REG - Mineral & Financial - Investment Update: Redcorp

Mineral & Financial InvestmentsAnnouncement

15/10/2024 11:00

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RNS Number : 2355I  Mineral & Financial Invest. Limited  15 October 2024

 

MINERAL AND FINANCIAL INVESTMENTS LIMITED

Investment Update: Redcorp Achieves Significant Improvements in the Phase I
Metallurgical Test Work Optimization Program at the Lagoa Salgada VMS Project
in Portugal

HIGHLIGHTS:

Ascendant Reports Key Metallurgical Results from the PMS and Stockworks
Domains by Redcorp at Lagoa Salgada:

·      Primary Massive Sulphide:

o  Zinc recovery improved to 79%, up from 70%, with a concentrate grade of
43%.

o  Lead recovery stabilized at 53%, with a concentrate grade of 24%.

o  Successful reduction of mercury content through thermal treatment,
mitigating potential penalties and optimizing the project's revenue potential.

·      Stockwork:

o  Testing before the Phase I program demonstrated improvements in Zinc,
Copper and Lead Concentrate grades.

o  Oxidized samples prevented further improvements of the Copper-Lead split
during Phase I tests; Phase II program to target improved recoveries using
fresh samples.

 

Camana Bay, Cayman Islands - 15 October 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
announced the successful completion of Phase I of its metallurgical test work
optimization program for the Primary Massive Sulphide (PMS) and Stockworks
(STWKS) domain at the Lagoa Salgada Volcanogenic Massive Sulphide (VMS)
project, located in Portugal. The results of the Phase I program have shown
substantial improvements in both metal recoveries and concentrate grades,
reinforcing the economic potential of the project.

Jacques Vaillancourt, President & CEO, commented: "We consider that the
results from Redcorp's Phase I of the metallurgical test work optimization
program, mark a critical milestone in the optimization of Lagoa Salgada. The
substantial improvement in both zinc and lead recoveries, along with the
successful mitigation of deleterious elements, should ensure that Redcorp can
increase the market value of their concentrates. These advancements provide a
strong foundation for the project's continued development and should further
enhance its economic feasibility. The next phase of testing, set to begin
imminently, will confirm and build on these excellent results."

 

Metallurgical Test Work Results

Following the completion of the July 2023 NI 43-101 Feasibility Study,
Ascendant initiated an optimization program aimed at improving metallurgical
performance, particularly in terms of metal recoveries and concentrate grades,
while reducing the presence of harmful elements. The first phase of this
program has focused on the Primary Massive Sulphide (PMS) mineralization in
the Venda Nova North Zone as well improving on previous results the split of
Copper and Lead in the Stockworks (STWKS) in the Venda Nova South Zone.

 

Primary Massive Sulphide - Highlighted Metallurgical Improvements:

·      Zinc recoveries have increased from 70% to 79%, with concentrate
grades rising from 35% to 43%.

·      Lead recoveries remain strong at 53%, with concentrate grades of
24%.

·      Successful reduction in mercury content

 

 Primary Massive Sulphide      July 43-101 Feasibility Study       Latest Test Results
 PMS Results                   Zinc concentrate  Lead concentrate  Zinc concentrate  Lead 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 implementation of thermal treatment has significantly reduced
mercury content in the zinc concentrate, reducing potential penalties and
leading to two potential concentrate products:

o  Product A: A zinc concentrates with mercury levels below 695 ppm.

o  Product B: A zinc calcine product with no detectable mercury content,
which may attract a premium in the market.

 

 Concentrates             Units  Product A:                 Product B:

                                 Thermal Treatment @ 550C   Thermal Treatment @ 700C
 Zn Grade in Concentrate  (%)    45.7                       45.4
 Hg Grade in Concentrate  (ppm)  691.1                      -
 Minerology               Units  Product A:                 Product B:

                                 Thermal Treatment @ 550C   Thermal Treatment @ 700C
 Sphalerite (Zn)          (%)    65.69                      8.06
 Zn Fe-Oxide (Zn)         (%)    -                          85.45
 Pyrite-pyrrhotite        (%)    0.55                       0.01
 Arsenopyrite             (%)    8.88                       1.17
 Galena (Pb)              (%)    2.22                       0.27
 Fe-Oxide                 (%)    15.72                      2.78
 Total Oxides             (%)    0.07                       0.55
 Other                    (%)    6.87                       1.62
 Total                    (%)    100.0                      100.0

 

These results are expected to have a positive impact on the overall production
rates and the sales value of the concentrates, further enhancing the economic
potential of the Lagoa Salgada project.

 

Stockwork - Highlighted Results:

·      Open Cycle Tests (OCT) have demonstrated improvements in
Concentrate Grades for Zinc, Lead and Copper

·      Phase II testing planned with fresh samples to further improve
recoveries and selectivity between Copper and Lead

Open cycle metallurgical test work results completed by Grinding Solutions
prior to the Phase I program, demonstrated an increase in concentrate grades,
particularly in Copper and Lead concentrates.

 

 Stockworks - Highlighted Results:  Grinding Solutions OCT 8 Results
 Stockworks Results                 Cu Concentrate  Zn Concentrate  Pb Concentrate
 Grade in Concentrate               34%             43%             61%
 Primary Metal Recovery             48%             66%             41%

 

Ascendant has advised that the primary objective of the Phase I tests was to
enhance recoveries by improving the selectivity of copper and lead. However,
the presence of secondary sulphide mineralization in the sample indicates
oxidation had occurred, potentially affecting the results. Despite this,
Ascendant advise that they have gained significant knowledge from this phase,
and are confident that, with fresh samples, the recoveries for copper, lead,
and zinc in the Stockworks domain will continue to improve. These results are
expected to be in line with other successful mining operations in the Iberian
Pyrite Belt. The retesting of the Stockworks domain will be included in the
next phase of metallurgical work following the current drill program.

 

New Phase II Met Test Program to Begin Imminently

Ascendant have confirmed they will begin with Phase II of the metallurgical
optimization program imminently, which will focus on optimizing all the
various domains and validating the initial results obtained from the Primary
Massive Sulphide domain. Phase II will also include the use of fresh core
samples to ensure a more comprehensive assessment of the remaining mineral
domains. These fresh samples will provide more accurate data on recoveries and
concentrate grades, further optimizing the project's metallurgical process.

Phase II is expected to be completed by late Q2 2025, and the results will be
incorporated into an updated Feasibility Study. This updated study will
provide the necessary data to inform a construction decision and further
solidify the economic potential of the Lagoa Salgada project.

 

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, Zeus Capital Limited
+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.

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