APA Authority. Within a period of up to
45 days from receipt, the APA will define the various aspects that must be
included in the EIA and the evaluation methodology to be adopted for each of
the areas. This decision binds the Company and the APA authority regarding the
content of the EIA, for a period of two years.

Deep Penetrating Electromagnetic Survey

As previously announced (see press release January 26th, 2022), International
Geophysical Technology ("IGT") has commenced a Deep Penetrating
Electromagnetic survey over the Venda Nova deposit at Lagoa Salgada. The
program originally consisted of two large loops (Loops 1 and 2 in Figure 2)
designed to test the presence of deeper massive sulphide horizons that can
represent both original lateral or stacked lenses relative to the North
Zone.  This loop geometry centred along the strike of the known
mineralization (north and south sectors).

Initial results on this first two loops are very encouraging notably foot
printing the known ore bodies and additionally identifying preliminary a
relatively large conductor approximately 1 km to the Northeast of Venda Nova
(Figure 2). To properly constrain and further model this East anomaly a third
loop was designed and is currently being conducted, with the main scope of
maximizing the electromagnetic field with potential dip steeping geology.
Surveyed lines along the added loop were extended to the west to test the
location of previously defined chargeability anomalies. In total the three
loops will include approximately 60 km of surface EM lines. Full results from
the DPEM survey are expected by early April 2022, and once validated, the East
Anomaly, jointly with other ones detected, will be modelled to understand the
geometry, extent, and depth of the potential conductors, to determine if a
drilling campaign is warranted.

 

Figure 2 - Additional DPEM Loop location

http://www.rns-pdf.londonstockexchange.com/rns/0203H_1-2022-4-1.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/0203H_1-2022-4-1.pdf)

 

As previously reported, the infill and expansion drill program and Feasibility
Study have commenced post the completion of a NI 43-101 Preliminary Economic
Assessment ("PEA") entitled "NI 43-101 Technical Report and PEA for the Lagoa
Salgada Project", which is available on the company's website and SEDAR.  The
PEA highlighted a low capital-intensive project (Capex US$132 million) with an
after tax NPV8% of $246 million and an IRR of 55% at conservative long term
metal prices. The PEA presents a low capex, low operating cost, high margin
underground mining operation with strong economics and the opportunity for
significant benefit to the Company, the local stakeholders, and will boost
Portugal's economy through exports, taxes and local employment.

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.           +44 777 957 7216

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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