REG - Mineral & Financial - Redcorp & Ascendant Begin Drill Program

Mineral & Financial InvestmentsAnnouncement

23/11/2021 11:00

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RNS Number : 2552T  Mineral & Financial Invest. Limited  23 November 2021

MINERAL AND FINANCIAL INVESTMENTS LIMITED

Investment Update: Redcorp & Ascendant Begin Drill Program in Support Feasibility Study for The Lagoa Salgada Project

 

 

HIGHLIGHTS:

·    Drill program is planned to total 15,000 meters to help support the
feasibility study planned to be completed by Q4-2022.

·    The drill program will be divided between the North and South zones
of the Venda Nova zone located within the Lagoa Salgada Project.

·    The drill program will comprise:

o Infill and exploration drilling with the aim to upgrade, expand and improve
the grade of the existing resource.

o Supportive drilling for the upcoming Feasibility Study, and

o 6 dedicated metallurgical drill holes.

·    The upcoming Feasibility Study is a follow-on from the September 2021
PEA on the Venda Nova. Zones of the Lagoa Salgada project indicating a Pre-tax
NPV(@8%) of US$341.6M and an IRR of 68.2% (see announcement September 13,
2021).

 

 

Grand Cayman, Cayman Islands - 23 November 2021 - Mineral and Financial
Investments Limited (LSE-AIM: MAFL) ("M&FI" or the "Company") is extremely
pleased to announce that its 75% owned Redcorp Empreedimentos Mineiros Lda
("Redcorp") and Ascendant Resources Ltd ("Ascendant") have commenced a drill
program that will be used to support an upcoming Feasibility Study at its
Lagoa Salgada VMS project, located in the Iberian Pyrite Belt of Portugal. The
development costs are funded and guided by Ascendant Resources, which owns 25%
of Redcorp, as part of Ascendant's previously announced earn-in agreement with
M&FI (please refer to the RNS of August 1, 2018 which has been amended
(see announcement dated July 1, 2020)).

The drill program is planned to consist of approximately 15,000 meters of
diamond drilling divided between the north and south zones of the Venda Nova
orebody.  The program will include 6 dedicated metallurgical drill holes; 4
in the north zone and 2 in the south zone. Most of the planned drill holes
will be a combination of infill and exploration drilling on both the North and
South zones with the aim to upgrade all Inferred resources to Measured and
Indicated categories to support the completion of a NI 43-101 Feasibility
Study in 2022.  One of the aims of the drill program is to upgrade resources
but there is the potential to increase the overall tonnage and grade of both
the North and South sectors by expanding the higher-grade zones.

Jacques Vaillancourt, President & CEO of M&FI stated, "We are very
excited that Redcorp and Ascendant are beginning this drill program that will
support the Feasibility Study at Lagoa Salgada. The Feasibility Study is
intended to demonstrate and highlight the robust potential of Lagoa Salgada as
indicated by the Preliminary Economic assessment and show the potential for
further resource growth in the future to enhance the potential of the project
for the longer term."

The planned infill drill program and feasibility study are commencing
following the completion of NI 43-101 Preliminary Economic Assessment ("PEA")
entitled "NI 43-101 Technical Report and PEA for the Lagoa Salgada Project",
which is available on Ascendant's website and SEDAR.  The PEA highlighted a
low capital intensive project (initial capex US$132 million) with a Pre-Tax
NPV(@8%) of US$346.1million and an IRR of 68.1% at conservative long term
metal prices. The PEA presents a low capex, low operating cost, high margin
underground mining operation with strong economics to support the opportunity
for significant benefit to the Company, local stakeholders, and will boost
Portugal's economy through exports, taxes and local employment.

 

Proposed Drilling at Lagoa Salgada

(Fig. 1)

 

http://www.rns-pdf.londonstockexchange.com/rns/2552T_1-2021-11-23.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/2552T_1-2021-11-23.pdf)

 

Redcorp / Ascendant will also be undertaking a surface TEM geophysics survey
as part of this field program. This program will use larger loops to help
define potential extensions to the known orebodies, both laterally and at
depth as well as developing new exploration targets in known prospective
areas.

 

Proposed EM Geophysics at Lagoa Salgada

(Fig. 2)

 

http://www.rns-pdf.londonstockexchange.com/rns/2552T_1-2021-11-23.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/2552T_1-2021-11-23.pdf)

 

REVIEW OF TECHNICAL INFORMATION

The scientific and technical information in this press release has been
reviewed and approved by references in this announcement to exploration
results and resource updates have been approved for release by Joao Barros,
BSc (Engineering), MSc (Geology), who has more than 16 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.
     +44 780 226 8247

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

Jon Belliss  -  Novum Securities Limited
                     +44 207 382 8300

Dominic Baretto  -  Yellow Jersey PR Limited
              +44 203 004 9512

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